Finance The Jewish Way and Skin in The Game

For a few days I kept on meeting with an old friend that I haven't seen for quite a while. He had some things to solve out in the area and we've gone out for a few drinks a couple of times. It was nice to catch up and approach all sort of new worldly topics. We didn't talk much about covid as the situation around it is pretty much clear, but we've talked money a lot.

At one point he mentioned to me that he has a friend who is a free mason and he told me that this guy gave him some formula that Jews seem to be using for managing personal finances which has granted them financial abundance over the years. I haven't checked the model on the internet to see if it has any grain of truth in it, but I'll share it with you guys anyway.

It's quite simple actually and applies very well to anyone living on a fixed income, but can apply to crypto as well. The idea is that from the whole income one gets on a monthly, yearly, quarterly or whatever the case might be there are some clear slices that need to be directed to certain needs.

So, 70% of whatever income we talk about should be used for personal spending, food, rent, house car...etc. The rest 30% is gonna be used quite interesting and it consists of three 10% slices that are equally divided for savings, donations and investments. What my friend found a bit hard to grasp was the donations part as he can't see himself donating 10% of his income every month.

The part with savings is quite simple as most of us have some sort of savings in cash. It would be quite a wild journey to live paycheck to paycheck, but I've done that to. When we got to the investing part he told me that he took two types of investments into consideration: gold and crypto. I was a bit amazed to hear that he considered crypto as well.

I talked to him about this topic, he knows I'm involved in it, but he never told me he would get into it. We have another common friend that's into crypto and they meet each other quite often, but the one I've talked to last night hasn't showed any interest towards crypto to that guy either. Hence I started explaining him as much as I could about what he needs to know about crypto, wallets, the halving, the four year cycles and so on.

I don't know if he's actually gonna buy any crypto till the end of the bull market, but he's considering it. The idea that I liked was his long term thinking. Whether gold or crypto he doesn't seem to be interested in short term thinking. He sees investing, if finally allocating some money to any type of asset as a long term action and one that should compound over time.

I advised him to jump into crypto in the next couple of months if he chooses to put some skin in the game as the bull market is not gonna last forever or wait until a bear market bottom. I don't want to see him buying a top like I did in 2017 and live with some underwater bags for a few years. I got myself burned once and I don't want anyone around me falling into the same mistake.

This network effect seems to be gaining traction in the crypto space as more and more people start seeing the true value of money and the need to be invested in something that at least loos safer and more reliable than cash. We don't actually need TV commercials or billboards for crypto mass adoption, but more direct experience that would act as a living example and teacher for newbies.

So far I only managed to make my father invest a few bucks in crypto, but I might have planted the seed for another future crypto investor. Will see how all of that unfolds and I will definitely ponder a bit on that Jewish type of managing personal finances. Hope everyone is having a great day/evening and see you to the next post.

Thanks for attention,
Adrian

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