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Yes it's true, some people actually over prioritize backup funds to the point they never truly started any longer, having an emergency savings is important to some extent,because it helps someone to survive some unexpected expenses or temporary income problems, but it's actually becoming a biggest problem when someone get fear of risk and keep pushing the target higher and higher without action or starting investing.
For example if someone’s monthly expenses are actually $2,000 having a 3 months buffer of $6,000 is reasonable. But the rpbke is when the person keep saying I will start after $10,000and later changes to $15,000, then the backup funds has turn more excuses for starting a bitcoin investment delaying. The main problems wulith this approach is that time is being wasted.
Not only is time being wasted, it is quite likely the larger the back up funds (especially if they are being kept totally in cash) rather than being partly in assets, they are likely starting to shrink in value faster than the value can be added to them, and so in that regard the person holding so much value in cash and continuing to keep value in cash is never getting ahead.. yet probably even losing way and way more money just to keep the size of the cash holdings up at a seemingly hight level.
However, Bitcoin accumulation is not all about the amount one invented, it all about consistency,patience and discipline and building the strong habit of investing early.
Since bitcoin is so volatile and there is no real way to know if the volatility is going to be upwards or downwards, some folks can be scared from putting money into bitcoin based on its being so volatile, yet surely with bitcoin we have seen that so far in its history the direction of its price curve has tended to slope upward, and even if there cannot be any guarantees that bitcoin's price curve will continue to slope upwardly, there is also various pieces of evidence that ongoingly support that bitcoin has characteristics that make it likely that its price curve will continue to slope upward, even if it is not guaranteed and even if there are decently good likelihoods that there will be a lot of price volatility in both ways along the way.
Someone who actually started with small amounts of money regularly is already learning the cashflow management, control his emotions and long-term investing behavior, and these lessons are valuable and cannot be learned properly through endless planning aline. Moreover instead of them to prioritizing back up funds or waiting for perfect financial security, it's better and smarter to build backup funds and Bitcoin holdings alongside using discretionary income. The both are growing together over time. The facts is, some people become financially stronger not because they waited longer foe anything else, but because they started earlier and stayed consistent.\
Yep.. build the bitcoin and the back up funds at the same time is likely to be amongst the better of plans that help to assure ongoing progress, and perhaps even allows a bit of a prioritization of the bitcoin building side, while giving a sufficient amount of acceptance in recognizing value in also having some cash reserves that are building too, even if they are known to be ongoingly losing value relative to how much goods and/or services they are able to purchase.
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It is better to take advantage of the current time and opportunity because the price of Bitcoin is cheaper now than in the future because many people in the past did not give importance to Bitcoin and many just waited, many of them are regretting it now, it is effective to start saving small amounts of Bitcoin according to your ability to invest in Bitcoin because in the future when the price of Bitcoin goes from the current to a high level, you will be far away from those people who can only regret because they did not start earlier, but gradually increase the savings from a limited income, because over time you will gain skills on the one hand, on the other hand, the income base will be stronger and then you will be able to increase the amount of Bitcoin collected and so move forward from within your ability without waiting for the perfect time.
I don't have any problem with the idea of attempting to front load a guys investment in the first cycle or two of investing into bitcoin and then perhaps slowing down in the focus on bitcoin accumulation after a decently good bitcoin base stack had been established, yet I do have problems increasing aggressiveness based on perceptions of price unless of course, there is already a relatively good determination that back up funds are otherwise in a good place that allows increased in aggressiveness based on otherwise strength of the cashflow management (and back up funds).
One thing that give me so much confidence with this DCA strategy is that with even unstable income you can gradually accumulating Bitcoin, not really that you must have a stable income because there are some people who have to work hard to get something such people even enjoying accumulating Bitcoin if really they wish to because their income is not calculated, it is not fixed like a paying job example salary.
This your statements can be misleading if not properly checked, I don't know what your definition of unstable income is but I can assure you that the most important thing about investment most especially investment like the bitcoin investment is your income, and if your income are not stable your investment will fail.
Income may vary and that is why discretionary income also varies, but you saying one can actually go ahead with the investment even though his income are not stable is not right. First thing you need to do is to get a stable income that will fuel your investment. it doesn't matter the amount but what matter is that the income flows and that's what stability means in this essence. As the income flows, you'll be able to settle your basic need and also have your discretionary income that you will use for the investment.
I am strongly against going ahead with investment while your income are not consistent.
Normal newbies do not need to have stable or consistent income prior to starting to invest in bitcoin as long as they have discretionary funds, and the more unstable their current or their expected cashflow situation, then the more justification that they might have to make sure that they have greater quantities of back up funds already in existence. Of course, there can be variance in which a person with an unstable cashflow situation is able to transition into a situation with more stable cashflow and there might be circumstances in which a person with stable cashflows ends up transitioning into unstable cashflow, and surely each person has to figure out the extent to which he is able to continuously buy bitcoin, such as $100, $10 or some other amount on a weekly basis or however frequently he might have had been buying bitcoin.
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You are equally getting the whole idea wrong also. I’m sure if you have been following up with the teachings here by Jay Juan gee you’ll know that you are getting it wrong with your idea. To start investing in bitcoin all you need is to figure out a discretionary income to use and buy bitcoin. So even if your income is not stable yet it doesn’t still prevent you or become a barrier why you shouldn’t start accumulating and investing in bitcoin all you need is just a discretionary income and not a stable income. Having a stable income is good but however even if your income is not stable you can still proceed to start investing in bitcoin only if you have a discretionary income available to use and accumulate bitcoin. You must not wait for your income to be stable before you can start investing bitcoin as you can still start to buy gradually with your discretionary income and along the line you can be figuring out ways to improve your income or perhaps get more stable income in the future.
Each guy has to determine from his own perspective the extent to which his discretionary income is sufficient enough to "get started" investing into bitcoin versus continuing to invest in bitcoin, in the event that he had already started. There are several guys, including myself, who put a decent amount of emphasis and priority on getting started, yet at the same time, guys have to use their judgement regarding how hampered they might consider their current cashflow situation including how many funds that they currently have and their future expectations about income and/or expenses.
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We see people of various professions, some have stable income and some have unstable income. Despite this stability and instability, people choose their source of income freely. If the unstable source of income was not profitable, then perhaps no one would be involved in this source of income. But the thing to worry about is that most of the people in the world are involved in unstable sources of income, very few people are involved in stable sources of income.
There are a contractor, a farmer, a businessman and some other professions which are unstable. But since their income is relatively high, this instability does not have a major negative impact. However, their financial management is relatively complex. If you can be skilled in this financial management, then you may be able to
provide a lot of prudent money. An unstable source of income is not a barrier to starting an investment or
providing prudent money, perhaps he is inefficient in this financial management or he cannot take sufficient advantage of this source of income.
Investment requires prudent money for continuous DCA, which is also capable of providing an irregular source of income. Do not make the mistake of thinking that just because it is a stable source of income,
it is ideal for prudent money allocation or investment.
Get the fuck out of here with your dumbass, vague and misleading idea of "prudent money," since there is no fucking such thing.
If you want to talk about discretionary money and you want to talk about having enough discretionary money in order to feel comfortable investing in bitcoin, then there is nothing wrong with that.
If you want to talk about normie newbies exercising good judgement in their bitcoin investment, then there is nothing wrong with that either.
There are so many guys that mention this dumbass, vague and misleading idea of "prudent" money, yet they continue to use it, even when guys tell them that they don't know what the fuck they are talking about.. they continue to use such nonsense.
Maybe I should start to delete all posts that use such expression and fail/refuse to speak proper and meaningful english. There is a term called discretionary income, which is largely the same as disposable income. Those are acceptable terms and you should be able to figure out to use meaningful words rather than speaking in vague, dumbass and misleading gibberish.
This situation can still be remedied to some extent which is that he takes about 50% of his stacked cash(approximately $5000) and uses it to lump sum into bitcoin immediately to attempt making up for lost moments and follow up his buys with consistency.
Don't forget that they guy doesn't have any backup funds which was why the thought of saving up his backup funds to $6000 before getting started which isn't a good approach to invest in bitcoin as a no coiner because he has already delayed himself and missed some good opportunities as he was buy piling up fiat.
For that reason, if he decides to extend his backup funds to $10k which is wrong instead, of using $5k to lump sum and use the rest to DCA and forget about his emergency funds, he should divide the $10k into three parts. He should use 35% for Bitcoin investment, 35% for his emergency funds and $30% for his discretionary consumption.
That does not make any sense if a person has $10k, then how much of it is he going to authorize for bitcoin investment? only 35%? that seems a bit low.
Maybe we need another example? Is he a brand new investor to bitcoin, and how much is he able to invest into bitcoin from his regular income?
If he is just getting started, it does not tend to be a good idea to start with lump sum.
Now if the guy in your example has $3,500 that he is investing into bitcoin, then is he investing all of it right away, or is he going to employ DCA and/or buying on dips?
Whereby the 35% he is putting into Bitcoin can be split into three parts 40% to lump sum right away, 40% for DCA and 20% to buy at dip. While, he continues to use his next discretionary income to DCA consistency overtime till he reaches his bitcoin target.
Oh? You answered my question. I suppose it is possible to do what you are saying, yet I am still unclear about if this guy is brand new to bitcoin or if he had already been doing DCA, and if so then how much per week?
I do understand that at any time, a person could either receive extra funds or maybe they could authorize themselves to reallocate from some other asset or investment (or even cash) that they might have already had... which is also something that happens if a person is able to get some kind of a loan, such as home line of credit that might have favorable terms and also have the ability to suddenly have a decent amount of extra cash.
provided we possess surplus income—is to accumulate assets.
You don't need surplus income before you can start your bitcoin investment, What you need is discretionary income even if it's as little as $10, you are good to go. Some people misunderstand this and think they need a big income and that had deprived then from starting their bitcoin investment when they're capable. What matters is your consistent DCA weekly overtime and not the size of your discretionary income.
This part is true, since even if we might try to set up systems in which we are trying to buy bitcoin every week, we also might have some variance in how much money we have available from week to week, whether it is $100, $10 or maybe $10k, like in the example that you gave... and yeah, if someone already has various systems in place and they are already pretty strong in their cashflow management and even in their abilities to discretionarily consume, then there may well be no needs to put extra value from funds into discretionary consumption, and there also might not be any need to rapidly put a bunch of money into back up funds, rather than just growing the back up funds at a pace that is otherwise seeming to be reasonable and comfortable.
