Weath Tips - A Practical Example

in LeoFinance2 years ago (edited)

Good evening.


We talked about how to "Have Money" or in other words, how to feel at ease having money in the house without your mind finding uses for it. It is okay to just have money and not want to spend it. Part 1

We talked about the system of spending only ten percent every three months. How it would be nearly impossible to spend all your cash if you follow that plan. In other words, the money automatically collects in a drawer. A habit of having money and spending a fixed amount outside of rent, food and bills. Part 2

We talked about building a habit of not wasting what you have and taking care of the things that should last so that they do last. That helps to avoid buying something again before it should be necessary to do so. Part 3

image.png Hive purchased a year ago - the car I did not buy instead.
read to the end to find out why this is relevant

I will lay out a sample life with round numbers similar to those of my last job, along with bills, and some credit card debt that we will ignore until it would be pittance to pay off, as planned!

Salary 1,000 per week - $52,000 per year.

First month:
1,000 Rent.
$ 800 Electric, gas, phone, internet, etc.
$ 300 Car insurance, gas, maintenance.
$ 600 Food.
$ 300 Minimum payment on credit cards.
$ 400 Giving to charity (10 percent of pay).

$ 600 extra. We cut out fast food and bar hopping in order to have money to have.


Now, plan to spend $180 on February 28th - that will be your ten percent. You could use this on a new shiny object that you always wanted or you could just spend half and put the other half in your wallet for anything you feel like getting. Maybe some fast food with friends from work.

You will also have $1,620 to play with - you need to decide on where to put it. Buy gold, silver, crypto? It could go anywhere but in the bank.

  • that's 1,800 - three months saving 600 per - less 180 = 1,620

You go another three months...

It is late May 2022 and you need to decide what to spend your $342 dollars on. What investments would bode nicely for your $3078 which is just laying around? It is the money you have learned to have.

Moving on to August

You are looking to spend $487 on whatever you want. It is your money and it is what you agreed to spend in order to find financial freedom. You have $4,390 that is being invested and we are not tallying any return on investment. I will not try to estimate that, for now, for simplicity.

The one year mark

You have $6,190 and it is time to spend $619 on gifts for you family and friends. And you can do that without adding to your credit card debt.

You have paid $3,600 in interest on your credit cards during the year and at the same time, you kept $5,571 in silver or crypto and made money holding that asset.

Fast forward another twelve months to November 2023

You have controlled yourself for 24 months with increasing mad money every quarter...

You have $10,252 as November comes to an end, and you can take $1,025 and do whatever you want with it while still staying on the road to increasing wealth!

The pressure is off

When I got to this point in the program, I started to count my wealth, the money I have, in terms of time instead of dollars. In our hypothetical case study above, I would have counted the entire experience as having given me a three month window. If something bad happened and I could not work, with no income of any kind, I could go on living worry-free for three months before any feeling of crisis would come over me.

As time went on, I started to count the years that I could go jobless without worries. I want that kind of feeling for each one of you who has taken the time to read this series. You will find, at some point, that another quarter ends and you do not really feel the need to spend a whole thousand dollars. That is alright. The next quarter will have a bigger amount that you can spend - or not.

Editing the plan

I am eluding to the option of rolling the quarterly spendable figure back into the money you have. You will find that the feelings of freedom and security are so nice that spending seems to be secondary. You have a thousand dollars you can spend on anything you want. Your needs are covered every month, so spend it all if you want or just spend half and let the other half ride.

As my quarterly mad money comes in, there are times that I spend it all on a wild frenzy and other times, I just leave it on the desk and spend what I can. Sometimes I cannot spend it all even if I try. Other times I find that I do not need to spend any of it. If you are satisfied with what you have, you may just want to become wealthier instead of spending. Your mad money every quarter will only increase.

Editing how much you spend only applies to the ten percent that you can spend. Reducing your income or increasing your monthly expenditures is not a good idea. It would be like cutting down the apple tree to get the apple down. You will miss out on all the other apples it would have produced.

This works

I have done it four times in my life, each time starting from zero again.

I am coming up on one of my quarterly times. The amount equals a decent house that I could purchase. I have always opted to not buy the house because the assets that I hold will likely triple in value at the very least. If I buy the house, it could be the worst form of depreciation one could experience.

Imagine living in a $200,000 house that you had purchased using 1.8 million Hive. How much is that today?

image.png Hive purchased a year ago - the car I did not buy instead.

A year ago nineteen thousand dollars went into Hive and today it is worth $200,000 - that is public record via my posts and wallet. There is nothing I could have spent nineteen grand on a year ago for which I would be two-hundred-thousand proud of today.

Let me know if there is anything I need to clarify about this reverse Ponzi scheme.

Links to my Wealth Tips series
1 How to Have Money
2 Debt and Percentages
3 Waste not, Want Not
4 A Practical Example
5 Cost Averaging for Investing
6 Overnight Successes


$ 400 Giving to charity (10 percent of pay).

One of a kind in here.

A year ago nineteen thousand dollars went into Hive and today it is worth $200,000

When seeing the price of HIVE currently I honestly regret not putting all my crypto money into it. Not even one crypto I hold has so far outperformed HIVE.

Let me know if there is anything I need to clarify about this reverse Ponzi scheme.

Absolutely nothing, but I still don't think I could be that meticulous about my finances to put all of this into practice.

Posted Using LeoFinance Beta

One of a kind...

When I cash out, which is my income, I have some pretty large beneficiaries.


It is pretty simple to pay all bills and toss the rest in a drawer. Once in a while, count it and take out ten percent for spending on whatever. I have never made a spreadsheet or anything.

It's called controlling expenses now for super wealth later, that's all.

@ezrider , I found this to be very useful and instructive.. I remember when I use to be active in bnb contracts groups... before a pump everyone shouts "When Lambo?" .. the mindset of using finance could be tricky. I personally give back more than 70% profit after a successful trade,because I always wanted to trade more (yes! Human wants are insatiable!)

A year ago nineteen thousand dollars went into Hive and today it is worth $200,000 -

As at writing this comment, it is worth alot more. We all have alot to learn and this statistics and breakdown you've given is very helpful.


Thanks for sharing! Have a lovely Friday with 3$+ worth of $hive

What a great post. I have always said, it is not what you make, but what you save that is important. And you are showing it is not so much you save, but what you invest in.

If you had just saved the 20k in USD, it would still just be 20K. But you put it in the right spot at the right time and saw eye popping growth! 10x in one year is amazing!

Savings in dollars ended in 1970. People were still investing in CDs back then and the dollar value of their investments went up, but then they were charged for capitol gains on the increase (which did not keep up with inflation). That is the biggest scam of all time. Taxing a nominal gain while the intrinsic value had never gone up.

If I had saved the 20k in cash, I would have lost almost $3,000 in purchasing power during the year. Holding cash is the worst investment.

Cash is my wife's favorite investment. !LOL

What is a cows favourite song
I like to mooooove it mooooooove it

@ezrider, I sent you an $LOLZ on behalf of @captaincryptic
Use the !LOL or !LOLZ command to share a joke and an $LOLZ. (1/8)

What if someone is receiving a salary less than $230 for a month?

It works no matter what the size of the income. It does take a little bit longer to build the wealth, but it will work. It is about the percentages.

Hello Buddy,please how can I chat you up on discord?

Hmm thanks for your advice.
I have been doing it from the start over here. Good to have some hive as a replacement for my savings since I don't get much to save from my monthly salary.

Last time I mentioned how I still remember your post about investing in Hive and here it is, the re-evaluated investment now in numbers! This is fantastic!

I've done a few posts about what I could buy with my earnings on Hive and have picked different cars as people love cars. The first was a pre-owned vehicle as that's what I could have afforded back then. Then after some time I could afford a new one of the cheapest made in my country. Now that HIVE is close to $1.4 soon I could buy a small flat.

But would I do it? Nah, it would be the most stupid thing. I would cut the tree to get the apple as you said or totally kill my investment.

I wish heavy spenders living in debts could see the advantages of saving and getting the necessary financial freedom for themselves. Crypo is teaching you to save and invest as buying early and holding has huge advantages.

Thanks for another great episode.

Posted Using LeoFinance Beta

I remember your post about the new car! I like the analogy, makes sense and it is easy for folks to see that. I also love the analogy not going to cut the tree to get the apple!

I think it’s good to have folks around that are smart with their money to just talk to. One of the toughest things is finding someone to just ask what they think about X situation if it arises!

Yeah, those posts were funny and looking back now it's amazing how much you can grow if you power up and use your stake to grow.

You're right, we have to learn from the smart ones and lucky us, we have a community here.

Posted Using LeoFinance Beta

Definitely that's a nice strategy for one to manage his fiance and great way up. Thanks for sharing and have a wonderful day.

I knew the commercials were lying with that whole "Kia. It's a great idea" thing 😀

Just saying we love our Kia! Lol

We did too.. until Beth thought driving the mountain pass in a blizzard was a good idea.. I've still got shit stains in my drawers from that trip

Hahaha well yeah, the Kia's aren't built for that! LOL I don't know if a Hummer would be able to handle that one very well.. I've been there though, we drove home in a blizzard in a Oldsmobile many years ago hahaha

We had the only Kia on the road. Every other vehicle was either a Jeep or a Subaru.. A Olds would be a hairy ride too

This is a great plan for sure man! I am having a little trouble following some of the numbers though, I get the 10%, that’s not bad but the other numbers like 6190 and stuff I’m just having trouble getting to.

In any case though, I think this is all very sound advice for sure. One of the things that I’ve been doing weekly for the past 4-5 months is putting some money into crypto each week and seeing the value of that go up versus the fiat dollar value has been great. Granted I don’t think it will be the two thousand percent you saw but I’m loving what it’s been at regardless!

That car could have bought a house! Lol.

Income, less expenses, leaves 600 at the end of each month. So 600 times 12 is 7200 for the year if you just save it all in a drawer. But, we have been spending ten percent of our stack every three months. It all works out.

Most people grow up with a very short thought process.

  1. see cool item.
  2. count money.
  3. do I have enough?
  4. if yes then buy item.

That is a plan that always leads to empty pockets.

Ah okay I got it, sorry I was seeing 6190 in the post and that threw me off lol. I get what you mean!

Just stopping by to say that holy shit this is a wild ride dude! That car investment could buy a decent beach house in Florida somewhere right now lol. I wonder what the top will be to this and when we will settle down at a bottom. I'm sure you'll take advantage and trade some stuff! Good luck with doing that man!

I swapped out some Hive for Bitcoin the other day - one topping out and the other down $14k, who wouldn't. This is a lot of fun.

Great way to manage our finances..lovely strategy...thanks for sharing @ezrider

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This is educative and helpful @ezrider I have learnt alot from your post and I will definitely apply this meaningful information or advice to my plan looking forward to see more of you on my post for correction and advice @ezrider