Expand my financial goals and bankless outreach in 2021
This year should be the one that transforms my entire living through reaching a financial freedom that I am well looking for and expand the investment to ensure that long term. I will try in this post to share my financial goals not only by highlighting few assets from my portfolio, but by presenting you all the context around it. Presenting only the good things or only those that you expect to perform good is not the way to be true with your finances, so I will try to include the bad that I need to surpass in order to be able to reach my goals.
Get rid of the debt, loans and mortgage payments
This is my first financial goal to reach a clean sheet by the end of the year and as I mostly advanced with paying back bank loans and mortgage will focus to reach it as soon as possible. Paying interest to the bank just makes no sense with all the possibilities and DeFi around us, so I need to take the power back from those. As well I plan to close most of my credit and debits cards as I have spread myself to few banks to cover the risk or the needs if ever arise. If I would monetize all my assets at the moment (crypto and stocks) this would mean 50% out of them.
Build a financial fallback based on my monthly salary income
The world is changing in front of us and we need to change and adapt with it. Whether it is good or bad we need to be able to face it and survive anything that is thrown at us. For this purpose I intended to put aside also some cash which should be the same with my monthly revenue x 6 or 12. It should be a minimum of 6 (that is what I've got in mind), but other close friends are saying that were thinking of a 12 months revenue fallback.
Continue to build up my stocks portfolio and transact based on the market conditions
This year was for me both my initial stock investment as well as my consolidation. Some from this space are ignoring stocks and are doing a big mistake as some of them got returns biggers than cryptocurrencies. So my portfolio might be adjusted a little bit during the year with few stocks, but nevertheless will keep it going as much as possible. Closing a position that I had with NIO brought me a considerable sum that allowed me to invest and expand the number of assets I currently hold. The one that I am holding and which provided good returns until now are Apple, Activision Blizzard, Chevron, Plug Power, Spotify and Tesla.
Stack and expand my cryptocurrency investments
The cryptocurrencies performed quite well this year and they give hope to do good and even better in 2021. I intend to continue on the directions that I invested in the last period and HODL on those as much as possible. Specific efforts will be in trying to gain more from these by using different DeFi, Stake or other financial instruments paying interest. I am not very accustomed with Uniswap and I didn't got involved until now as I hold dear my Ethereum and I've invested also in the Eth2 deposit contract, but will take that into considerations this year. Some of my assets in this space are Ethereum, Rune, Travala, Cardano, Bitcoin Cash, EOS, Hive and LEO.
The most rewarding (even if not in price) cryptocurrencies for me are Hive and LEO. The last one has rise this year as never before and there are plans laid ahead that should make the uptrend continue. Getting LEO to $1 I think would be great and we would see a lot of market movement at that price point, but we can grow easily step by step. In addition to this I got myself some secondary layer tokens that probably I will try to accumulate and put them at work like LBI, CTP, CTPSB and PAL. Beside this I am pilling up some Hive game tokens like DEC, RBN and SIM and looking forward if to future invest, participate in liquidity pools or sell to Hive or other tokens. Still making my mind about it...
In closure I think that my financial goals for 2021 should be to get rid of the loans and mortgages and move towards a more bankless and passive income future. I foresee the following balance of my financial state. So will see how this will balance themselves at the end of the year and if I succeed to pay my dues.
-20% Living costs, Loans & Mortgages
+50% Cryptocurrencies
+30% Stocks
+20% Cash fallback
And now at the fun section :) some price prediction for 2021: Hive at $0.25 and LEO at $1. Cheers and stay safe!
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https://twitter.com/behiver1/status/1345140821650247681
@tipu curate
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Cool to see a little more details about you.
Is the mortgage for your own house or rental property? Is the interest higher that would you make if you invested the money instead of paying it back? I'm not trying to convince you of something right now just to do some basic math, what would be the higher outcome in terms of cahsflow.
On personal level, I would go in 7 figures debt at the interest rates in the € zone (1%) with good investments behind. If inflation beats the interest you already need to gave back less the amount. I search for good rental properties in Germany, Romania, Austria, Hungary and Spain at the moment to go into debt as rent from them shall be higher than taxes+bank loans+fallbacks so that a cashflow is generated increasing my net worth on a monthly basis. I'm doing this already, but not on a very high scale.
As a tip, 6 months fallback is enough, else you just block cash that you might use to invest. If you need 12 months fallback than you have other bigger issues. Stay at 6 and you would be fine. Cut crap that you don't need.
2021 shall be a year of fortune for everyone in here!
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The mortgage is for my own house and I want to get rid of it because I pay around 5% interest to it and it adds up in time. I would like simply to free myself from the banks and their commissions, credit cards and loans.
Going into debt for an investment is another thing. There is a good direction to buy and rent properties, but I feel that I cannot taggle all of this in the same time. I have some land on which I could build houses or even bigger buildings, but that is set aside for future thought.
The 6 month fallback sounds better as you said it also and indeed that will let me put some money work for me. Probably that would be the amount that I will put aside.
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5% on a own home is high. Yes, it makes sense to get rid off it as soon as possible.
Romania is good for renting, especially in bigger cities where students and people tend to move in. Iași, Cluj, Bucharest and Timișoara are definitely worth watching, but there is a strategy needed and not all is a buy.
Do the math, let's go with 500€ a months as a bare minimum, this means an extra 3000€ blocked. With 3000€ you buy a decent car that you can rent for Uber for example.
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In developed countries we pay as high as 9-10% on home loan but bank interest on fixed deposit is also 7%. Borrowing kills, and I guess free from debt is most sane thing.
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That’s a very modest prediction for Hive! I like it because I don’t like getting way too ahead of myself but I’m still very optimistic we will go higher. I get get a little doubtful when people guess higher than $1 though. I think we need to earn that with a bigger user base and more dapps like Leo.
I got some Spotify, forgot to mention that on my post! Square was my main stock allocation
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ohh man i wish you to succeed in everything! You have done pretty well till now especially in the crypto space! I haven't dive into stocks and i don't plan to do in 2021 as i don't have the money to do so :P
The financial fallback i think is a must especially these troubled times that you literally don't know what will happen next day
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