Just about everybody I talk to wants to become financially independent. But why do so few people get there? Amassing wealth and becoming financially independent is a slow process that takes time. You have to do small things every day such as cut your expenses, generate extra income, and put the money into brokerage and tax-deferred retirement accounts. With time, it begins to amount to something. Conclusion? Boring stuff!
But the disparity between the rich and the poor is growing at a much faster pace today than at any other time in history. With the advent of the Internet, we can virtually become millionaires from anywhere in the world, even from the comfort of our home. The gap between the two is growing because of the opportunities that people see or don’t see.
Many people are given the same chances in today’s world… but the majority of us see no opportunities, while at the same time the financial savvy see innumerable ones. These opportunities are abundant and everywhere; we just have to be trained to see them for what they are and not worse than they are, like most do.
The whole World Wide Web with all his markets offers insights on how to accrue money from any age and from any background, if, we would only change our thinking. We are what we think about, and if we think from the perspective of a poor or middle-class person, thinking we have no chances at attaining the ‘elusive’ concept of success, we are setting ourselves up for failure.
So first things first. “Decide You Want It More than You Are Afraid Of It” OK – that quote is from the recently discredited Bill Cosby, but it’s brilliant nonetheless. And it’s an important point too. One of the reasons more people don’t reach financial independence is they’re afraid – not of being financially independent, but of the changes in their lives they’ll have to make to get there.
Another one of the secrets to attaining financial independence is that it doesn’t usually “just happen”. It starts with a detailed plan, and a willingness to commit to that plan. You might think there isn’t a cool and fast way to do it, but I think there is and I am willing to take the gamble.
What I’m seeing today in the crypto currency space is unprecedented. I’ve never seen anything like it before, never seen an opportunity quite so big as we see right in front of us now. And I’m not just talking about straight up buying Bitcoin and holding Bitcoin, although that will make you some money in the short and definitely in the long-term. But I’m talking about a structured plan. A combination of Hodling, Mining and Trading to earn more coins, compound everything and become financially free. I’m going to be talking about this in the next 36 blog posts.
My Goal: earn $500 passive income every day
My plan is to use the 247-PROFIT service to start mining & trading and generate an average of 0,55% daily return on my active investment. Than add an additional $1.000,- to my trading account every week and compound everything for the next 36 weeks. I bought mining equipment and let it run by the 247-PROFIT team. As of today I am earning $15 a day mining Ehtereum. Secondly I started demo trading with the trading software and untill now I am experiencing a relatively low daily return of 0,34%. This has a couple of reasons. The first major reason is ofcourse the overal cryptospace is on a downtrend and the second reason is cashflow. Because the market is down, my trades are currently at a loss (bags) and there isn’t enough money for the software to open new trades or to buy me out of trades using DCA.
In my plan, to become Financially Independent, I have to add an additional $1.000,- to my trading account every week. To achieve this I challenged myself to live like a broke person but earn more than $1.000,- a week as an Uber driver. On average, an Uber driver in Amsterdam is generating a revenue of $25 an hour. So to pay for gas and expenses but still profit $1.000,- every week, all I have to do is work 60 hours a week for the next 36 weeks. Only if I can keep the motivation and discipline to spend the money wisely and try pretending like I don’t have any money to spend, I will succeed. The challenge starts on the 16th of april and ends on the 1st of januari.
My current crypto earnings look like this:
- Mining: $15,- daily revenue
- Hodling coins: Currently not holding any coins
- Trading: 0,34% daily return on active investment
- Uber driver: $1.000,- a week
If we put these numbers in a compounding plan it would look like this. See the below sheet. According to these numbers, the trading software needs to generate a daily return of at least 0,55% to reach my goals on the first of januari. As you can see, I am adding $1.000,- to the trading account every week. Also the $15,- mining revenue is added to the traiding account every day.
When I talk to non-entrepreneurs about the startup world I often use a pirate analogy. Not because I know that much about pirates, but the general stereotypes work well as an analogy.
Why did some people way back in the 17th century, or whenever, become pirates? The likely payoff was abysmal, I imagine. There’s a very small chance you’d make a fortune from some prize, and a very large chance you’d drown, or be hung, or shot, or whatever. And living on a small ship with a hundred other guys must have sucked, even for the captain.
But in my fantasy pirate world these guys just had really screwed up risk aversion algorithms. Unlike most of the other people they actually lusted after that risk. The potential for riches was just an argument for the venture. But the real payoff was the pirate life itself.
Most people have an aversion to risk which means they have to be rewarded to take on that risk. The higher the risk, the higher the possible payout has to be for people to jump.
We make risk/reward decisions every day, all day. Do I go skiing, and enjoy the rush of flying downhill even though there’s a small chance I’ll blow out a knee? Should I go to college or just get a job and start earning money now? Should I eat the high fiber and generally healthy thing on the menu, or go for the cheeseburger? Should I hit the restroom before the movie starts? Etc. Every time we do something, or don’t do something, there’s a risk/reward algorithm being calculated in our brain.
Entrepreneurs, though, are all screwed up. We don’t need to be rewarded for risk, because we actually get utility out of risk itself. In other words, we like adventure.
The payouts for starting a business are just terrible when you account for risk. A tiny minority of entrepreneurs ever get rich. And the majority of entrepreneurs would probably make far more money, and have more stable personal relationships, if they just worked for someone else.
In my youth I was an honor roll student, earning grades above average but instead of looking for a job and steady career prospects I started my first business when I turned eighteen. My thoughts where simple: All I had to do was work hard, and bring in clients. I was good at both.
I’ve never looked back since then. Even though I stayed broke for the next decade I never doubted my abilities and never regretted my decision. And the reason I did it was adventure. I wanted to be in the game, not just watching it. My friends and family thought I was crazy. They still have no real idea of what I do for a living. Hustling is what I tell them.
The companies I started after that varied between failures and mediocre successes. But at no point did I ever consider getting a “real job.” That felt like a black and white world, and I wanted technicolor. Also, I hate working for other people because I’m really bad at it.
I don’t care if you’re a billionaire. If you haven’t started a company, really gambled your resume and your money and maybe even your marriage to just go crazy and try something on your own, you’re no pirate and you aren’t in the club.