Knowing a bunch of millionaires and a bunch of broke people, this is my actual experience. It boils down to a question of correlation vs causation. Does chasing the get rich quick wins of crypto and meme stocks keep you broke? Or are broke people just more likely to be doing that? Who knows!
I know… you’re going to say, “But I know a guy who heard of a lady who got rich through crypto and meme stocks!” Well, they are one of the few who got lucky. Just like with the lottery or at the casino. You just don’t hear much from the people who went broke after gambling away their life savings. It’s not something that should be emulated.
Do you have FOMO? Follow our 90/10 rule. With 90% of your portfolio, buy and hold index funds and investment real estate. They’re not as exciting, but they’re sure to make you rich slowly.
And with the other 10%? Go nuts. Buy Bitcoin, Gamestop, Tesla, whatever is trending nowadays. If you lose it all, you won’t go broke. And if it goes to the moon, you will still get your lotto win.
For what it’s worth, I make a monthly purchase of crypto (currently Bitcoin/Ethereum). It currently makes up 0.03% of my portfolio. So a tiny portion of my go nuts fund.
Building wealth takes DECADES. Don’t rely on luck to get rich.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.