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Dear Young Achievers - Rethink Conventional Investing!
I’m worried about the conventional investing principles young people still cultishly hold on to!
10% of what you earn is yours to keep?
🧠It's time to challenge the old adage - " Let's dive into why young people need to break free from this outdated mantra and embrace a fresh perspective on wealth-building.
If you prefer to read as a thread, I did one here!
10% is merely a starting point, not the destination! While it sounds great, many people get stuck here. 10% alone won't propel you towards financial freedom. It's like planting a seed; you must nurture it for growth.
The real game-changer? Scaling your income! Invest in high-income skills that catapult your earning potential; aim for mastery in areas that command high value. Relentlessly expand your streams!
Save aggressively! Move beyond the 10% benchmark. Challenge yourself to save 20%, 40%, even 60-80% of your income, especially when single. These levels are well attainable with the right mindset and strategy.
Remember, as your income soars, keep your expenses in check. Keep away from peer pressures & prioritize what truly matters. It's possible to look sharp, smell nice, & still save diligently.
Important! Don't rush to build a house to live in your early growth stages. Chances are you can’t afford your dream home anyway. The world is your playground, and tying yourself to a single location can hinder your potential for global opportunities. 🌍
Owning landed property sounds alluring, but think twice. At early stages of wealth building, even commercial real estate is not your golden ticket. Think cost v ROI!
💧 Liquidity is king! 💧 "Aku-n'esi obi Ike!"? Jukwa ese! In our fast-paced world, liquidity gives you the power to seize opportunities, pivot, & adapt to changing circumstances.
If you’re worried about currency devaluation, hold your cash in popular stablecoins like USDT/ USDC.
Crypto is here for a reason (won’t speak much about crypto today to avoid misconception). Stablecoins, however, do not completely come without risk! Do your due diligence. 📚
Before you dive into the allure of landed property, consider this: illiquid assets can tie you down. They might look great on paper, but selling them quickly can be a daunting task. Flexibility is key in today's dynamic landscape. 📈
Assuming you buy 1/100 plots in an unfavorable area, you’ll get stuck for a long time, should you choose to liquidate. (if at all you find a buyer). Why do you think some of our parents have illiquid assets lying around yet broke? Some even explored the option of moving, but physical assets can keep one grounded indefinitely.
Alternatively, first explore digital real estate! Low input, high output (LIHI) ventures can be not just your stepping stone, but a ticket to financial freedom. Czar Nnamani has done several threads around this area🙌
This sequence allows you to experiment and iterate while safeguarding your capital. It's about smart progression, not reckless leaps.
Think beyond bricks and mortar. As you scale, invest in businesses and cash-generating assets like heavy machinery. They offer faster turnover than sticking your paper in lands.
It's time to unshackle ourselves from outdated norms. Embrace high-income skills, aggressive savings, and innovative ventures. The path to wealth is multifaceted; let's navigate it with wisdom and courage!