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
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.
$ 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.
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?
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.
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