Building Cashflow || My Investment Strategy for 2021 || #FinancialGoals2021
After seeing @theycallmedan his post #financialgoals2021 Initiative | Share your plan to grow in 2021 | HIVE and LEO Prizes, I decided to take a closer look at my own financial planning for the new year. Be sure to check out his post.
An investment strategy was never really a clear-cut thing for me, but I have always had a goal. And that goal is to become financially independent and retire early. Retiring early doesn't mean that I will stop working entirely. What it means is that I will be doing stuff here and there because I want to and not because I have to, being able to stop at anytime.
Achieving financial independence can be done in many ways. You can achieve it through luck, by winning the lottery or something. Building up assets that (semi)passively generate constant cashflow is also a surefire way to do it. Some choose the route of being a business owner, but that route is often very hard work in the beginning and attached to significant risk.
I have never really thought about my own financial strategy until 2017 when I came across blockchain technology and cryptocurrency. Before that I had only learned to safe money and earn interest on it by putting it in the bank. Ha! I guess that's also because my country doesn't really anything else beside maybe being a business owner.
So my "strategy" has evolved in the past years into building up assets and long-term crypto trading. It has worked out well so far. For 2021 I want to focus heavily on building assets that passively generate income. There are various ways I tend to tackle this.
HIVE
Hive plays a big role in my 2021 strategy. I've been active on here for ever since august of 2020, and I'm already earning around $50 a month just for creating content. So far I have been compounding each earning one way or another back into the platform, aiming for exponential growth. My main focus on Hive recently has also shifted to the second layer Hive-Engine environment, which is all about alternative ways of earning and also passive income. So far this is what my Hive-Engine assets are:
- 21 WEED Mega Miners
- 12 WEED Miners
- 60 CTP Miners
- 101 INDEX tokens
- 25 BRO tokens
- a dCity account that generates around $3 daily in income
As a rough estimate I would say all these things listed generate at least $100 a month, almost completely passively. Might not seem like much in the bigger picture, but I believe some people in my country are actually earning this for there full time jobs, especially with increasing inflation.
For now the passive income is sustaining my Hive account growth, but my goal for 2021 is to reach a point of passive income where I can invest in other assets outside of Hive.
The Hive goal for 2021 is at least $100 monthly from content creation and $200 from passive assets. And to achieve that the strategy of reinvesting and spreading all earnings will continue.
Proof of Stake tokens
I believe POS cryptocurrencies will eventually be the biggest players in the game and I have already started gathering some, with NEO and Ethereum being the biggest of the bunch. 2021 I will also focus on diversifying among other POS tokens. Ethereum is already paying of as we speak. Of course trading strategy is also important in this case.
New additions to the strategy: Stocks and Real-Estate
In the coming year I plan to look into new investment opportunities. 2 main ones come to mind. One is entering the stock market, but I am far from taking that step. As with cryptocurrency I have to do enough research before going for it.
Another one is going into real estate. Or at least starting the research on it, because realistically with the lack of sufficient laws in my country around real-estate and being a landlord are still big obstacles. I don't want my money stuck in buildings that are illegally occupied buy squatter where the only way to remove them is having a 2 year court battle losing more money in the process.
To summarize the 2021 goals that should result from my strategy:
- Become at least Dolphin on Hive earning $100 each month from content and curation
- Earn $200 monthly from Hive-Engine assets
- Diversify in more potential POS cryptocurrencies
- Enter the stock market
- At least research local real-estate
Another thing I'm doing and will continue to do is buy US dollars with any extra local currency I have lying around to avoid being affected by inflation, but that's just common sense.
While my strategy is a bit more worked out now, I expect anything to happen and as such I am ready to roll with the punches and change course wherever necessary, as long as the journey towards the goals stays clear.
So, what is your financial strategy for 2021?
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