This matters when you want to be wealthy

This matters when you want to be wealthy

By felipejoys | felipejoys | 30 Jul 2021


image.png

 

Liquid money x Income

Are you not rich yet? You have to know this. In this article, I'll lay down some financial ground rules everyone in the world should follow if they want to become wealthy. Maybe you're rich, but you're struggling to maintain wealth. In that case, reading this might also be in your interest.

The foundation of wealth is income, not money itself. You might save up 100,000 USD then buy a house you'll rent for the usual 1%. That could take you several years, but you'd only earn ~500 USD monthly for it. Does that make you rich? No, it absolutely doesn't. So why bother saving up this much at all?

As a poor person, there are two sources of income you have to worry about: your job's and your hustle's. If you don't have a job, then your hustle is actually your job. You need both, so you can maintain your monthly needs and routine while also hustling for extra cash. You grow with hustle money.

My inflation

For me, writing on HIVE was a hustle, but it's now my job. Although it started easier on me because I used to get ~200 USD financial aid from relatives, this has recently stopped. I'm doing all right, as I spend ~$80 on healthy food and ~$50 on cleaning and hygiene items. Whatever comes as extra is spent in one way or another.

And then there are my hustles. From crypto games to passive investing, most of the money goes straight into additional investments - raising my overall income. No matter how much I spend in a single month, I'm not going to be broke, because there's always going to be that much more cash again in a few weeks.

Your inflation

It may not seem like it in our daily lives, but inflation is constant. That's a part of capitalism and it's the reason why streams of money are the number one means of survival. Everything you consume is a "service", from deteriorating products you'll eventually replace to monthly subscriptions, entertainment shows and news feeds.

When it all inflates, your income should as well, as long as it doesn't rely on a completely deprecated product. Although there are thresholds you need to save up for if you want to achieve them, it's a lot easier and safer (and almost just as quick) to stack up sources of money over time. People intuitively expect this will happen to, i.e., minimum wages, but understanding the logic behind this is life changing.

 

image.png

 

There's a humongous difference between saving up $100 and increasing your earnings by $5 monthly. One hundred dollars today is worth a lot less than one hundred dollars in a couple of years, but $5 monthly is worth more instead if that's actually calculated as a %, but even if it's a fixed 5, you can still compound it. No wonder crypto staking is so popular!


Image source: https://cubdefi.com/

How do you rate this article?


24

0

felipejoys
felipejoys

PC gaming enthusiast, both AAA and indies get love


felipejoys
felipejoys

Follow me if you liked this article!

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.