Back during the 2017 crypto cycle, I was part of a tight-knit group of friends who rode the wave from six figures to seven figures. It wasn't about being geniuses; it was about being in the right place at the right time—the kind of insane market conditions that you had to experience firsthand.
Among us was David, an audacious guy with a wild plan: cash out his crypto and buy a house outright. The rest of us were incredulous:
"David, this is like getting in early on Amazon or Google!"
And with interest rates at historic lows, it seemed like a bold move. But David had a backstory that fueled his determination. He'd once run a successful business, reinvesting every penny into it. When that venture collapsed, he found himself back at square one, moving back in with his parents.
His biggest regret? Not taking profits earlier to permanently upgrade his life. That's where the concept of "raising your Life's floor" comes in. It's about improving your worst-case scenario. So this time, David wanted to buy that house—no matter what. Even if everything else went south, he'd still be a homeowner, not starting from scratch.
Fast forward to the 2018 crash. My friends and I round-tripped our earnings, losing what we'd gained. But David? His home's value has quadrupled, and he's still thriving in the crypto world.
For those of you making life-changing gains, it's tempting to splurge immediately. The Rolex, the new car, the fancy apartment—you want to flaunt your success. But remember: the future, especially in crypto, is unpredictable.
Your priority should be raising your floor permanently:
1. Pay off debt. Reduce financial vulnerabilities.
2. Invest in assets. Consider buying a home or funding your retirement.
3. Build an emergency fund. A year's worth of expenses provides peace of mind.
By doing this, you're giving your future self an advantage. Even if you stumble, that cushion will soften the fall. I've seen too many people go from riches to ramen in this space.
As for me, I've owned supercars and luxury watches. But nothing beats the feeling of true financial security—the peace of mind that comes with it. Next time you buy a new phone or laptop, think about what truly matters.
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Remember, life's floor matters more than the flashy highs. 😊