Previously, for other posts encouraging readers to save HBD at 12%, we calculated that you need roughly $500 in HBD to generate $1 per week in HBD income. Another way to look at this is that you need roughly $3050 in HBD at 12% to earn $1 HBD every day.
The Value of Savings
One of the lessons in the book, The Richest Man in Babylon, is to set your purse to fattening. This is such a fundamental component of personal finance. You can't invest if you don't have anything to invest.
Even if you have some investments, it still important to have some savings set aside. One reason is that if you have an emergency, you can draw from your savings rather than have to liquidate your investment. Another reason for having savings is to take advantage of opportunities such as the present market dip. You can't buy the dip without money.
Ultimately, in cases where your savings can earn interest, such as we have on HIVE, you would have savings to generate some degree of passive income. With a 12% return, you are looking at a standard with which to measure investment opportunities. Any opportunity that occurs will have to have at least 12% or more in returns to be worthwhile. Otherwise, why bother?
Setting a Target
Our simple calculation of $3050 renders us a target for savings. It also serves as a number we can use to calculate other targets. If, for example, I need to earn $1.75 HBD daily, then we can simply do the following:
3050 x 1.75 = $5337.5 HBD
Or, let's say we target $17 HBD daily
3050 x 17 = $51850 HBD
Obviously, these are not small targets. What this leaves out is the fact that you would be earning interest all of the way to reaching your target. And, it also leaves out that the interest is compounded along the way. So long as you are consistently saving and reinvesting your earnings, you will reach the target that much sooner. And, finally, if you have a market dip, you would have HBD to take advantage.
Start with a $1 HBD daily goal.