I'm all fired up...the best investment advice you'll ever read
I was super fired up yesterday, and I'm still semi fired up, like a warm oven. There is this sense of authority crypto investors have taken on about how to build wealth, but a lot of them have no idea what an investment philosophy even is, let alone basic investment principles. They have this idea of getting rich quick with stories like 'my friend bought $10000 of crypto then sold it for $500,000'. And there is some type of romanticism being part of the new free world and cutting out the middle man, revolting against the big bad corporations. When we are actually the ones that buy the shit that the big bad corporations make. We actually have the power. Yes the average crypto trader knows a fuck load more about the technology and to be honest the shit I don't care about and I don't need to care about BECAUSE IT'S NOT NECESSARY TO BUILD SUSTAINABLE WEALTH THAT PRODUCES PASSIVE INCOME STREAMS. Why the fuck would I spend my time learning the ins and outs about blockchain and what the market is doing today when I can put my investments on automation and go to the waterfall? Using EDUCATED, PROVED, FUNDAMENTAL investment strategies, that the investment greats have been using for decades? I don't want my portfolio bouncing up and down like a fucking ping pong ball every day, yes in a standard old school portfolio it does move too, but not the extent that crypto does, I want to be diversified across REAL business that make REAL things that REAL people buy that make REAL money. Invest with forever in mind, not with the next month in mind. That's how you build sustainable wealth. Why is it that the old rich people aren't investing in crypto? Why is it the trust fund babies I know don't have any crypto in their portfolios? Because it's risky AF and it doesn't pay out dividends, the only thing you can do with it is sell it. I don't want to be buying and selling in order to grow wealth. The power of compound interest is seriously the greatest investment strategy EVER. But it doesn't work if you're putting money in & pulling money out every time you think the market will shift. You need to stay in the market and invest consistently. The best days are always straight after the worst days. And no one has a crystal ball to tell the exact right time, play that game and that's a full-time job, and most people who do it for a full-time job don't even get it right. I do believe blockchain will be part of the future, and I do believe that it is here to stay. But it doesn't mean I'd invest in it. If I could be bothered researching into it maybe I'd invest in the underlying companies making the technology because that's an actual business and that's what I invest in. But I wouldn't because I can't be bothered doing that and I don't need to. Yes there are very smart people who have studied finance and worked in finance that are in crypto, and I don't deny that you can make money in it, but it takes work, it takes active trading, it takes effort & time to do it well, which I have no interest in doing. I read that 95% of crypto traders lose money, I couldn't find what this figure was actually based on and could not find any studies, I guess because it's quite new. But I'd say this seems pretty correct because around 80% loose money in the share market. People always think they will be the outlier, they will outsmart it, but the majority won't. But if you invest in a standard diversified passive portfolio in the share market you have a 99% to make money over 15 years. You don't need to do anything fancy to do that. Most people don't have the knowledge or tenacity to stay the course, I find this is not just with investing but literally everything. And how you do one thing is how you do everything. My clients who want to invest in crypto invest only a small amount and it certainly isn't the only investment class they hold and no GOLD is not the way to diversify. Damn hippies (I can say that because I identity partially as one). If you lose a lot of money in crypto it would be great for my pride and I would definitely say 'I told you so', but I actually don't want that for you. I want you to build long term wealth. Here are a few fundamental principles: - Diversification across quality investments that produce profit - Invest for forever - Dollar-cost average (invest consistently irrespective of if it's a 'good time or bad time') - Keep transaction costs & management costs to a minimum - Liquidity (keep enough cash so I don't have to sell investments to fund my goals, invest in assets that are easy to sell) - Simple, simple, simple because I can't be fucked & don't need to make things complicated Even if crypto does completely take off, and I'm totally wrong about it not having any tangible value, businesses are still always going to have a place in our lives, it's always going to be a solid investment strategy to invest in them. Blockchain is too complicated for me, I'm just not smart enough to understand it, and I really have no interest in it. I actually don't care about investments at all, what I care about it the outcome of them and how they will support my lifestyle. I'm not passionate about investing. I am passionate about the freedom wealth provides. And I'll choose the well-trodden path of the investment greats to build my wealth based on the averages of coming out on top that the numbers tell me, not based on your friend of a friend who is now a millionaire because they invested in bitcoin in 2017. I focus on income creation to blow the lights out of and bring in epic amounts of wealth. I focus on my art to bring in wealth. I use sound investment strategies to secure it, grow it slowly & spit out passive income. They are two different things. To make money and call it in you need to use your inner magic, to manage the wealth you call in you need stable investment knowledge and strategies. On Tuesday I'm running a free Money Management Masterclass for Women (men are allowed too ;p) I want to talk about cash management, investments & making more money. You can sign up here. PS- School of Money is open for enrollment this is a deep dive into EVERYTHING money, how to make it, how to manage it, how to make love to it, how to keep it around. We go live in December and you'll access to the community, workshops & coaching calls right now. Click here to find out more.