Dollars and Cyber.

In this time, there are a few things that one can do. You can get rid of debt: you can ensure you have a job: you can do side gigs, even if it is making a few cryptocoins mining on nicehash. What I am seeing is a number of toy cars being put on the side of the road with a ‘for sale’ sign attached. If you can save do so: biking to work does not cost petrol or parking, and the parking is now getting rare and expensive.

At this time of the year we look at the fixed or semi fixed expenses. Power costs. Cellphone. Internet. We try to get cheaper but still have good service. Savins matter.

And hoard the savings you make. Because you need a cushion. The government will not save. you. Nikolai has a made up budget, then talks about cutting it down.

And now let’s look at your new budget.  Note how 100% of this additional, surplus income has been added to savings (because you lack an emergency fund.)  

Also note that 0% of that $125 has been added to any other item, like a more expensive gym membership, nor has any been used to fund new expenses like a pet goanna or one of those Ab machines they’re forever advertising on TV.  This is the most important part: reductions in spending MUST be put directly into savings at this point, otherwise you will never reach financial freedom.

Nikolai Vladovostok
Nicked from Wilder.

I should add, since I don’t live in a country which has a reserve currency or a few hundred nukes to back itself (though we do have gold mines) have a range of currencies available, along with some cash. Pa Wilder likes gold. I find that hard to get into stuff I can buy things with fast. Crypto you can turn into your local currency. Having a few reserve dollars/euro/pounds sterling is also a good idea. The Kiwi currency can act like a peso.

But Crypto is unstable.

The money supply today is fiat money.  I’ve written about that before – it means that our money is entirely made up.  No silver backing, no gold backing, the only backing is the faith of the people who accept it.  Oh, and several thousand nuclear weapons, if you’re talking about the United States dollar. The next step from that are the cryptocurrencies. Those are entirely a mathematical concept, though Ricky has noted in comments that this mathematical construct can cost upwards of a million dollars in power a day.  Bitcoin is currently at $33,000.  Four days ago?  $40,257.

WIlder wealthy wise.

I said last year it was time to divest and trade down to get out of debt. The market, at least in NZ, proved me wrong. Nonetheless, I stand by that advice. Debt is bad. And you can’t eat assets.

Aim instead, to have one job per family, and instead put your energy into educating the kids. It currently is homeschool or watch our education system debase them.

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Jonathan
Jonathan
1 month ago

I am not a fan of gold either since it is so concentrated, In my opinion, small silver coins are a better option – for example, a 90% silver dime (US) is currently about the cost of a loaf of bread. But you still have to find somebody who will accept them… I agree that cash is usually a better option. How often will people in NZ accept a foreign currency? In the US, it is VERY rare; people give funny looks when offered it, even at banks.