Original title: The www.gushiio.com-Money Illusion: Are You Making The Right Trade?
Original author: Route 2FI, encryption researcher
Original compilation: ChatGPT

Editor’s note: This article explores the balance between time and money, emphasizing that in the field of encryption, the value of money does not increase linearly, but changes with time and how it is used. Through personal experience and reflection, the author proposes strategies on how to achieve financial freedom and life satisfaction in the field of encryption. The article pointed out that although making money is important, finding balance and meaning in life is even more critical. The author recommends that readers achieve true freedom and happiness by optimizing lifestyles, reducing unnecessary expenditures, and investing in long-term value and personal growth. Finally, the author reminds those who pursue getting rich quickly that the real value lies in long-term investment and personal brand building, not short-term gambling.

The following is the original content (the original content has been compiled for ease of reading and understanding):

Everything has trade-offs. Today I want to talk about a topic that I often think about: the balance between time and money.

You may remember the interesting debate about whether $10 million was enough to retire. In my opinion, it would be ridiculous to even ask this question, because in most parts of the world, the numbers discussed on Twitter are completely unrealistic. I could even say that in most places, one-tenth of this number is enough to make you live well.

Money is a charming thing, not as simple as it seems at first glance. We go to work, and in return, we get money in return. We use this money to buy things. But the value of money changes with utility and time, depending on how you use it.

Whether you make the first dollar or the millionth dollar, a dollar is worth the same. It has the same purchasing power and the same value. Depending on when and how you spend the dollar, the value of the extra comfort or happiness it brings often varies widely. After all, what we buy with money is just a means to achieving the ultimate goal of happiness.

The millionth dollar does not bring as much happiness or utility as the first dollar. In fact, to some extent, every extra dollar can bring a small amount of unhappiness, manifested in additional complexity, worry, and dependence on the next dollar.

This concept was popularized in the book “Your Money or Your Life”. This book actually changed everything for me and ultimately led me into the world of encrypted Twitter.

You may have seen the picture below, but it’s always good to repeat it because it provides a good example.

You can see that the more money you spend, the more happiness you will gain, but after a certain point, the increase in happiness will flatten out.

This point is different for everyone. The first few dollars you spend will bring more happiness because you are presumably spending it on things that are more useful and important to you.

At one point, the extra expense has little effect.

Money = time (but not in crypto)

Expand the idea that money is a representative of our time. Money is a store of value. We exchange time and energy (our life energy) for money in the hope that we can exchange it in the future for other people’s things or their energy.

For most of us, the relationship between time and money is more or less linear. After we finished our studies, we exchanged X time for Y money.

1X time = 1Y money.

This is not always the case, but it usually is, especially when we think in terms of years of work. For some people, there will be a slight upward curve on the chart, or the slope will change with promotions or new positions.

Most people are content with this.

Time = Money

But we in the encryption field know that this is not necessarily true.

This was how I understood money a few years ago, when I decided to commit to early financial independence and freedom. The longer we engage in this kind of time = money exchange in our lives, the more unfavorable the exchange rate becomes for us.

Our time is limited. As time goes by, it becomes more and more valuable because we have less and less time left. Every day we are one step closer to death. I know it sounds tragic, but it’s the truth.

How much is your time worth when you are on your deathbed?

How much would you spend in exchange for a few more days? Would you trade places with 93-year-old Warren Buffett? He has $100 billion, but he may not have that much time.

Do you work or spend time doing other things?

I don’t know about you, but I’m at a crossroads in my life, and I’m starting to seriously consider quitting crypto after this bull market.

In the end, I chose a semi-variant of this, which you can read more here:

The time-money component is definitely nonlinear, but as the return per dollar diminishes, it becomes less valuable to me. I am nowhere near as rich as the OGs in the crypto field, but I am satisfied and I believe that is the most important thing.

I don’t want it to end up like this. Maybe I have to stop proactive trading and focus only on long-term investments (but look at the market, because in this industry, what is real long-term investment?)

Interestingly, when I think back, I used to put my money in a stock index fund and only checked the market once a month (!).

Today I might check 50 times a day.

Trading time for money is inherently good or bad. It is a consequential choice.

As far as I know, most people play this game and do this kind of exchange for too long.

Some people really don’t have much choice, but most of us do.

I still think this should be the plan of most people:

I developed a simple process that is not new (although it may be new to you). It’s not complicated.

Step 1: How much money do you need? Figure it out. I prefer to spend monthly expenses x 12 months x 25.

Step 2: Think deeply about what in life can bring you happiness and how much money you need to provide these basic needs.

Step 3: Eliminate all expenses from your life that don’t bring you happiness.

Step 4: Use the money you save to buy your freedom.

Step 5: Use your freedom to do the work you love, or cut back on the work you hate.

Step 6: If you are still working, re-evaluate and see if the exchange makes sense. If not, go back to step 1 and repeat until you are satisfied.

Step 7: If you don’t have enough money to complete Step 1, you need to find a way to make more money.

If you are new to the realm of encryption, I recommend reading this guide.

Forget the linear path; use your strengths to achieve exponential growth and build your personal brand.

Take calculated risks when there is asymmetric upside, where the potential rewards far outweigh the downside risks, especially when young. Invest time in learning, networking on platforms such as Twitter, and seek internship opportunities to gain valuable experience in the crypto field.

Discover what you are good at, strive to be the best in your field, and find goals in work that directly affects your life.

Money and time and the impact on the happiness of people in the crypto world

Don’t get me wrong, making money is a good thing. I’m just talking about finding balance. I knew I had exceeded this limit many times, and I almost fell into depression because of it. You can read my reflections after the 2021 bull market here:

The post above is quite frustrating, so if you’re in a happy state right now, you probably shouldn’t read it.

Now in a bull market, I feel that one day is not enough. There are so many things I want to do, but there is not enough time to complete them. It also makes me feel stressful, especially when it’s difficult to fall asleep while trading and holding large overnight positions.

I’m not sure if this is the life I want, and I know I can limit my time, but in a 24/7 market, being afraid of missing out on some swings is easier said than done.

Anyway, if I could be young again, I would optimize my life like this:

It’s been 4 years since I quit my nine-to-five job, but to some extent, I’ve just replaced it with more encryption work.

What I thought was freedom is not. Don’t get me wrong, my lifestyle is 100 times better now than before, but I still want to optimize it a little.

The last thing you want to do is end up with a lot of money, but have no friends, an unhealthy lifestyle, and no expectations.

When you finally achieve success in encryption, you will realize that this is not what you originally wanted.

You have money, but you are still the same you were.

Make sure you have goals in your life other than money, otherwise you can easily fall into depression.

But this is another topic.

…

Oh, one more thing.

In the crypto space, growth makes no sense. It’s all about money. If you want to find meaning, growth, strength and true value, reach out to people who are playing long-term games. Or simply create content and let them find you.

“Original link”