Money Manager

It has happened to me several times over the past decade. People ask me how I manage to live my life without any form of payed labour.

This text is for all those people, and those who are going to ask me that question in the future. I will try to explain the basic principles of making a living by letting your money work for you with strategies that have worked for me in the past and present.

The first and most important step is to understand what money is and what different forms of money exist. This first step is also the most difficult step for most people, because most of us have never thought about the concept of money. Money simply exists and although we use it on a daily basis, hardly anybody finds motivation to discover how it actually works. One blogposts isn't enough to explain you all the details so I highly recommend to spend a week of your time watching and reading about the concept of money. Another comment I like to add at the start of this text is that everybody's situation is different and there is no one size fits all. This is simply my strategy that worked for over a decade and allowed me to buy my house free of debt. 

Money exists in different forms, the most widely used today is in the form of debt currency. A currency differs with money because unlike money, a currency does not hold it's value over time. This one simple fact is why so many people are unable to become financially independent, because the only form of money that they use in life is the one they have no control over. When I figured out the difference between currency and money I understood that in our current time, debt currency is only good for gambling. Historically the average lifetime of a currency is about 50 years, which means we are already in overtime with our current model. Let me add that it really doesnt matter where on the planet you live, because due to computer technology and internet communication we basically live in a global system that compares itself, regardless of your location.

Once you can accept that currency is useless for saving you are ready to ask yourself the question what alternative you should go for. For me personally gold and silver are still the only forms of money that have proven to withstand the test of time. The fact that nobody has been able to counterfeit either metal and that both exist in physical form that endure any challenge the elements gives them have turned these metals in the best form of money we know today. Cryptocoins like Bitcoin aim to challenge this position, but my personal conclusion is that they lack scalability to be globally adopted. That being said, the invention of blockchain is happening right now in our lifetime and will most likely have a similar effect on society equal to the printing press. What I mean with that is that writing a book is no longer a privileged exercise only available to elites like it once was and the same will soon be true for financialization of anything you can think of. Up to very recently the system of government was able to protect financial institutions with monopolies and regulations, but with the introduction of blockchain that era has passed.