I mentioned on the Splinterlands discord yesterday that Buy, Borrow, Die is the way to go.
Here's one guy explaining the concept:
TLDW - loans are not income. So buy assets that produce cash flow, borrow money using those assets as collateral when you need to, and then die to let your estate settle out the balances.
This is how tech entrepreneurs take very low salaries and still have cash to spend on the jets and mansions and yachty girls.
When it comes to splinterlands assets, it's a bit more difficult to generate loans. But that will probably be changing some day. In the meantime, they do generate income.
With other cryptos it's generally pretty easy. Plenty of collateralized loan platforms out there. Just make to sure to use a DeFi one so you don't get trapped like we've seen in CeFi over the past year. Even with DeFi platforms there is liquidity risk. So be aware of that.
Here's some extra juice on the topic:
The "Buy, Borrow, Die" strategy is a popular investment strategy that is often discussed in the personal finance community. It is based on the idea that investors should focus on buying assets that appreciate in value over time, borrowing money to invest in those assets, and avoiding liabilities that depreciate in value over time.
The strategy is based on the idea that, over the long-term, assets such as stocks, real estate, and businesses tend to appreciate in value while liabilities such as consumer debt and credit card balances tend to depreciate in value. By focusing on buying assets and avoiding liabilities, investors can build wealth over time.
The "Buy" component of the strategy is all about investing in assets that are likely to appreciate in value over time. This can include stocks, real estate, and businesses, among others. The goal of this component is to acquire assets that will generate income and/or increase in value over time.
The "Borrow" component of the strategy is all about using leverage, or borrowing money, to invest in assets. This can include using a mortgage to purchase a rental property, or using a margin account to invest in stocks. The goal of this component is to increase the returns on investment by using other people's money.
The "Die" component of the strategy is all about avoiding liabilities that depreciate in value over time. This can include consumer debt, credit card balances, and other types of loans that are not backed by assets. The goal of this component is to avoid financial obligations that can drain wealth over time.
The "Buy, Borrow, Die" strategy is not a one-size-fits-all solution, and it's important to keep in mind that investing always carries risk, and this strategy may not be suitable for everyone. It's important to do your own research, seek professional advice and understand your risk tolerance.
In summary, the "Buy, Borrow, Die" strategy is a popular investment strategy that focuses on buying assets, borrowing money to invest in those assets, and avoiding liabilities that depreciate in value over time. It's a simple concept that encourages investors to focus on building wealth over time by acquiring assets and avoiding liabilities. It's important to keep in mind that this strategy may not be suitable for everyone, and it is always important to do your own research, seek professional advice and understand your risk tolerance.
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Did you see the loans with SPL collateral via The Bank of Neoxian?
Yeah, I had forgotten about his loans. Is he still doing that?
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As far as I know, maybe not on your level of liquidity desire.
Now that is an interesting idea. I remember NEOXIAN use to loan money for Steem back in the day, I didn't know he was still doing that. I am unfamiliar with this token SPL, so I will research it. Thanks
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Yay! 🤗
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This is a great strategy for building wealth and I've done some research on this myself. I've got the plan in my mind, just need to put it in motion and consolidate it with each new investment using borrowed money/crypto assets.
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This looks like a solid strategy for building wealth and reducing taxes. That statement maybe redundant. :)
I will look at the rest of this guys videos, it sounds promising.
Maybe he could even [post his videos on Leofinance?
I don't know how big he is, but the more the merrier.
I wonder if we will ever have collateralized loans on Leofinance? I seem to remember something called Leofy at one time being talked about for PolyCub. Maybe on Cub?
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