JJG’s Outline of Bitcoin Investment Ideas

[Loyang]

Dividing discretionary income into 3 parts may not be a logical decision for everyone, because the same formula may not work for every investor. For example, there are two users who have $300 of discretionary income per month. The first of them may already have an emergency fund and a stable income. The other does not have an emergency fund and even his income is uncertain. In this case, the same 1/3, 1/3, 1/3 formula may not be realistic for both of them. Because the first person may be comfortable giving $200 in Bitcoin. But the second may be more concerned with putting a larger portion of his discretionary income into an emergency fund or reserve fund.

Each person needs to make a decision based on their situation and financial situation. A person who already has an emergency fund ready does not need to create a new emergency fund. These decisions should be taken by the first person you imagine according to his situation. A person whose income is unstable and does not have an emergency fund can divide his income into three levels. Each person should take each decision according to his own convenience, another person has done one thing does not mean that it will be right for him to take the same decision.

But yes, the more our fund, the better or more secure our holding will be. For example, we can divide our funds into how many levels, such as emergency fund, reserve fund, other fund, the more our number of funds, the more our security level will increase. But yes, it is not necessary to keep the same amount of money in each fund. We can use the emergency fund as our main, protective, layer and in the emergency fund we can keep an amount equal to 3 months of expenses or we can keep an amount equal to 3 months of income. We can keep some less money in the reserve fund and in other funds we can keep less money than the reserve fund.

[Gragebox]

The first one might think he is comfortable with putting everything in bitcoin because he will soon definitely realize that his discretionary consumptions are being ignored and can't be ignored forever, maybe he already has his emergency fund but that doesn't mean he has his reserve fund in place too, having a stable income isn't a guarantee of anything because it can change at anytime. So even if you account for all of his backup funds you will still need to account for his discretionary consumption and as long as that exists he will no be able to continuously invest in bitcoin with all of his discretionary income.

That is actually true that putting 100% of funds in Bitcoin may have issue when it comes to the future. Even you may have money saved on the emergency plan and consistent salary, we human have unavoidable expenses such as paying daily stuffs, the emergency situation when something popped out from nowhere or even when one spent it on their self not in the business. Otherwise it’s a problem that at some point, you are going to withdraw Bitcoin during the down part just to buy.

But a diversified income is always the solution - essential costs, saving, and personal spending together with investing, you can still have the biggest investment which is Bitcoin but would not create you stressful life every day.

Building a long term, step-by-step plan to do something is all we need here to survive in the next 20 to 50 years.

[PERtua]

Dividing discretionary income into 3 parts may not be a logical decision for everyone, because the same formula may not work for every investor. For example, there are two users who have $300 of discretionary income per month. The first of them may already have an emergency fund and a stable income. The other does not have an emergency fund and even his income is uncertain. In this case, the same 1/3, 1/3, 1/3 formula may not be realistic for both of them. Because the first person may be comfortable giving $200 in Bitcoin. But the second may be more concerned with putting a larger portion of his discretionary income into an emergency fund or reserve fund.

Each person needs to make a decision based on their situation and financial situation. A person who already has an emergency fund ready does not need to create a new emergency fund. These decisions should be taken by the first person you imagine according to his situation. A person whose income is unstable and does not have an emergency fund can divide his income into three levels. Each person should take each decision according to his own convenience, another person has done one thing does not mean that it will be right for him to take the same decision.

But yes, the more our fund, the better or more secure our holding will be. For example, we can divide our funds into how many levels, such as emergency fund, reserve fund, other fund, the more our number of funds, the more our security level will increase. But yes, it is not necessary to keep the same amount of money in each fund. We can use the emergency fund as our main, protective, layer and in the emergency fund we can keep an amount equal to 3 months of expenses or we can keep an amount equal to 3 months of income. We can keep some less money in the reserve fund and in other funds we can keep less money than the reserve fund.

I do agree that a set 1/3 formula will not work for everyone as everyone is in a different financial position. If you have a stable income and have a fully funded emergency fund, you can more easily invest in Bitcoin; if you have an uncertain income, you should work on increasing your financial security first. Creating separate categories such as an emergency, reserve, and investment fund can make the plan safer, but there is no requirement that they be the same amount. The key is to have a sufficient cash cushion for unforeseen costs before deciding how much money to invest in Bitcoin.