The longer that you are in the Bitcoin market, the more you will begin to understand that we are different from most people. The harsh truth is that most people aren’t planning for the future. They are spending every dollar they make, and oftentimes are going into extreme debt. They fall into the trap of consumerism and try to keep up with the Joneses. Unfortunately, most people aren’t budgeting, putting aside money, investing, or even thinking about the future. Assuming that either the government will take care of them, or that they’ll simply figure it out some other time. That it isn’t a problem that they need to worry about right now.
During the last few decades, the world has transformed into a place where everyone must become an investor if they want to have any chance at retiring. Company pensions are becoming a thing of the past, retirement benefits from governments are unsustainable, and interest rates earn from cash kept in the bank isn’t enough to outpace inflation. Thirty years ago you would have been considered extremely wealthy if you had $1 million, and being able to retire would have been a certainty. Now, you need to have $3-$5 million to have the same level of spending power. This problem will only continue to become worse and you will need to continuously have more money to keep the same level of lifestyle.
The sad fact is that most people around us today will have no chance of retiring. They will be forced to work until they die, and will never be able to finally escape from the rat race and fully enjoy life.
While this may sound like a doom and gloom type of scenario, thankfully there is a solution that can save everyone from this happening to them. But, it is something that most people don’t want to hear.
Financial Planning.
While it may sound like a boring method for most, however, financial planning is not an option. It’s vital for you to have success.
Unfortunately, most of us will never be able to become wealthy from our salaries alone. Therefore we need to think very carefully about how we can not only maximize our salaries but grow it.
The most obvious thing that you need to begin doing is keeping a strict budget. By eliminating expenses that you don’t actually need, you will be surprised at how much extra money you are able to find.
Next, you need to take advantage of free money wherever you can get it. Many employers will match contributions to retirement funds fully or up to a certain percentage. This is free money that you need to be taking advantage of.
After that, we need to become investors. To grow wealth, sometimes the slow and steady way is the best way to do so. By investing in funds such as the S&P 500 which have historically appreciated by 8% or more yearly. This can be a great method to grow your wealth. By continuously investing, you should be able to double your money in ten years or under. That is when compounding becomes your friend.
Now that you are budgeting to maximize your salary, taking advantage of all free money opportunities, and investing in something steady like the S&P 500, now we are able to add a little more risk. One of my personal favorites is Bitcoin and Ethereum.
Bitcoin is currently priced at nearly $70,000, but there are many financial experts who are predicting that it will reach a price of $1 million by 2030. And that is only the beginning. What started out as a crazy idea in many people’s minds, has stuck around and is only becoming stronger. It has already become legal tender in El Salvador and is on Tesla’s balance sheet. It very well could become the next big thing, and you are taking on more risk by not owning any.
Financial planning is the key to becoming successful with your money. By maximizing your money, investing responsibly, but also taking on some risk. That is the formula that will make you wealthy in the future.
How about you? What’s your financial planning strategy?
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