Shortcuts cost me 90% of my net worth.
I chose a vehicle that was wrong for me, with no system behind it, and lost two years of my life. That story is now a book, more on that below.
Since then, I've been wary of anything that promises to make life easier. What I'm building instead is a life manual.
A life manual: the systems that run so I can enjoy everything else
I can already hear the complaint: “Life can’t be lived as a set of instructions.”
I don’t disagree.
Or: “But everyone lives a different life, so a manual cannot work.”
Here is where I disagree. The point is not to create a manual everyone can follow. The idea is to write the manual for your specific life.
The manual is a compilation of systems that run so I don’t have to think about them. For example, my workout system is to sign up for a 6 a.m. HIIT class every day of the week.
This has multiple advantages: I wake up at the same time every day, put on my clothes and head to the gym. I then listen to the instructions and simply follow them, no matter how de-motivated I feel.
Now, a 6 a.m. HIIT class is not for everyone, but everyone can find their system to get movement in. Before that, I would only go to the gym sporadically, and it would take much more effort, for significantly worse results.
Money works the same way. But first, a word about “life hacks.”
Life hacks are “shortcuts for life.” That should worry you.
Life hacks gained popularity in the 2000s and 2010s as shortcuts to get through life, even if with cheap and inelegant solutions.
Thinking more deeply about what that means, my stomach gets queasy. By shortcutting whatever part of life is concerned, you are actually avoiding the journey.
In simple terms, imagine skipping a beautiful hike up a mountain to instead reach the top via a gondola. Now compare both experiences. Assuming you are able, wouldn’t the journey up through winding paths and next to crystal clear streams with immersive bird sounds and maybe spotting a beaver or even a bear in the distance make the entire experience that much more glorious?
You could get the picture at the top either way and post it on social media. But we all know that is not what drives happiness.
The well-planned journey to the top, with family and friends, is the life.
Build your own wealth system
As the Amplifica Wealth newsletter crossed over 6 months and 26 issues, the question of what we do for our readers and community members is taking center stage and crystallizing.
At the same time, I started reading Ben Meer’s How to Be Good at Life. While I am nowhere near done, the central thesis of building systems to make life easier resonated instantly.
Amplifica Wealth is ultimately about one specific part of your life, one part that many of us feel overwhelmed by. A part that many of us have sought “hacks” or “shortcuts” for.
Personal finance and investing more broadly is a vast topic with differing opinions, strategies and tactics. All of those map poorly to your own specific life and lifestyle.
Many of us hand this part of life to a professional, whether a CFP or a CPA. I’m not contesting their value. What Amplifica Wealth advocates is building your own wealth system, one you understand and run yourself.
Through education and community, we give members the maps, equipment and guides to climb their own mountain. Along the way we found tools that make the climb a bit easier. Think snacks and electrolytes, not a gondola.
I took the shortcut. Here’s what it cost.
I once tried to take the shortcut to wealth. I chose a vehicle that was wholly wrong for me, with no system to support it. Instead of accelerating my path, I lost 90% of my net worth and two years of my life.
That story is now a book. Still in the Game comes out October 29th.
I wrote it from the other side of the mistake, pointing out where the detours are. My hope is that this one piece of my hard-earned map helps one or two of you avoid a “shortcut” that turns into a detour.
Help me get to 100 reviews
Reviews are what get a book in front of the people who need it. If this resonates, grab your discounted launch copy and leave a review. Every single one helps. Launch pricing runs for two weeks after October 29th.
Whether it is an aspiring business buyer, an owner who is on the brink of default, or simply someone who wants to learn about the pitfalls of investing big before they’re ready, my hope is that the book can provide perspective for them to keep going.
I wrote this intentionally before I’ve fully paid off the debt from this failed acquisition, because so many of us stop after things go wrong.
If this resonates, please share your thoughts on the book and the book itself with others.
Investment update: why I hold SATA/STRC alongside BTC
It’s been a few editions since my last snapshot. Not much has changed:
8% of my assets are in my whole life insurance policies (growing at an average of 7% per year, not including premiums).
26% of my assets are $SATA and $STRC, the main fuel I use for Amplification.
63% of my assets are bitcoin (BTC), both in cold storage as well as in an IRA. This portion interacts with Amplification, but only as the long-term component.
One comment I wanted to address on SATA/STRC and BTC. The question I often get is: If I believe BTC is going up, why would I buy SATA/STRC?
The answer is twofold:
The entire reason SATA and STRC are getting so much traction. Many institutions are not allowed to buy BTC directly, or even indirectly via ETFs, $IBIT for example. STRC and SATA however are in a completely different asset class. They are equity in companies. That simple definition means that any institution that is authorized to invest in public market equities can acquire them and not have to jump through any hoops.
For us individuals, the reason is cashflow vs net worth, which I’ve written about here. While BTC will most likely yield a higher return over a long enough period of time (in my personal investment thesis), it produces zero cash flow. So understanding the mechanics of BTC while require cash flow to build my investment engine means STRC/SATA become ideal instruments. Combine them with BTC or ASST/MSTR and I’ve got an Amplification ready set of investments that rely on my bitcoin thesis.
For individuals, the reason is cashflow vs net worth, which I’ve written about here. My thesis is that BTC appreciates over the long run. That is a personal view, not a forecast or a promise. BTC also produces no cash flow. Borrowing against it remains prohibitive and full of additional risks. Since I want to hold BTC and also need cash flow to fund my investment engine, STRC and SATA fit what I’m doing. Combined with BTC or ASST/MSTR, they make up the set of holdings I use for Amplification. All of it rests on my bitcoin thesis.
Thanks for reading all the way through.
Miguel
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Disclaimer: All material is provided for educational purposes only and does not guarantee any financial results. This is not financial, legal, or tax advice. I am not a financial professional. Results vary and are dependent on individual effort, timing and circumstances. There is no solicitation to invest.