500 sats \ 2 replies \ @TwoLargePizzas 5 Mar \ on: What's the poor man's option? Personal_Finance
The first thing to understand is why that strategy works?
The answer is simple... currency debasement.
When you borrow money against your hard assets you're effectively shorting the dollar and going long the hard asset. It's a good trade because those dollars you borrowed are going to be worth less than the hard asset you purchased over time.
14 years ago I was in your shoes.
- First I DCAed into my bank account.
- Then I DCAed into my home loan.
- Then I borrowed against my house to buy another house.
- Now I DCA into Bitcoin.
This is the strategy I took and it worked. It worked because I was DCAing into scarce desirable assets. But I didn't really understand what I was doing at the time. In hindsight, it's obvious that DCAing into Bitcoin is the best option.
It doesn't happen overnight but it is simple. Just start accumulating slowly, be patient and keep going.
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Greatly appreciated. Best of luck on your journey.
Oh, one thing I should add... don't worry too much about being able to paying off the debt. I used to think paying down the debt was super important but it turns out you'll end up having equity to borrow against with time anyway.
At this point if I wanted to I could sell half my assets and be debt free but that's not the plan. The plan is to keep going until I'm ready to stop whenever that might be.
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