My mother gave me a small loan of $1000
January 18th, 2021
My first post in my Journey to Financial Freedom
Throughout high school I rarely worked for the sake of earning money. If monetary gain was tied with a project, that would be a bonus I could reinvest into softwares, domains, hosting, film equipment or food.
However the value was always less in the money itself and more in how such a project could benefit me long term - increasing abilities, learning new skills, acquiring specific knowledge.
I always thought that earning now cuts earnings in the future as there is an opportunity cost and law of diminishing returns applies.
Today I got an email from Paypal:
I once again depleted my checkings account. Yet I asked myself why was this.
Why could I not afford to pay $6.66?
Over the past few months, I've been focusing on working on my University Applications, grinding essay after essay, while also investing $1000 of savings into stocks and cryptocurrencies.
Although my portfolio grew, at the same time my money shrunk.
My checkings account on Jan 12th, 2020:
So what happened...?
From a culmination of different subscriptions and thousands in university application costs, my monthly burn rate was negative, taking money away month after month. Additionally, I barely earned any money during this time.
However, when I stopped to put my time elsewhere, project staggered and so did income. That's when I realized:
Trading time for money is the ultimate way to stay poor
Even at $500 or $1000 per project, there was no way I could reach financial freedom. The amount I earned was proportional to the amount of time and energy I put in.
Although given enough growth of the agency, I could reach a position of greater leverage, I did not have the bandwidth to do so at this time. (but also I chose not to as I wanted to do other things)
So what do I do...?
I am determined to make this is the last time I ever am this broke... or broke in general lol
As identified before, my monthly burn rate was nearing $100 from subscriptions alone which is completely unsustainable. There's definately a better way to continue thriving without all these subscriptions draining my accounts each month.
First, I compiled active subscriptions and expenses.
Then started being real with myself.
I deleted email@example.com ($7.80/month)
Convinced my mom to pay for Adobe Creative Cloud ($30)
Got a few months free for superhuman mail =⇒ before then want to build my own email client ($15)
Scheduled to discontinue renewal of videoblocks ($250/year)
Scheduled to Canceled Typeform Pro ($600/year)
Canceled the almost all of the ~20 domains I own except the main ones ($100/year?)
Luckily I still live with my parents so no food or rent costs 😋
Here is roughly what I had left, based on what I thought was reasonable.
Google cloud storage 2.39/month
Domains <$100 a year 🤪
Potentially renewing apple developer and videoblocks if valuable.
Now my burn rate is a managable $10 a month, a drastic decrease from nearing $100. However, I am continuing to seek alternatives to reach that $0 mark.
Aside from cutting my burn rate, I wanted additional capital to invest within my projects for the year and recooperate my finaces.
My mother gave me a small loan of a $1000
I have not asked my parents for money for a year now, and determined to pay her back by the end of the year with interest 🙂
One big reason I asked to borrow $1000 is that I don't want to shift my attention to making quick money.
What I mean is continuing to make money the same way I did before- trading time for money. Although valuable in itself, this approach was capped by my effort.
Instead, I want to build wealth ⇒ assets that earn as I sleep, not bounded by the time or energy spent.
From working on different web dev / video projects for startups, I found that although flexible, valuable, and paying they can be, I really don't enjoy working for others as I found it creatively limiting and obligations turn me off.
I know it's quite a drastic thing to say but as a personal promise to myself:
I do not ever want to work for the sake of money every again (I am 17.41 years old as of writing this)
Build wealth (assets that earn as I sleep) to remove money problems (the necessity to work for money)
This year I want to build at least 1k monthly in passive income.
So far I had made a lot of great first steps
YouTube Channel is nearing 1000 subscribers ⇒ I think it will hit by end of january, then I can begin monetization
Began investing in the stock market and cryptocurrencies
Build once, sell twice ⇒ Exploring in the next posts ;)
Stay tuned. I think it's going to be sick.