Crypto, mental health, and retirement
Crypto, mental health, and retirement
Chasing an early retirement with crypto may not be what you are looking for.
Most people join crypto thanks to a fantasy.
It’s usually a mix between wanting to become rich and hitting that special number. You’re so determined to quit that 9 to 5 job, that you’d do anything for it.
Sounds great on paper. But there is a catch.
That fantasy may end up costing you more than what you bargained for in ways you did not expect until you uncovered it. What you should do instead is find your comfort spot. TLDR at the end.
Making your first money in crypto exposes you to a new awareness. That you can make life-changing money quickly, and more importantly, that there is another path to your financial freedom.
You don’t have to wait until retirement to be “free”. You realize that the traditional 9 to 5 life until retirement is no longer the only option. Once exposed to crypto, most make it their life mission to escape the rat rate.
They are hooked and there is nothing wrong with that.
However, in pursuit of this fantasy, which I will expand on later, some are ready to sacrifice literally everything. You see, crypto is a 24/7 market with volatility, pumps, and dumps that never end.
You end up glued to your screen checking prices every hour and searching for that next crypto gem. What happens in reality is that you trade your 9 to 5 job for a 24/7 job or you sacrifice all your free time in favor of more crypto.
This new crypto job has no limits and you may very well end up working more than most searching something you may not find. Few actually reach that 100x they dream about or they quickly lose it if they get there.
Mental health enters the picture
Whatever you pay attention to, grows into your life. If you pay all your attention to crypto, that is all you will be doing, and it will grow and consume all aspects of your life.
Crypto is fundamentally about money. You spend more and more time on it with the hope that the time investment will end up in a large sum of money. That is part of the fantasy.
There are no guaranteed returns in crypto! But you can get better at it.
Most are ready to trade their most valuable asset (time) for something that could result in no returns. The risk-reward may be worthwhile in certain cases, but not at the expense of everything else.
Guard your time well and don’t spend it frivolously. Otherwise, your price will be anger, depression, or anxiety which can be very elusive as they take over your actions. Especially when your hard work ends up with a 95% crash.
Even if you hit the jackpot, greed and euphoria will quickly emerge. If you are unprepared for them, they can quickly turn around your success. This can leave scars on your mental health.
You mitigate that with experience in the market and time spent outside of crypto! That’s an important point. Finding balance in crypto means no crypto sometimes. I also invite you to join our Patrons group on Discord to be in good company, it helps a lot!
Life is nothing without some risks
Take risks, but don’t go all-in to the point it impacts your mental health. A worriless sleep is worth more than a $1 million dollars if that comes with no sleep at night.
Life is not only about money. This quickly becomes obvious to anyone that becomes rich. The marginal utility of money beyond $100,000 per year, per person becomes negligible.
While the impact on your wellbeing and happiness of going from 50k to 100k per year is major, the same cannot be said between 100k to 200k. You don’t become happier if you have more money after a certain point. The pivot point varies by person and location, but the findings remain.
The fantasy meets reality and is uncovered
The richest people on earth all work, sometimes more than most do in their 9 to 5 jobs.
Why?
Because they are driven by a vision or something they are passionate about. That’s why they are so successful in the first place.
Quitting your job and doing nothing (even if rich) is not a sign of success. It’s a sign you gave up.
This is why working 40 years to eventually retire is a trap. You need to live your life now and find what drives you. Seek that which brings meaning to your life and then never retire from it.
This is why I believe early retirement, at any age or bank account size, is the wrong approach. People chase it only to realize, once they hit their $1 million goal, that they want to start working on what they are passionate about.
But why do you need $1 million to do that?
You can start working on that now!
Take risks, live in the moment, and create your story today. You don’t need to wait 40 years and retirement for that! That is a lie.
If crypto is not your passion, re-adjust. Use that time to find what clicks for you. Don’t sacrifice your life to something that does not bring happiness.
Some reach their retirement number early and they simply add another zero to their original target as an easy fix to continue. But chasing money for the sake of more money is a dead end. A more worthy endeavor is to find what drives you, not more money. Don’t fall for that trap.
Finding your comfort spot
This place varies by person, but a quick example related to money is entering any restaurant in your city, enjoying a great dinner, and paying the bill without even checking how much you have paid. That’s a comfort spot.
Choose to pursue your dreams and work hard towards that. Eventually, there will come a moment when you will find your comfort spot. Some call it ikigai.
Understand that such a place may have nothing to do with money for some people, but it will give you tremendous pleasure which over time transforms in a level of comfort you always dreamed about.
Perhaps this clip from Pavarotti will help you understand what I mean. Look at his eyes after 2:54. In that moment, he reached the pinnacle of his art. It took him years of work, but he arrived at his comfort spot. You can’t go higher than that.
Create your story
Many put their life on pause until they hit a certain number in their bank account or dream how beautiful their life will be when they retire.
This approach to life is another fantasy.
You never put pause on your life. You live it. This is why taking some risks is recommended. If it has a chance to get you closer to your story, do it.
Failure is part of that and that’s how you become successful. In crypto, you become better after you get burnt a few times. It’s the price we all pay to get to our comfort spot in this space which usually ends up with Bitcoin.
Create your story and don’t let others dictate the chapters of your life. Become the author, not the reader. That will put you on a great path.
TLDR & Tips to Remember
Crypto can turn into a 24/7 job, at that point a 9 to 5 job looks attractive
There are no guaranteed results in crypto no matter your time investment
Spend your time wisely and factor in breaks from crypto, it’s important!
Take risks, but don't go all-in at the expense of your mental health
The marginal utility of money lowers as you get more of it
Retirement is a trap. You never retire from your passions
Don't delay working on what you love, make it a priority!
Work hard towards finding your comfort spot, then enjoy it!
Be the author of your story, not the reader, and don’t let others write it.
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All info is provided for educational purposes only and is not financial advice.
Create your own story!!!!
My first bull run was the 2020 - 2021. I was soooo early that I thought every thing was easy. My portfolio went as high as 400k - which is an insane amount for me. Unfortunately, I gave my gains all back to the market. Luckily I had about 30% btc n eth, otherwise I'd have nothing today. I'm now sitting at about 120k and it's 85% btc n eth. Although I was depressed during the bear market, I learned my lesson. A heavy BTC portfolio save you!