Use Cryptocurrency to Create Financial Independence (Part 1)

Welcome to this series on Crypto and Financial Independence. If you’ve been around the crypto world for a while you may have heard stories of investors and traders hitting it big, quitting their jobs, and gaining financial independence. Maybe that’s what drew you to crypto in the first place. In this series, we’ll dig deeper into what has been effective in creating financial independence and demystify some common myths.

Let’s be clear from the start, financial independence will be easier for some of us than others. The process can be made more difficult by inequality, discrimination, location, health conditions, and thousands of other barriers. Whatever your circumstances, hopefully some of the ideas discussed in this series can help you along the way.

Why Is This Series Necessary?

I bet you’ve heard someone in the crypto community talking about the cars they’ll buy or the beach house they’ll grab once they hit it big on their favorite coin. Most of us love the idea of not having to work. As a Mental Health Therapist who works to help people meet their goals, I’ve noticed that most people don’t take it beyond the point of fantasizing about financial independence. They have a short-term vision of what it will be like, but not a clear plan of what to do before, during, and after their quest for financial freedom. I want to talk about the why and the how more in depth to get specific about financial and life goals, with a special focus on the crypto community.

Money Myths

Let’s start by breaking some myths.

  • Most of us have heard the saying that money doesn’t buy happiness and said, “that’s not true for me, if I had more money everything would be so much better.” And it’s true for most of us. Nobel Laureate, Daniel Kahneman found in his research that if you’re making under $75,000/year in the United States, more money does make the majority of people happier. However, once you you hit that 75k threshold in the US, it’s likely to have diminishing returns. In other words, more money doesn’t make us much happier past a certain point. This is just one specific example that varies greatly by individual situation, but still makes a greater point.

  • There’s also great deal of research around consumerism and buy more things. Buying more, after we meet our basic needs, does not usually make us happier beyond the initial afterglow period right after purchase. If you want to learn more about happiness and well-being research, I recommend checking out this free Yale course around The Science of Well-Being.

  • Crypto is highly volatile. There is immense potential, but also a great deal of risk. We often hear about the people making tons of money, but not as often the people who lost it all. It’s a very small percentage of people who have become financially independent, maintained their wealth, and are living a fulfilling life.

Robin and Dominguez, authors of foundational book, Your Money or Your Life, talk about money as life energy. We trade our time/resources/energy to get money. If we frame money as they do, it may change our relationship to how we spend our money, how we work for our money, how we invest/trade our crypto, and how much money we need. We’ll talk more specifically about these ideas later on.

Questions to Consider

What is enough for you? How much money do you NEED, and how much are you wasting? Do you track how you’re spending your money? These calculators can help you narrow in on what you need and current costs

-What brings you fulfillment or satisfaction? A list of free aptitude and career quizzes. Or a values clarification exercise.

-How would you spend your time if you didn’t have to work to make income for a year? Two years? This Calculator can help you to calculate the life energy cost of your current work.

We’ll be back with another post soon, but I want to hear your feedback and to start a dialogue around this topic. Please leave a comment with areas you want to learn more about, or continue the conversation in our ADAPTCrypto Telegram and Discord. Some of the ideas in this series come from a book referenced above, called Your Money or Your Life: 9 Steps To Transforming Your Relationship with Money and Achieving Finanical Independence by Vicki Robin and Joe Dominguez https://yourmoneyoryourlife.com/. This book is the foundation of the FIRE movement (Financial Independence Retire Early). I highly recommend it for anyone setting your sights on financial freedom.

Disclaimer: This is not financial advice. I am not a financial advisor. There are many ways to achieve financial independence. I am not yet financially independent and am also working on these tools as well. This information is based on my personal experience, research, and observation into how other’s have successfully and meaningfully met their goals.