I am not worried and I am living a very comfortable life. My wife and I both run our own businesses. She has a small beauty salon and I have a home office where I consult with small to medium enterprises (SMEs) about subsidies. We don’t work full time. I work about 32 hours per week and my wife works about 20 hours. So we have plenty of leisure time to enjoy life. In the end we are working to have a beautiful life with our three children.
But for the past two years I have been really worried about the future of my three children (ages 11, 16 and 18). I will try to explain my concerns.
I’m a little over 40 years old. My wife and I have lived together since 1998. In the beginning we had a rented house and in 2010 we bought a nice house with enough space around. Buying a home right now is easy. Banks were also interested in lending on single income. The mortgage we offer is low (about 900 900 per month). We also have enough money for other monthly payments, groceries, clothes, leisure, etc. due to having less mortgage.
But lately I’ve been seeing prices go up by an insane amount. Grocery content increased by 15%, energy by 10%, gas and oil by 20%, etc. This isn’t actually a huge problem for us right now, but the trend is quite worrying.
Now I come to my concerns about the future of my children. Can they buy or rent a house? Home prices in my area have risen 20% since last year, and the expectation is that they will rise another 10% -20%. The market has become overheated due to money printing and investors desperate to buy real estate, which makes prices even higher.
Banks are willing to lend, but you must have double the income and the mortgage is skyrocketing.
Renting a house is almost impossible. There is a seven year long waiting list (if you are lucky) and the rental price is at least 25% higher than the mortgage.
Meanwhile, inflation is rising and rising. But the trend of wages is not increasing. So in reality it means that the price of daily demand and monthly expenses is increasing, but your salary is not low.
My children are basically punished for finding a mate and both work full time (minimum!) To achieve the same quality of life that we currently enjoy. Even then, it would be really hard to make. I can’t even imagine what this situation will be like in the next 5-10 years, when my kids leave our house. Until then we have an agreement that they save money and we bear all the expenses they need.
Most people think this is normal, but it is not. In the 70’s and 80’s both working mothers and fathers were not normal – it was special. But now it’s weird if one of them doesn’t work.
And it kind of makes me angry. The main reason for this is the whole inflation and money printing since the fall of the dollar in 1971. Innovation should make everything cheaper. But all of this has been exploited by inflation. There are some great podcasts on that subject (Guy Swan for example).
So here is my Plan B for my kids. I’ve been stacking a serious amount of SAT for them since 2018. My goal is to stack a complete bitcoin for each of them. I believe that this single bitcoin, for them, is the “way out” of the system and their lives, where our economy does not bear the financial and even social burden of moving in that direction.
I think in 10 years a bitcoin can be a security for a mortgage and you can pay the mortgage with the value of bitcoin. Frankly, it’s not my financial purpose that I stack SAT for my kids. They don’t have to be rich with it. My goal is to give them a life opportunity that they can customize to their liking, and not how to “fit” with the system.
I used the word secret in the title of my article. This plan B has been discussed with my wife and she supports it. She wanted to tell our kids about it, but I thought it would be better not to do it anyway. They must pay attention to their studies and social life. The price action of Bitcoin can make them nervous, confused or perhaps worse, lazy.
So, I hope my Plan B will work well and maybe inspire you to create your own Plan B for your children.
This is a guest post by Erwin Hemme. The opinions are entirely their own and BTC Inc Bitcoin Magazine.