The usefulness of budget as a bitcoiner

[bitgolden]

Are we referring to planning as a budget here or we are talking about the two? Well, I know sometimes, some people use these words interchangeably but they are not completely the same. Budget deals with resource allocation to your projects but planning is what you need to achieve the goals of what you allocate the resources for. As a bitcoiner, you need both planning and budget to succeed in your investment. Budgeting will guide you on the financial aspects of your investment with how much you can afford to invest and planning on the other hand gives you forum to manage risk, how long or short you intend to invest and your goal of the investment.

I assumed planning a budget, as in putting bitcoin as a part. Like lets assume 50% food, 20% rent, and so forth. I am not going to lie, we are going to end up with some, and then you add 10% to rent as well. That has to be the most important part and that is going to have trouble if you fail. Meaning, we plan and we add bitcoin into that plan, that is what I understood and that was my understanding.

If I am wrong then I am sorry, but you calculate each month, based on your income, to what you spend money on. If you do a good job then you are going to have 10% or whatever and that as to be the most obvious part and shouldn't be that much of a bad deal. I am sure that we are going to make some income from this, but it is going to end up being something that takes a while and in the end, if we can achieve it, we will make a lot of money.

[AbuBhakar]

That's good as a general rule but I don't budget any more after more than a decade doing it. I already have a lot of experience in this, I have the big expenses under control and in general at the end of the month I am cash flow positive, I have money left over even though I invest at the beginning of the month. So there has come a time when I have decided to relax a little in that sense. I don't rule out doing it again in the future if necessary, but I don't think so.

For anyone who is just starting to invest, or who is in debt, or who has little net worth, I think it is essential.

Because most of the financial advice are created for middle class to poor.

Like 50/30/20 rule, if someone earn $60K per year in US, it's make sense to use that rule, but if they earn $1.2 M per year, it's not make sense for someone to force themselves use $60K for their monthly needs.

When someone is too rich, there are no rules, even they can buy the rules.

Basically don't be too strict on following these rule, just put whatever we want into investment and call it a day.

We can always estimate our monthly need from previous month spending maybe give a little room for inflation and thats it.

This kind of rule was never meant to be followed too strictly anyway, just a guide.

That's just the basic rule of budgeting. Anyone can create their own rule based on their financial capacity. Budgeting is important so you don't go above your means. When you know how to budget, you won't worry on your future expenses as you have proper allocation on each of them.

As long as you're consistent in your investment, it doesn't matter whether it's big or small. Over time, it will accumulate while its value also increases.

[dezoel]

if someone writes down all expenses in the budget appendix and knows all their expenses, then that's great. Because two or three months of such records are enough and all expenses will become obvious. And after that, it will be possible to forecast expenses for the month, know how much money will be needed. And if such a guy knows how much money he earns and how much he spends, then he can understand how much free money he has left per month. And then you can invest this money without fear of spending extra money that could be needed for everyday needs.

That is great, ONLY if you can remove some of the expenses and can do better. I check every month, and for the past 3 years or so, 80% of the big spending that I did was for "unexpected" stuff, medical bills (how could I know ı would get sick), friends getting married (you gotta get them a present and go to some place), business related, unexpected taxes, some fine I had to pay, washing machine broke down, tv broke down, wife got sick this time, and many stuff like that basically. None of them are my normal month to month expense.

That is why we can't really consider budgeting as valid way to move, because it doesn't work the way you hope it would work. If you could do a better job, then you won't be needing the budget, because you can't spend any less than you could, if you could, you would, what you need (or all of us need) is more income.

[Alphakilo]

No matter what you do, having a  budget is the first thing you should do as it is very important in all areas.
As a bitcoiner, having a budget makes you to be financially disciplined because it will help you to be organized and invest wisely without touching your savings that are meant for other things.

Most importantly, when you have a budget, it reduces your mental stress, and it gives you peace of mind knowing that you are not in debt because most times, being in debt is as a result of not having a budget.

[sunsilk]

No matter what you do, having a  budget is the first thing you should do as it is very important in all areas.
As a bitcoiner, having a budget makes you to be financially disciplined because it will help you to be organized and invest wisely without touching your savings that are meant for other things.

Most importantly, when you have a budget, it reduces your mental stress, and it gives you peace of mind knowing that you are not in debt because most times, being in debt is as a result of not having a budget.

That's what budgeting gives us and many still don't know how to do it until they realize that they need one for themselves.

I agree that it gives us a peace of mind when we do budgeting. We know what are the important and necessary expenses and what are those nuisances and we don't really need at all.

So, knowing the priority when we do budgeting. This is how it makes things easier for us and this shouldn't only be done by bitcoin investors but by everybody.

[GiftedMAN]

No matter what you do, having a  budget is the first thing you should do as it is very important in all areas.
As a bitcoiner, having a budget makes you to be financially disciplined because it will help you to be organized and invest wisely without touching your savings that are meant for other things.

This advise is very important and anyone who understands the importance of investment will take it seriously because without budget one may be making money but will have nothing to show for it, few months ago I discovered that I had misused a huge amount of money doing unnecessary things all this happened because I didn't have a budget for the money. Budget helps to cut some expenses it's important to have a budget before anything otherwise it will be difficult for one to have financial discipline.

[Distinctin]

Whether in bitcoin or in fiat, budget management is a must. If you want to maximize with your bitcoin investment, stick with your current budget. Until such time that you’ll be reaping some profits and start increasing your budget as well.

If you have an increased amount of budget, then there’s no reason not to diversify. Diversify as much as you can as long as you know you are spending your budget on your allocated purpose. Bitcoin accumulation and its diversification will be easier and faster if you are doing a good budget management plan.

[Gost ms]

Yes, I agree with you. There are many people who cannot manage their investments properly because they invest without a plan. For example, they do not decide in advance how much money they will invest per month or week. When it comes time to invest, it is seen that one day they are investing $5 and another day $10. All these things happen because of not planning. If you plan properly, you will never go through all these things. Plan properly and think in advance how much money you will invest and continue to do it regularly.

If a person is irregular, after a while that person can deviate a lot from his investment. So continue investing with a rule and a consistency.

[atookz]

Budgeting is a simple process, yet it's often overlooked by many investors. Without it, it's difficult to assess potential returns and maintain accountability for investment decisions. The purpose of a budget in Bitcoin investment is to help assess and manage risk, make more informed and strategic investment decisions, prevent waste and maximize investment returns. Essentially, budgeting helps investors make decisions more easily and opens up opportunities to maximize profits.

[bubilas]

Budgeting can help a bitcoin investor in several way but firstly what is budget ,
A budget is a financial plan that help a person outlines projected income and expenses over a specific period. It helps individuals or organizations manage their finances, prioritize spending, and achieve financial goals. But when it comes down to the usefulness of budgeting as a bitcoiner
It can help to manage risk when investing ,so that a bitcoiner doesn't overextend himself. Budgeting also keeps  a bitcoiner disciplined about his or her finances, making sure a bitcoiner prioritize his  needs over his wants.
Plus, having a budget in place can help a bitcoiner  figure out how much he can afford to invest in Bitcoin, and when it's time  for him to diversify his  portfolio.
 By tracking  his expenses, a bitcoiner will definitely get a  better sense of his financial situation which makes it easier for an investor to make smart  investment decisions.

I believe that budgeting should be done by absolutely all people who are at least a little interested in increasing their well-being and being able to control their expenses. After all, most people have financial problems. They do not understand that they spend too much. They do not know the categories their money goes to. And therefore, no matter how much they earn, they cannot put anything aside in a piggy bank after each month and, as a result, begin to invest.
And of course, this also applies to those who invest in Bitcoin because a thrifty understanding of your expenses can lead to the appearance of extra money, which can also be invested in Bitcoin.

[justdimin]

I believe that budgeting should be done by absolutely all people who are at least a little interested in increasing their well-being and being able to control their expenses. After all, most people have financial problems. They do not understand that they spend too much. They do not know the categories their money goes to. And therefore, no matter how much they earn, they cannot put anything aside in a piggy bank after each month and, as a result, begin to invest.
And of course, this also applies to those who invest in Bitcoin because a thrifty understanding of your expenses can lead to the appearance of extra money, which can also be invested in Bitcoin.

Yeah, if you do not do budgeting, then you would not know what you are spending your money on and that would make it impossible for you to keep going. It just makes no sense at all and it should be something that we are worried about and that's the most important part.

If you can make some good returns, then we are going to end up with a lot better results. Of course this isn't that much of an important at the moment, it's definitely not a worry but at the end of the day it is what it is and without a budget you will surely go into debt. But when you have a budget, then you know what you are doing and at the end of the month you will not outspend your income and can save some money on the side thanks to that.

[DanWalker]

No matter what you do, having a  budget is the first thing you should do as it is very important in all areas.

Exactly, even if we are not bitcoin investors, we are just workers, office workers or farmers. Budgeting is mandatory and very important if we don't want life to fall into a deadlock.

Budgeting can help us control our spending, reduce financial stress, and create good financial habits. So let's budget no matter who we are, don't think that only bitcoin investors, stock traders, entrepreneurs need to budget. Don't think that only rich people need to budget, poor people also need to pay more attention to budgeting because it is one of the factors that help us escape poverty.

[Muba20]

Budgets are not only for Bitcoiners, but I think those who value budgets in terms of financial matter will be able to achieve freedom at some point. Bitcoin is a potential asset. Those who value their budgets especially accumulating their Bitcoin will definitely be able to benefit the most.

If a good budget can be determined, it will be easier to hold Bitcoin in the long term. Because it is possible to reduce the loss through risk management. If a good budget is determined, it will be known how much it is possible to hold in the long run, considering your financial situation. If a good budget is determined, then any amount of money starting like $10 and more can be deposited in Bitcoin regularly on a weekly or monthly basis, which will play an important role in depositing Bitcoin in the long run.

[Fiatless]

No matter what you do, having a  budget is the first thing you should do as it is very important in all areas.
As a bitcoiner, having a budget makes you to be financially disciplined because it will help you to be organized and invest wisely without touching your savings that are meant for other things.

Most importantly, when you have a budget, it reduces your mental stress, and it gives you peace of mind knowing that you are not in debt because most times, being in debt is as a result of not having a budget.

A budget is an important document that guides your income and expenses for a given period.  Spending without a budget is like driving a car without control. With the economic downturn most countries are facing, which has led to inflation, not planning will lead to financial disaster.

Since the price of goods and services keeps increasing, there is a need to always reevaluate your budget to suit current realities. People in my office who earn the same salary as I do are still in debt because of careless spending.

[Bright0515]

Budgeting can help a bitcoin investor in several way but firstly what is budget ,
A budget is a financial plan that help a person outlines projected income and expenses over a specific period. It helps individuals or organizations manage their finances, prioritize spending, and achieve financial goals. But when it comes down to the usefulness of budgeting as a bitcoiner
It can help to manage risk when investing ,so that a bitcoiner doesn't overextend himself. Budgeting also keeps  a bitcoiner disciplined about his or her finances, making sure a bitcoiner prioritize his  needs over his wants.
Plus, having a budget in place can help a bitcoiner  figure out how much he can afford to invest in Bitcoin, and when it's time  for him to diversify his  portfolio.
 By tracking  his expenses, a bitcoiner will definitely get a  better sense of his financial situation which makes it easier for an investor to make smart  investment decisions.

It is very much good and to have budget and to follow plans on the budget. Budgeting can help in many ways like in business and on investment. Budgeting can discipline somebody but if the person is not discipline they can not keep with their budget. Keeping to your budget plans is not easy when you are not a disciplined person. Somebody that is not discipline need help from other to help them anytime they go against their budgeting plans.

[slapper]

Budgets are not only for Bitcoiners, but I think those who value budgets in terms of financial matter will be able to achieve freedom at some point. Bitcoin is a potential asset. Those who value their budgets especially accumulating their Bitcoin will definitely be able to benefit the most.

If a good budget can be determined, it will be easier to hold Bitcoin in the long term. Because it is possible to reduce the loss through risk management. If a good budget is determined, it will be known how much it is possible to hold in the long run, considering your financial situation. If a good budget is determined, then any amount of money starting like $10 and more can be deposited in Bitcoin regularly on a weekly or monthly basis, which will play an important role in depositing Bitcoin in the long run.

You are correct that it does matter $10 weekly deposits. However, what people believe they are budgeting is practicing financial freedom when in reality they are practicing discipline, which is a form of self-restraint. Freedom is not in having Bitcoin, but in not having to sell it in panic. A decent budget will save you from selling at the worst possible time not because you are smarter than the market, but because you are inoculated against your own panic

And budgeting is also concerned with what tradeoffs you are prepared to make in other areas. Each dollar you save in Bitcoin is a dollar you did not use to buy coffee, entertainment, or rent buffer. It is in that that the vast majority fail: the psychological cost of delayed gratification is greater than the financial one

[Powerjumboo]

Budgeting can help a bitcoin investor in several way but firstly what is budget ,
A budget is a financial plan that help a person outlines projected income and expenses over a specific period. It helps individuals or organizations manage their finances, prioritize spending, and achieve financial goals. But when it comes down to the usefulness of budgeting as a bitcoiner
It can help to manage risk when investing ,so that a bitcoiner doesn't overextend himself. Budgeting also keeps  a bitcoiner disciplined about his or her finances, making sure a bitcoiner prioritize his  needs over his wants.
Plus, having a budget in place can help a bitcoiner  figure out how much he can afford to invest in Bitcoin, and when it's time  for him to diversify his  portfolio.
 By tracking  his expenses, a bitcoiner will definitely get a  better sense of his financial situation which makes it easier for an investor to make smart  investment decisions.

It is important to have a budget in any case. Now, if I do not have all these calculations of how I will use my funds, in which case I will use them, how much I will use them in which case, then a person will never be able to manage himself independently. It is definitely important to have a budget to manage himself and solve his financial problems. Suppose I have a month's income, if I calculate my income fund in different ways in different budgets and according to that calculation I spend my funds, then my path will be very convenient. I will be able to manage myself with a certain amount of money and I can invest the remaining amount of funds in Bitcoin or anything else. Therefore, having a budget is important. Without a budget, nothing can be managed properly.