Topic: What are some financial secrets that you know of? - page 8. (Read 1592 times)

But isn't there more to the inflation > interest rate equation? At first glance some people might deem an investment in real assets in this inflation > interest world to be a 0% or low % risk investment like arbitrage, but in reality that isn't the case. When inflation outpaces interest rates, it is quite risky to still take a loan and invest in already inflated real assets. Otherwise, when inflation > interest does not yet exist and you are among the people who are first of those who adjust their expected inflation, it can make sense to take a loan and then take profits in a timely manner as soon as inflation > interest becomes reality. Because those who take loans and think they are making a smart move because they buy inflated assets at interest rates being lower than the inflation rate, can quickly run into liquidity and depth shortages. That is why the real estate market might soon crash again and we can already see that with luxury watches and several other items that one or two years ago were deemed almost bullet proof short to midterm investments.

Eventually, it remains a gamble to a degree. It is good when someone exploits the situation and makes money off of it. But analyzing the economy and finding that inflation > interest holds true is also no 0% risk environment. Those who bought those watches two years ago are stuck now most of the time. Not only do the inflated prices fall, but also (logically) the demand is drying out. Some told me to have a look at watches as they were themselves looking into it and now they put their activities on hold.

In short, when inflation is already much higher than interest rates, it is usually too late for most people to take the gamble because it is likely that economic policy will be adjusted to close the gap between inflation and interest rates and when inflation is so high that everyone is already able to discern the discrepancy between interest rates and inflation rate and conclude their could be potential for financial gains, that potential has most likely been exploited by higher net worth individuals and professionals long before the gap became obvious to everyone. Economies barely are in a steady state and there is also incentive by powerful lobbyists who can steer the economy into a certain direction if they have loaded their bags already.

But this in general and the example of the watches lead me to the diversification part...


I think that all assets carry risk, but what also counts is individual literacy in a topic and, after all, one's own conviction of an investment. Watches in my opinion are one of these things that are very far from guaranteed to go up in price for many years in a row or even a decade. This is my opinion. Bitcoin, in contrast, is an infrastructure technology that stood the test of time already and when I had to choose between a very expensive watch, a decent real estate or Bitcoin (all equal amounts) in times of high inflation (and even interest rates being lower than inflation), I would go with Bitcoin in this very moment. Watches can turn into a highly illiquid market, so can real estate, but Bitcoin will at least be liquid, I have a real time reliable indicator of its price (which is essentially always lacking for real estate because prices develop in a delayed fashion compared to the overall economy) and I am convinced that it carries almost infinitely more upside potential than real estate or watches.

For me diversification would currently mean building/adding to a stack in Bitcoin at regular time intervals as it also comes into play that far spread diversification isn't cheap. You are not diversified when you buy 2 Bitcoin and a trash real estate for the same value only for the sake of holding two different asset classes. Whereas a real estate giant might very well feel diversified when investments go into different types of real estate. Luxury, mainstream, city center, countryside, ...

The age matters a lot. I can tell from the people that I talk to, the younger they are the more they are willing to take a gamble in crypto and also the less they are willing to put serious effort into learning about it. But I would be lying if I said that I didn't improve myself over time as well, meaning that I also was a bloody beginner at some point underestimating risk-reward ratios a lot (or not care about it too much I guess?)

You are right, lazy people who spend their time searching for the recipe for success will sooner fall into the traps of scammers than find what they need because there is no secret or formula for us to succeed quickly. Indeed, to become successful and rich other than working hard, saving and investing, I can think of no better solution. Don't just look at someone else's success and think it's easy, try to find out what they've sacrificed and gone through to get there. Because there is no success without trade-offs.

There’s no secrets since saving and spending below your means is a general concern for everyone if you want not to live in debts and regret it. And while you’re on the process of saving, know that you save not just for your future nor for emergency funds, but also you need some potential investments too that will give you additional profits especially when your job is not stable and anytime you’ll gonna lose it. So save and invest, and maybe in the future you’ll gonna experience some life changing moments or opportunities.

Investing also has risks, it's true that investing is a great thing to increase wealth but it all comes back to the type of investment and almost everything has risks and it will be commensurate with the possible benefits.
But back again with the secret of one's wealth, I think everyone has their own portion and the subject of being rich is the desire and opportunity that many people have to be able to get it and almost all rich people in this world have different ways to achieve it.

The wealth secret are no longer secret anymore as those information are now open to the public and it depends on how determined you're as an Individual to seek wealth. If you pursue wealth you'll finally get it but when you're reluctant you'll chase away wealth. Money has a spirit and those who can control it, money gets attracted to which is why the rich keep getting richer while the poor poorer because they don't yet understand how money works.

Investing is the way to getting wealth, when you invest you put your money to work and there's nothing money loves more than working and giving his master profits. Where to invest is the secret that was held from us for years but we have the opportunity now with Bitcoin.

They can share their secrets and honest with you, I believe secrets in trading to succeed are not secrets at all. They have common basics and it's only challenge for each investors to beat themselves. If they can win against themselves and common faults of investors, they can succeed.

Like you can read a book with successful secrets, will you succeed with your investment? Will 100 other people will succeed too?

Very little people will succeed because they can not beat themselves, not because they don't know about successful secrets.

DCA sounds easy but in reality, very hard to do.

You can buy bitcoin, accumulate it in many months but will you be strong enough to hold your bitcoin or will quickly sell it when you see a price starts to break out and increase like 20%?

DCA is a start but later you must hold it and take profit well too.

I just buy (DCA) Bitcoin and keep holding it in my own wallet. This is my big secret that my friend already doesn't know that at past. Several years ago when I bought Bitcoin at a very low price, I got multiple profits when the price growing up hundred % from I bought, so my friend thought I won the lottery when I bought a new car. I didn't say that if I trade my bitcoin, I just said that I got a bonus from the company. But after that, I tell the truth if I just hold bitcoin at past and got profit after that. He was surprised, and want to learn bitcoin. Now, he uses my way to increase wealth like me on the past.

It's absolutely true that it wouldn't be a Secret if it could be revealed and shared with everyone. Secrets become secrets because no one shares them openly. And only tell it to those we can truly trust. And I agree that currently there are not many hidden secrets in the financial world. Unless it's from behind the darkest side of this world. Which I really don't want to talk about and certainly don't want all of you to hear. Because maybe you also actually know what the dark side of the world is in various sectors. be it in economics or in politics.

But to be rich today there are many ways that can be done. as long as we are not lazy to learn and innovate. Must have different thoughts from other people. Remember the best business is a business that no one else has thought of. Meanwhile, a business in a field that has been thought of by many others must have had many competitors. So start innovating and making new discoveries in the field of business that are most needed by everyone but not many are aware of it. thinking out of the box is one of the common secrets that many people who have now become successful have done.

if you want to become wealthy person then I know a way that very effective. that way is study and gain knowledge. if you learn and become a doctor then people will pay you for your service, if you want to build a real estate then you should have knowledge about it. There are many ways beside this that also effective, some people tell about the power of giving and etc, and I believe it. but the most logic way is by gain knowledge.

Thats right the OP basically wants tips and tricks that come from reputable people. We know that it is different if we just google it, as the result is very vague. If we ask in the forum, mostly experienced people will answer and give tips on it. Though there are secrets that are not totally secret, they are just hidden stuff that will only be revealed to worthy people. For example, if your cousin wants advice on making his business successful, you'll tell him, but to others, you won't.

If to say rich at this time, financially I have not touched it. But you could say that now financially I have enough. Despite my achievements so far, I haven't actually used any secret techniques or extraordinary methods to manage my finances and earn money. Maybe the method I use is the same as that used by many people. Like thrifty, saving, and investing. Maybe these three factors are the main basis for me being able to manage the money I have. Then for work and business matters. This is what I usually do and I always instill it in my mindset. The point is never give up, always enjoy the process, and must continue to have motivation and innovation. Broadly speaking, this is what I have instilled so far. So in essence, you must always have a goal in every job you are doing.
These goals don't need to be big right away, but start with small goals first, which are according to your abilities or thoughts and beliefs. That this goal can be achieved.

I personally would not do that. Because borrowing money, in my opinion, has a big risk. Moreover, borrowing the money from the bank, you will definitely need a property to be the collateral, and is accompanied by interest every month. So to be able to buy a house, it's better for me to save or invest first. Instead of directly owning a house, but the result of borrowing. Because even psychologically, if you have debt, it will definitely affect your work performance. So therefore, I will not take that step (borrow).

I understand and do agree that secrets are indeed secrets that should be kept to oneself. However, I think what OP is referring to by using the term is secret is not necessarily secrets that should not be shared but tips or advice from personal experience that we know in order to earn more. The word secret here is basically a term meaning "tips" or "personal advice".

Everything that was said to be a secret has to remain secret and once it's exposed it's no longer a secret.
What I learn is that there's no longer a financial secret again in this world but people are just too lazy to face the reality of financial freedom which always comes with a prize to pay.

The majority of those trying to look for secrets in order to gain wealth as fast as possible end up encountering the exact opposite and instead lose the majority of their money, anyone that wants to improve their financial situation will have no other option but to do it the old-fashioned way, which is to become way more frugal, save money, increase your income, invest in solid assets and then do this for decades, it is not easy but if you can do it then your golden years will be very pleasant and worry free in terms of money.

You can also put some in your savings account so you have back-up in case your investments go sideways.
So for me, saving is still a must for emergency purposes. Remember, you can't cash out your investments right away if for example it is in real-estate.
And if you can't have a job with good salary, you can always find alternative or side jobs to augment your income.
You can't dictate where you will land a job, so just strategize on this aspect. And definitely, being practical on things will help you save a lot.
And do take note, the term "rich" is a subjective term for me. You can feel "rich" even if you have no luxury items, but on the note that you have no debts from anyone.

Secret will be always a secret, whatever it is.  there is no need to tell others if we are willing to have or keep secrets of that something.
And if we are telling here, it means that We betray our own choice to tell the secret even though we might not know each other.

The choice of keeping a secret may differ from one person to another. There are some who think that it is enough for them to know if they have just bought a fairly decent amount of Bitcoin. But there are several other people who want to tell about the purchase for several reasons. And this is not wrong, depending on the choice of each.

What you say is very different from some of the cases that I have found in my environment so far, where some people are able to make big savings because they don't make bigger expenses so that any income they get every month can be directly saved with a larger amount than they will use for consumption every day.

But if what you're saying is to save Bitcoin so as not to sell it at a lower price, I think it would be wise for everyone to look at other options if they want to actually hold Bitcoin for the long term and don't want to spend it on a whim to fix a small problem. Because it would be very unfortunate if they had to sacrifice Bitcoin just to solve problems that are not so complicated in their lives.

Yeah, but did you buy back your 10 BTC, yet?

There are a lot of ways to dabble around with the accounting in order to say that we made a lot of money, but are we really being honest with ourselves?.. also think about short-term, versus medium term, versus long term.  Sure.  I am not saying that whatever you did is not working.. but do you have BTC?  That's where it is at.. especially if we look at BTC as an investment from a longer time horizon... say for example accumulating BTC in 2018-2020 (or even before that) and being able to mostly HODL those accumulated BTC (perhaps even continuing to add value to the stash/stack) through the next 5-10 years or longer.


You are not technically wrong, yet I am not sure if you said that correctly.. because beginner investors (who are not gamblers) might not want to take a lot of risk with their investment(s), so they might be trying to consider how to NOT put their principle at very much risk, so the very first investments that anyone might make might be moreso considered to be savings rather than investments, so dollar accounts with interest or bonds, and once they get their dollar related investments (savings) up to a certain level then they might be ready, willing and able to start taking more risks.

Sure there are some folks, including younger folks, who might not adequately consider the risks, so they consider investing as a kind of gambling and they enter into various risky investments while mostly preparing for UPside price movements and not really adequately calculating and/or considering various downside scenarios.

So, yeah maybe we might call the beginning of investing into more risky (rather than safe) assets as a kind of diversification, and whether they might start out with stock market index funds - which are also considered to be safe, but maybe there might be some desire to go straight into bitcoin?.. but still having dollars and having bitcoin might be a kind of balance, and if there is also equities in the mix, then there might also be some questions regarding how to invest small amounts at a time, and bitcon allows the ability to invest small amounts at a time, but if you ONLY have small amounts to invest, there could be some problems to diversify into the investments. so it may well be better to stay somewhat concentrated, rather than diversifying, but still the level of concentration versus the ability to diversify (to the extent that it is even necessary or advisable) might still be questions regarding how much risk that you are willing to take in regards to how you are already allocating your investment into something like bitcoin versus cash/bonds versus index funds... and sure other categories are property and commodities, which are even more complicated including the need to have higher amounts of capital to even be able to invest into some kinds of property and/or commodities products.   

I don't believe in diversification for the mere sake of diversification, but I do believe that if you start to build an investment portfolio (such as in BTC and cash) and the BTC portion starts to get quite large such as equal to a whole year of your living expenses or even 50% of a whole year of your living expenses, you might want to start to consider whether you might need to diversify beyond merely apportionments of bitcoin and cash... and if it might be less risky to have some other kinds of investments (and not referring to shitcoins) but maybe something like index funds, property or gold, and maybe there is no need to buy property until you have 3-5x of your annual income saved up in your investment portfolio..

....and the weighing of these kinds of needs to diversify for the sake of lessening risk are likely going to differ between individuals and their various individual circumstances including but not limited to their cashflow, how much bitcoin they have already accumulated, their other investments (including cash reserves), their view of bitcoin as compared with other investments, timeline, risk tolerance, and their time, skills, goals (investment/lifestyle targets , which includes figuring out the extent that they are in BTC accumulation, maintenance or liquidation stage) and their abilities to strategize, plan, research and learn along the way including tweaking strategies from time to time to consider trading, reallocating, use of leverage and/or financial instruments.

If there are no big expenses, then there may not be much savings, and in extreme cases it will be possible to sell part of the investment. It may not be good, but bitcoin can rise and we will get more money, and this will only be if we need a lot of money, but often small savings will be enough to cope with current issues.

The two questions above are interrelated, now for the first, in my opinion, if you already have a permanent job or not, always be selective with expenses. This means calculating the budget plan for this month's needs first before setting something else out of your total estimated salary. If it's later, that's fine. if those who haven't and are still free line, the pattern is almost the same.

Now, to buy a house by taking a loan, I think it's okay, but for the second time I say, make sure there are other positive pay items that can help with the monthly bills later. But, if you have savings, try not to do that, or you can build a house if you have your own land, with an estimate of five being divided into 5 stages. Long but sure. The first year for the foundation, then the second year for the structure, the third year for the roof, the year for completing the installation and the fifth year for finishing.