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5 steps plan on how to become financially independent

So you want to become financially independent?

It seems you are looking to become financially independent.

During your search you probably red a ton of other blogs about it and now you stumbled on mine too wondering what this random dude on the internet has to say about it?

So did I, for the past 17 years in fact

For all these years I have been reading all sorts of financial books, articles, listening to podcasts, you tube videos, attending seminars about how to turn your life around, become wealthy, rich or even financially independent, but none of it was good enough up until I decided for myself to set up a plan on how to get there and took action.

Why am I different and why the information I am sharing is any better?

That is what this crazy long blog post “will try to convince you” I suppose, with facts from my experiences and how I see and look at things in regard to life, money and financial independence. 


Becoming financially independent is a path, a set of rules you need to follow, or at least that is what I realized while searching for it all these years.

Want to hear more about it? 

Well, fasten your seat belts as the story is long. 

If you find yourself in a pinch with time while reading through my rambling, just use the table of contents below or in the sidebar to navigate to the sections that may be of more interest to you. 

Check below for my story, what I learned and the 5 steps I took towards financial 

My financial beginnings - Amway and multi level marketing

Yeah, you heard it right multi level marketing.

I am, or let’s say I was, one of those kids or young people that came in contact with multi level marketing at the young age.

Why did it appeal to me you wonder? 

Well if you experienced it yourself you probably know, but for all of you who may not know, let me dive in and explain a bit more about it.

Multi level marketing and the dream of becoming financially independent

So multi level marketing in laymans words is a context of selling a product or service in a layered structure where people can invite other people into the structure. 

How it works is that you earn a percentage on the commision from the people you invite into “the system” when they earn something or themselves buy some product or service that the multi level marketing company is selling.

Wow, that is huge! For a kid of rather poor origins when hearing the presentation plan at a public convention with all the bigshots and earners in fancy suits and all, well it’s sort of a mind blowing idea.

If not everything is clear from the initial paragraph, let me explain a bit more. 

What these companies like Amway and similar do, is they sell you on a plan that you can build your own network of sellers or people buying products for themselves where in a not too long time frame you can earn residual income and/or become financially independent.

How? Well, as you are invited into the system, in turn you can invite other people in as well. 

As your mentors or uplines in the the multi level marketing terminology earn from your sales, you will be earning from the sales of your “downlines”. 

Here is one more that really hooks ya up when hearing the plan. They say, you don’t need to invite hundreds of people yourself, but just a few, who will in turn invite another few and so on and so forth until you have a big network. 

Did I forget to tell, that the commision you earn is not just from your direct referal, but for “a few legs” down the line? 

Yeah, that is what struck me and likely many others that have ever joined these companies and tried to get to finanical freedom this way.

amway center - how to become financially independent leveraging the Amway MLM
Amway center - Photo 55474646 © Mattkaiser77 |

Is it even possible to obtain financial independence with Amway or other MLM ?

I am going to put it like this. I believe some people do make very good money from multi level marketing, otherwise the concept would have died long ago. 

Is it scammy? 

That is also a fair question and I believe that there are/were some MLM’s with just a ponzy scheme in mind. 

Must confess that I did check a few of those too, also participated in one, as I was still young and naive (I still am a bit naive, which you need to be in my opinion) and as most people, I just lost money on it.

But can you become financially independent from multi level marketing? 

is it possible to become financially independent with Amway MLM
Can you??? - Photo by Tachina Lee on Unsplash

I said it before and I believe some people make really good money from MLMs. 

Amway in particular is a company that still exists, has it’s centers (of which one you can see on the picture above ) and it sells actual products and has expanded to services nowadays too. 

Some products are good, other average, but building a network of consumers isn’t an easy task, so there are many aspects that you need to consider. 

In my own case, I was a rather shy kid and not really good with words or convincing/selling people this pipe dream, but if you have the will, I know some people who made good money

As for the actual question if you can become financially independent with Amway or other multi level marketing companies, the people who’s names i saw on the stages of seminars, the international ones, you can actually google them and check for yourself. 

If you investigate or google those people you will find that they are rich. 

So is it possible to become financially independent with MLMs?

I suppose it might be, just very unlikely for an average Joe.

What I learned from multi level marketing and a list of 6 books that helped me grow

My own experience with MLM’s wasn’t the greatest if I am going to be honest, but I learned alot from it, it helped me evolve and somewhat realize what I want from life. 

What I can praise about Amway’s program was the learning part of it, the suggested books and audio tapes learning program on finance, relationships, personal growth and leadership. 

financial, personal growth and leadership books to help you become financially independent
Books for financial and personal growth! - Photo by Tom Hermans on Unsplash

Amway seminars on how to become financially free

There were also seminars, some learning sure but most energy pumping in a congregation of like minded people which made me understand why they say these events are “brainwashing”.

Fact is that you are there in the midst of a crowd where most people are already sold on the idea of financial independence or freedom that comes if you follow the program, that being there filled with all that positive energy kinda sucks ya into their mindset and fuels you for a while.

Now if I could compare this with something, that would be the churches’ preaching, which contextually is the same thing, just different idea being sold.

I am not saying this is necessarily bad, you just have to understand how to use this to your advantage as the feelings and emotions sprung there are actual factual real.

So about the books now that I red while heh, trying to become financially independent with Amway. 

Network 21/Amway book and audio tapes program on how to become financially independent

What Amway is, it’s a crude plan on how to become financially independent. In order to teach and keep people motivated to continue growing their networks, some high level Amway distributers consolidated and created Network 21.

That was a program of books, audio tapes and seminars and was somehow the glue that kept the ball rolling.

The suggested books were from a wide variety of important, recognized autors in a range of motivation, finance, personal growth and leadership.

Audio tapes were mostly recorded tapes from seminars with different topics, amongst which also the selling of how to become financially independent using the Amway selling structure or multi level marketing. 

Those were and still are some of the teachings that made me what I am today and helped me gain the knowledge and mindset on how to approach finance and other things in life

A list of books that helped me grow and think how to become financially independent

So you see, even though I didn’t gain financial freedom or even got rich, actually spent alot of money, it wasn’t all bad.

The imporant thing is to find the good stuff in any situation and hopefully learn to not repeat the bad stuff as you move on with life.

As for the books, here is a list of book titles you might want to read or listen to via audibles. 

If you are still a youngling trying to find your way and learn about how things work, I suggest these titles even more so, as they will help you emancipate from your teen mind and instill in you some concepts that will help you and guide you through your entire life in a very positive way.

Financial books:

  1. Rich dad Poor dad – pdf book
  2. Cashflow quadrant – pdf book
  3. Retire Young Retire Rich: How to Get Rich Quickly and Stay Rich Forever! – pdf document

Personal growth books:

  1. The power of habbit – pdf book
  2. Think and grow rich – pdf book
  3. The Milionaire mind – pdf book

Can you get to financial independence with Poker or online jobs?

I certainly thought so haha. 

Right after my sad story and insuccess of becoming wealthy with Amway and different MLMs the poker boom era started.

What lured me into Poker?

There is a thing I need to explain in my time line which I will mention later on more and that is Magic the Gathering card game.

What does this have to do with poker? 

Alot….and nothing.

For those who aren’t familiar with the game, Magic the Gathering is a table top collectable strategic fantasy cards game

That sounds like a mouthfull right 🙂

In practice it’s a card game with cards that are collectable and appriciateable in value who also runs international turnaments.

As a kid I used to play alot with friends and touring mainly European tournaments trying to score a big payday. The big prize in one of those GP tournaments was 2400$ which for a kid of around 16-18 years of age actually would be a big payday if won.

become financially independent by playing and winning at magic the gathering grand prix tournaments
magic the gathering grand prix tournament

Later on they increased the prize to 4k$ for 1st place, so yeah another one of my ambitious goals to get rich haha, as it was for many younglings at my age or older.

So not to strafe too much from the main story for now, as my country is relatively small and it’s player base too, when it came to qualifying for the world tournament, I was still amongst the better players in my country so I managed to qualify for it 2 times in a row out of 3 times in a relatively short time span. 

The relevant year was 2005 when the world championship was held in Yokohama, Japan which is a country I wanted to visit since I was a little boy.

Why do I mention this?

Because the country itself isn’t as relevant to the story but what happened there is. 

How I learned to play Texas Holdem Poker

We were staying at a local hostel over there and one night during the “preparation week”, since we came a few days prior to the tournament to practice and prepare for it, a group of Irish guys invited us to play some poker. 

I didn’t know the game rules, but needed a distraction from play testing Magic the Gathering, so I said ok knowing how hard the rules and mastering Magic as a card game was that probably this – Poker, shouldn’t be too tough.

What I knew, were the basic draw poker rules as we played it at home some times with friends. 

Since before learning to play MagicI did play a bunch of other card games as they intrigued me for some reason or another. Anyhow, what those Irish fellas introduced to me and my friends was “Texas Holdem Poker”. 

pokerstars - play texas holdem poker online and become financially independent
Texas holdem poker on Pokerstars

As we didn’t have chips or much money with us to use as base currency for a game of poker, we used the Magic game cards as currency tokens.

It took us some time during that night, but we mastered the game. 

Well really, we didn’t master it, we just learned and undestood the base principles of how it works and it looked to us “a fun game to spend playing with friends as a distraction”.

Little did I know. Shortly after returning home from Japan, I spotted a Poker tv show and started watching it, since I learned the base rules, it looked fun to watch.

Not only it was fun, but it was pulling me in the more I watched it. Another thing it did, it intrigued me to search and learn more about it. 

For those of you who don’t know, the Poker boom started around 2003 when Chris Moneymaker, “an average Joe” won the World Poker championship seizing a whooping 2,5M US dollars

After that happened, the dream was born. If he could do it, anyone could and alot of people started chasing that pipe dream as 2,5M dollars is life changing money for most people in the world.

So, as many others, I was also sold on the dream so my quest to become a Poker milionaire had begun.

Did I ever mention I was naive…. : ) ? 

In not too long of a time after learning all that, I started playing poker online hoping I would one day win a similar amount of money as Chris did and become rich or even financially independent.

My opinion on getting rich or financially inependent with poker

I did play poker for about a decade, maybe few years less. 

My activity started dropping towards the end when I realized that this is not something I want to be doing for the rest of my life. 

When I started playing I was good and ahead of the curve as my other card games skills and thinking mindset helped me to have an edge over many of my opponents.

In my poker career, if we want to call it like that, I had won a few turnaments…where my biggest win was around 6k$. 

I also did ok on the cash game tables for a while too, but the variance part and the time investment into it was a buzz kill for me personally and I gave up eventually.

So can you get rich with poker? 

Yes, I absolutely do think so. 

Can you get financially independent with it? 

Well, that is sort of up to you, if you are able to win a big tournament or grind up to a level where you feel you don’t need to work anymore as the money acrued is enough to last you for a lifetime, then yes. 

Poker as a game is essentially work, it’s a grind and can say it’s not a good career choice for everyone.

If Poker is choosen as “a professional path” it sort of becomes like a lifestyle in it’s own where you understand, agree and accept the positive and the negative sides of it. 

Why I left my pipe dream of becoming wealthy with poker is that the grind is too hard and unless you are starting at higher stakes with cash games, being profitable on lower stakes, it can likely pay some of your bills but not make you rich at the end of the day…or year/s for that matter.

Should you try it?

Being naive as I am, I say trying stuff isn’t wrong as long as you are capable of understanding fast enough if that thing you try is giving more to you or it is taking more away from you and be able to move away from it if it’s the later.

If you are interested in trying out poker, the listed below are at the time of writting few of the top online poker rooms, which at the same time are not available to the US population unfortunatelly:

Online jobs - make money online

This is just a quick mention in this blogpost as it is something I was exploring during the same period I was sort of stopping with poker. 

Along with my poker playing I also used to do some web development and smaller websites, which lead me to explore the option of freelancing on Freelancer or later on with Fivver and it’s gigs model, but that wasn’t a serious consideration for me. 

Btw, the logo you see up there, my blog logo, it was made by this talented designer on Fiverr, so if you are looking for a good logo design don’t be shy and go check her out.

Can you make money online and become rich with that kind of approach by doing micro jobs, gigs or even contract work for people? 

You probably can, but it’s a grindy work and not something I could see myself doing for a longer time as it didn’t have what I was slowly learning that I want to achieve and that is financial freedom along with the time to enjoy it.

pokerstars - play texas holdem poker online and become financially independent
Fiverr marketplace

Are stocks and investing the right path to financial independence?

Moving away from the multi level marketing, poker and other online scheems I was trying to get rich quick with, I had found a new interest about which I learned mainly through the books from Robert Kyosaky and the “Rich dad, Poor dad” book series and that is the magic word passive income

I highly recomend those books if you haven’t red them yet.

They are very well written so that even a teen can understand the concepts depicted in them, heck I was in my teen-ish days when I red them first

I will try to explain some things in this and other blog posts about what I learned from them, but reading them will likely give you a bigger picture about the topic at hand.

Income types - are you working for money or is the money working for you?

The phrase income types mainly refers to the concept of how you earn your money. 

Active money means that you have to actively work to earn it and what fits in that category are your daily job, contract work, side gigs with friends or maybe some online gigs, services or jobs on portals like Fiverr, Freelancer, People per hour and others.

So what is passive income or passive money then? It’s simply income for which you don’t have to actively work for…or at least not as much as you have to with a regular job.

To earn passive money, you generally need to have an asset, which basically means something that gives you or rather helps you earn money because you own it.

Things that qualify as assest are usually stocks, some real estate or royalties on books, music, patents or other intelectual ownership.

For the sake of examples, let me shortly explain what that means:


Stocks - also crypto currencies can be a similar tool, but they are not as well known or understood by everybody so for now lets focus on just the stocks. Stocks can earn you a passive income in one of these 2 ways:

1. By buying them at a lower price and then selling them at a higher price when the price of the stock goes up.

What you did is use money, buy an asset -> stock and let it "mature" -> grow in price without much other work. But stocks can also go down so learning and understanding "the beast" or the market is a whole different topic which I will cover later on.

2. By buying stocks that pay dividends and holding them for their dividend payouts which are roughly once a year. Some pay quarterly dividens and some, even rarer monthly dividends.

Dividends are offered as an appriciation from the company to it's investors and a lure to lure in more investors' money because of them.

Real estate

Real estate - means ownership of some property, either a building or land which can be rented to people for money in return for their usage.

People renting appartments to live or for vacation earns their owner an income, which they don't need to actively work for as the users pay for it in advance or after they finish using it, depending on the contract.

Of course the owner needs to do some restoration if need be or cleaning in case of tourism, but even that can be outsourced to some cleaning/ restauration services for a fee which means the money earned is passively earned.


Royalties - these are generally rights to some patent you invented, that people use in daily lives, music you wrote that gets played on radios, commercials or movies.

They can also be earned on books you wrote. How it works is that you get a percentage on every book sold and all that without extra work once you set the things in motion.

Those above are barely some short descriptions, as each of those topics is much broader, but for the sake of the argument here, it should be enough to give you an idea.

Learn how not to trade stocks - my mistakes when starting out with trading

Yeah, the title should hint you that my beginnings weren’t really great. It’s true. 

I joined the eToro trading platform in 2009 and what you can check from my profile, I really wasn’t profittable with it. 


Well, because I came from a poker background which I was playing for the past decade or so and was used to fast paced games, multi tabling, trying to make as much money as fast as I could, which on the long term didn’t really work for me.

When I stared trading I tried using this same “fast approach” or try making money quick as most people without a financial background or financial education will do and that is with “the scalping model” of trading.

What is that? 

If you aren’t familiar with the term it is likely you haven’t traded much or yet at all.

What scalping is, is a method mostly used when trading foreign currencies “forex trading” and it is a concept where you trade very low time frames with a big leverage by entring trades and then exiting them soon after. 

Ok let me explain a few things for those that don’t know the terminology before I continue:

Some trading terminology explained for easier reading

Forex trading

Forex trading - is trading currency pairs like EUR/USD, USD/CHF, AUD/USD and more.

How you make money is betting on any or more of the listed pairs and for example if you buy EUR/USD, you are betting that EUR will raise comapred to the US dolar.

Contrary if you sell EUR/USD, you bet that the EUR will fall and the US dollar will raise.

There are still plenty of people forex trading and those who are good, earn a good buck for their time for sure.
One of the main distinctions between stocks and currency pairs are the allowed leverages to be used and those are what you need to learn and be carefull about.


Leverage - is a concept where you borrow money from the broker.
Broker is generally referenced to, as the platform on which you are trading.

Brokering means making deals, which is what the platform in my case eToro does for me when I am trading.

So what is the catch with leverages?

Using leverages is the financial world can be very lucrative, but on the opposite side very detremental if you don't know what you are doing.

There are different kinds or levels of leverage that brokering platforms offer to their clients, they differ from trading asset, to trading asset and go from 1:2, 1:5, 1:10, 1:20, 1:50 and an array of others inbetween and/or even higher numbers.

For example, what does 1:10 leverage mean? It means that when the asset (asset is refered to whatever you are trading, a stock, a curency pair, a cryptocurrency) moves up or moves down, you will gain or lose 10x that much.

What in practice leverage means in "an average Joe's" jargon is, whatever leverage you use, the moves of that asset whether is up or down, they will be multiplied by that number. In a case of 1:10 leverage, you are likely to win 10X more or lose your money 10X faster if your bet goes against you.

There is also this thing with leverages, that you can lose more then you actually invest, which is something not everyone realizes, not even those trading for a long time.

Most brokers nowadays have automatic stop loss points in a leveraged trade for that reason precisely but on that some other time.

Are you making my mistakes and using high leverage when trading?

Having explained that, I hope you are grasping where I am going with this…yes, I did exactly that, I used high leverages.

What I consider high leverages is 1:10, 1:20 and anything above that and I traded with those wherever I was allowed to do so…and not just that, I went one step further, which is to trade the currency pairs without knowing about any fundamentals or without reading any news/information on what would cause one or the other of the pairs to go up or down.

Very smart, right?

For those of you who aren’t experienced with trading and don’t want to repeat my mistakes, let me give you some more information to get a better picture and understand why and what I was doing was completly and utterly wrong

First of all, to all those that do or did the things I did, let me reiterate that in my stupidity and poor judgement, I did win some trades, even big trades of 50%, 60% and even some of 200% of my investment.

Crazy right. Yeah, crazy indeed it was, but for the wrong reason. It wasn’t crazy in a good way, but foolish crazy and that is because the irrational trades I placed were most of the time “all-in’s” and I was bound to win some of those just by pure math, but still losing money on the long run.

To give some more perspective why I acted as I did, it is because my deposits were rather small compared to what I trade today.

I used to make deposits of 50-100$ most times with a few exceptions when I thought “I got it” and made “bigger” deposits of up to 500$ which at that time was a relatively big sum and still is for many people trading or reading this article.

As you see, I was basically just playing with money without any concious mind or plan why or what I was doing. 

Could I have done that on a dummy account to learn this stuff?

Perhapse, probably,  but it was a feling of thrill the likes that cronic gamblers feel when gambling. When you won your trade the adrenalin rush was so big that you wanted more of the same.

The only thing I saw was, if I put 50$ leveraged by 1:20 on a forex pair and the pair moves in my favor by 100%, I will have 1000$ (50$ multiplied by 20 = 1000$ when the price moves 100% in my favor) .

That was the dream, which if then repeated a few times would make me a millionaire and let me become financially independent very fast.

Sounds easy right? 

Wrong, wrong, wrong and wrong again.

There is another factor that I need to explain to make this picture full so you can understand how trading works in currency markets.

Fact is, that when trading lower time frames, there will be alot of price movement, similar to the graph of a fast paced song.

What does that mean in practice?

It means that if you are leveraged on 1:10 that a price movement of 10% which can be qualified as “noise” and it means irrelevant price movement, not caused by any fundamentals or news will be very relevant for you.

Why so?

Well, if the trade were to move 10% against you,  it could cost you your entire open positon as 10% X10 from leverage = 100%. 

Contrary, if the movement for 10% would have been in your favor, you would have doubled your money wth that leverage.

My opinion and experience?

Not worth it, unless you wanna strugle and shoot yourself in the foot, then be my guest.

Now with a leverage of 1:20 or 1:50 things can get even more complicated. 

You can win like I did a few trades of 50, 60 or even 200%, but once you lose 100% you are done for and need to start over by making a deposit again to restart trading.

That is something I didn’t learn until my next experience which was trading the Magic the Gathering cards on the MTGO platform.

How I learned to trade properly - buying and selling virtual cards on MTGO

I mentioned before that I played the collectible card game magic the Gathering since my teen years, but the whole idea of trading cards or trading at all, came after my experience on eToro and the forex markets.

Grind for financial freedom from being financially broke

Before I started trading – buying and selling for profit the card game virtual cards, I used to play the online version of the table top game.

I did that whenever I had some free time or even in between my poker sessions while I still played poker, just as a way to relax and get away from that mindset and clear up my mind a little.

Once I was done with poker, I still had some of those ideas of maybe making it “on the circuit” of Magic the Gathering and become a hall of famer making the big money some made.

As a matter of fact there are a few players that managed to acrue more then 500k$ in their life time carrier turnament winnings, so that idea still appealed to me to some degree even in my late twenties. 

I liked the game, i still do and still play it occassionally online or live with friends, but at that point in life it seemed like it’s an idea still worth a shot.

To go a bit more in details, the online platfrom shortly MTGO, used to run qualifiers for pro Tour tournements where the grand prize for a winner was 50k$

Now that is some serious money even today and it was enticing enough to give it a try and qualify in order to get a piece of that pie. 

Even a 2nd place I believe was 20k$ or similar and there were a few 5k$ prizes too, so it sounded like an interesting option to try out for an otherwise financially broke guy.

Yeah I was broke, not just that, but also in debt because of some “businesses” I tried to run with unwary people because of whom I ended up being sued and became indebted.

Not the most pleasant part of the story for sure.

Anyhow, grinding the game I loved to play was fun at first, but even that became a bit tedious and frustrating after a while…especially because I didn’t make any serious money.

Grinding meant playing a tournament for 6+ hours in the hope of getting into the top 8 and then somehow get lucky and win it all.

In fact, I did win a few online turnaments or managed to get in the top paid slots, but that was still too rare and veeeeery time consuming.

Also if compared, it was similar to grinding poker at the low stakes and that wasn’t something I enjoyed or felt was taking me to the promissed land.

How I started trading and the evolution of my trading skills

What I am about to explain in this paragraph or further down it’s no boasting as it may be percieved that way by some.

Instead it is hopefully me delivering you some good concepts and ideas on what I learned on trading and how you yourself can use that information to shape your own mind and start thinking in a similar maner or even take it further then I did.

To give the story a body and a head, I need to explain a few things first.

One of those things is that this is a game that prints/delivers new sets of cards that can be used in the game for competing and tournaments approximately once every few months. 

The game has been around more then 25 years already, since 1993 to be precise, so what does this tell us?

It tells us that the game has history and another fact is that some cards are scarcer then others

It goes without saying that those printed a long time ago that are scarcer and more sought for are more valuable, so as with any other collectibles, scarcity raises demand and therefore value.

Another highly sought for type of cards except fot their scarcity are cards with a relatively high play power.


Well, because of the competitive and tournament nature of the game and that gives them high market and collectors value.

The connection between trading cards and stocks

So if you undestand that there is a market, it means you can buy something and hold it until the prices increase and then sell it for a profit.

Yeah that is basic economics you will say now.

And indeed it is….

But how do you figure what to buy, when to buy and what to sell and when to sell is the question at hand…

Well this is sort of the beginning of my evolution and understanding how markets work and how to get an edge. 

You curious?

Ok. You remember I mentioned that there were tournaments right? 

Well, those were televised, more precisely streamed on twitch. 

So what does this have to do with card prices?

Information plus timing is key when trying to make a profit by buying and selling

The event being streamed ment that people were watching what players, decks and cards were winning.

Why is that important?

That is important because soon after a player piloting a winning deck had won, the relevant cards in that deck saw a rise in their price, potentially because players now wanted them or because the owner of bots/store chains selling them, knew that the demand would rise.

Either way, that is how it happened once, twice, multiple times…and that meant it was a pattern.

Make money by exploiting patterns

But how can you know what card will spike in price in advance, because once the price has skyrocketed it is too late?

Well that is called being informed and understanding your field.

There are few things of relevance on how to catch the proverbial golden goose, but the main factor is relevant knowledge and experience of playing the game for about 20 years.

Another important factor is, that a list of cards of a particular deck that players used, was most of the time posted on some official website about the game for anyone to see and check if they wished so.

Additionally, if those same lists were used in an online tournament held on MTGO all you had to do was check the MTGO platforms’ tournament results to get an idea what might be a card that is performing and may spike in price.

As soon as I figured that out, I started following the tournament scene more closely for the relevant information. 

The rest was figuring out how to use that information to my advantage.

How I turned 120$ into 1,550$ by buying and selling digital cards in 1 year


Ok, keep in mind that this was my learning process going from 120$ to 1550$ in 1 year and the beauty of it all is, that I did it part time while having a job and doing other things like hobbies.

So what I want you to picture here is the concept I learned and applied…which is how to make passive income.

Why do I say passive when I still had to make trades, by buying and selling to get that profit?

It’s because most of the work was figuring out which cards were over all good and tournament worthy but underpriced and underappreciated on the current market, buy them in bulk, then set some alerts on mtggoldfish to notify me when a cards’ price would spike and then sell them for a profit.

Another thing I did was for cards that spiked or were high in price, I would set alerts to let me know if they drop to a price I was able to identify as low for the cards in question in order to then buy them again in bulk and wait for an opportunity to re-sell them for profit.

Easy right? 

Conceptually it is indeed, but here is a different point I want to make.

In order for me to be able to do what I did starting with mere 120$ I had left on my account, was understanding the principles on how that particular market works and knowing where to get additional information.

I was able to do that only because I understood how things work which was due to my experience of playing the game for a long time.

By the time I turned those 120$ into 1550$, I had found a relyable system on how to buy and sell on that platform for a profit and since then I have made a couple of thousand more.

That is when the light bulb in my had turned on and I started thinking stocks!

The connection between trading cards and stocks - learn how to become financially independent
What do cards and stocks have to do with one another? - Photo by Andrea Piacquadio from Pexels

The idea was simple enough and after the initial success, it was just a question of how much money I used.

With more money you can obviously buy more assests (cards in the current example) to later resell for profit.

So where is the catch?

Well, margin is the same, but the volume is bigger as now I had 1500$ of credit to buy new cards and therefore was able to sell more or diversify more when buying in order to make higher or quicker profits which I could either reinvest or cashout by following the same formula over and over again.

Oh if I forgot to mention, the few thousand I made after the initial year, it all happened within the next year where I was less active on the MTGO platform which made me learn another important lesson…

which is…

first learn the ropes “by playing” with money that will not hurt you if you lose, then only when you are certain and confidant about what you are doing is a fool proof plan, take the next logical step, which is use more money to increase your profits

Applying the same information principles with stocks for returns of 500% and more

After the success I had with buying and selling on MTGO, I went back to the eToro trading platform as my flame of becoming financially independent had rekindled.

What started going through my mind was: can I do as good by trading stocks?

During that time as I may have mentioned, I was also working on a 8/5 job, so I had multiple income streams already, which is something you want to achieve in order to become financially independent.

By having a job I managed to get rid of one problem, but I generated “a new problem”. 

So what do I mean by that? 

Well, the problem I managed to get rid of was the debt and financial problems that I got into by working with shady people in the past…so that was a good thing

On the contrary, the job I was working at was nothing I trully enjoyed, but was something I was good at and provided me with an income stream, which was what I needed at the time.

Where is the problem then?

The “problem” which I mentioned though, is that a job is an active income stream and if you remember from a paragraph above…in the long run you want to get rid of it or at least refocus it or change it into something that you enjoy and doesn’t require of you being present 8/5 or event 8/7 if financial freedom is your end goal.

What is that for you?

For me that is trading since quite a while, but I wasn’t good at it up until recently.

Now don’t get me wrong, I am not great at it, but I manage and so far I am doing quite allright for my plan to become financially independent.

Read on to understand what I mean.

The regular day job I had, helped me solve my debt issues, but it also allowed me to save up some money which I used to invest into stocks on eToro as my platform of choice

It wasn’t any big money as I came from being in debt just recently, but it was enough to enable me to start putting my newly acquired knowledge into practice.

Looking back at my trading history and experience with forex trading I learned 2 things:

1. Do not use high leverages when you trade and
2. Do your due diligence before commiting money.

Why Fiverr was the right decision to invest in and how it made me 518,47% return in one trade

You wondering what I did? 

Well, I scoured the trading platform for companies I knew and are widely known in the world so it was easier to verify their operations and business online in order to make a good informative decision on wether the stock was worth buying or not.

While checking out and investing smaller amounts in different companies I recognized and deemed worthy, which is called diversifying btw, I stumbled upon Fiverr which I realized had grown from a simple gigs website into a fully fledged business and marketplace where people can buy and sell with alot of traffic and business being done through it.

All that happened during covid time which you can see on the date of the open position on the picture.

But the thing here is that when I found Fiverr being listed on the stock exchange, I didn’t immediatly put money in it, instead I opened their website, googled them and did my due research on the company.

What I realized when I started exploring the Fiverr marketplace was that the business model they started with is no longer the same.

They had grown exponentially while I wasn’t even aware of the fact that Fiverr still existed and all the new added features, service categories, the look of the website and it’s mission and on top of that the fact that people doing the gigs did it from home, so it was covid safe, made me realize that this is a stock that may see growth in these critical times when most businesses stagnate.

Was I right?

See for yourself on the picture of the closed trade.

fiverr stock successful trade - the right path to become financially independent
Fiverr stock 518.74% returns in 8 months

That trade was my best Fiverr investment, yielding me a whooping 518.47% return on my investment

There were other positions I opened on Fiverr later on, after closing some not so well performing positions in other companies, but this specific one I had held for about 8 months in total and it really paid off.

What is the lesson I learned here, or better to say…what have I confirmed which I already had learned when trading digital cards on MTGO?

It’s pretty simple essentially, but it also involves some work and due diligence in order to achieve these and simlar results and that is:

1. Do your due diligence on the companies you are looking to invest into and
2. Hold positions for a longer time frame…similar as I did

To prove that this was not just a fluke, check my second best investment below.

Why I choose to invest in Tesla and how it yielded me a 1150,64% return in 6 months

So Tesla.

Why Tesla?

I can not take full credit for going with Tesla to be honest, it was a company me and a few friends of mine were looking at since a while, being technology fans and all, the electric cars concept fascinated us.

Speaking about Tesla, it is a company we were looking at while back, before it skyrocketed to the price of 263.47 per share which is when I opened my trade that made the absurd 1150,64% return and that is something I want to speak about.

Tesla itself was one of the companies we were constantly eying, talking about, opening and closing smaller positions on, but never held it for a longer time up until then.

I am going to be honest here, if you look at the graph up until that price, it looked a pretty steady climb as well as there was always some news about Tesla, not always the greatest, but Elon Musk himself was always able to turn the bad news into good which kept the momentum going.

tesla stock successful trade - the right path to become financially independent
Tesla stock absurd 1150.64 % returns

High returns, but read on why so

The amount of 1150,64% return is not something you see everyday when trading stocks, that is more of a crypto currency trading thing, but more on that later.

What I wanted to point out here is that in order to achieve that big of a return, I had to use leverage, which you can see on the picture as well, it says leverage X5.

But now you will say, you said before you shouldn’t be using high leverage when trading, that is dangerous! And indeed it is if you don’t know what you are doing…

…and that is why I did it with a smaller amount, only 400$ which was something I could afford to lose at that time.

Understanding the concept of trading with leverage, use max 5X leverage - with 4 rules to keep you from going broke

Ok let me explain something now just to be in the clear. Using leverages can be dangerous, but it can also be very profitable if you understand how and when to use them. 

Also, my personal suggestion from experience is to never use more then 5X leverage and even that should be used only when you absolutely know the asset you are trading, are aware of the current global market conditions and have an exit strategy in place if things go wrong.

If you want to trade with leverages there are some rules you should understand in order to avoid catastrophies and getting your trading accounts blown up.

I am not a professional trader and the advice I am giving here is what works for me and what I learned in my 17 years of experience in trading and looking for fortune, so not a professional financial advice.

Use your own judgement from reading this blog post and make your own conclusions weather this advice is good and relevant to you:

4 Advices about using leverage and protect your capital

1. Never use leverage in a bear market, you are only looking for trouble and exposing yourself and your capital.

A bear market is a concept where the global markets all are trending down and most stocks and economy outlook on the stock market doesn’t look bright.

Of course there is the option of short trading, but this is not something I will be discussing in this blog post.

2. Never go all in on a leveraged position on any stock.

Here is the deal, using leverages can multiply your returns, but when looking to become financially independent, capital preservation is one of the concepts you will need to understand in order to get there, so going all in means you are risking too much, in fact you are risking your end goal which is to become finacially free.

3. When using leverage on your stock positions, wether is X2 or X5…as I did with Tesla, never do it when the stock is ramping up, wait for it to retrace back to a support price level.

Now what is retracing and support price some of you may wonder…that is the jargon used in the stock market and it simply means: Retrace – go back to a lower price position and Support – means a price area where the price is stable and unless something very unexpected happens, the price will not go lower or much lower then that price.

understanding stock support and resistance levels will help you to become financially independent
Support/ Resistance levels in financial markets
Those are things and concepts you will need to understand, how to read and analyze, but I never said that there isn’t work involved in this 🙂 .
So if a stock that is on a bull run retraces, usually that happens when big players with big amounts invested take profits, you wait for the price to stabilize and maybe show some intent of going back up and only then take your leveraged position on that stock.

4. Never use leverage on too volatile assests. That is another rule that will help you prevent catastrophies as big movements are what causes leveraged positions to get killed, making you lose your position and sometimes the whole investment in that asset.

The examples I am showing here are for those of you who want to have more of a stable growth without too many headaches.

That is why I am suggesting to find good promissing stocks, and they can easily be emerging companies, but make sure the volatility isn’t a big factor if you are going to use leverage on them.

Crypto currencies - a relevant mention before explaining my 5 steps plan on how to become financially independent

Having explained the rules about leverage, if you will take them into consideration when trading stocks I am quite certain they will spare you some headaches I had and hopefully help you make bigger gains on your trades.

Another reason why I mention leverage is because I want to mention crypto currencies and investing in those.

What does leverage even have to do with cryptocurrencies you might ask.

If you did, I am glad you did, because crypto currencies are a relatively new concept on the financial markets, but they are already making a huge impact on them and in the world for the past few years.

Before I explain about leverage and crypto currencies, let me do a quick explanation for those maybe new to the term and concept.

I am not going to give any hard core brainiac info about them here, so if you are already acquaintant with them, feel free to skip the next section.

What are cryptocurrencies and how are they relevant to the economy - short introduction

Crypto currencies are a concept that came to light back in 2009, more precisely in January the 3rd.

Their mission if we want to call it like that is to disrupt the banking system and make it so that the average people around the world can have a better economic standard and pay lesser fees on transactions which banks exploit for their gains in the current day and age.

That is the short introduction.

Now for the why they are relevant in the financial markets….They started out with Bitcoin as the first cryptocurrency created, plus some others, of which some still exist and some don’t any more.

Back in the day when they were invented, there were very few people backing the concept up, so it took a while for them to become established, adopted and recognized by a larger amount of people.

Once that happened, they quickly became assests for people, who would pour their savings or extra money they had into them and wait for the prices to grow, much like stocks if you will…

…and that is why this mention is relevant for my story and what I want to explain.

Crypto currency 1000% and higher gains and why you shouldn't use high leverage with them

The other thing about cryptocurrencies is that with larger adoption, nowadays even big companies like Tesla invest in them, so the prices are likely to surge much faster because of that, way faster then in the stock markets.

You can check here a list of top 100 crypto currencis and their gains in the past few years, heck just the past few months since the publishing of this article are insane, some rose to absurd numbers like 1747% in the past 3 months, which is way higer then what stocks do.

If you haven’t checked those numbers, please do as it’s very important to understand and realize what I am about to say.

You did?

Good, in that case you saw how big are the moves in price they make and if you check the crypto bear market, you will see that the drops in prices when that happens are huge as well.

What does that mean?

Use max 2X leverage with crypto and my bitcoin gains

Well it means that the volatility on them is very high, which is a no, no for opening high leverage positions. 

Even lower leverages which I suggest you should limit yourself when trading stocks, can in this context be extremly dangerous when trading crypto coins.

With that in mind, what I suggest about crypto currencies and leverage, is to use max 2X leverage on them if you don’t want to feel sorry for yourself after.

Having said that, I will reiterate that similarly as with stocks, you should only use leverage after a retrace in a bull market (uptrend, going up market) and only on an asset you have good knowledge and inteligence about.

The thing not many people understand is that if the assest itself (in this case cryptocurrencies or bitcoin in the case on the picture) already has it’s own high volatility and potential of making 1000% or even 10.000% gains (yeah absurd, but they do) it’s really pointless to expose yourself any extra and risking it all by using high leverage or leverage at all if you are inexperienced with it.

bitcoin crypto successful trade
Bitcoin very profitable trade with leverage

Now if you want to start trading with crypto currencies, you can find that eToro supports trading of some cryptocurrencies but they also charge higher fees for trading them then Binance does, which is my platform of choice for trading crypto or even just to buy and hold it for long term…

….which is what many people did and still do, that helped them became very rich or even financially independent.

Quick information on Binance and how to earn some trade commision back

They, as any other broker does, charge a trading fee of which if you signup via my referal link, I get between 10-20% of that commission.

Why between 10% and 20%, because I can decide to share the commision with the people that signup via my referal link or keep it all for myself.

In my case I believe that sharing the revenue with you will give you an incentive to signup via my link so here it is.

Use this link to signup on Binance to start trading crypto and you will get 10% back from the commision of every trade you make on the platform (offer not valid for US visitors unfortunately, but Binance is still the platform of choice imo so those of you please visit .

Having said that, don’t do it just because I offered you some revenue split for registering there, instead make sure you understand what I am explaining you here and why this information is important for the end goal.

In future blog posts, I will give more detailed information about why Binance is the crypto trading platform of choice from my point of view…I will tell you a little secret, it involves extra ways of earning passive income which is called staking, but more on that next time.

The 5 steps I took towards financial independence - a guide for the average Joe

Well here we are at last. 

So you red my story and learned about my mistakes and how I managed to “figure things out”, right? 

I know this has been a long rant and if you managed to read it all…or a big chunk of it, congrats and I hope you managed to get a better picture on who I am and perhapse why my thoughts might be helpful to you.

If you skipped on my personal story and experiences that got me here and are just checking the needed steps to become financially independent, can’t blame ya, the story is long and your time is valuable, so let’s get to it 🙂

What I did and how you can replicate my 5 steps to become financially independent

Ok, keep in mind that this approach is mine and what I did and still do. 

It can be duplicated or in some instances, you might have some advantage over me or even disadvantage in context of some of the steps, but overall the guide is pretty simple and I will include variations that may help the less experienced people get on the fast track rather sooner then later.

Disclaimer: I am not a financial advisor and whatever you read on this blog are concepts, ideas and conclusions I came to realize on my own with years of experience and am not suggesting that you should necessarily use them or put them in practice as well if you don’t understand them or feel uncomfortable with them. 

If you like the concepts and ideas depicted in this article, but are still not sure what to do, I suggest you to gather more information as information in the current day and age is key so make informed decisions.

As this is the practical part of the article, here is my laid out plan on how to become financially independent:

1. Information is key in the financial world - make a plan

Following the thoughts mentioned in the disclaimer, I would like to reiterate that information and being informed, understanding things and concepts is a vital part about anything that you want to do in life and why would in finance be any different?

So step 1 in becoming financially independent is to figure out a plan, gather information, undestand what you can do and how you can do it.

information is key when planing for financial independence
Information is key - Photo by RODNAE Productions from Pexels

Looking for good sources of financial information to help you become financially independent?

Try tweeter!

One way that I found for gathering relevant financial information is on twitter.

Nowadays any respectable company or institution has a twitter account and sending tweets left and right on a regular basis, informing it’s followers about new developments, acquisitions, investetments and more.

Understanding the correlation between the important information that you can get from tweets, might make you invest in a company or crypto currency before the spike and help you realize great gains.

But don’t get me wrong, the infromation can also be bad some times and knowing that can help you too, by perhapse allowing you to close a position in profit, before the asset declines in price.

Again twitter is just a base line, googling the companies or other assest like crypto currencies using websites that post relevant information about your areas of interest, be it politics, economics, crypto world or just anything will help you be ahead of the curve and make better decisions, more money and in the end achieve financial independence even before I do.

tweeter a good sources of financial information
Twitter - Photo by Alexander Shatov on Unsplash

To continue with the plan…I figured out that stocks and later on even better crypto are the fastest ways of accumulating money passively.

If you are able to identify a stock that does as well as Fiverr or tesla did for me in approximatelly half a year, then the next step is to find more money as the gains are returned in percentages.

What do I mean by that?

Well if you have 100$ and you make a 500% return from my Fiverr example, you will now have 5X 100$ = 500$ which is 400$ of profit.

Now that isn’t life changing money, right? It can help pay some bills, but if will not grant you financial freedom, at least not as fast as using more money.

But on the other hand if you used 10.000$ and made a 500% return…now that is more of what I am talking about and what I want you to understand and explain about my plan.

Follow through to the next steps to get the full picture.

2. Do your math, figure out how much money you need to be financially free...1.000.000$, more ?

Once you have identified a way to get big or even decent returns, it’s time to make some math.


I thought we were talking about financial independence here and a plan on how to get there some may ask…

Well that is part of the plan, in order to become financially independent, you need to figure out how much money you need to get there and setup a plan of income and expenses.

What the plan basically is, is to run your life like a business! 

Now what does that mean?

It means you need to monitor and adapt on how much you are spending, on what you are spending it and how much money you can allocate to investments.

All of those things need to work in synergy and you need to follow the rules you set for yourself in order to have a shot.

My personal plan is to get to a point where I earn 100.000€ passively each month, what is yours?

money needed to become financially independent
How much money do you need to be financially free ?

Some may think now, oh boy, that is a big number and by passively you mean you want to earn 100.000€ without actively working for it like a day job and starting out from zero, or even being in debt?

Yeah that is exactly what my plan is and by defining the plan, you can start crunching the numbers like how much starting capital you need, what needs to be your return rate on your investment and how to live during that time not splurging whatever you may earn while trying to get to your goal…

…all questions I will be answering now to give you guidelines on how and where to start and how to proceed, if you want to follow my path.

I am going to be honest here, it is a bit tricky to write about steps and separating them as they are all sort of intertwined so don’t take it upon me too hard if I mix up the information a bit during the steps, it is for better readability and your better understanding.

So the plan here is as mentioned above, to crunch your numbers.

Once done, depending on your personal fiancial situation that might mean limiting your living expenses, no splurging or hard spending on vacations for a while, no luxury cars, no expensive dinners and for some even perhapse going back to live with their parents to save money on rent.

Yeah all those things can be a relevant factor in order to help you realize your plan faster.

Now, don’t get me wrong, if you will be smart and capable of executing step one about the plan and gathering your information on what and where to to invest in, your investment/s may skyrocket very fast and propel you to the promissed land ahead of time.

What I am trying to demonstrate here, is a rather conservative approach here, to not give anyone too big expectations which they might not be able to meet and then give up or even worse, make a bad irrational move that will set them back on their plan to become rich or financially free.

3. Fix your finances and Get more money to invest, but how?

Lets asume for the sake of the argument that you are coming from a similar situation that I was in, which is broke and in financial debt.

If your situation is better then that, then that means you are ahead of me in this game and have a good shot of getting there before I do. 

So what to do here?

Before you can start investing you first need to get your finances in order.

First of all, you need to get an income stream, so for me as I explained in my story about learning to trade, I was broke and in debt, so I needed to get a job.

learn how to become financially independent starting from poverty an debt - what you can do
No money, in debt, financially broke - Photo by Towfiqu barbhuiya on Unsplash

A day job is usually the most common place to start with.


Because getting a job is still the easiest way to get an income even though some times it can be tough and even more so in some parts of the world.

Continuing, for me getting a job was step one because I needed to clear my debt in order to proceed with the 2nd part of the plan.

Part 2 of the plan is what helped me get ahead in the game and that is taking a loan at the bank.

Everyone knows that if you are in debt no bank will give you a loan, so I needed to straighten my debt, which I did and it took me a while to get there.

When I say debt I mean court executions which were processed on me because I did not appeal on the charges as I was in a bad place during the time those happened, so they weighted on me for years and I was living in poverty because of them.

If anyone identifies with a similar situation, you are not alone and there is still hope for you, just make a plan and follow through.

Before moving to the next step…

Let's answer a few important questions about Debt for the sake of better understanding things and what is involved in this part of the plan:

1.Why I advertise getting a loan and how long will it take you to do that?

I advertise that because it's easier to operate with a larger sum of money, but will go into details on step 4.

Another factor is that for an average Joe without rich siblings, there aren't many other legal ways to get a big sum of money to operate with just out of the blue.

In regard to how long it will take you part of the question, it took me 3 months of regular paycheck as the contract for work was indetermined otherwise I believe they said I would need to wait for 6 paychecks instead.

Also this was after I was already debt free and took a job just to be able to get the loan. What I suggest is to ask at a few banks as we are from different parts of the world likely and things might not function exactly the same way.

2. Are you sure I can get a loan and how much do you suggest?

I don't want to imply any sums, as we come from different backgrounds and different standards, so it's hard to say what a big sum is.

The advice I can give you though is, that the more you can afford to borrow as long as you are able to make the repayments in a natural fashion each month without the need to strugle or worry about it when the monthly repayment date comes, the better.

What you shoud do is investigate with the banks and look with many, what kind of sums they offer in comparison to the paycheck you have or you can get after landing a job.

If you are looking for a minimum amount I would say try to get at least 10k$ and live like a hermit until finances start prospering, but that is me and as for the loan, mine was bigger 🙂

3. Are you sure I can handle it, I never had debt or I had it and I hated it?

For answering that question you will have to be honest with yourself first and not look at me for answers, as I don't know you and have no idea what background, experiences or mental fortitude you have.

I mentioned this is a Bible for the average Joe and is a practical plan on how to achieve financial freedom starting from little or even debt, but there are things you will need to clear with yourself before you embark this journey if you don't want bad consequences.

The plan is good, but your execution of the steps has to be aswell.

Talking about debt, it can be your worst nightmare or your best friend if you start to understand how to deal with it.

Another suggestion from me is that you read the books I suggested about finance and personal growth.

They should help you to understand certain things and help you to realize and achieve readiness for the journey or dissuade you from making a mistake by realizing if this is something you actually want to do.

4. I am struggling with finances, can I make it too?

Anyone can make it as long as yu are able to follow all the steps.

That may mean making sacrifices, especially if you are comming from a very adverse position, but if you get your plan together you can.

In practical examples, that may mean you will need to move back home with parents (if you can) or find a cheaper place to rent in order to save on rent money.

You may also need to start cooking at home or eat at cheep restaurants and no big holidays for you.

lt may also mean that you will seem like a cheap person to the outside world, maybe even to family and friends, but if you can accept to live like that for a while and know what is the end result, then yes....I think you can make it.

5. Is your answer to question 4 the only way?

No for sure.

That is just the way you will have to think, the mindset you will have to be in if you are coming from more modest origins.

Many of these things can easly be skipped if you have a better socialy financial position for yourself, but asked...and this is my answer....never said you would have liked it.

4. Leverage time with more money - with practical examples

After I was cleared of my debt, banks would grant me a lone, which I took and used it to invest into stocks and later even crypto currencies.

So why would I do something like that?

That can be absurdly dangerous!

Well, this is my plan and I am executing it only because I am aware of the risks I am taking, because I prepared for it.

As mentioned in my story, I am not taking any high leverages, understanding what I am investing in and carefully following the plan with knowing and managing exactly what my income and my expenses are on this journey to become financially independent.

leverage time with money to become financially independent
Leverage Time for Money and Money for Time - Photo by Elena Mozhvilo on Unsplash

That was the short version.

Now for the longer explanation to help you understand and maybe identify yourself with the ideology, using more money leverages the time you need to get to your goal.

Remember I said this was a 5 steps approach for the average Joe? I said that, because most people who are in a situation that I was in or similar, can follow it and obtain similar results.

Going back to the time for money analogy, getting a big amount of money out of nowhere in order to expedite your process of becoming rich is for the average Joe rather impossible, but banks can help with that.

If you yourself have a way of getting a big amount of money in some other way or you already have it saved up or are able to obtain it without taking a loan it means you are ahead. 

To not sound like a broken record, you are ahead of the curve and have higher chances of getting there before some other of us do.

Investing, are you doing it right? 2 examples that will make you realize the truth about investing

For an average Joe, my name is not Joe but I am average too, this is the appraoch I propose.

I do not suggest, I just propose as I am not a financial advisor, buut this approach can buy you time and give you the possibility to get your financial freedom faster then it would be possible with normal means.

Some say, take some money from your paycheck and invest it!

Sure that can work too for sure, but believe me on this, doing it this way you will likely be able to enjoy your money only in your old age as time is money and money is time.

What does time is money and money is time even mean some may wonder…Let me explain with practical examples.

Example 1: Start small with a 200$ investment monthly

Starting with a small amount of money, for example putting aside/investing 200$ each month for a year would make you save up 2400$ + some interest earned at the end of that year.

Now let’s say we give your investment a hypothetical 100% return rate in 1 year.

At the end of that year you will not even have doubled your money and have roughly around 3700$ as your final sum at the end of that year.

That is because only your initial 200$ that you invest during the 1st month will get the full 100% return after 1year of investing.

Each next month, the 200$ that you invest will net you 8,3% less then the previous month. 

If your entire 12 months invested money, therefore 12x 200$ = 2400$ was invested immediatly, with a 100% return rate, you would have doubled your money, but because you are investing it periodically, your 1 year return rate diminishes by approximately 8,3% per month and therefor after the 12 months, you will have a final sum of around 3700$ which is around 1300$ profit or roughly 50% on your money invested.

Example 2: Start big by investing 10.000$ from the start - a faster route to become financially free

In the 2nd example I demonstrate how taking a lone at the bank or wherever else you can acrue a big amount of money without getting killer payback rates is a much better approach as it will help you make more money faster.

Let’s say for example that you borrow 10k$ from a bank with a payback plan of a few years.

You will likely be able to agree on a return rate of 200$ per month as well, which is the same amount you decided you would allocate for investments in example 1.

It would likely mean that at the end of that period you would have overpaid that borrowed money for 2k$ maybe more, depending on the bank and country you live in, but check the math now. 

If you invested your 10k$ in an asset, be it stocks, crypto or whatever else with just a 50% yearly return rate, which is half compared to example 1, that would mean 5k$ profit in a year.

Compared to example 1, you had the 10K$ immediatly so the 50% return rate would apply on the whole sum you invested instead on just the first 200$ from example 1 and your expenses are the same amount 200$ monthly.

Another important factor is that now after 1 year you have a balance of 15k$ and the next year if we asume the same return rate applies, you will have made 7500$ and now have 22k$ available which is 12K profit opposed to example 1 where after 2 years with a double return rate would have earned you just around 5k$ in profits.

Now assuming the return rate is the same and your lone repayment is fixed for lets say 5 years…

…after the time you repay that loan, you will have generated so much money compared to what you would have if you used the approach in example 1, that the logic is simple which approach is better of the two.

investing smart is how you become financially independent
Smart Investing - Photo by Andrew George on Unsplash

Am I saying this is the only approach what I explain in example 2?

No, absolutely not, this is just an example of course and the amounts and return rates are fictional for the sake of easier math, but they depict a real life scenario and why is better to start with a bigger amount of money when investing, but always do your due diligence before you take that step.

What I mentioned and explained in example 1 can be also ok if you find the right financial instruments, which is a fancy word for whatever it is that you are investing into, but it will take you much longer to get to financial freedom if you take that route.

Personally, I am not the biggest fan of banks, but there is one thing that banks are good for and that is borrowing money from them.

Now if you understand my ideology and how to exploit that in your favor, I hope you can understand why I think that is the right way and something most average Joes’ can acomplish.

Being able to get a bigger amount of money ahead of time is what will help you save time and get to your goal sooner and that is what I mean with time is money and money is time.

5. Choosing the right financial tools and instruments and why having multiple income streams is important

Now to the final step of this bible for the average Joe and what I mean with choosing the right financial instruments and…what are these multiple income streams?

Should I diversify my investments or put all my eggs in one basket?

First of all in this blog post specifically I will not suggest any specific assets where to invest in, because the nature of it is more to give a general idea and any financial suggestions I might give could be very time sensitive.

For that kind of information feel free to check any of my future blog posts which will be more oriented in that direction and giving perhapse more time sensitive suggestions and ideas.

Having said that, I am still going to share my mind about a few interesting assest that you should still look into and do your due diligence before assuming they are a good choice.

Now, about the diversification, there is actually a split mind about this concept in the financial world and I will give my own more indept thoughts and opinion in another blog post, but for now let me just say that both concepts have their pluses and minuses and there isn’t a straightforward answer to it.

Let me just shortly say that diversification = portfolio security, while targetting just one or very few promissing/emerging stocks or assets, can yield higher gains and that is the principal difference which I will discuss another time.

If you are only starting out and are inexperienced yet, my suggestion to you first of all as always is get more information as that will help you asses your risk and manage your porfolio and finances with more certainty.

Second of all, a good option if you want to start as soon as possible with investing is to check eToro’s copy people option. <–use this link to see what they offer

etoro copy trader - copy portfolio for new traders and people with less time
eToro Copy Trader - an option for people with less time or experience with trading

What is eToros' copy people or Social Investing?

Copy people on eToro is a relatively inovative feature, that the platform launched in 2010 which has evolved and has become quickly a very popular option for inexperienced people who want to get their feet wet in the financial world and perhapse gain an interest on trading stocks, comodities and other assests avilable on the platform as well as for those that wish to invest money and not bother checking their investments much but still get a decent return on their money.

What does that mean for you?

Well as mentioned in the statement above, it is a feature that will allow you to trade on the platform without much inital knowledge on how to trade.

Another feature of social trading is that you can start trading/investing without the need of taking high risks until you start understanding things better.

It also means is, if you manage to find a very profittable trader with a relatively low risk exposure, you don’t even need to lift a finger yourself and learn about all the financial stuff (although I suggest you do if you are in it for the long run…you won’t be sorry), just find a good enough sum you are comfortable with investing and let the platform and the traders there do the dirty job for you.

That is what social trading or copy people is in a nutshell.

With that being said, I mostly suggest this option to new traders as well as to aspiring financial freedom players that either have a big sum saved up already and little time to allocate to trading…as with this approach the road to success might be longer, but potentially safer.

You should still take your time and analyze the traders available for copying as even though it’s much easier then learning how to trade yourself, you shouldn’t carelessly and blindly trust anyone.

If you are going to use this tool or approach to get to your financial freedom, make sure the returns you generate from investing in these copy portfolios are higher then the repayment rates of loans if you are going to use my approach and borrow money for investing.

For example, If you invest 10k$ into a copy portfolio, make sure that the person you are investing in already has a good historic return rate and stable returns over the past few years and if those returns are greater then your repayment rate to the bank or whom ever you borrowed that money from at least by double, you are probably safe with that play.

eToro and how investing in stocks can make you rich

Now that I presented you the copy portfolio eToro option, I want to mention that eToro is not the only broker for trading stocks obviously, but for me and what I have tried, it has the easiest to use interface and a wide array of assests to trade (mainly stocks for me) and in general I must say I didn’t have any particular hardships with them.

There are definitelly other stock broker that you can use for trading, but I am not going to go into that here, instead I want to talk about your solo stock trading campaign.

Trading stocks on your own, whatever platform you use, you will need to become informed and start using whatever is available on the internet in order to get a more profound knowledge what companies are good to invest in.

My personal suggestion, especially if you are starting out is to look for the kind of companies that are either already somewhat established like Fiverr for example sitting at 184.12$ per share at the time of writting, but still emerging and have potential for growth. 

Do a bit more digging and due dilligence and find a rare gem or two that can net you a fortune once they gain global acceptance and more endorsment from the global public.

I will be posting more information and my rational on those in another blog post with a more dedicated thematic, but as a guideline, the suggestion above should be a good starting point.

As a baseline idea if you are able to find stable emerging companies, you should be able to get 50-100% returns or more in a yearly span, but to get to that you will need to do the work and find those companies as the likes of Amazon or Google already have a high enough market capitalization, that investing in those and hoping for such returns would be merely a hailmary which is not what we are looking to achieve here.

Once you manage to acrue enough capital or when you get a drift that perhapse bear market is coming, retargeting your money into stable companies like those or closing the open positions in the companies you have invested already is actually a smart way of doing business and preserve your capital.

Why choose Binance for investing in crypto and why crypto is a better choice then stocks

So in this concluding chapter of the 5 steps plan for financial independence, I will be talking about crypto and why I think this is the instrument of choice and a rare opportunity to become wealthy with that people of this era have been given.

If you haven’t yet, check the price movements of crypto coins on this list <– here and then come back for what I am about to say. 

coincodex - crypto coins charts and information
Coincodex - a comprehensive list of crypto tokens, their movements and evaluation

You can check it also on this link here -> coinmarketcap, but coincodex which is the first link has a more relyable source as coinmarketcap sometimes doesn’t show the correct numbers.

Make sure you check the gains for more then just 1 month or even 1 year as if you are reading this article in a bear market, the results may not reflect the gains about which I am about to speak of.

Also, check perhapse the listings of more then just the top 100, to get a better idea what kind of price movements these assest are making.

Now when crypto currencies started out, trading, buying or selling them wasn’t as simple, heck even storing them can still be a pain in the arse, but some exchanges like Binance streamline some of those processes and make it easier on the users to approach the crypto currency trading world.

Don’t get me wrong, there is still some getting used to on how to do things, but is much simpler then it was just a few years ago.

If by now you have checked the first link with the list of crypto coins and their movements, you should be realising that they make realllllly big moves.

So now what?

Remember when I said that trading too volatile instruments can be dangerous, well if you do it with leverage for sure it can be.

There is another caveat about which you might be wondering if you are new to crypto and that is….which coin to choose and invest in when there are so many?

Truth be told that is a legit question and for a short answer, let me tell you that there are plenty of worthless coins and coins that are dangerous to invest in if you are still new on this.

Before I give you some pointers on which ones you should focus on as a rule of thumb, let me tell you another reason why I believe crypto currencies are the right choice for a medium/long term and can be very profitable so you can understand the reason, investigate and dig a bit on your own about them and convince yourself you are on the right path if you decide to invest into them.

Why crypto is the right choice for me when investing and how you can take advantage of it too

So just a few years ago this new technology that is going to revolutionize how we do certain things in todays’ world and improve certain aspects of our daily lives was still something alot of people ignored or thought was just a random get rich quick scheme, a passing thing like a ponzi scheem that every now and then pop up and stay with us for a while causing people misery…but instead, slowly adoptance and acceptance  for crypto grew.

The adoptance and believe that initally this was a thing of a few friends and social comunities (like Reddit), is today a thing of the future backed up by many important companies in the world and many bilionairs looking to take advantage of this new technology either for personal gains or because they believe this can have a major positive impact on the world itself and everyone around.

After having told this short story, I can assure that most information can be checked out on the internet by googling the crypto coins and who is backing them or verifying on some major news websites or tweeter accounts of those crypto coins or the companies that are backing them as these things are most of the times publicly disclosed.

Where to look, what to do or who to ask about crypto if I want to become financially independent?

Another way to get your information are different reddit comunities which nowadays many coins already have and where you will realize that there is plenty of stable coins you can invest into with good backing by big financial players and big potential for growth.

As for pointers now, if you are a beginner I would suggest you to either ask some of your friends that might already be investing in crypto and are having good or decent results.

Option 2 is to do your homework and check the top 100-200 coins and their respectivev website comunities and find just a few interesting, stable projects to invest in, because if any of them makes between 100% and 500% in a year or a few year span, you are in a good spot if you use a large amount of money to make your investment.

Truth is, you will not need to search or wait too long for the good returns on your investment and the mentioned returns if you have checked the website I linked above are alot of times even greater then what I pointed out in the previous paragraph.

The thing is that there are plenty of coins that have good potential for growth as the projects have good maintainers and developers behind them, so you shouldn’t have a problem finding one to hold for a year or two and reap the great gains.

To help you out I will also be posting in one of my next blog posts about a few suggestions of mine based on my own research which you are welcome to check if it helps you make a better decision what to invest in.

If you want to start trading crypto on Binance use this link here and open your Binance account via my referal link <– HERE and you will get back 10% of your paid fees when trading on their platform as a token of appriciation for using my referal link (offer not valid for US visitors unfortunately, but I still suggest to you guys to visit and open a Binance account there for its perks).

binance crypto trading, buying, selling platform dashboard
How Binance trading platform looks - I hid my balances which is an option a platform offers for cases like this

The 5 steps plan summarized and the final words on this long rant about financial independence

You have managed to get to the end, so congratulations!

You might be one of the few (hopefully many) people with a good chance to become financially independent in a not too far future.

Before I actually finish this blog post, let me quickly recap what this 5 steps plan incuded, just to imprint it harder on your hard disk and make it more likely that you continue learning and developing your own plan…or follow mine and make it to the other side rich and happy:

1. You need to have a plan
2. You need to know how to access the right financial information to make good judgement calls
3. You need to have no debt or be able to get a big amount of money in some other way other then from bank loans
4. You need to understand how leveraging money for time works in your favor
5. You need to find the right financial instruments and finally set up multiple income streams to protect your financial stability and freedom.

Ok, this is it.

Yeah, this is the whole plan and ideology of how I am tackling this task and what I am doing on my journey to become financially independent. 

Am I there yet? 

Hell no!

Why do I say so?

Because if you red the entire blog post or at least a big portion of it, you will have noticed that I mentioned that my goal is to earn passively 100k€ per month and only then I will feel financially independent. 

What number is that for you?

Am I on a good path? 

Hell yeah and I hope I gave you some good ideas, directions or at least things to think about while contemplating your own plan and financial independence, because if you don’t do it for yourself, no one will!

If you liked this post, like it and share it on social media and with friends.

Also if you have some questions you feel I haven’t answered in the post, feel free to ask in the comment section below and I will do my best to answer them if I can.

And oh, almost forgot…if you liked the post and want to hear more about these and simlar topics, subscribe to my newsletter and I will let you know when I have more new content for you.

Till next time,
Cheers, Željko