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My Defi Game Plan To Get Out Of 9-to-5 Job.

by Lim Wei Xiang 6 months ago in mining
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Stop building other people’s dreams and start yours.

My Defi Game Plan To Get Out Of 9-to-5 Job.
Photo by Aditya Saxena on Unsplash

Disclaimer: I am not a financial advisor. The content for this article is purely for educational/research purposes only and is merely based on my personal opinions.

Please note: There will be affiliate links in this article. But it will only benefit both of us. If you do not wish to take part under my affiliate links, please feel free to Google them separately. Cheers!

Step 1) Invest half of the monthly salary to Defi.

Look, this depends on the individual budget. Only invest what you can lose. Plan your money wisely, do not invest more than 50% of your money. What works best for me is that I’ll take my monthly salary minus all necessary expenses and take half of the remaining salary for investment, the other half will be personal emergency savings. Although this leaves me with not a lot of money for investment, at least I’m investing consistently every month and I believe one day my investment will pay off.

Step 2) Don’t put all your eggs in one basket.

Everyone should know this concept by now. Do not invest all your money into a single project, spread the investment across multiple projects. Although every project will now have lower profit at least you lower the risk and in the case where one project dies (scam/rug pull), you still have other projects to earn and cover the loss. Currently, I’ve invested in10 Defi projects. Lucky for me, none of them turns out to be a scam. However, I am not risking extra money for a good project, every project will be an equal amount.

Research plays a huge part in my defi journey. Please Do Your Own Research (DYOR) before investing in any project. Always have an open mind to a new project, the reason being that these new projects might be an improvement over a certain project which can be even more beneficial for investors.

Step 3) Withdraw initial capital and compound the remaining.

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it. — Albert Einstein

This step is up to individual investors’ strategy. The ideal way to minimise risk is to withdraw initial capital once the project doubles your investment and compound the remaining. However, I am slightly more agree, I will only withdraw the initial capital once the project has 3x my investment. Next compound until you are satisfied with the returns, everybody wants to buy a Lambo, but don't be too agree. Please control yourself and withdraw some profit to pay yourself, enjoy the little things in life like buying a coffee with investment money. The main goal is to compound it until the returns are large enough to sustain you without working a full-time job.

Step 4) Keep track and manage the investment.

Create a spreadsheet to keep track of which projects you have invested in, your initial investment amount and further earnings. Always keep track of all your investment and manage it accordingly, withdrawing the initial capital if possible once the investment has doubled or tripled in returns. And on the plus side, it feels good to see your money growing as you keep track of it.

Last Step) Get other sources of income to fund your investment. (Optional)

This last step is optional. Only if you happen to have some free time, plus if you are extremely motivated. I would recommend to you find other sources of income to further fund your investment. Personally, apart from my full-time job, I am also a small-time eCommerce entrepreneur in Singapore, where I sell candles online via Shopee (An online eCommerce platform). All my profit will be funding my investment to further grow my portfolio. If I can do it, I am sure you will find a way as well.

EndNote

These are the steps that I will be following until I reach my goal. To quit my full-time job and live off freely with the investment. Set a manageable /achievable goal instead of the number of Lambo. Remember to start off small and slowly work your way up.

Don’t work for money; make it work for you — Robert Kiyosaki

Hey if you like my article and would like to show some appreciation for my work. Please like and follow me. I would really appreciate your help! Thanks.

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About the author

Lim Wei Xiang

I am a freelance blogger who writes article posts on Medium and Vocal.Media on topics such as Passive Income, Cryptocurrency and Trading related topics.

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