Living Off Your Yield Instead Of Your Principle
Hey Jessinvestors
I know a lot of you are sitting and thinking what will the top be of this bull run; some of you are making pretty tasty gains, and you're feeling chuffed. Others are taking profits. Some are taking their principle off the table. There is no right or wrong way to play this game; only ones that fit your needs or plans.
For me, it's creating new streams of income that drip into my wallet; I am not trying to strike it big; I am trying to strike it slowly, but surely as much anything can be sure in the crypto market lol. Risk is everywhere, and I accept that I am not spending money that I can't afford to lose.
I've made peace with the fact that it can all go to zero, and I don't lose sleep over anything that happens in crypto; in fact, I sleep pretty well.
The no choice investor
I realised a while back that working my way to retirement in South Africa was not going to happen; I needed to start investing, learning about it, finding something that worked for me and stick with it. I didn't want to learn any of this shit, I'm as lazy to think about money as most people are, but fuckit, I really hate the idea of working till I'm an old grey wrinkled testicle looking dude.
I wouldn't consider what I do in crypto investing because this really is the wild west. Every day here is like a brand new slap in the face or kiss on the cheek.
And you never know which one you're going to get. I always wanted to have an additional income I didn't have to break my back to earn. I'm not asking for a salary, just an additional drip that can stack up over time, and I can redeploy elsewhere.
Acting like a retiree early
Many of us have the dream of retiring early, and those that do have their own strategy to get there. I personally wouldn't recommend my strategy to anyone because I live it, and it's shit, but you get used to it. I live like a retiree, I cap my spending aggressively, I invest in a range of assets, and I try to increase my fixed income.
Sometimes I even catch myself speaking like an older man, even got the pain in my lower back after soccer to feel like one.
- I've got stocks that kick off divident,
- I have crypto that kicks off interest
- I have tokens I get staking rewards on
- I have cash collecting interest
- I have bonds paying me interest
Then I try to take some of that returns or cash I work for and do it all again and keep repeating this cycle. It could kick off a few cents to a few dollars a week. I then keep a spreadsheet to see how generates what I lay out a predictive run rate.
What I am trying to do is eventually get to a point where I can reduce my salary or even drop it altogether, and it wouldn't affect my life one bit.
I am far from that goal, I don't know if I'll ever get there, but I'm giving it a try with the little bit of math I can remember from high school.
Increasing your yield not eating into your principle
I think it was Einstein (been to his house in Bern btw low key brag) that said compound interest is the 8th wonder of the world. To prove it think of Warren Buffett; his old ass made MOST of his money after 55. Granted his the very definition of cantillionaire and is a rent-seeking boomer, the principle remains the same.
A little drip can sink a big ship with time, lord knows how much time I have left on this planet, but this painful strategy of delayed gratification is the one I've chosen.
While so many in crypto like to fixate on the big lump sum with drawls or buying low and selling high, all I am looking for is a little supplemental income. To me, once you sell, you're out of the game, and sure, if its a bundle, you don't need to care.
But for me, taking my chips off the table - tax makes no sense, especially after all the waiting I've done. Those damn sunk costs have already got me knee-deep, so I might as well see this thing through and see which ones pay off and which ones don't.
Have your say
What do you good people of HIVE think?
So have at it, my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
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This blog post is another gem..... "I really hate the idea of working till I'm an old grey wrinkled testicle looking dude." Hahhahahah..... It is a tough situation for sure and I have been in the same boat of delaying gratification......etc. Just thugging it out year after year with people looking at me like I'm a street tweaker. My own Mom cried and said she was embarrassed of me. That was my signal to buy even more crypto. That being said, it doesn't look like I'm going to make it to my targets I had hoped for just being conservative. That being said even just lasting a few more weeks or a month in heavy bull territory can make a huge difference but I'm going to do it conservatively.
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Lol dude, it's as if we living the same life, if I'm totally honest with you, I have bags in BTC and other crypto, I keep buying every day so you not going to see me wearing anything fancy, driving just my normal VW, I'm not going on fancy trips or posting anything on social. People think I'm "failing" yet I've been doing this for 5 years. My parents also ask me just sell and then "start your life" and get a good job, you have a degree and time you still young and I'm like fuck that
No shade, but I like to follow people who have the results I want, my parents don't have those results so why should I listen? My peers don't have those results so why should I listen? If I want to be stuck in a dead-end job, overweight, paying off a home and having fuck all for myself, then sure ill run to them for advice because clearly, they are the experts
The way I see it is if this doesn't pay off, or I fuck it up then I know whats waiting for me work and being a life simp for paper with dead presidents on it. Or I can try this out and have a 50/50 shot at something I really want. I say its worth it
This is wisdom:
👏👏
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You have more than a 50/50 shot. You are there already. You are like me just savagely stacking coins and tokens people didn't even think would be worth anything. Now as the bull market heats up we have the knowledge to execute strategies that will hedge our risk and keep us rolling perpetually. Now that more bridges are being created and more DeFi offerings we can employ multiple strategies to keep stacking.
The road hasn't been easy that is for sure.
My sister who works for General Motors was basically telling her co-workers she doesn't even know what I do......that I just play on the computer all day. That was a couple of years ago. She made it sound like I was a grown ass man baby to those walking heart attacks at the office. As I type this it is 4:30 am here. Just have to keep researching and coast into the promise land.
I wonder what the blow-off top will be and if I can capture enough returns to prepare myself for the bear market and then use that to go back into DE-FI and CE-FI and just keep that machine going. I am about 56% crypto right now so I'd say I am banking big on this trend compared to the last bull run where I was probably 2% in.
Lol the way I see it is "the nail that stands out always gets hammered". I've accepted that what I am trying to do here feels like a threat to others way of living, and understanding of the world and the way money works.
No one wants to be told what they rewarded in each month is worthless, they'll deny it until they have to take a wheelbarrow of cash to by bread or it's more economical to burn notes to make a fire than it is to spend it. I can't say that a future for the US but it damn sure is a big possibility here.
I don't want to be wealthy in South African terms, I don't want to be wealthy in US terms I want to own a considerable amount of a global network. To me this is like a new country forming and we're the first citizens, bringing with it our labour and value and trying to build new things that will bring in new citizens with more skills and more value in the future
All profitability will work its way to zero but this last bear market was slightly more manageable than 2015 so the severity could become less brutal and I think we can keep stacking .....etc.
I think most countries will keep printing and the ones with relative strength will still be ahead of the ones who have a Zimbabwe level currency collapse. I think the US will have like 10% inflation / year type of a thing.
It is hard to say though.
When you can survive on half your annual yield, then that's financial freedom. At least for me. That way the pile still keeps growing.
That would be my absolute dream, then you just let those compound effects improve your life each year that would be amazing. I am sure a lot of wealthy people are living like that, those people that we like wtf do they do, they just seem to be having a ball and travelling all day.
When you have so much money you don't know what to do with it... good problem to have lol.
Lol for sure, I just value time more than money, working for me isn't all that fun, money for work doesn't motivate me and I mean obviously you can only earn so much before you hit your wage ceiling
This is also my strategy which is why I don't get all excited when the BTC price goes up. It's too soon for me. I want it as low as possible so I accumulate more and then stake it for steadier/safer? returns when the market for that matures.
The question I'm constantly asking myself when the next shiny object appears is "can I turn this into steady income"? Making a killing quickly is not my thing. I don't have the knowledge or stomach for it.
I staked my CUB in the Den and will compound it weekly. Even if I made 1000s farming instead I wouldn't know what to do with it.
Things may change as I get more experience in this space but I will always be after steady income first and capital gain second.
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I HATE when the BTC prices goes up too quickly, I feel like such an arse for not using the 4 years we had previously to really milk it, I did do some but I could have done so much better, but I guess that's howwe learn.
I'm not in it for a big pay day, I just don't want to see what I worked for get lost and I don't want to have to continue to work so hard to cover my arse all the time, its not something I particularly enjoy
I legit just harvested my cub to reinvest now, I don't get why people are freaking out about the price and interest rates its a freaking week old, relax
Hindsight is a wonderful thing. 😁
When I first entered the space I used BTC to buy Steem. I haven't done the maths to work out how much I would have now if I'd HODL'd instead. But it's not even worth thinking about since Steem was my focus then and I wouldn't have learned anything about crypto if I'd bought and held BTC. Not to mention all the great people I've met as a result of my involvement with the community. And all the fun meet ups I've been on.
Me neither. It's hilarious. 😂
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Very wise to create multiple streams of interest income, but hope your countries rates are higher then ours.. :)
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Oh, rates aren't very high; you get about 3%, but I mean, that's far better than other countries, but we must also factor in inflation, so its a bit of a nothing burger. I have local stocks too that pay dividends but inflation will kill that before I can do much with it, so I just convert that into Bitcoin.
Maybe I'm not a good researcher but I can't find anything else that's working better than Bitcoin
I see, so you have the same conditions as here, where bank interest rates are below inflation, so parking our money there means we lose buying power.
And in regards to finding something with a better track record then BTC over the last ten years, many of have tried and failed... :)
BTC seems to be the winner.
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I'm glad Im, not the only one seeing that; lol I hate to miss out on a good trade, I think these other coin projects are being dishonest and are riding the wave that Bitcoin provides us and providing very little value. I am very critical of the crypto market, not because I hate it but because I've seen so many projects fail and make the entire space look bad
I was speaking to a family member yesterday about my ambitious plans to retire by 40 with crypto and living off compound interest that I'd been building up in crypto.
Got laughed off the phone but will just have to wait 7 more years to see if it works out, if it doesn't, still have 30 years to ask them for advice on how to be stuck with a chain around my neck and be in debt for the rest of my working life. Seems a lot of people are pretty well clued up on that!
We haven't even begun to establish a yield curve, The US bond which is basically the risk-free return of the world used to be 7 freaking per cent a year and was as high as 14% - https://www.macrotrends.net/2521/30-year-treasury-bond-rate-yield-chart
Now if you add that to something that has a finite supply, the interest rates on Bitcoin are going to be stupid as Bitcoin is needed to satisfy deals and contracts and labour and settle transactions.
Eventually, it will be milked down but that's why it's important to keep securing those good interest rates now and increase your principle. So when it does find a steady interest rate you still home and dry
I don't take peoples opinions too seriously if they don't understand financial markets at all, but I do like to get the every day opinion just to re-centre myself because I'm way off to the BTC side lol
This one is lengthy man 😀
Diversifying the investment is the best strategy. I also do the same.
I was surprised to see I have cash collecting interest
I thought you don’t like interest ?
LOL oh I live for interest, any kind of yield I'd take it even if its just a few bucks. The reason why I have cash collecting interest is because its additional cash that's not my principle or worked for that I can put into crypto and other investments.
So if there's a dip in something I like I can buy it, it's not really a savings strategy more building up a war chest I can use later. Its an opportunity cost thing, if I don't have cash to buy a dip I potentially lose out so I always want a few bullets in the chamber and if I can add 1 more each month, that's great
Wise strategy! Compound and you'll be rewarded in the best way possible! Hopefully, faster than you actually become an old man.
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That's the thing, Bitcoin has helped me capture back id say 5 years of working income already, it's helping me catch up and hopefully eventually shorten the need to work
It is a long shot worth trying everyday and maybe you will get there. I admire your strategy bro.
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I sure hope so man, I don't want to have to slog it out each week, skimp a penny here and look at the prices of goods and go FML lol, not that id go on spending sprees. I just want more time for myself
There is nothing impossible,if you put in more effort you will achieve your goal,the sky is your limit,ride on bro👍
Lol well ive been through bull and bear runs, I know both sides of this thing, many getting in now only see number go up, I've been around where number go down 80% + so while the sky is the limit, you got to play this strategically. Im actually actively preparing for the bear market, for me this bull market is already over
You replied someone and you said if he buys Bitcoin for 1 dollar per day,is there any crypto app that allows you to buy Bitcoin for 1 dollar everyday
Yes I responded to them below with a link to the options
All I am trying to do is to save up money just to invest on hive , I dont think I can get enough money to invest on Bitcoin,if I am able to save more money at the end of this year,then I would be buying Bitcoin for sure.
I don't believe that to be the case. If you had bought $1 of Bitcoin per day for the last 5 years, you would have $24 000 today. Don't look at the Bitcoin price, look at how many satoshis you're getting, that's the actual coin, Bitcoin is just a brand. Satoshis are the measurement and UTXO's are how satoshis are split up, Bitcoin is just a grouping for a lot of sats
Okay thanks for the advice ,but which crypto app allows you to buy Bitcoin per day ?
I'm using Luno but there's swan Bitcoin abs crypto.com you can find dollar cost averaging apps here
I've been thinking of investing in some high dividend yield stocks. Like tobacco which has a "sinful" reputation despite being legal, and which generates huge cashflows and dividends. If you held for a decade you'd get your money back just in dividends because of their cash generation potential.
I’m all about dividend yielding stocks with a good PE ratio but at the moment I’m torn! Like you say Tabacco and event alcohol are profitable but governments are cracking down on those industries and continue to pound it with sin tax which scalps profits into tax
I do like some energy minging and lumber stocks in Brazil look good but j still need to do the calculations on inflation in those countries and then the exchange rates because a lot of this could LOOk like you making money but you actually making a loss
With the bond market and gold markets kept down by government policy it’s hard to price assets and cash flow
So I just Make it simple and hit the BTC if BTCs yield eventually comes down you can jump into value stonks that offer a better return
Trump's anti-vaping campaign dented the tobacco companies a bit. But they are incredibly resilient and they have the ability to hike prices and still make sales.
If there is a global rebound after covid, the energy mining stocks should do well. Can't have a boom without energy!
I agree they can hike prices and still get sales but there is a limit where hiking prices reduces sales abs you have to strike that balance. Also with covid and people all health focused I’m not so sure on that trade but that’s just me picking at narratives
I think every market will have a “rebound” I just don’t know how high and even if it reaches old highs how much of that is value versus inflation.
Yes, I agree with you that this bull run will eventually come to an end, so it is important to stay calm, seize the positive momentum and be a little smart when it comes to investing. Maybe your investment strategy requires some sacrifice (and don't important things deserve our sweat and tears?) but as long as the goal looks closer and closer we will know that we are taking the right path, at least that's how I feel when I decided to learn about cryptocurrencies and their importance in my personal finances.
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I just want to get away from the old narrative of Bitcoin that was put in a little and get back a lot it’s not healthy for the ecosystem yes there’s always greed but every-time people get burned they blame the asset and not their poor decisions making
I’d rather take it slow be able to move out of positions as I see opportunity. A lot of people’s losses are actually opportunity cost and not real cost
thank you very much for the news,have a great day
Thank you very much for sharing, have a good day and a great mood
I'm in the same mode. Build BTC and hodl. Use other assets to build more BTC. I've got a couple other long-term holds that I'm staking for interest. I already consolidated some alts that tripled into btc. I still have a couple more I'm waiting on. And then I have my Hive portfolio. The goal is to keep building this and, as you say, build some passive income streams, and then use those to keep building the btc base. I see btc at $1M in the next 5 years. If I can keep buidling the base now, then I'm hoping 5 years will be enough. We'll see....
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Glad I'm not the only one who is building this streams to BTC! I think that it makes earning more fun, earning fiat for my work instead of getting a pittance of interest I can now save and find new streams and the rest goes into BTC
I also think it will be around 500k a coin so I'm also consolidating but only the interest at the moment! And waiting to see how my speculative plays work out in this year before I cut my losses or take my profits into BTC!
I would like to pull out my principle into a stable coin and then get interest on that while I wait for the correction to play out
But while the good times are rolling we got to ride this tide! These cycles make or break fortunes
I'm not convinced there's going to BE a "bear" market this time around. It really depends on how high bitcoin goes and what the parabolic curve looks like at the end. If it just keeps making these little jumps and then consolidating I don't think we'll see the 80% correction. There's just so much money still sitting on the sidelines that I think will use major dips to accumulate. Of course, if it goes parabolic to $300k or something then I could see 60-70% but....it will be interesting, that's for sure.
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I wouldn't mind if you were right and it's a possiblity but I would like to plan for the possible correction and make sure I'm covered and have a plan for both outcomes so I can get the best out of either way it goes
Absolutely. A plan is definitely called for. I'm staying all in until things start to look dicey. I've built up my HODL stake and now I'm trying to add to it. I'll probably take those additions and try to trade with them somewhat. We'll see. Hard to make too firm a plan in crypto. Everything could change in a day. lol
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Totally lol no firm plans but more plstrategies for different times! I call it preparing for crypto weather.
If I overly previous bull runs we’re about 45% of the way to the top but it can also over correct way higher but I’m not greedy as soon as exchange traded volume picks up and amount of 2 year HODL coins drop below the historical rate then you know it’s time to start making some exit plays
I think it's a great idea. Personally in the stock market, I like buying solid companies then selling covered calls. As much as people don't like Apple or the other big tech companies, people can't get enough of them. I prefer to take the premium and I know I am limiting my upside but these stocks are for long-term holds.
The amount you earn isn't enough to break the bank but even if it is taken away, your in the green. If the stock drops, you will be hurt regardless. From time to time, I also sell some covered puts with prices that I don't mind selling the stock at anyways.
For my short-term stuff, trading when the chart is good is fine and I try not to hold anything I wouldn't want long-term in my portfolio for very long. For the ones I really don't want to hold, buying an option does wonders although you lose money on the decays. At least I will not end up holding stocks I am not willing to keep long term.
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I am not as well versed on stocks and things like puts and calls, it's just not my game, and I am scared that I fuck it up, but I see a lot of people who know what they are doing making a good bit of money, and I am happy for them.
I think that's a good filter to have, if you're not going to keep something long term, why even hold it at all
Lucky you!
Now back to the topic.
I have noticed how much better life is earning from multiple streams. Currently, I earn from Leo, hive, and now cube. I am generating enough to even dabble into stocks ( by the way would it be a good idea to buy stocks from uphold? Trying to get some tesla shares there).
Point: the more streams open to you, the better your chances at living a better life. It's not a bit the big gains but the little wins.
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I haven’t bought shares on there so I don’t know how they handle the asset! I don’t see the point of buying common stocks unless you just want some price appreciation for your gas above inflation
The PE ratio of these big stocks are stupid so for me I don’t want to own them! But that’s my personal opinion, I’m not a trader, so I don’t care about price Movement I care about returns and stocks aren’t paying much dividends these days
Most of the action is in trading! If it’s not giving me drips and paying me to hold it it’s not for me
Interesting. Well, I will do more research and find something that suits me. I must admit I know little about the stock market. Tesla came to mind because it happens to be one of the most innovative countries in the world currently. I need to understand these things better 🤧
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Innovation is one thing but it’s mostly narrative driven till it’s realized Tesla’s price is investors pricing the future cash flow returns of the company as well as a store of value element
I just think these companies are way over priced for their cash flow. Some don’t even pay dividends so you’re holding hoping they will one day
The way things are going I’d much rather hold BTC! Companies are even looking at it to hold their retained earnings or as the new stock buy back! So I’ve picked the story I believe to be true and I’m allocating my capital that way
I want my crypto holdings to pay higher interest than my debt so I can be “debt free”
I’m here for loooooooong too. There is no retirement plans for stay at home moms - so this is mine.
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That’s my goal too, I don’t have debt but I see myself and my consumption as debt and if crypto returns can take that to zero then ANY money I wasn’t working is mine to do with 100%
Now if that doesn’t give you motivation to work I don’t know what will
Though I'm new here and don't know much, but all I can say, I should invest on Hive for future..
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So when will you be buying your first few hive and powering it up?
There's nothing wrong with acting old in some ways!
Do you keep a certain percentage as Stables? There's a few of us around looking to build up those and then yield from them - it's about as secure as you can get in the Crypto Wonderland!
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I’ve got a tiny percentage of stables I’ll probably increase that later but for now I want to ride the volitility and in the bear market use my stables to get some protection and yield
Best of luck to you riding those waves, fortunately I'm in the position to be able to cash out something as we go into stables!
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