Yesterday we talked about two simple habits to break out financially. The first is routinely buying Bitcoin – regardless of what the price happens to be. The second is adding new notes to a crowdlending portfolio each week.
We’re piggybacking on an old world success principle here. That is to do small things consistently that will eventually add up to big things.
This is something business guru Jim Rohn talked about frequently. And this is what Darren Hardy’s book The Compound Effect is all about.
The fact is, good habits accumulate over time – so long as we have a clear and definite purpose behind them.
So today let’s talk about our driving purpose for consistently buying Bitcoin and building a crowdlending portfolio.
Now, I don’t mean to suggest that these two asset classes should make up our entire financial picture. Not at all.
But they are the two assets that we can be mechanical about. Largely because the dollar amount we commit to our routine purchases doesn’t matter much. It can be as little as $25.
When it comes to Bitcoin, our goal isn’t to put dollars in, watch the price go up, and then get more dollars out later. That’s not the right approach.
Instead, we want to routinely buy Bitcoin to accumulate a material position… so that we have plenty of bitcoins. That is to say, we want a portion of our assets to be denominated in bitcoins, not dollars.
The reason for this is simple.
Bitcoin isn’t just another speculative asset. It’s sound money that’s governed by its own monetary system.
There are very specific rules around how and when new bitcoins enter the market. Nobody can alter or game these rules. It’s quite a transparent but resilient system.
And think about this: there are only 21 million bitcoins that will ever exist. And 19.4 million of them are already here. That’s 92% of the maximum supply.
Yet, the last bitcoin won’t be mined until the year 2140. That’s hard-coded into the system and cannot change.
So the last 8% of Bitcoin’s supply will trickle into the market over the next 117 years. Talk about scarcity.
This scarcity is why we want a portion of our assets denominated in bitcoins. Bitcoin protects us from inflation – which is critically important these days.
Of course, scarcity only matters if an item has utility. And that’s where Bitcoin shines.
If we hold our bitcoins in a non-custodial wallet, we can send any amount of money to anyone, anywhere in the world, at any time on any day of the week. There are absolutely no restrictions.
This is what makes Bitcoin so valuable.
Note that I make a clear distinction between Bitcoin, which is the network, and bitcoins, which are the currency units within the network.
It’s not bitcoin the currency unit that’s terribly important. It’s Bitcoin the network. That’s what we are buying into as we accumulate bitcoins.
So to my way of thinking, Bitcoin is about financial security. It’s incredibly scarce. It’s immune from tampering. And it gives us the ability to transact value at any time for any reason.
What we’re talking about here is the opposite of a speculative asset… which is how most of the world still views Bitcoin.
On the crowdlending siding, our goal is to build a nest egg that compounds itself at a high rate of return. And there are multiple strategies for accelerating this process.
Our crowdlending portfolio throws off more and more passive income for us as it grows. But here’s the thing – we can get started with just $25. There’s no barrier to entry.
That means we can build up this portfolio at our own pace. Then, once it reaches a certain point, we can use these funds to acquire rental real estate. That will grow our passive income even more. And it will provide us with some incredible tax benefits.
So Bitcoin is all about financial security. And crowdlending is about quick and easy passive income that grows. That’s why our two little habits are so important.
As I mentioned yesterday, we aren’t going to see the needle move much when we’re first getting started with these habits. But if we stick with them consistently for years, we’ll be amazed at what we end up with.
I think Darren Hardy put it quite well in his book The Compound Effect. Here’s Hardy:
Small, smart choices + consistency + time = radical difference.
Well said.
-Joe Withrow
P.S. Would you like more information on the topics we’re discussing today?
Yesterday we released The Financial Consistency Bundle to provide just that… and a lot more. This product packages two of our core financial courses together for the price of one. This is the first time we’ve done that.
Within the bundle you’ll find Finance for Freedom and The Income Snowball Strategy.
Finance for Freedom is all about building a robust asset portfolio. This includes the ins and outs of Bitcoin. The goal here is financial security.
And The Income Snowball Strategy lays out several strategies for building a crowdlending portfolio capable of generating returns between 9% and 15% consistently. That’s how we generate quick and easy passive income.
To learn more about our new bundle, just follow the link below. We’ll keep the offering open through Saturday at midnight.