Some time ago, I wrote a post about how much I need to save before I can consider retirement. It's a very aggressive goal, and I still have a long way to go, but I just hit an important milestone on that plan: I now have enough passive income to cover all my basic expenses!
Financial Freedom? Not quite
I'm sure the concept of financial freedom means something very different to each one of us, and to some, having enough to cover their expenses might be it but not for me. In fact, as I explained before, this is very far from what I consider to be financial freedom.
To me, financial freedom is being able to fully enjoy the life I envision for myself and the ones I love without the need to be a slave to a failed system and, even though I still need to work a lot to get to my goals, I wanted to write about this milestone because it's a relevant one, even though it's far from being the end-goal.
So, if this is not financial freedom, what is it then?
Being able to cover my basic expenses is, first of all, a huge stress relief because, even though I never found myself in a situation of extreme vulnerability, i.e. not having enough to eat or being homeless, it's something I constantly worry about. The world is getting crazier by the day, and I don't want to take anything for granted.
Not having to worry if I will have enough to buy food or a roof over my head really allows me to focus on other things, such as building my reputation here on Hive, which is something I've been neglecting recently. Every minute I'm not worrying about my financial future can be used to engage on Hive, which is a golden opportunity for me.
Of course, this situation is subject to change because my passive income can cover my basic expenses IF inflation doesn't increase too dramatically, IF my assets don't lose too much value, IF no critical emergency happens in my life and perhaps one or two other conditions.
That's a lot of IFs, but I learned that it's better to focus my time and energy on things I can control, which is growing and managing my stake the best I can.
Additionally, just as there are variables that could make this scenario worse, many others can make it better, such as a new bull run, improvement in the economy and things like that.
But once again, I can't control those things, so I can only do what is in my power to make the most of the situation and hope for the best.
How did I do it
This is obviously not financial advice, and I won't discuss my portfolio in detail. I just want to give a brief overview of how I'm investing my resources to accomplish my financial goals.
A good portion of my net worth is still on the legacy system. That is for a myriad of reasons, the main one being that many of my fiat investments are not very liquid, and it wouldn't be worth it to do anything with them just yet.
I don't have a lot in stocks, so most of my fiat is invested in Real Estate Investment Funds that pay dividends monthly. I have some other products for diversification, but my fiat is mainly managed by someone I hired. A story for another day.
When it comes to crypto, my main bag is good old Bitcoin, which I buy recurrently, every month, no matter what. After that, comes ETH, but I haven't been adding to it recently. I also have some RUNE, a project I learned about right here on LeoFinance and I just love it. It took a real beating, just like most crypto, but I have a special relationship with it because it was my very first 10x on crypto.
I also have some funds in DeFi platforms such as Pancakeswap, CubFinance and Polycub which is something I discovered only recently and I admit I still don't fully understand.
And last but not least, there is Hive and everything related to it. I still have to tell in detail the story of how I got involved with Hive but that's a subject for a different post. Today I want to highlight the importance of Hive in my portfolio.
Just as I do with Bitcoin, I buy Hive regularly, no matter what, because I believe in its long-term potential. This ecosystem is filled with opportunity for those willing to commit to it. There is the Hive token itself but also many others such as HBD, probably the best stablecoin currently in existence, second layer tokens such as LEO, BRO, INDEX and CTP, to name a few, and a lot of other projects to choose from.
Altogether, among real estate dividends, HBD yields, liquidity pool fees and other Hive rewards, I can passively generate just about enough to cover my basic living expenses, meaning if I suddenly find myself out of work, I can still pay for the essentials. It would be a very modest life, for sure, but at least it would give me time to figure things out without resorting to something more drastic such as selling all my assets or, worse, living on the streets.
Final thoughts
Having enough passive income to cover basic living expenses removes a lot of concerns from my life, letting my head be free to focus on building up even more wealth.
I'm still very far from my financial goal, but this is an essential first step, and I definitely couldn't have achieved it if it wasn't for crypto and, more specifically, for Hive.
Posted Using LeoFinance Beta
