If you have been paying attention to everything happening around the world you will have quickly concluded that the world is currently a mess. With rising inflation, housing costs, utilities, gas, and food prices people are having a much harder time making ends meet. They are either living paycheck to paycheck or have been forced to go into debt. Once you go into debt, it’s like having an elephant on your shoulders that is debilitating and can be life-crushing.
People are looking for any way possible to simply try and get ahead in life. That is why many of us have turned our focus toward cryptocurrency. We’ve been told that it could possibly be the next big thing. After going completely down the rabbit hole of Bitcoin, Ethereum, and the crypto market in general we are convinced that we are early to a market that could change our lives forever.
But there is a problem. Most people who are wanting to finally change their lives have very little expendable cash to invest in a market as risky and volatile as crypto. What should these people do?
This is how to build wealth in crypto starting from nothing.
Budgeting
The hard truth is that the first few steps to change your life have nothing to do with crypto. The first of these steps is to set a financial budget and stick to it. When you finally document every item that you buy, that is when you can easily spot what you're wasting a large portion of your earnings on.
You’ll be surprised how easy it is free up a lot of money just by cutting back on things you don’t need. Only subscribing to one streaming video service, eating at home instead of restaurants, eliminating impulse purchasing from Amazon, and video games. Or cutting back on other bad habits such as sodas, alcohol, junk foods, or smoking. Years ago when I was in a rough spot financially, I was able to free up hundreds of dollars by cutting back on several things and sticking to a budget.
Getting Out of Debt
If you are deep in debt you should first focus on paying that off before even considering investing in the crypto market. Debt can be crippling, compounding quickly to a point that you can’t recover from. While most people won’t want to hear it, to fix this situation we need to do whatever is necessary. In our case, that means a lot of hard work, sacrifice, and essentially not having a life.
This could mean working overtime at your job, picking up a second job to work nights, and working side hustles at home. Now that we have cut our budget as tightly as possible, we now need to increase our income. Money making should be your sole focus during this time, which means you will not be meeting friends, having time for hobbies, or traveling. We can’t afford those things right now. We need to take a strong look around our house and sell anything that has value. What we were doing before wasn’t working, and we need to make drastic life changes if we want to see results.
Investing
After hard work and determination, we have finally paid off our debt. As a result of budgeting, cutting back on our expenses and raising our income. Now comes the fun part, we can finally begin investing.
While you could choose real estate, stocks, or other financial assets, in this case, we are choosing cryptocurrency. We must first admit that crypto is incredibly risky and we could lose everything we put in the market. That is why I always prefer to buy Bitcoin or Ethereum. They are the blue chips of the market, still have great price potential, but have the highest chance to be around ten years later.
Building wealth for the long term should be a set-it-and-forget-it type of process. We aren’t traders. Each paycheck keep investing in the projects that you believe in. Let BTC and ETH grow over time, and then ten years later we can decide what to do with them.
Passive Income
When it comes to investing, time is your greatest tool. Albert Einstein once called compound interest the 8th great wonder of the world. It is our greatest tool for growing wealth. While passive income isn’t currently viable with Bitcoin, we can easily achieve it with other cryptocurrencies such as Ethereum.
By buying Ethereum, staking it, continuing to add to your position, and then letting time do its thing; you’ll have created a great income generator for yourself. That isn’t even taking into account the price appreciation that these assets will likely have.
What most people don’t understand is that growing wealth really is simple. By earning more than you spend, not having debt, earning a passive income, and buying assets that appreciate over time. That is all you have to do. Growing wealth won’t happen overnight and will require a lot of time and patience, but it can be achieved by anyone. The only question is are you willing to sacrifice, work hard, and do whatever is necessary to make it happen?
How about you? Where are you on your crypto journey toward becoming wealthy?
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