Previously, we discussed how to store cryptocurrencies and the mistakes to avoid. Now, with some basic knowledge, let\u2019s figure out where to start, and the most important question: where to get the money for investments?<\/p>\n
It\u2019s no secret that the majority of wealth is concentrated in the hands of a small percentage of people \u2014 the wealthiest individuals in the world and other millionaires. Of course, not all of them were born rich. Many of them might have once lived paycheck to paycheck, without inheritances or wealthy parents. Naturally, there are also many young millionaires under 30 who achieved their wealth through perseverance, innovative ideas, constant work, and belief in projects that would bring them great money in the future. But most rich people became financially independent not before the age of 35, and some even later, in their 40s or 45s. There was no magic wand that brought them their fortune in a single swoop. Not everyone is a genius, and far from all of them have ideas or opportunities to build multimillion-dollar businesses. But everyone has to start somewhere, and the key question is \u2014 where to get the money?<\/p>\n
We recommend that you invest first and foremost in yourself and your knowledge. There are many books on financial literacy that explain in simple, accessible language how to manage your finances. We suggest reading books like \u201cThe Richest Man in Babylon\u201d by George S. Clason, \u201cMoney: Master the Game\u201d by Tony Robbins, and \u201cThe Latte Factor\u201d by David Bach. There are, of course, many other books, but these provide simple examples of how to accumulate wealth and achieve financial independence.<\/p>\n
It\u2019s important, and perhaps the most crucial thing \u2014 pay yourself first, and then take care of everything else. What this means is that you should set aside at least 10% of your salary immediately. This is the foundation, and it\u2019s as simple as that. What if your salary is not enough? The books mentioned above, particularly \u201cThe Latte Factor\u201d, offer great examples of how to change your financial habits.<\/p>\n
First and foremost, you need to build an emergency fund, even if it\u2019s a small one \u2014 but it must be there. Only after that, you can start investing, using either 50% of your emergency fund or money from future earnings.<\/p>\n
Why is this so important? Because, just like the markets, life is unpredictable, and anything can happen (war, illness, etc.). You don\u2019t want to be in a situation where you have to sell your assets at a loss because you urgently need money, and you don\u2019t have a financial cushion…<\/p>\n
To repeat what we\u2019ve said in previous articles \u2014 getting rich slowly, but steadily, is the key to success. You might not become a multimillionaire, but you\u2019ll have a financially secure life and peaceful retirement, especially if you set your investment horizon not for just a couple of years, but for 10, 20, or even 30 years. If you start accumulating and investing money at 30, by the time you\u2019re 60, you\u2019ll be guaranteed a comfortable retirement.<\/p>\n
It\u2019s also important to remember that you shouldn\u2019t keep most of your money in cash, especially in national currencies. Store your money in hard currencies (euro, dollars). Of course, inflation will also affect hard currencies over time, but it won\u2019t be as critical, firstly in comparison to national currencies, and secondly, you\u2019ll have an investment portfolio that will generate passive income.<\/p>\n
Part of your emergency fund can also be kept in gold and silver \u2014 these assets have repeatedly proven their stability in the long term.<\/p>\n
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