I spent 8 years researching only personal financial management & applied it 100% to the crypto market.
Here are 7 financial rules that crypto investors should know:
1. Live like a secret crypto millionaire
Absolutely stay away from "lifestyle creep". I have seen many people go from poor to investing in crypto and becoming rich. But then...
They live at the top of the ladder, showing off houses, cars, and luxury goods. They buy liabilities to satisfy their ego and glory in the eyes of others.
Control your spending before those around you control you.
Stop spending money on what you want, pay for what you need. Continue saving & buying crypto assets for the future.
Live like a secret millionaire today & tomorrow too!
2. Profit lock
You have heard the saying "profit taking is never wrong, never dies". But not sure...
If you only take profits out of USDT, you can still be wrong or die. You need to "lock in profits", i.e. need to convert it into fiat money & take it out of the market & into real life.
3. 50/30/20 Rule
Create a spending budget based on your & your family's income with 3 factors:
• NEEDS (food, gasoline, rent...)
• WANT (to travel, change car...)
• FINANCIAL GOALS (saving, investing, paying off debt)
NEED = 50% of income
WANT = 30% of income
FINANCIAL GOAL = 20% of income
Absolutely follow this principle and you will not be fluctuating in a volatile crypto market
4. Eliminate the goal of financial freedom
Many of you want to use crypto as leverage to achieve financial freedom.
Financial satisfaction or building a peaceful financial life is a better goal than financial freedom.
