Thread by @DegenSpartan

my personal reason and explanation for this is because, other than lifestyle inflation, expenses are in absolutes, not a % of networth

once you reach a certain size, yielding on just a bit of your assets (be it gripto or stables) can be more than enough to live comfortably

https://twitter.com/CryptoMessiah/status/1442309643712094209

examples of non scaling expenses is like... your internet bill or gym membership

you dont spend much more on those simply because you're worth more

examples of lifestyle inflation is of course your typical consumer materialism - lux goods, watches, cars, vacations etc

not all lifestyle inflation is bad

eg. healthier food, holistic hobbies, meaningful pursuits

but i think that most things cap out really fast, or hits diminishing returns very quickly

a $1000 an hour personal trainer wont make you 10x more ripped than one charging $100 an hour

anyway, back to the pt, anything beyond the principal amount set aside to yield to cover expenses can theoretically be used for speculation / investing

tho, always good to have
- a thicc buffer, margin of error
- diversified sources of yield
- mitigate risks of complete failure

the longer you delay "buying your lifestyle put / hedge" aka commiting principal to yield

ideally the further along you would have progressed and accumulated wealth from deferring your peace of mind and assuming risks all this while

a nice situation is of course yielding in an asset which you think will appreciate long term

but if you had to pick between certainty of income vs risk seeking capital gains, i think risk seeking is usually mispriced (undervalued) due to many peoples having low risk preferences

but if you "made it", you can do both

purchase peace of mind aka your lifestyle hedge

while still allocating the excess to risk seek

next question is tho, how much lifestyle hedge to purchase? for your family? future generations? how many gens? 🤔

happy 1st world problems