Better Financial Management on Hive. Example for HBD.
I wrote a post yesterday about using multiple accounts on Hive for different purposes. I made a longer introduction on it regarding the history of Hive, engagement and distractions, and that might've put some of my readers on the wrong track, judging by the comments. My mistake!
While you can use multiple accounts on Hive for various purposes, from segmenting content for better branding (crypto, travel, life, gaming, etc.) to the type of activity it is involved in (posting, gaming, financial, etc.), I only wanted to refer to the financial management part in that post.
I don't segment my content anymore using different accounts, and even when I did, I couldn't do it consistently at a high level, so I decided to give something up and consolidate the rest in one account.
But what I think was misunderstood in the previous post was exactly the point I was trying to make: using different accounts for financial management.
So, I'll try to explain again, focusing only on one example and without over complicating things, which I sometimes do to offer more information. Often, more is less.
Let's say you have 1 Hive account XYZ and you want to save HBD for 3 different purposes:
- to participate in an announced presale with the amount you decided upon
- to buy HIVE regularly as it dips
- your main stash, you don't want to deplete every time there is an "opportunity" to spend HBD
How do you manage to do that with one account? If you want all 3 amounts in savings (maybe the 2nd one partially liquid too), you can't really, unless you keep a very tight off-chain accounting of what the HBD amount in savings represents (how it is allocated for each purpose). That's quite inconvenient and is prone to errors if you forget to update it.
But if instead of 1 account you use 3 accounts, that's quite simple. People thought it would be difficult to manage. But it's not. If the separate accounts are not involved in posting, curating, etc. all you have to manage is the liquid HBD and the ones in savings.
Let's say you have accounts XYZ, XYZ2 and XYZ3.
Let's say XZY is your main account, from where you also post. And let's say that's where you keep your main stash of HBD, the one you don't want to touch every time there is an opportunity.
On XYZ2, you would add HBD to savings (and keep some liquid too) to buy HIVE dips, since that's another one of your purposes, as listed above.
On XYZ3, you would add HBD to savings to get it ready for the presale you want to participate in.
What does this accomplish?
It is a better management, and also prevents you from using more funds than you have allocated for a certain purpose if you decide on the spur of the moment to do so, without properly thinking about it. If you want to add more funds for a certain purpose, you'd have to take more steps to do it and that could potentially stop you from FOMOing, for example.
I don't know if this makes sense to others as much as it does to me. But yet again, I am a pretty organized guy (for the things that matter to me, lol), as you probably have seen from my Hive goals posts.
Want to check out my collection of posts?
It's a good way to pick what interests you.
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I think you have been astute in the role you have played in this way
Maybe some people will have difficulty using the method you did
I don't know what to say... It's basic allocation of funds. We do often in day-to-day life. Example of "standard" budgeting:
Wau this looks very accurate
Yeah, most people rarely break it down so accurately. Myself included, lol.
I can understand why someone uses multiple Hive accounts. It's the same as having 2 or 3 bank accounts for different purposes.
!BBH !HBIT
Yes! And even within the same bank, you can have multiple savings accounts nowadays, with different tags, for different purposes. But honestly, I don't like using tags, because that's a way to increase tracking, especially if you use tags that are meaningful. That's why I don't use memos on transactions with meaningful texts either.
I know a couple who do this. 2 separate accounts for each and one account together.
Yeah, they are used, for sure! If there wasn't demand for this, banks wouldn't have bothered to update their systems to add multiple savings accounts.
Hm
I get the point of the other accounts you suggested that we create. They are basically for financial management so you’d know that whatever Hive or HBD you earn goes to one particular thing or other
Exactly. Without financial management we tend to exaggerate or lose track of our objectives and needs.
It's all about keeping things clear and simple, I guess. I get why managing different accounts on Hive could be useful for financial goals. It's like having separate bank accounts for different purposes, keeps everything organized. Your progress and Wisdom is great bro, so glad to be close to learn a lot
Exactly like having separate bank accounts for different purposes. A basic financial management can help, even if it may seem too much of a hassle for a small account to try that. But maybe it helps a small account even more to properly manage their tokens. I don't know... It's been a while since I only had a small account. Back then, I had a few accounts, but not for financial management, but rather for their type of activity and content.
This is good advice you're giving brother and you're very right. At the moment like you said before, my personal account is still too small to start diversifying but I'm going to start preparing for that. It's great security
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I agree with the management portion, but it really depends on their use. For example, if I was running a project, having an account for funds and etc would help things a lot. I just didn't see the need for it myself as I am just doing everything for myself.
Well, I guess I treat mine more like a business and separating the flows of capital for different purposes (and potentially from different sources) seemed like a good practice.
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