Crypto Can Make You Money But It Can't Make You Financially Responsible
Hey Jessavers
Cryptocurrency has gathered quite a frenzy around the idea of getting rich quick and it's still a massive part of why people are excited about this industry. I am by no means the exception, but I do have a more grounded approach to the sector and the opportunities it will provide in the future.
Crypto will provide new financial products, competition for banking, make finance more independent, provide more competition and innovation. It will create new jobs and ways to exchange money for labour, goods and services faster than ever before.
Surely all this promise is enough to get anyone excited and bullish on the long term. However, most of us aren't long term thinkers and many of we have never been prepared to handle large sums of money.
If we look at those who have won big in gambling or the lottery many of them end up right where they were before once they've had that lump sum dropped in their bank accounts.
It takes more brains to keep money than it does to make money
As Bitcoin continues to rise in price well above all-time highs you'll see people flocking back as FOMO brings the gold rush, we'll eventually see the same trickle-down into altcoins and the madness will ensure.
Many people will find themselves in profit as they did back in 2017 with large sums of money they didn't even dream of having.
History has a tendency to repeat itself and so too will a new batch of cryptocurrency holders fall for the same pitfalls as the last batch. I've been around since 2016 and I've seen all sorts come and go.
The class of 2017
I've seen many people who made large sums of money from a few $1000 to a years salary or more with very little money down. A lot fo them have never had access to that kind of liquid capital and rightly cashed out and took their profits. Having a big break like that is sometimes a once in a lifetime event and should be handled with care.
However, I see many of those 2017 winners of the market back to square one. Just the other day I saw someone who made big money in crypto and went on fancy holidays in 2018 now asking for money to pay for bills, it's shocking.
The scary thing is this person still has a full-time job.
The moral of the story is manging money doesn't come as soon as you have a lot of money. It should come way before that if you don't know how to manage a $100 what makes you think you can manage $100 000?
Make reservations for wealth preservation
If you are going to take profits in this bull run I encourage you to research how you're going to use this springboard to set yourself up for the future. Instead of thinking all the electronics you're going to buy, branded clothing, holidays or whatever you deem important, even if it's living expenses which I totally understand.
Find a way to at least put some of those profits back to work for you.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."
Let's connect
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I totally agree to this. Money made with stress shouldn't be wasted off for temporary pleasure. If one can't make his money work and reproduce while he sleeps, then he's bound to face up with financial challenges.
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I don’t think many peoole think the about the cost of stress they put on themsleves by making bad financial decisions! I don’t think I could live constantly freaking out
The problem is most people are always too excited for pleasure that they forget how long the road was to get there
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Indeed it’s all one big marshmallow test and most of us fail! It’s so easy to get caught up in money traps and people normalize it
That topic should be part of education from early on. How to manage your money, how to make it work for you. Unfortunately the spirit is more how to work to make some money nowadays.
There are some great books that everyone should give a try. The millionaire next door, think and grow rich, rich dad poor dad. Even if M. Kiyosaki is not so good at applying his principles apparently ;)
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I agree lol i am still waiting to use much of what I learned in school and Uni I think since banks fund schools and unis it pays to keep people ignorant on finance and making the same mistakes
I do think those books are good and Robert drops some concepts now and then but he just talks around things and hardly says anything concrete and his been living off that book revenues and branding for years lol
Damn right.
In my shitty country they’re even making new laws to make illegal home school.
Just to make sure they can brainwash our kids.
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Keep them just smart enough to do the work but not smart enough to realize they are being misused!
True
Lol I tend to preach
wise advice
I hope I follow it during this next run, or at least less wrong than Last time
2017 was the first time a lot of people experienced the bull Market and of course more people made mistakes but inasmuch as we haven't really seen a perfect bull, I think this time the experience will make people make better choices.
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LOL somehow I doubt that, greed and consumerism tend to get the better of even the most leveled heads! Yes there will be a few that learned their lesson but in less optimistic that a bigger number won’t be thinking about blowing their cash earnings
I agree with you 👍
I hope you’ve been planning on how to preserve your crypto earnings 😁
Very true indeed
I have heard of people winning lotto and wasting the money on partying and expensive things like cars.
It’s ok to do this if you have a solid revenue stream.
I would make sure that I put my money to work for myself first before jumping on these luxuries 😀
Living experience first, investment to secure future second and then luxury items to buy with whatever is left.
If not enough money is left for this I will reinvest the leftover to make it grow so that I can buy that luxury 👍👍
I agree sure you should enjoy your money I mean you can’t take it with you when you die but sure you should think about making sure you never need to run out and still live within your means
Most people only know how to earn money and spend money and never learn how to make money
Yeah putting money to work is one of the biggest lessons I've learned in the last 3 years after getting wrecked in 2018. Compound interest, staking rewards and looking long term to what that would look like keeps me in check if I start getting twitchy. I wouldn't turn down a life changing sum of money if it came my way now though 😁
There was a guy who won the lottery here a few years back and basically went homeless or back on benefits a couple of years later after squandering it on alcohol and lavish purchases!
Lol it sure does test your patience but it shows how geared we are to instant rewards, but I wouldn’t mind a lump sum in my account either, hopefully my little some becomes one in 10 years of chipping away at it
I think a few million you could blow in a lifetime but a few billion that would be quite the task! Even so a lotto winner or even a pro sports person should have no excuse to ever need money
Yeah definitely! If Mezut Ozil blows all his money away after Arsenal have subsidised him the last few years generously, no sympathy here!
Lol I would have zero sympathies for any footballer who winds up broke, even the not so top ones, I mean 30 - 60k a week FFS if you can't use that to set yourself up for life, then there is no hope for you
A years salary in a week... FML, if only I got picked more often when I was in the team back at 9 years old - scored 3 goals in the two games I was allowed to play, could have dreamed about making it in the big time. Now I'm in bloody admin 😂
LOL I would be happy with 1 youth contract give me that 5 year deal from 17-22 with 10-20k a week and no chance of making the first team, yes please. I'd be spending my time on the bench stacking sats
Haha yeah likewise, call it a tactical satsitution
It takes more brains to keep money than it does to make money , what if you don’t have brains but blond hair would that be a big problem ?
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LOL well you can also make money with boobs more money than I can even earn with the brains I have
Yes what a great idea ! I will for sure keep that in mind
LOL with assets like that I am sure you'll have no problem
Typical dumb money way of life. The idea is to keep on reinvesting and make money work for you not to spend them all. I sure know how I will manage $100,000 if I'll get there. Not much will change in my lifestyle for sure.
I know there's a bear market coming right after the bull market and one has to be prepared. Ridding these four years cycles with the head on your shoulders can provide for a life time.
Crypto is lifechanging for however understands it, its market cycles, and has the vision for a sustainable growth.
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Lol I think we are all the dumb money one time or other, and I know I’ll be dumb money in the future for someone else I just hope that the times I am the smart money I win big and then I can put it into a more stable investment vehicle
I am not a fan of the idea of working till I’m old and Gray so picking my opportunities thag could help me avoid that fate is all good with me
Indeed money management is important. I think that it takes a lot of trial and error to learn how to keep the money. Financial education is paramount for maintaining the high level of wealth that so many people dream of
!ENGAGE 10
I can't imagine what it must feel like to have all the money you've needed for a lifetime and then throw that opportunity away. Lol the instant I know I don't have to work for a living I would be so thrilled I'd never let go of that feeling
I can imagine how you would feel... The sky would be the limit
ENGAGEtokens.I hear of so many stories of Lottery winners go bust in a mere few years after a big lottery windfall, the level of Financial knowledge is so appalling in our culture.
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I watched a few youtube videos about it and it's nuts, it just shows how important financial knowledge is that you can be gifted multiple millions and still lose it in a lifetime. An amount many people will never even see in their lifetime
Excellent question and, as you say, time has proven again and again that managing large sums is harder than managing comparatively small ones.
I've haven't cashed any any crypto yet. I've used crypto within the crypto environment but never cashed out to fiat.
I'm not so interested in capital. What I'm after is regular income.
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Wise words.
I feel more people should read / listen to the Richest Man in Babylon, a book I shared in my most recent Leofinance post. Have you heard of it?
It would have helped me a lot in the past but I'm happy to have discovered it now.
Cheers!
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