Investing & Spending – How I Marry The Two

Is That Even Possible

One of the most basic principles in finance is that you can’t become wealthy by spending. It seems pretty basic and yet we are surrounded by many poor, rich individuals. Rich because they earn a sizable income and poor because not only do they spend it all, they spend beyond it. In my country, the average citizen spends 75% of his salary servicing debt. This is literally insane. There are occasions that I will advocate debt but only under certain conditions. Once you come to understand how I marry spending/debt and investing, you will realize how this is even better than you could have imagined.

In essence, I am spending but in reality, I am not. This approach has a strong foundation in the approach of building passive income streams, as well as bulk holdings over time. So let’s examine this idea that I believe far outperforms the traditional view of paying off a car, or even a house.

Flipping The Tables

I have always advocated the idea of working hard for your money until you are able to make your money work hard for you. If you are spending your entire salary every month, then I am sorry to disappoint you, this will never become your reality. When purchasing a vehicle via financing, you will always end up paying way more than the actual cost of the vehicle. This is due to the interest accrued every year. Generally, vehicle repayment terms are 5 to 6 years.

Let’s say that the vehicle you are eyeing has a price tag of 200K. You have two options, you can either save up 200K or finance the vehicle and enter into an agreement that enslaves you for the next 5 to 6 years. If you save the money, you will be able to obtain your new car but you will no longer have your 200K. This inevitably causes you to lose your leverage. When you hold cash or assets with a cash value, you have an advantage over the system. Just as he who is indebted to the system is subservient to the system. Ideally, you don’t want to sacrifice that.

If you finance the vehicle you are now enslaved and will end up paying closer to $300K for your 200K vehicle over the next 5 to 6 years. If you view these two options, you will note that neither one is attractive, or by any means wise.

Why Not Marry Them?

This is where my approach comes into the scenario. Before I continue, we need to be aware of what the monthly repayment would be, were we to purchase this vehicle via financing. In general, the monthly repayment of a $200K vehicle over 6 years is approximately 3.8K. With this figure in mind, let’s continue. Due to Crypto being so lucrative, obtaining fairly safe yields is quite attainable. I am generally going to ignore the high-risk sector and design something that is a lot safer.

Let’s say you have built up a stash of Crypto over time and it is now worth 200K. Instead of following the traditional methods above, there is a smarter alternative. By utilizing lending, staking, low-risk DeFi, and stablecoins, I am able to generate an average return of 4% per month. Let’s rather make it 3.5% to make up for volatility in the market.

What Does This Produce?

So we have our 200K locked away and earning 3.5% per month. This equates to 7K per month. You will note that this is almost double the monthly repayment cost if the vehicle was financed. This also means that the market could drop more than 50% and you would still be able to secure your monthly repayment. I say more than 50% because a lot of that capital is in stablecoins, which would offset the loss in this particular instance.

Further safety measures can be taken by not spending the excess but compounding it into the principal amount, subsequently growing the investment and monthly income. This is a win/win.


Let’s view each outcome to assess what the implications and benefits are in order to evaluate the smartest way to get the job done!

Purchasing the vehicle outright – The only benefit here is that you acquire the vehicle but in so doing have to forfeit your capital.

Financing the vehicle – Once again, you have the vehicle but now you are enslaved in that you need to now produce the income needed to repay the loan over many years.

Using My Approach – You get the vehicle as well as being able to hold onto your 200K. Furthermore, your investment increases in value over time, especially if you are compounding the excess.

It is always wise to ensure that the income generated exceeds the required amount quite substantially. This is quite important, as Crypto markets are quite volatile. That is why it is advisable to incorporate stablecoins into the mix. Thanks for reading. I hope this article has ignited some creative financial solutions.

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