My close friend made money from crypto in 2021 bull market, spent close over 100m to build a house, today he is planning to sell, no buyer, they are pricing him 50m.
Building a house is one of the worse decision not because it is wrong but because most of those houses doesn't bring Cashflow.
If you get into problems, you are left with only selling the house and 90% of the time, you will never get back the money you spent in building the house.
Instead of rushing to build a house, start thinking of how do I keep generating Cashflow daily, weekly and monthly. This will sustain you when crypto or forex isn't going so well again.
Here are 3 things you can invest in that will bring Cashflow:
1. Treasury bond: this is the best and risk free investment, this is because you are lending your money to the government and they pay you interest quarterly.
US treasury bonds pay between 4% to 9%
Nigerian treasury bond pay 15% to 22%.
2. Mutual funds: this is where money from many investors is pooled together and managed by professional fund managers. The fund invests this money in assets like:
Treasury bond, Stocks, Bonds, and Gold, etc. This is also almost a guaranteed return. You receive 15% to 30%.
3. Dividends: this is the money a company pay you for holding their shares. This comes mostly quarterly. This is risky because while you make money from Dividends, you face the risk of your original investment go down if their stock goes down in price.
For this, I will recommend you focus on big companies.
There are a few more things you can invest in but I will stop here.
I know some of you might be thinking this returns are too small, you rather invest the money in crypto or other assets that will give you bigger yield.
Please don't do it, this is the best worse thing to do, I made that mistake in 2024 and I still regret it till date. This is because crypto is volaitle, there's no guarantee, we have seen big coins like FTT, LUNA, UST, MANTRA, etc go down to almost Zero.
When you have made huge money from crypto, your plan shouldn't be to double it, it should be to grow it bit by bit, so focus on guaranteed return and not high returns.
If you want to learn more, I built a website that could help track different kinds of investment alongside calculate the returns you will likely get in the coming years (compound interest calculator).
You can learn more about it in the thread below.
My friend made about $75,000 end of last year and decided to build a house and buy a car, the problem now is money isnt flowing in as he thought, now hes stuck with an unfinished building and is at the verge of selling his car to keep things going. My advice for him was to sell the house instead.