If we desire to attain real wealth we must learn how to effectively invest...
But before we even think about investing, we must first gain some finances to use for investments.
For a long time I was very poor at managing my finances and always spent more than I earned, effectively living on credit.
This is the opposite of investing and will rapidly run you into a financial mess if not worked on.
Now? I use T Harv Eckers approach to managing finances which he shares in detail in his book, Secrets of the Millionaire Mind
The six jar system is used to break down your income into 6 key areas.
- Living Expenses 55% - aim to have your living expenses equal no more than 55% of your income
- Financial Freedom 10% - The key jar used for investing and NOT TOUCHING, let it grow!
- Long Term Savings 10% - Want a holiday or new car? SAVE for it rather than financing it!
- Self Improvement 10% - Investing in your continuous education is essential towards growth.
- Fun Jar 10% - Set aside some funds for fun, because what's the point of earning if we don't enjoy ourselves?
- Charity Jar 5% - Give something back to the things that matter to you. When you're generous with money, money is generous to you!
Right now my income is 99.99999% from a job which I desire to break free from. For this to happen I need my income from investments to rise, which is why one of my main crypto goals is to buy and hold NEO (for the GAS dividends).
Also, to accelerate the process, I will re-invest dividends fully back into assets in order to grow the assets quicker and hence increase the dividends, until the point where my dividends equal my job income... and viola! Quit working!
So, 10% of my income (the financial freedom jar) currently goes into crypto investments. My trading education is funded from my self improvement jar. Every month I am slowly growing in knowledge and financial wealth!
This method of financial management has menat some sacrifice. We search for cheaper holidays and I drive an old car that serves my needs right now.
I am tempted to finance a better car, especially as everyone else around me has nice cars on finance too! But this is what led me to debt and if I want to break the cycle and retire young, then I need to make these sacrifices.
People may criticise me, or even laugh at me now, but when I quit work and buy my yacht, who will be laughing then?
About me...
I've had an interest in trading since 2009 after I attended a seminar on spreadbetting...
But I never really took it seriously and have been in and out of trading ever since, losing plenty of money along the way but gaining some valuable experiences which only now is falling into place.
2017 led to a chance online meeting with a former RAF pilot-turned-trader which ignited my trading interest again and this time I was armed with a better mindset and a better time structure in order to focus on learning this life valuable skill!
And what an interesting time to jump back on board the trading train! With cryptocurrencies gaining attention and the blockchain technology becoming more widely adopted, we have a unique opportunity to capitalise on the huge gains this market has yet to offer!
I'm still early on in my serious trading journey and still have a lot to implement and learn... but I hope to inspire others along the way! In order to survive and keep paying my bills, I still have a full time job which I invest 10% into my trading pot each month and allocate 10% towards continuous education and knowledge.
I am part of the Realistic Trader group run by that ex-RAF pilot and now one of the biggest voices on Crypto's, Siam Kidd. This offers me education as well as ongoing support to help me on my journey. If you'd like to be a part of this group too and learn how to safely buy and trade cryptocurrencies, come along and join us! - Disclaimer: This is an affiliate link but I'd only ever offer services that I actively use. Plus the affiliate fee would really help me to add to my trading pot.
You can follow my journey here on SteemIt (If you get any value from my posts then please UpVote it. As Tesco says"Every Little Helps") or come and visit my website at EXF Trading
North West Cryptonians!
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