This is the kind of thinking that keeps the masses poor, guys.
THIS. Exactly this.
When bitcoin was $10, it was a pure gamble.
You may as well go and buy a shitcoin now.
You may as well buy a lottery ticket.
This is NOT how you get wealthy.
Bitcoin will not make huge gains anymore. Those days are over.
You aren't going to turn $5k in bitcoin into 10's of millions.
What it will probably do is a clean 15% compounding for the next few years, then settle into 8-12%
You don't NEED shitcoins. You don't NEED 100x gains.
This is gambling.
Poor people: High risk, low time.
Wealthy people: Low risk, long time period.
VC tech bros: Same poor person mentality. They give up their company for investment. It's like being a slave in roman times and your master gives you gold to go to the market and lets you take a bite of the meat and a sip of wine. Oh thank you master. I'm so privileged.
Because they want FAST/INSTANT money. They're thinking. Yeah, I will get an instant payout when we go public in 3 years.
99% of them make nothing.
Instead, if they just built a small company, made $5 mil and compounded it they'd be set for life.
But everyone wants it NOW.
Trust me, when you're 60, you'll wish you'd compounded early. You will feel pretty much the same as you do now. You won't magically be a radically different person. You'll just have less energy and less time.
If you're in a poor country and don't think you can make huge amounts, then my advice still stands. Just lower the amount.
Make $5k/mo online, bank $4000.
Do that for 10 years.
By year 10, your portfolio is $774k at 9% compounding.
By year 20 it's $1.9m
by year 30 it's $4.6m
It's that easy.
20 year old in India or whereever. You can do shit and earn $5k/mo. This is NOT a huge amount of money.
Grind and hustle for 10 years. Bank $4k every month and live off the $1k.
By the time you hit year 10, you can take a 2% loan, tax free from year 10. At year 10 that gives you $15k/year
By year 15, your loan is $24k/year
At this point, you don't have to work to maintain your life, and you keep compounding.
You're 35, your loan is $24k/year and your principle is $1.4m
You can also keep working. At this point, you don't have to save shit. That's the magic. Keep earning $5k/mo. Now you've got $5k/mo and $2k/mo from your nest egg. $7k/mo to live off. Every month. Spend it all.
You're now 40, you're still working, maybe you're making $10k/mo. Your nest egg is giving you $37k/year. $3.4k/mo. You're ballin'. Your principle is $1.9m
You're better off than most Americans at this point.
By 50, you retired. Your principle is now $4.6m and total debt is $966k. You keep compounding on the $4.6m and the debt negatively compounds at a lower %.
Your LTV is only 20% and you're 50, so you can increase to 3% yearly safely.
You're now taking home $139k/year, tax free $11500 per month.
Life is fucking amazing. Maybe you start a little business and make another $10k/mo. You keep spending. $20k/mo on lifestyle. You can even fly private once a year for the experience.
By age 55 you're at $218k/year tax free from your principle.
By age 65 you're at $535k per year. HALF A FUCKING MILLION DOLLARS. Tax free.
As an Indian who just made the decision at 20 to hustle and make $5k/mo, and put by $4k for 10 years. Maybe worked 60-70 hours a week in his 20's to do that. It was hard and you don't want to go back, but those 10 years have set you up for a life that most americans can only dream of.
At age 75 your total net worth is now $43 million.
Yeah. 43 MILLION.
Compounding.
Your total debt is $14 million. Your LTV is 33%
Your yearly is now $1.3 million.
You have enough money to fly private, charter yachts and hang with your grandkids on the yacht.
You die at 93. Your net worth is $180 million. You die a decamillionaire.
Your total debt was $58 million with 34.6% LTV.
Your net is $120 million.
You setup a trust for your grandkids. You left a legacy.
And all you did.. Worked 70 hours a week for 10 years doing online services and living on $1k/mo while banking $4k/mo for 10 years.
That's the reality. But the world will tell you to "build the next facebook" or "invest in complex financial products".
No, you just buy a s&p 500 tracker. If it doesn't go up over a 15-20+ year period it means the world basically ended.
P.S. If you want a little more of a modern, slightly riskier version(and my exact investing strategy)
Mine is 50% S&P 500, 30% bitcoin etf and 20% microstrategy.
I really doubt bitcoin will go to 0, and that, will probably have an edge on pure s&p 500, especially over the next 20 years. Probably about 20% average compounded over 20 years vs the s&p's 8 to 12%
Read the above.
What's your next excuse?
Or, we can just lower.
Earn $1k/mo online for 20 years. Bank $500/mo
By year 40(When you're 60) you have $2mil net worth, and your 3% loan is $65k/year or $5k/mo
But if you can't even make $500/mo extra, then sure, this isn't for you.
