What If....
I'm going to assume a lot in this post....
But the purpose of this post, actually the purpose of every post I end up creating on chain is to ask each of us...What if?
Now a few of the assumptions are this, the majority of us aren't whales. We are every day folks, working hard to add value to this chain but also to eventually, make enough to support our families here.
So when I ask, can we live off the 20% APR that is currently being enjoyed with $HBD of course you can....
Just give me 1 million $HBD and I'll 'struggle' to live off over 16k a month in dividend payments.
So yeah, whales can enjoy this right now and we're seeing quite a few of them living off the interest they earn, just from hoiding HBD in savings.
But what about....The rest of us?
I read a bunch of books from Canadian author Derek Foster about a decade or so ago...
He called himself the 'Idiot Millionaire' and his claim to fame was that he retired at the age of 34, living basically off the dividends he earned by holding blue chip stocks.
There's more to his story but for the sake of this post, that's the general idea.
And it's sound, never 'sell' your assets, but live off the dividends they pay. And that's exactly the same opportunity we're looking at right here on the blockchain.
Let's so some basic math and see some levels any of us can achieve:
Want to earn about 1000 a month in passive dividends by holding $HBD?
You'll need 60k in HBD savings.
And while that seems like a huge amount, don't look at the end goal right now. Slow and steady folks, slow and steady...
Shoot for smaller, achievable targets to start out.
Aim for 600 in HBD savings....
That's 10 bucks extra in your pocket each and every month. That's a target anyone can achieve here, and that can start to compound if you don't touch your savings for a while.
After you reach 600, shoot for 1000. That's 16 bucks in your pocket a month. Then try to push yourself and go for 2500 etc.....
Here's the key, this does not happen overnight. Remember, we aren't whales here so we need 'time in the market'. But if the HBD savings holds up, at 20% which is always up for debate....The HBD savings plan literally becomes potentially one of the greatest retirement plans around.
I know I always revisit this when I start rebuilding my HBD, because I'm kind of starting this a bit later in life than I would have liked. It gets me excited to think about the HBD we have here, built right into the chain and for me....It's a no brainer.
Obviously, things can always go south. So you have to judge for yourself what you can invest. But the best part about this savings plan is it's 3 days to get liquid. And no penalty.
So can we eventually live off the interest we earn on HBD?
Who knows lol I mean, it's my GOAL to live off the interest earned but I know to many things can go south....The markets, the blockchain, the adoption, the weather, the powers that be....So many things can go wrong.
But what if....
It's exciting to think about!
The obvious disclaimer: This is NEVER financial advice because I'm pretty much the worst example of what to do in crypto (you know, selling $BTC when it was 500 bucks...) lol So please please please...Research ALL of this stuff before you drop a dime into it!
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It's always fun to think about the "what ifs..."
keeps me going for sure lol
My goal is accumulating 1000 HBD. I have no dream of living off HBD, but %20 interest rate for something almost equal to $1 is just great!
That's the goals for sure. That's my target right now!
The maths in the HBD is just simple, and I like the way you take time to describe it, for the fact that the 20% ApR is still intact, leaving the interest and the savings for a while will impact a great heights for us.
Yeah and even if it goes down, 10-20% interest is very attractive.
It's always entertaining to speculate on "What if?" but there's also reality to keep in mind. Some of us are just very small fish in this pond, and even accumulating 100HBD from posting would be quite an accomplishment!
Of course, having a very long term time horizon definitely helps!
=^..^=
That's why it's important to start with levels and targets we can always reach. Push ourselves to hit those targets. And then build from that.
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Thank you kindly!
@jongolson, You are most welcome.
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It's a nice what if but I wonder if the APR will ever change. I am hoping that it doesn't but it isn't exactly guaranteed either. I do think it isn't a bad idea to capitalize on it while it is though.
10%, 12% whatever it may be....I'm ok with that. Doesn't have to be 20% for me to be all in on it.
I don't really like the "What if" I prefer to act on what you can control and adapt to change whatever it may be.
It's the entrepreneurial spirit. We are born to adapt.
I think having a long term view when it comes to building on this blockchain carries a lot of upsides. There are many possibilities ahead :)
That's the best way to look at this stuff, always the long term view.
I am closer to 100 HBD and I'll reach that target. I would love that 600HBD target as that would slowly adds up into the pool. Meanwhile while on the journey of the HBD, the account would grow too with HP which can be staked :)
I am closer to 100 HBD and I'll reach that target. I would love that 600HBD target as that would slowly adds up into the pool. Meanwhile while on the journey of the HBD, the account would grow too with HP which can be staked :)
It starts to snowball for sure. Especially if you take those earning and put it back into your savings.
yo aspiro llegar algún día 500.000 HBD.
Great post! My first goal with HBD was to have enough in savings that I was making 1 HBD per day in interest. As soon as I crushed that goal, my next step was to get to the point where I was making 50 per month, then 100 per month. I am pretty close to 125 per month right now just off the interest. I just want to keep that growing. It's a long way away, but I'd love to hit 1000 to 2000 per month. Maybe after the next bull market...
That's amazing man. And I'm sure you didn't do anything crazy to reach that, just kept stacking here!
Yep, I think I did buy a little bit, but it was mostly all just post rewards.
Love it!
Product of the product!!
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It is possible to live off the 20% HBD APR but that means you gotta invest a lot of money
The money has to be much, lol
Who knows if I can get there someday?
Dont need to invest a penny of your own money. Literally, just put it into savings from the post rewards you earn.
It's always good to focus on the numbers with a current and future projection on the outcome. Even if things go south here on Hive we still have control over our crypto with the anticipation it will bounce back as markets always do. I'm no financial advisor either but at least here with Hive it feels like there is a sense of stable growth in comparison to some other coins which are highly volatile. I like the idea of a retirement plan or even just some monthly ROI to cover some costs. 😀
That is true, not as much fluctuations here as on other chains. And the HBD is stable(ish) so that's always a safe bet.
I think you can use the "what if" quite comfortably here even if the HBD APR drops to 10% or 15% in the future. 20% just seems too good to be true and all my calculations are for the 13-15% mark. Having 200K in HBD is my long term goal which seems like a lot, but it isn't once we see the ATH's again. Having a goal and more importantly a plan is crucial to getting ahead.
That's my thinking too. Even at 10% it's still light years ahead of what we could do in a bank account.
Yes best way to think as 10% is still good and if it is more then great.
Agreed!
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Amigo, es cierto, no lo había pensado me diste una gran idea ,es genial de 100$ en 200$ y así va uno ahorrando...
ese 20% de interés es anualidad o es mensual?
I think one of the things I have noticed about rich people is they let their assets make the money for them
@jongolson, maybe I should just save the HBD I earn and just keep out enough to upgrade my CTPX each month.
Roy's financial advisor called him the other day. Because of his age he is required to take a $6000 distribution from his retirement account. They're going to take taxes out before he gets it though. He is buying a CD with some of it and getting a check for the rest. I am working on him to get a Hive account and throw a chunk of it into HBD savings. Even if it was only another 500 or a thousand that's still a nice interest he'll get every month.
He was asking if he could lose money on that. I told him only if he takes it out.
Fingers crossed I can sell him on the idea. He seems open enough to at least look at it.
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I mean, that's my plan going forward. And even if HBD goes down to 10%, it's still a dang good place for me to earn interest. 20% is a dream, but if I wake up, I'll take 10% too lol
Yeah Jon!
10% is still way more than what you'd ever see from a bank. I'd take it as well.
Have a great day😆
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