Leading on from our “savings are silly” articles we have decided to create a free guide to achieving financial freedom with tools in cryptocurrency.
This is something we believe in very very strongly. Since I have been around 16 years old I haven’t taken very well to taking orders or generally working for other people. I get bored and motivation quickly fades away. I really can’t see myself working for someone until I am old and frail.
To be brutally honest, I would rather live a leaner life with fewer extravagances if it means I have complete freedom to do what I want and when I want. This is the whole motivation for me and I know it is for many others too. Money isn’t the end game.
Money comes and goes and quickly turns to a big fat 0 if you don’t put it to work. That is why in the “savings are silly” article we highlight just that.
Money is like anything worthwhile, use it or lose it.
I believe cryptocurrency is a very useful way to achieve this and yes I am biased, but I have seen it done many times. People through perseverance, discipline and an element of risk achieve their goals of obtaining assets and cash flow that allows them to achieve financial freedom.
This is NOT a get rich quick scheme. Let’s say that again for the people at the back… This is NOT a get rich quick scheme.
A lot of us here have been in the game for around 4 years and are just starting to reap the benefits, mostly due to this current bull market. But, whilst the market was quiet and brutally difficult, we were chipping away, building positions and ready for the inevitable move.
We were laughed at a little by people who said all the regular things, “it’s a bubble”, “it’s going to zero”, it’s a scam” etc. These are the same people now that hit us up to ask how to get involved and that is fine. People are scared of what they don’t understand.
What we are trying to build at blocmates is a place where people from all places and skill levels can come and chat, engage and learn about this new revolutionary technology and how it is changing the world. After all, we are all in it for the tech, right?
Came for the money, stayed for the tech, is the expression.
So I am going to go through a few tips that I would like to share with people completely free, no strings attached and if you like this sort of thing you can consider joining our Telegram and Patreon by clicking the links.
The Patreon is £4 a month. Less than a pint in most places of the UK, hopefully after reading this article you will see it pays to spend money in certain places and I believe our group is one of them.
Alternatively, if you would like a one-to-one session you can book directly through our store on our website.
Let’s get to it.
The first route to freedom – Difficulty 7/10.
I hate to break it to you but no matter how hard you try, how long you stay back at work or even pick up overtime, you are never going to achieve financial freedom.
Work more hours, enter a higher tax bracket and pay more tax. The idea is to work less, surely?
How much would you really need to work to get to the point where you can save enough money to quit work and live off the fat of the land?
£100,000/year? What are you getting taxed? Take home probably about £66,000? Being generous and saving you can save £2000 a month or £24,000 a year. That is going to take 41 years to save £1,000,000.
Retire at 65, so since you were 24, you have been on £100,000 a year and haven’t deviated… Seems a little unrealistic. Oh, and we haven’t even started talking about inflation yet…
This is hard to hear and what is even harder to hear is having £1,000,000 in this current climate still (probably), if you are just saving in cash, isn’t enough.
£1,000,000 in assets is a different story.
So of the OG books on financial freedom; The Richest Man in Babylon, Rich Dad, Poor Dad and Think and Grow Rich are a must-read for this mindset. It helps you think of cash as a tool to make further cash instead of a spending instrument.
The way it is laid out in The Richest Man in Babylon is that your gold has to go to work for you. This way, gold can create “children” and you can put them to work too. Then once they are large enough, they will create their own children, which can also work for you. Rinsing the cycle all to generate wealth through compound interest. I don’t agree with making children work by the way…
I’ll get to crypto in a minute…
The greatest investors on the planet all understand this. Money has to work for you. Start thinking of it as a wealth generator. Spending to earn more. Preferably with as little effort as possible or even whilst you sleep.
“If you don’t find a way to make money while you sleep, you will work until you die”.– Warren Buffet.
The sooner the better too, but no age is too late. The majority of my friends and even some of my family to an extent, have been left in a world with sky-high house prices, stagnant wages and ridiculous university fees.
There has to be a better way to increase your likelihood of one day achieving financial independence and not having to rely on another person for your income.
Money doesn’t buy you happiness, very very true. But it does buy you freedom and Lamborghinis… Just kidding on the Lambo.
If attaining large amounts of money to buy Lambo’s is your goal, you will never be wealthy.
Focussing on depreciating assets like Lambo’s are a terrible way to make your money work for you. The idea would be to gain so much wealth that your interest and income streams pay for said Lambo, without it touching the purse.
Taking inflation and interest rates into account it would take you around infinity years to double your money with it sat in the bank.
How do you work out how much you would need to be financially free?
Well, how much can you live off comfortably? This all comes down to personal preference but if I am ‘living’ I want to do just that.
The average wage in the UK last year was reported to be £38,000 – No idea where they get that from but here we go.
£29,480 after tax and national insurance (23%ish).
This works out at £567/week.
So how do we get to achieve this? Well, first and foremost it would be best to start this journey whilst you are still working with a steady income so you know how much you can invest away each month.
If you could comfortably make 10% a year then you would need £380,000. This is not as ridiculous as it sounds so bear with me.
Guess what, if you are a lot more frugal and can live off say £20,000 (which is very doable in most countries), you only need a fraction of that amount. Set your goal and work backwards.
This is now the hypothetical goal. The easiest way to free up cash to invest is to cut down on your spending. Eradicate any excessive spending and focus on the goal.
10% a year, by the way, is extremely achievable. I would say 30-50% is almost a certainty if you do it correctly. This would bring you to £80-100,000 required to get there.
But, using 10% as the guide for a bad year should be your baseline. so always underestimate your own ability, just in case. I know you are the best trader and can see into the future but sometimes the market is wrong.
I am not going to sit here like a boomer and tell you how to cut down on your spending with phrases like “stop buying lattes” because I am not an annoying idiot. You know what you need to do to cut out the excess and it is a lot easier than making that money from elsewhere.
Once you get your outgoings down, you need to find the best investments for your capital to get it to the point where it looks after you. Think of it as your baby. Nurture it and when it grows up and becomes an adult, it will look after you more than you will ever know.
Getting back to cryptocurrency as a means to achieve this. In this space a 10x is more than achievable. In fact, picking the correct project early on or even from the launch can give you an excellent chance of achieving this.
The three rules we try to stick by to achieve these huge increases are as follows:
Short to medium term bags – If you are in a project that is a relatively low cap and you are unsure of the future potential but you know that fundamentals alone will carry it you can use the 2x and 3x rule.
2x rule – Once you reach 100% gains, take half and leave half. With that 100% you have took, find the next set up, take your time, be sure and enter. No fomo allowed.
3x rule – If you have done well and there is a 3x in your portfolio, which if you follow the rules there will be, take 2/3s to reinvest this in two ways. If you are risk averse and have a sure fire project, take both and place them in 1 project leaving your initial investment in the original project.
If you are unsure and the market is a little all over spread each ⅓ into two separate projects you are sure of. Diversifying especially with low cap coins is vital.
Both rules here leave skin in the game. There’s one thing missing a project completely, what’s worse is selling too early because you did the hard work and undone it.
Our portfolio, what we buy and when we buy it is available on our Patreon so do with that what you want…
Route 2, become a farmer – Difficulty 6/10.
With your new frugal mindset, setting aside around £1,000 a month for investments would be doable. If it is less then that’s fine, do what you can, but the earlier you are in the sooner you get to the beach.
Just do what you can. As soon as you do and the returns start coming in you will be looking at your silly expenses and thinking “I can cut that out”.
Based on that over the course of a year £12,000, invested correctly could see you a nice return. I am not going to promise you any specific % returns that would be idiotic. But, what I will say is you could, if done correctly hit around a very good amount with all this opportunity around.
You will need the patience of a saint and the hands of thor but in these current markets 2-5x is extremely doable and more if you are lucky/doing the work.
Whilst you are playing with long term positions and holding. Smaller cap coins just coming on to the market make great short term plays with huge potential returns.
If you think everything I have said up to now seems a little unrealistic, it isn’t. Don’t believe us? Join our Telegram and ask the guys and girls in there.
There is a great podcast recently released by Koroush AK with a guest who turned $2,000 to a million and he did it twice… in 6 months.
There are means and ways to go about this. Make sure you get your head into our articles provide and give us a shout if you are unsure about anything.
Once you start to achieve these gains above £100,000+ you can start to think about preserving the wealth, but not so much that you don’t keep going to your goal.
There are some incredible ways to preserve and add to your wealth in decentralised finance (DeFi).
We have a few links to our articles you can get stuck in to –
There are vaults and farms in there where you can place your money and earn more money in a day than a bank would give you in a year. Again, I am not being ridiculous, this is the new world.
Head over to Beefy Finance to check out these ridiculously good APYs.
This is an example of one of their latest vaults in which you would deposit stable coins (USDT, USDC and BUSD) and you would receive 0.2% A DAY. So what is the risk? Well, there isn’t one… In this particular pool as you are depositing stable coins there is no risk of volatility.
Read our guide to impermanent loss HERE.
Using this pool as an example. 0.2% a day, which is compounded automatically (the beauty of beefy finance), results in 6.2% a month for the first month! Try preserving your wealth in a bank account.
That return can come down the more people that join the pool so be sure to make sure you know what you are doing before or ask us if you are unsure.
Going back to this 6.2% a month, if you have £100,000 to make from investments over the course of a few years, yep that is right, £6,200 a month… Compound interest is a powerful thing.
If you are new to this whole thing and don’t know what a yield farmer is, it is, in short, someone who moves their capital around to different pools and vaults to achieve the greatest return for their deposit.
We offer one-to-one called DeFi Mania. Head to our store to get booked in. All patrons get free unlimited one-to-ones.
In the real world, this would the equivalent of someone constantly chasing the best interest rate and finding the best place to deposit their money. But, we don’t live in the real world, this is DeFi.
Decentralised apps like Beefy Finance, yEARN, curve, Bancor etc. are all great for providing amazing daily and annual returns. If you can work out how much you need per week or even day and work backwards from what a realistic yield could be, you could be well on your way to defining and achieving your goal.
Say for example I know I need to make £500 a week and I need to find a pool that is stable and has a great daily return and isn’t locked (most of them aren’t).
From there work out how much initial deposit you would need to achieve the £500 a week and go about trying to reach this number. Once you know this, nothing else should really matter until you hit it.
If you reach this and you become self-sufficient, you can conduct your life in your own time at your own pace, without that ridiculous small office chat and still continue to build your crypto portfolio to further increase your financial freedom.
If you think I am being ridiculous, maybe I am, but maybe you are not thinking big enough.
The wealthiest people in the world are all buying time by leveraging other people and other instruments to make their money work for them, not the other way around.
I am slowly starting to see it become a reality for some of my closest friends and it is one of the greatest feelings being able to say you have helped towards this.
Route 3 stack Bitcoin – Difficulty 2/10.
This is the easiest one to do. Anyone can do it with minimal effort, stop looking at the price and just buy at a certain time every 1 week, 2 weeks or 1 month. A week is best, a day is even better.
What you are doing here is dollar-cost averaging. This is known in the industry as a sure-fire way to achieve the best average price overall for Bitcoin and other volatile assets.
If you dollar cost average, it is monumentally better than aping in at the top and hating yourself until we reach new all-time highs. But if you do buy the top, chip away at the price on the way down. Work on that average price.
1 is all you need. I know that sounds a lifetime away but start now and it will be here sooner than you think. Just keep chipping away. I guarantee that loans and even mortgages will be able to be borrowed against Bitcoin in the near future. Using this as collateral or as a digital guarantor, lets you spend dirty fiat on the property and good debt whilst keeping your hard-earned Bitcoin.
Look out for 2024 is all I am saying…
If you want to start buying Bitcoin for tiny fees you can do so HERE by using our referral link for Binance.
This helps support the channel and gets you 10% off each trading fee, getting you to your goal sooner.
I am not going to keep going on about why this is the soundest investment in history, you can read our “what is Bitcoin” article to learn more.
Route 4 – Do it all. Difficulty 9/10.
Exactly what it says on the tin. Do all 3 of these routes to achieve the best results.
Again, you may think I am crazy, but I have seen this happen and if you are happy to be taking orders and working making someone else financially free for the rest of your life, go for it. They have figured out how to leverage you to allow them to sit on the beach if they wanted.
Don’t think “I can’t afford to do that” start thinking “how do I afford to do it?”.
If anything in this article doesn’t make sense to you, get in touch on any of our channels Telegram is probably best.
Our Patreon is available for £4 a month, which is a drop in the ocean. You will get our portfolio, what we are buying/selling. Even what yield farms we are using and what our next move is.
If you need any one-to-one’s we offer these online just head to our store at the top of this site. We cover each of these topics in 3 different lessons.
Want access to my portfolio?
We have a Patreon page which is the price of a pint per month. It lets you know what we are buying and selling and when. It also has full access to my portfolio. You won’t get this access anywhere else.
We also have a live Early Retirement Index on there. A list of coins we believe will perform excellently over the next few years.
You can join HERE
We hope this helps and has been useful. If you have any questions just get in touch and we will be more than happy to help. Please remember to sign up using the referral links to help support our platform.
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If you liked this article and want to learn more, we offer one-to-one support online to help you set up and get involved in the cryptocurrency space. Hit the ‘Book Today button’ at the top of this page to get started.
Alternatively, you can follow our group on Telegram for our side thoughts on the market. – @blocmates on Telegram.