Many may know the feeling of having debt
For example, when you're experiencing loss of income for whatever reason. I think many people that haven't had any debts before the pandemic, now unfortunately know how this feels. I have had debt all my life honestly, since I was 18 and my boyfriend at the time showed me how easy I could lend money for furniture etc, I wish I never fell in that trap, it was an expensive lesson! After some years of struggling, I decided to never go into debt for luxury items again if I didn't really need them
But boundaries and agreements with myself faded sometimes
I have to admit, that I never really ordered clothes or shoes using an account anymore after that expensive lesson, but I have had some moments in my life where I really saw no other option than to use a loan or credit card for several reasons. Sometimes life throws shit at you that you can't oversee any other way than going into debt.
This was all pre crypto by the way, I would have never gone into debts for the same reasons if I knew back then what I know now, but it is what it is, and I have to pay off these bills so that I can honestly say we have a clean slate.
The pandemic caused the government to put a pause on repayments of loans
If you qualified for one of the requirements, payments of loans/credit cards/mortgages were put on hold, and people weren't obligated to repay them. Of course, you were allowed to do so if you wished and so we did this the first months. After a while, we decided to use the money otherwise as we also wanted to move apartments last summer and we needed a bit of extra cash to accomplish that. This little "extra" which we didn't have to pay was enough help to make that happen.
After achieving a few goals, focus has now moved to paying off the credit card
First we had the goal to buy the car, which was a great milestone in our life! After that, it was a bit rocky at first, but soon we also achieved new goals by spending more time buying and selling crypto. Farming CUB has defo helped a lot as well, especially to get diamond hands rather than panic-selling hands. I think not even 6 months ago, I was mostly diving into a state of panic with every dip if I knew that I needed some fiat on short term, where now I can honestly say that the dips are easy to get through and whenever there's some liquidity left, I'm buying the dip.
When I don't have liquids I feel dumb as I didn't take profit somewhere to buy the dip, lol. I can say for certain that my mindset is slowly finally growing to have a long term vision. Not all we buy is long-term, because I'm for sure also taking profits, but I noticed that I'm starting to understand the markets better and better and my timing is often spot on nowadays. I'm learning, and I'm loving it.
I felt we should let our money work for us a bit more before focusing on debt payments
But I didn't like the fact that costs kept going up the past few months, and I wanted to put a stop to that asap. So on the one hand, you see the portfolio grow, but on the other hand, the costs are getting higher each month as well. I feel that the dips in portfolio when cashing out can be overcome quicker than the costs of the credit card debt, so I promised myself to pay it off as quickly as possible. Within a few installments 4 or 5 (depending on the markets mostly as I don't want to pull out coins that are about to boom of course), I will pay it off completely, saving us monthly costs.
It's quite difficult to make a decision what to sell
If you have a portfolio where about 1/3 is sitting in farms or staked, and maybe 1/3 is long term (big bags) and the other 1/3 that's left also contains a few projects that might go up soon, and you also really don't want to part with, it's quite difficult to sell parts of these bags. I will probably always regret it a bit afterwards, but I also keep in mind that I will be so happy when the debt is paid off not long from now. Clean slate, and then the crypto savings are actual savings without having the burden of a credit card above our head!
I still find it quite funny to make fun of crypto
AKA magic internet money. We often joke saying, let's print some more magic internet money to pay off some bills and then we copy this gif:
I wish that I had learned about crypto 5 years earlier, and would have seen the possibilities that crypto brings, even when you don't have much to spend. So many options to put a bit of money in, and see it grow. But also, writing on leofinance/hive to earn some crypto that you can swap into fiat when needed. I'm glad I don't have to do this constantly to pay the bills, but I'm very very happy that whenever I need some fiat relief, I can make that happen. Sometimes it will cost me a bag of beloved coins, but I have no regrets as a girl's got to do what a girl's got to do.
I rather cash out some stuff and have financial relief in real life, working back towards building the portfolio back to the same level, than feeling like an idiot that I have this portfolio with magical internet money, while also feeling the burden of the credit card on my shoulders..
I'm determined to make the most out of this bull run and not regret taking profits to take care of some real life issues. But all in balance, and keep staking and farming at the same time :)
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