Exploring the world of cryptocurrency can be an enlightening experience, providing valuable insights into the world of investing and money management. One of the most valuable lessons I’ve learned is the concept of “Pay Yourself First”. Though simple, this idea is often overlooked.
This idea is not just about changing our perspective on debt and bills, but it’s also about valuing ourselves. For too long, we have been taught to pay others before ourselves, accepting the norm of taking on debt in the fiat monetary system. David Graeber the author of the book Debt argues that debt has been a fundamental aspect of human interaction for thousands of years and has shaped political, economic, and social relationships. He is clear about the fact that debt has been used both as a tool of oppression and as a means of creating moral obligations and social ties. Without paying ourselves, we’ll never escape the debt trap.
Buying things we don’t need with borrowed money is like building a tall tower on sand. Instead of making a strong financial foundation, we keep adding things that cost money, and end up paying more in the future because of interest. It’s a vicious cycle that makes it hard to be financially secure.
By paying ourselves first, we build a strong financial foundation that provides us with financial stability and the means to reach our goals.
The beauty of this concept is that it’s not just about saving money, but it’s about investing in something that increases in value. For example, if you receive a raise of $500 a month, instead of using it for leisure, you can invest a portion of it in cryptocurrency, like Bitcoin. Over time, that small investment can grow into a substantial sum, giving you financial freedom.
Another advantage of paying yourself first is the power of compound interest. By investing in a promising crypto asset, you tap into the power of compounding and watch your investment grow over time. The earlier you start, the greater the potential for growth. Investing in yourself is one of the best investments you’ll ever make.
“Experience is the teacher of all things.” – Julius Caesar
Draw on the valuable experiences of the crypto community and use them to build a more stable financial future. So, break free from the cycle of only paying others, and start investing in your financial future. Pay Yourself First.