Nothing in this post is financial advice, but only meant for entertainment purposes. Cryptocurrencies are extremely volatile. For more information, read the disclaimer.

Because of Hex some of us have seen numbers on our screen that we just couldn’t believe.
You have made your gains, but how will you keep them?

I have made a game.
A financial independence game.

I have taken some well known Financial Independence, Retire Early (F.I.R.E.) & Dave Ramsey (7 baby steps) principles and adjusted them to crypto and especially Hex.

With FIRE, people work very hard for 10-20 years and spend almost nothing to reach financial independence. This is amazing and it works, since it’s based on mathematical models, psychology and common sense. I just want something that has more risk, but also has the potential to get me to financial independence within a couple of years. The answer over the last 12 years has been crypto.

Cryptocurrencies have done amazingly well. Some people have become incredibly rich. Others have gone broke. Crypto offers people a high risk, high reward play where the risks go up to a 100% loss and the rewards can be astonishing. If you were an early Bitcoin holder and held for years, an investment of $1 could have become $6,500,000. My goal is to reach financial abundance with this game.

This may seem like a too good to be true / get rich quick scheme, but nothing could be further from the truth. Crypto is extremely risky. Gains can be made and lost quickly. That’s why this post is about maintaining wealth through diversifying and common sense guidelines.

The game is quite easy.
You complete a level and go on to the next one.

The end goal of this game is to get to the last level and become financially abundant. It consists of 11 levels and to go on to the next level you first need to complete the one before.


  • Lvl 0 | Financial Dependency
  • Lvl 1 | Financial Solvency
  • Lvl 2 | $1000
  • Lvl 3 | Debt Freedom
  • Lvl 4 | The Emergency Fund
  • Lvl 5 | Coast FIRE
  • Lvl 6 | Diversify
  • Lvl 7 | Financial Security
  • Lvl 8 | Financial Flexibility
  • Lvl 9 | Financial Independence
  • Lvl 10 | Financial Freedom
  • Lvl 11 | Financial Abundance

Lvl 0 | Financial Dependency
In this stage you need to depend on others financially to survive. You depend on institutions, programs or family for survival. We all start this way when we’re born.

Your debt payments and other living expenses are greater than your income. Your net worth is most likely negative. If the help would stop, you’d be financially ruined.

Lvl 1 | Financial Solvency
You can survive on your own without any help from parents, a credit card company or the state. You may still have a negative net worth, but your debts are not getting bigger since your income is greater than your expenses.

To complete level 1, you need to:

  • Raise your income and/or lower your expenses
    In order for your debts to decrease, you will need to earn more or spend less.

Lvl 2 | $1000
Now that your income is greater than your expenses, it’s time to build a little buffer. Just in case of emergency.

You may still have debts, but this emergency fund is more important. What if your fridge suddenly breaks down? You know you’re gonna need a new one. In this case it’s better to have some money on the side. Also, don’t buy crypto with your emergency fund. Investing is no emergency.

To complete level 2, you need to:

  • Save $1000
    You will keep this on the side in case of an emergency.

Lvl 3 | Debt Freedom
This one is simple, but could take a long time.
Pay off all your debts besides your mortgage.

How do I do this?
Figure out how much money you need to survive. No fancy trips, no new car. Just food, gas, rent, insurance and some clothing. Since you’ve already completed level 1, your income is greater than your expenses so there should be some money left at the end of the month.

Let’s say you earn $2000 a month. The first thing you do is pay yourself 10%.
This means that you take $200 in this case and put it to use. You stake Hex, invest in your own business or buy some other promissing asset. You do this before you do anything else.

Why not use it all to pay off my debts?
First of all, things can go fast in crypto. Hex did an 8x in the last 3 months even with the current correction. $200 would have become $1600. The second reason is that for most people Dollar Cost Averaging (DCA) is the best way to invest. You take a certain amount and invest that every week/month/year. If you’ve never invested before, you will probably make some mistakes, but it’s better to do that with $200 than with $20,000.

So $200 goes into investments. If you need $1200 to survive, this leaves you with $600 for the month. This goes into paying off your debts. You can use the so called debt snowball. This basically means you pay off your debt in order from smallest to largest. You start with your $3000 car debt before you go on to the $10,000 credit card debt even if the interest on the credit card debt was twice as high. Why? Because it has a positive psychological effect. Paying something off till zero will give you a boost en keep you motivated to go on the the next one. Paying endlessly on a big debt first will make it seem like you’re getting nowhere, even though mathematically you’re doing the smart thing. The chance of slacking/quitting is way bigger when you feel like it’s going to take forever.

To complete level 3, you need to:

  • Pay off all your debts except for your mortgage
    Pay yourself first, then survive and use the rest to become debt free.

Lvl 4 | The Emergency Fund
Your debts are GONE! Now it’s time to expand your $1000 emergency fund to 3-6 months of expenses. If you get fired, no biggie. You have months to find a new one. Why 3 to 6? When you have less than 3 months saved you could still get wiped out when you get fired. Now you have to Emergency End Stake a Hex stake which you never ever wanna do. If you have more than 6 months saved up it’s a bit overkill. You can put that money to work instead of having it sit there losing 5% a year.

To complete level 4, you need to:

  • Have an emergency fund of 3-6 months of expenses
    You had enough for a rainy day, now you’ll have enough for a rainy season.

Lvl 5 | Coast FIRE
After you’ve paid off your debts, it’s time to build wealth.

Coast FIRE basically means that you have enough money invested that when you reach retirement age the amount will have grown enough to support you through retirement without any more contributions.

How do I calculate this amount?
WalletBurst has a great calculator to calculate your Coast FIRE number.

When you’ve reached Coast FIRE, you could work less hours or find a job that pays less, but you enjoy way more. You still need to be able to pay your bills, but you have your emergency fund and enough invested for retirement.

To complete level 5, you need to:

  • Have enough money invested for retirement
    Use WalletBurst to find out the amount you need to have invested.

Lvl 6 | Diversify
We have had a great time in Hex over the last 2 years. There is (to my knowledge) nothing in the world that has done better than this wonderful cryptocurrency.

If you think diversifying is stupid, you’re right when it comes to making the biggest gains. For me though, I don’t want all my eggs in one basket. Even if Hex keeps outperforming everything else over the years, it’s still possible that you lose your seed phrase, get scammed or that your house burns down. I don’t like that.

I want lots of baskets with beautiful eggs.
The gains will probably be less, but it will take some “what if” stress away.

Some ideas for areas to diversify in:

  • Own your home
  • Start a business
  • Real estate
  • Pension Fund
  • Stocks
  • Index funds
  • Opportunities in other countries
  • Precious metals

Crypto is not the only opportunity, but it is the one that has outperformed everything else. Think long and hard about what you want to diversify into.

To complete level 6, you need to:

  • Diversify
    Get more than one basket in order to spread your overall risk.

Lvl 7 | Financial Security
You will have reached financial security when the cashflow from your investments is enough to survive. Food, water, shelter, transportation, clothing and insurance.
If you got fired today, you’d survive.

There are so many ways to do this. You could create a Hex staking ladder. You get the best ROI when you stake everything for 15 years, but who wants to wait 15 years? I don’t. With a staking ladder you have some Hex coming out every couple of weeks/months. I am a fan of having a stake end every 3 months.

You can’t predict the cashflow when 100% is in crypto since it’s so volatile. That’s why you diversified in level 6. Now you have some assets that are high, medium and low risk. With this you can manage your expectations better.

To complete level 7, you need to:

  • Have your investments earn you enough money to survive
    No splurges & vacations to Hawaii, but enough to not die.

Lvl 8       Financial Flexibility
In this case you can live off your investments, but your budget depends on the market. If the market is up one year, you spend more. If it’s down, you spend less.

To reach it you will need to have an investment portfolio of 12.5x your annual expenses (half of financial independence). If your annual expenses are $24,000, you will need $300,000 invested. In a good year your APY may be 20% ($60,000). In a bad year your portfolio may shrink by 10% ($30,000).

You can easily live on less than $60,000 in a good year and in a bad year you can just live on the minimum since you taking money out of the market when your portfolio is down is the same as selling low. Preferably you don’t want to do this.

To complete level 8, you need to:

  • Have an investment portfolio of 12.5x annual expenses
    You go with the flow and spend more in a good year than in a bad one.

Lvl 9       Financial Independence
When you’ve reached financial independence, your investments gain on average more than you spend annually. Often the 4% rule is being used to calculate your FIRE number.

This means that you can withdraw 4% of your portfolio each and every year without ever running out of money since your investments gain more than 4% per year on average.

To calculate this so-called FIRE number, you multiply your annual expenses by 25.
If your yearly expenses are $24,000, you multiply it by 25 to get a FIRE number of $600,000.

When your investments have reached $600,000, you could (in 96% of the cases according to some studies) stop working and live off 4% of your net worth for a lifetime.

To complete level 9, you need to:

  • Have an investment portfolio of 25x annual expenses
    You can now live of 4% of your portfolio every year and the chances are very high you will never run out of money.

Lvl 10      Financial Freedom
This is next level. Not only can you live off your investments without having to work, but your net worth has become way bigger than you anticipated. You can buy that luxury car you always wanted or go travel the world for a couple of years in style.

To complete level 10, you need to:

  • Have an investment portfolio of 33x annual expenses
    You can now live off 3% of your portfolio a year and the chances are near 100% you will never run out of money.

Lvl 11      Financial Abundance
All the hard work and sacrifices you made came to this. The amount of money your investments yield is more than you will ever need. Want to take your entire family on an enormous vacation, no big deal. Want to buy an Aston Martin, done. Want to donate to your favorite charity? They can keep on going for years because of you.

You can be a granary to your family, friends & community.

2 Responses

  1. When you say expenses, what is defined as an expense? Are federal and state income tax included? Charitable donations? Mortgage and property tax? Thanks for clarifying!

    • Hi Jeremy,

      Everything! If you gotta pay it, it’s an expense.
      Otherwise you’d quit your day job thinking you can live off of your investments only to go back to work because you didn’t count everything.

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