Inflation is a serious issue in current times.
Need I say more??!
Let's jump right into what can be done to cope with it.
Actually, wouldn't it be nice if you can get free food every single day? It is quite a lot to ask for, to be honest.
But not if you consider how Hive's HBD savings account can give you a hand: Free food money every day from HBD Savings, knowing that the current interest per year is 20%.
Conservatively, how much are you paying for food every day? A modest lifestyle and not a lavish one. I think I can manage with USD 30 (or 30 HBD) per day.
For my interest earnings in HBD to cover that, I will need an interest payout of 10,950 HBD per year, i.e. 30 HBD X 365 days.
Given that the principal amount needs to be 5 times of that to yield that interest payout of 20% pa, the principal amount would have to be 54,750 HBD (i.e. 5 x 10950).
Let's reverse the calculation just to be sure.
With an amount of 54,750 HBD in HBD savings, the interest per year would be 54,750 HBD X 0.20 = 10,950 HBD. With that, we can spend 30 HBD per day over a year and not reduce the principal amount, i.e. 10,950 HBD / 365 = 30 HBD.
So indeed, the magic figure is 54,750 HBD if one wishes to get free money worth 30 HBD every day from HBD savings. This is of course a rough estimation, in the actual case numbers may differ a little. The point of this post is to carve out a target number to accumulate towards. It happens to be 54,750 HBD for me to receive 30 HBD perpetually to cover my food money if the saving interest in HBD remains 20%.
Now, how does one get there? Well, that's a story of different strokes for different people, and really a story for another day. Briefly, my overall strategy is to work towards adding to my HBD stash organically via post and curation rewards, rather than pouring fresh fiat to top up the HBD account. Just think Terra-Luna. There are always risks involved, and I am not about to live with the risk of possibly losing 54,750 HBD overnight. Definitely not going to risk every cent of it from my real-life saving stash for emergencies. I need my peace of mind to sleep!
Instead, that target amount should be earned through my Hive activities. Continuing to enjoy Hive by writing posts, upvoting posts, and pushing the rewards either for worthy Hive layer 2 investment, HBD savings or swing trading. These are the very value propositions of Hive and I should partake in it that way to reach my goal. This way, my goal of financial freedom, at least from the clutches of inflation in food prices, can be reached with Hive. Not to mention I improve my financial knowledge during the process over time with my engagement in Hive too.
Hopefully, this post is useful for you. You can work through the calculations to see how much you need based on your situation.
Next, I shall think about the best strategy to accomplish that sooner. If you have ideas, feel free to share them with me.
P/S: This is not financial advice, and please do your own due diligence before investing.
If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.
You might be interested in this post, @thatkidsblack, @graciousvic, @deflacion, @jacoalberts, @young-kedar, @svanbo, @sumotori, @zakludick, @poplar-22 and @hankanon!