Recently, you have been really responsible with your finances. You stopped buying chicken paninis, cut back on the flat whites, and eating out at KFC. You put more money into a savings account.
Unfortunately, the reward for being financially frugal is a meagre 0.8% per annum of interest. After 2% inflation, you are losing money.
Not very satisfactory.
But, if you cannot build some long-term wealth in the bank, what else can you do?
Well, let us explore a few options.
You could try housing. However, you’ll need to get a new mortgage and a substantial amount of deposit. It is also costly, with the average house price now exceeding $800,000. And that will only provide you with a 30% return within a few months.
But what if I told you that you could make a 900% return, no a 11,000% return in the same period?*
How about investing in Dogecoin! Yes, that meme dog cryptocurrency.
It started in 2013 as a joke Bitcoin alternative with a caricature of an innocent Japanese Shiba-Inu dog as its symbol.
Then, this year in February, Elon Musk tweeted about it, and Dogecoin took off to the moon.
A dollar invested when Elon tweeted is now worth $17.4 – Oh wow.
Dogecoin is now worth $80.5 billion – worth more than companies such as Ford Motors, Honda and Adidas. Dogecoin was a joke about cryptocurrencies, but in an ironic twist, it became a wealth-creating digital asset.
In April 2021, a man named Glauber Contessoto gained notoriety for becoming a Dogecoin millionaire. We are supposedly living in a completely new era of unorthodox wealth creation.
Or perhaps it’s just a bubble. During the 1600s in Holland, multicoloured tulips became prized possessions. “Tulipmania” saw prices go crazy until it burst into nothing of substance.
The folly of human speculation has always been there.
My generation particularly loves bubbles – look at GameStop, for instance. You can profit and still get a decent result on investment by selling at the right time.
No need to be financially responsible. Eat out, buy KFC and spend your remaining funds on the latest Dogecoin.
It will be fine as long as you are the last one out before the bubble bursts. Just short it. Easy peasy.
*Not investment advice