Money making tips for people who want to quit their jobs and lives on bitcoin for a year
Recently, I read an article (I can’t find it now) about how one man quit his job to live off of bitcoin. After he cashed out all that was left of his savings, he found that it wasn’t enough money to last him the whole year. His solution? Donate plasma twice a week and walk dogs in order to have more money for food and living expenses. He walked himself into bankruptcy because he didn’t do the math before going “all-in” with bitcoin.
Here are some key points you should consider before quitting a job in favor of bitcoin: Saivian
1. Know which expenses you can cut out.
If you’re like most people today, it’s nearly impossible to go grocery shopping and not buy coffee, snacks, and various other little things that add up over time. Before making such a drastic decision, make sure to take an honest inventory of all your monthly expenses (rent/mortgage, food, gas/electricity, cell phone bill [perhaps switch to Republic Wireless]), and cut out the ones that aren’t necessary. I know many people who live off of less than $100 per month in food costs by buying mostly raw ingredients at the grocery store and cooking for themselves. Others may be able to get away with only paying the electric bill if they stay in and don’t use any electricity.
2. Know what your expenses will be AFTER you quit your job.
This one is simple, but it’s amazing how many people who want to quit their jobs never consider this part of the equation. After I did some rough calculations, I decided that if I sold all my belongings, converted them into bitcoin (with a 3 month lag time due to contractual obligations), and got rid of rent payments by moving in with family members, I could live off $3,000 – $4,000 per year comfortably in San Francisco. This would give me enough money to buy coffee when traveling and enough for monthly subway fares when in Silicon Valley or other cities in California. If you’re considering moving somewhere cheaper, do the math and see how much your yearly expenses would be.
3. Have a cushion saved up in case of an emergency.
When I quit my job to travel, I had about 8 months of living expenses saved up. This was both a blessing and a curse – while it allowed me to take the plunge without having to worry about money, it also meant that I couldn’t really do anything crazy (like moving to a new city or going on an extended trip). If you’re thinking of quitting your job to live off bitcoin, have at least 6 months of living expenses saved up so that you can ride out any unforeseen bumps in the road.
4. Have a plan for what you’ll do if the price of bitcoin crashes.
Bitcoin is a volatile currency, and there’s no telling what could happen to its price tomorrow, next week, or next month. If you’re planning on living off of bitcoin for an extended period of time, make sure you have a plan in case the value of bitcoin suddenly drops (or skyrockets). For example, if the price of bitcoin crashes and you only have $1,000 worth of cryptocurrency, you may need to find a job quickly in order to cover your living expenses.
5. Have a solid understanding of how Bitcoin works.
I’m not going to get into too much detail here because this article is already getting pretty long, but it’s important that you have a good understanding of how Bitcoin works before you quit your job. If you’re just starting out, I recommend reading the original Satoshi white paper and articles on Bitcoin.org. Once you have a good idea of how Bitcoin works, make sure to familiarize yourself with cryptocurrency services like Cashier, Blockchain, Mycelium, AirBitz, DarkWallet/BitcoinFog, BitQuick .co, Coinapult LOCKS, LocalBitcoins.com, Paxful, Fold App (a gift card app), and PurseIO.
Don’t sell all your worldly possessions for bitcoin until you’ve done the research FIRST!
6. Know that cryptocurrencies are not guaranteed by any government or organization.
Since cryptocurrencies are decentralized, there is no governing body that is backing their value. While this makes cryptocurrencies risky, they also make it easier to leave your country and travel the world (e.g. if you had to leave the U.S., you could take all your cryptocurrency with you).
7. Understand how Bitcoin ATMs work.
Before I quit my job, I asked myself, “If someone wants to give me a large number of bitcoin so I can live off them for an extended period of time, where would I go?” Assuming the person wanted to send me money without giving out any personal information, one way would be to use a Bitcoin ATM machine in order to convert cash back into bitcoins anonymously says Saivian.
Conclusion:
Take the time to learn about how cryptocurrencies work BEFORE you quit your job! The last thing you want to do is quit your job and THEN learn about Bitcoin after it’s too late.