Category: Finance

02. Pay back your debt.

02. Pay back your debt.

Pay back your debt as fast as possible.

Freelancers Finance rule number 2.

Thank you dad!

Luckily that was one of the most important things my father taught me related to finance: Never raise a loan and get in debt. Or he also used to say if you want to loose a friend, lend him money. That might sound old school since we live in a capitalistic system which functions based on credit, interests and doing business with the intention of growth. It do not means you have to stay away of our economy. It simply means you have to be in the right position of this system.

debt

Debt is modern slavery

Slavery is a though word i know. There is lots of room for interpretation and debt is obviously not the kind of slavery happened in history. Slavery used to be or still happens in brutal ways. But nevertheless debt is a soft form of modern slavery. You have to understand this. I’ll try to explain it as simple as possible.

If you are in debt you owe money to the bank or to a person. While you can’t pay it back the amount of debt keeps increasing rapidly. They charge interests and they compound over years or months. So if you wait too long to pay them back the debt grows exponentially due to compounding interests. The longer you wait the more you owe and it increases parabolic.

debt slavery ivansnz

So it don’t matters what debt you have: student loans, credit card debt, small credits, small loans, they all compound over time due to credit interests you have to pay. So what’s the slavery now? We only have a limited time on earth and time is money. The more money you have the more options you have how you want to spend your time. But if you are in debt you are working your whole life paying back the debt. You have less options and less free time learn new things or enjoy life. That is why i consider it as asoft form of slavery because some people work five days a week the whole day and stay trapped paying back their debt.

The freelancers advice

Of course this is an advice not only for freelancers because it is a fundamental decision to live a free life. But especially for freelancers it is important to follow that rule. You don’t decide to freelance because you want to build a huge company focused on growth. It is a decision to be your own boss and do what you love most for whoever you decide it to do. You get it, its about freedom. Of course you can decide to go a riskier path take loans, rent equipment and do business with the confidence to earn high returns in the future. But if you fail you might risk your freedom and reputation.

Get the Freedom

This is why my advice is to pay back what you owe as fast as possible and avoid debt in any case. Work with the income you generate and if it is not enough lower your spending or consider to work on a side-job to stabilize your income temporarily.

This is how you build your freelancer business on a rock steady foundation and with small but sustainable steps you get to the freedom where you can decide when you want to work and on what projects you want to work.

freelancer finance

Get the freedom where you can decide


Youtube: https://goo.gl/rQaiFV
Instagram: https://www.instagram.com/perfspots/
Facebook: https://www.facebook.com/perfspots
Website: http://perfspots.com/

RECOMMENDATIONS
Here i get interest on my coins: http://bit.ly/btc_defi
Best cryptobrowser: https://bit.ly/fastest_browser
Here i buy bitcoin: http://bit.ly/btc_buy

Travel
Where i book hotels: https://bit.ly/riohotel
Where i book the cheapest flights: https://goo.gl/HRhxoy
Credit card with best commissions for travels: http://bit.ly/travelcreditcard
Editing software: http://bit.ly/editing_software

Disclaimer
This is no financial advice. Everything written is my opinion only and you should do your own research. Investing in Bitcoin and other cryptos, lending, DeFi, liquidity mining are high risk investments. You could lose everything, only invest what you can afford.
Bear in mind that some of the links in this post are affiliate links and if you go through them to make a purchase I will earn a commission. Keep in mind that I link these companies and their products because of their quality and not because of the commission I receive from your purchases. The decision is yours, and whether or not you decide to buy something is completely up to you.

01. Spend less than you earn.

01. Spend less than you earn.

Freelancers Finance rule number 1.

“Spend less than you earn.”

It might sound easy and obvious but most people don’t understand this rule.

The rule is as simple as it sounds but for most of the people it is harder to obtain. This rule is relevant to freelancers since you dont want to operate your service on a loss.

Business metaphor

See yourself as a profitable business. As soon as you spend more than you earn your business is not profitable, you are not break even. ->You want to avoid an unprofitable business at all costs.

You can run your business or freelance service on credit and debt. There are solid strategies and some might work out. credit and debt are some how ways capitalism work but it is much more riskier than following the advice i am giving you in this post. Sending less than you make and having some backup is much more sustainable and you’ll be able to earn money with you passion for a lifetime. Do you really want to risk it?

Effects of spending less than you earn

  1. Pay back your debts as quick as possible. If you don’t have any: your personal finance is profitable and sustainable.
  2. You are able to save for a financial backup. This will bring you through hard times.
  3. You are able to invest into new gear or start a personal campaign for new clients.
  4. You are able to reinvest what you save and get a passive income stream.
  5. Your strategy is sustainable and set for long term plans.
  6. Freelance is less riskier.

How to?

You have to summarize all of your earnings and then summarize all of your spending. Earnings are easy for most of you. But if you have diversified income streams just add them together. Whats tricky are the expenditures. They are hidden in fees, taxes and debt. Go after the spendings like a detective and add them on a excel sheet or on paper, whatever you prefer.

Small but repeating costs are the most overlooked positions. They look harmless but add up together over time. Software subscriptions, gear leasing, Coffee to go every morning.

To get a proper comparison calculate the earnings and spendings for the same time frame. I recommend you to gather one month. Month after month. To get an overview summarize the total numbers per year. The anual numbers give you a better feel of what you spend a big chunk on because some monthly costs look small but gatheret they show how much it really is.

Now that you keep track and income and spendings are under control apply the rule:

Spend less than you earn. Always.

Youtube: https://goo.gl/rQaiFV
Instagram: https://www.instagram.com/perfspots/
Facebook: https://www.facebook.com/perfspots
Website: http://perfspots.com/

RECOMMENDATIONS
Here i get interest on my coins: http://bit.ly/btc_defi
Best cryptobrowser: https://bit.ly/fastest_browser
Here i buy bitcoin: http://bit.ly/btc_buy

Travel
Where i book hotels: https://bit.ly/riohotel
Where i book the cheapest flights: https://goo.gl/HRhxoy
Credit card with best commissions for travels: http://bit.ly/travelcreditcard
Editing software: http://bit.ly/editing_software

Disclaimer
This is no financial advice. Everything written is my opinion only and you should do your own research. Investing in Bitcoin and other cryptos, lending, DeFi, liquidity mining are high risk investments. You could lose everything, only invest what you can afford.
Bear in mind that some of the links in this post are affiliate links and if you go through them to make a purchase I will earn a commission. Keep in mind that I link these companies and their products because of their quality and not because of the commission I receive from your purchases. The decision is yours, and whether or not you decide to buy something is completely up to you.

DeFi on Bitcoin – Get interest on your coins

DeFi on Bitcoin – Get interest on your coins

DeFi is a market which exploded in the past couple months, people want their Bitcoin to move and generate interest out of it. I researched my way through different projects an found a very interesting one: Cake DeFi
It is basically a brand new blockchain running on Bitcoin and “Pool” is their platform to invest your crypto coins and get returns.

“Put your cryptocurrencies to work.”

“Hold your cryptocurrencies and put them to work at the same time. Cake is the first fully transparent platform that generates constant cash flow for you.” – Source: Pool by Cake

Lapis – Bitcoin DeFi

Lapis the Bitcoin DeFi option is the most interesting and probably also the safest way to invest your Bitcoin (of course they also offer the same service for other crypto’s) It is the lending service they offer. It is fully transparent and while i’m writing this i think it is the only service providing such a transparency. You can analyze when and where your coin where put to work.

bitcoin lending apy

– Source: Pool by Cake

How does it work?


Risk?
There is a risk you won’t get the full APY offered but your stake is insured and that makes this option the safest.

Liquidity Mining

Liquidity Mining is a well known term for crypto enthusiasts. To break it down, liquidity mining is providing liquidity to an exchange or swap service and get interest in return. It is certainly riskier than traditional lending but you get a much higher APY (Annual Percentage Yieald).

liquidity mining apy

– Source: Pool by Cake

Look at those crazy numbers! You get an APY of 250% of Bitcoin. The service is available for ETH and USDT as well. It sounds like a scam but it works, i invested some BTC to test it out. The offered APY was even higher last couple weeks. You have to know this is only a temporary state of rewards. Because it is a new project the rewards are super generous in the beginnings and will adjust to lower levels as soon as more investors participate. But seems like a lot of investors joined, at the time I’m writing this article DFI (the crypto coin needed to mine) hit half a billion USD marketcap. That is pretty impressive. I am looking foreward where this project is heading to.

Masternode Staking

This service is probably the easiest to understand. Cake hosts masternodes on different chains like their own DFI and othe blockchains like Zcoin, Dash or PIVX. So you don’t have the hassle and administration to host a masternode by yourself, you simply invest in partially in one of the masternodes they are hosting and get a fraction of the rewards earned. Simple as that.

– Source: Pool by Cake

My Bitcoin DeFi Strategy

So many options but what can i recommend? I basically have most of my Bitcoins invested in the lending service because it is insured and you still get a decent APY. A small percentage of my Bitcoins and DFI coins are invested in Liquidity mining to get the real juicy returns. The rest of the DFI coins are staked in a Masternode option with a decent APY as well.

Be aware that all the screenshots with the APY offered are only at the timestamp of today 27.12.2020. The numbers will change to maybe better or worse. This is simply to show you what you can do to possibly earn some interests on your bitcoin instead of waiting for the price to rise.

DeFi Economy

Besides the personal aspects and chances to earn DeFi is a whole new economy evolving. Basically whatever a bank or institutional service offers you, a DeFi service will cover it in the future. This is why this market is so promising. Cake even plans to offer Stocks and commodities in the future. What are you waiting for? get on the train!

Disclaimer
This is no financial advice. Everything written is my opinion only and you should do your own research. Investing in Bitcoin and other cryptos, lending, DeFi, liquidity mining are high risk investments. You could lose everything, only invest what you can afford.
Bear in mind that some of the links in this post are affiliate links and if you go through them to make a purchase I will earn a commission. Keep in mind that I link these companies and their products because of their quality and not because of the commission I receive from your purchases. The decision is yours, and whether or not you decide to buy something is completely up to you.

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Ivan Snz