Virtual Real Estate And A Lesson From The Past
Goodness me. This really is the opportunity of a lifetime. There is a quote out there that “the bear market is wasted on the youth”. That is so true. The young often lack the life experience to realise an opportunity when it’s before them. When they’re old and experienced enough, it’s often too late as they haven’t necessarily got the time.
I remember the last financial crash in 2007-2008. I was one of the only people not to get laid off at work. My department shrank from 8 to 3 bodies. I thought I was special, but in hindsight, I realise that they kept me because I was value for money. I was the lowest paid person in the department, but one of the best producers. It was a no-brainer.
I was quite good at saving up my extra cash back then. I don’t smoke or drink, so I didn’t have such habitual and unnecessary expenses. I wasn’t into the lavish lifestyle either. I don’t like fancy clothes and I don’t chase the latest gadgets – even though I’m very interested in the latter.
When the crash came, I had some extra cash that I had saved up for years. It was sitting in the bank, earning nothing, so I decided to do something with it. The funny thing is, when the crash happened, it was those of us that were diligent with our money that got penalised. All our investments went to zero or negative interest. We couldn’t get any support from the government for anything because we had savings. Conversely, those hot shots that blew the pension funds on drugs and hookers got bailed out – with our money!
I decided to do something with my money, rather than let it sit in the bank being leveraged by the same hot heads that crashed the economy in the first place.
I didn’t have enough to buy property back then – not in London anyway. I linked up with family and we pulled funds and made a purchase of a small flat for cash! The house prices had crashed so we pulled it off. It left us with no liquidity, but nobody had any liquidity anyway so we were just like every one else.
When the economy turned around, we were able to sell the place and retrieve our money, plus much more. It was the best decision we’d made till then. I learnt a lot from that last financial crash that it has informed my actions this time.
Again, of course, I’ve been very prudent over the years and have put something away for this sort of time that was inevitable. My strategy is different this time, but similar in spirit. This time we have crypto, which is virtual real estate. Fiat interest has gone to zero across the board. All the bank letters already arrived weeks ago informing me of the fact.
Already, what the banks have been unable to do for me in the last decade, crypto has done – and much, much more. We are living in great times when the average person has a better chance of making a little dough. I hope everyone, particularly the young, are taking advantage of it.
Peace & Love,