JJG’s Outline of Bitcoin Investment Ideas

[NewRevelation]

The truth is we can never be 100 percent perfect in our Bitcoin investment and in our financial management but we ought to try so that the slack won't be much. Yea,  back up funds serve almost the same function as our emergency funds and we should use it only when there is emergency and this mistake some people make is not to keep emergency funds though we are to prioritize our discretionary income but we should also try to keep our back up funds/ emergency funds in case of necessity.

Don't get it twisted bro, I think you are mixing the names. Our emergency funds is part of the back up funds. Back up funds is a general name for all funds kept beside while investing to help you pull through. So emergency funds, reserve funds, float are all back up funds, and they are all gotten from your discretionary income. And sure, while accumulating Bitcoin, we must ensure to build up our emergency funds and other back up funds alongside, so as to ensure a safe investment journey to enable us HODL for long.

[alankasman]

Our own mistakes can often be used as life lessons so that we don't repeat them in the future when using similar steps and plans. Because everyone who has made a mistake must examine the steps they took previously so that they don't repeat the same steps in the future for new plans. So, as long as you don't experience serious problems with your own mistakes, I think it will be easier for you to make new steps when you want to develop a new plan related to Bitcoin investment.

I agree with what you said. After something happens we inevitably reflect on what we've done which can lead to many negative outcomes for us. If the consequences haven't yet occurred we're still too eager to continue doing things that aren't beneficial to us. Therefore we need to occasionally do this. After what we've done as we've discussed here we ultimately continue to reflect on what we've done so it becomes a lesson for us to avoid repeating it again even if it's a valuable lesson we've learned. It is indeed wrong what we do but occasionally I also suggest to do something like that and if we don't we will not know the steps we take so for the future we will not do it again and we will do what is beneficial to us personally one of which is when there is income we immediately invest by accumulating Bitcoin in the long term this is also with the income we have feeling more than our needs so we will do this by buying more Bitcoin to become our assets in the next few years so that we are not included in the category of people who do not think about the future for ourselves because we have a lot of income and if we do not do as we discussed here we are already included in some people who feel a loss.

Because, fundamentally, everyone can always learn from their own mistakes, although others' mistakes can also be used as lessons in developing a more differentiated plan for the next step. And now, I hope more people will be willing to buy Bitcoin at the current price to maintain a stronger price level. The current price level is already quite low, so everyone should consider this opportunity to buy at the best price without having to worry about further price declines.

We don't necessarily do it because when it happens to others we sometimes just provide motivation for example, to do this or that in the future. So when we experience it we will not repeat it again and ultimately we will plan for our own well-being. I think it's more convincing when it happens to each of us to make changes. Based on others it's certainly very difficult. For example, someone makes a mistake in buying Bitcoin to invest in the long term and at that time someone bought Bitcoin at the market price at @85K and regardless of what the person does, the market price conditions as they are today are at $64K what do people who haven't bought say why not wait for the right time to buy Bitcoin and words like that as if what the person did was something wrong but if it happened to him, maybe he would just think the point is if a mistake has occurred in each of us changes will occur for positive things in the future.

[iamsange]

Don't get it twisted bro, I think you are mixing the names. Our emergency funds is part of the back up funds. Back up funds is a general name for all funds kept beside while investing to help you pull through. So emergency funds, reserve funds, float are all back up funds, and they are all gotten from your discretionary income. And sure, while accumulating Bitcoin, we must ensure to build up our emergency funds and other back up funds alongside, so as to ensure a safe investment journey to enable us HODL for long.

I think this kind of thing is quite worthy of attention because you explained it so clearly from the basics to the final stage because understanding needs to be explained because sometimes many people do not fully understand what emergency funds are where funds come from and where funds are saved. So with an explanation like this it can be understood in depth so that when expressing it in the topic the language we use can not confuse others. However with the explanation put forward by @NewRevelation, I think someone who mixes up the language understands more in terms of interpreting the understanding of the beginning of emergency funds to saved funds and I salute the delivery from @NewRevelation.

Because if they do not have a stable income of course some people still use the funds they have saved to make investments that they do because sometimes the weekly monthly income that someone has is sufficient for daily needs so that someone does not use the income they get but with the funds saved of course the funds are used for investments by disturbing the income they have because the income is indeed intended to meet family needs. This is what helps us not to get stuck in making investments is by having emergency funds saved as a tool to help us when our financial position is in a difficult situation.

[cyberninja2]

Because if they do not have a stable income of course some people still use the funds they have saved to make investments that they do because sometimes the weekly monthly income that someone has is sufficient for daily needs so that someone does not use the income they get but with the funds saved of course the funds are used for investments by disturbing the income they have because the income is indeed intended to meet family needs. This is what helps us not to get stuck in making investments is by having emergency funds saved as a tool to help us when our financial position is in a difficult situation.

These three words have the same meaning and their use is the same because emergency funds will help us when our financial position is difficult so that with these funds no matter how difficult the path is it will be easy to pass because in a situation like that not everyone can do it meaning if we have more income use it to save a little this is necessary when our finances are at a crossroads of course these funds are our tools of help so I dare to say to someone who has an income that sometimes we work there are several points that maybe at some points both make money for us of course this will really make it easier for us to save for us to make it as money or funds that are saved for us when a difficult situation comes to us because our difficult position will not know when the time will come.

[avp2306]

The truth is we can never be 100 percent perfect in our Bitcoin investment and in our financial management but we ought to try so that the slack won't be much. Yea,  back up funds serve almost the same function as our emergency funds and we should use it only when there is emergency and this mistake some people make is not to keep emergency funds though we are to prioritize our discretionary income but we should also try to keep our back up funds/ emergency funds in case of necessity.

Don't get it twisted bro, I think you are mixing the names. Our emergency funds is part of the back up funds. Back up funds is a general name for all funds kept beside while investing to help you pull through. So emergency funds, reserve funds, float are all back up funds, and they are all gotten from your discretionary income. And sure, while accumulating Bitcoin, we must ensure to build up our emergency funds and other back up funds alongside, so as to ensure a safe investment journey to enable us HODL for long.

It falls under on same umbrella since those funds will came to our discretionary funds. Having that will make us safe from unexpected situations that might gonna happen. Creating or having it together with their Bitcoin investment is good to consider since we provably won't think about dumping our Bitcoin if we face on difficult situations.

With having these and have good discipline, we can still ride on the market changes without getting afraid or get stress on latest situation happens.

[As-Soon-As]

Because if they do not have a stable income of course some people still use the funds they have saved to make investments that they do because sometimes the weekly monthly income that someone has is sufficient for daily needs so that someone does not use the income they get but with the funds saved of course the funds are used for investments by disturbing the income they have because the income is indeed intended to meet family needs. This is what helps us not to get stuck in making investments is by having emergency funds saved as a tool to help us when our financial position is in a difficult situation.

These three words have the same meaning and their use is the same because emergency funds will help us when our financial position is difficult so that with these funds no matter how difficult the path is it will be easy to pass because in a situation like that not everyone can do it meaning if we have more income use it to save a little this is necessary when our finances are at a crossroads of course these funds are our tools of help so I dare to say to someone who has an income that sometimes we work there are several points that maybe at some points both make money for us of course this will really make it easier for us to save for us to make it as money or funds that are saved for us when a difficult situation comes to us because our difficult position will not know when the time will come.

Yes, it is very difficult to say when the danger will come, but we need to hold our Bitcoin holdings in case of future danger and that is why we have an emergency fund. An emergency fund holds the investment so securely that it is able to face any danger in the future. It is certainly possible to sustain Bitcoin investment for a long time according to the plan, but in the current situation, we definitely need discretionary income the most to keep Bitcoin investment safe.

[Fadhil Pahlawadi]

Yes, it is very difficult to say when the danger will come, but we need to hold our Bitcoin holdings in case of future danger and that is why we have an emergency fund. An emergency fund holds the investment so securely that it is able to face any danger in the future. It is certainly possible to sustain Bitcoin investment for a long time according to the plan, but in the current situation, we definitely need discretionary income the most to keep Bitcoin investment safe.

Because it often happens to ordinary people that we never even think about it, even though we don't know when. Our discussion in this forum is certainly a reminder to all of us to keep doing and remember that when we receive income, the most important thing we must do is set aside a small portion of our income as a contingency fund, meaning that this fund will be of full assistance to us.

Another thing, as those of us who enjoy buying Bitcoin to accumulate BTC in the long term, is that, as we mentioned above, it is a win for us to not be disturbed by investments with emergency funds available. This is a good step we need to take to maintain the investments we make.

[Finebone]

, the most important thing we must do is set aside a small portion of our income as a contingency fund, meaning that this fund will be of full assistance to us.

Another thing, as those of us who enjoy buying Bitcoin to accumulate BTC in the long term, is that, as we mentioned above, it is a win for us to not be disturbed by investments with emergency funds available. This is a good step we need to take to maintain the investments we make.

Once you start your  bitcoin investment, you need to have it at the back of your mind that measures needs to be put in place that will aid and protect your holdings just in case emergency situation comes up, because if they are not in place and emergency situation comes up, selling prematurely is inevitable. So putting your emergency funds in place while accumulating is the surest way to protect your investment against any unforseen emergency situation.

[JayJuanGee]

Because if they do not have a stable income of course some people still use the funds they have saved to make investments that they do because sometimes the weekly monthly income that someone has is sufficient for daily needs so that someone does not use the income they get but with the funds saved of course the funds are used for investments by disturbing the income they have because the income is indeed intended to meet family needs. This is what helps us not to get stuck in making investments is by having emergency funds saved as a tool to help us when our financial position is in a difficult situation.

These three words have the same meaning and their use is the same because emergency funds will help us when our financial position is difficult so that with these funds no matter how difficult the path is it will be easy to pass because in a situation like that not everyone can do it meaning if we have more income use it to save a little this is necessary when our finances are at a crossroads of course these funds are our tools of help so I dare to say to someone who has an income that sometimes we work there are several points that maybe at some points both make money for us of course this will really make it easier for us to save for us to make it as money or funds that are saved for us when a difficult situation comes to us because our difficult position will not know when the time will come.

Even if guys mix up the terms and speak in confusing ways, the terms have different meanings, and New Revelation largely sufficiently outlined them in his post.

Sometimes in real world applications, we might cause our various back up funds to get to high levels because we have certain intended purchases or maybe we have some other things we are planning to do with the back up funds that are accumulating.

There might be other circumstances in which they back up funds are getting low or maybe we made some mistakes and overspent from them, so we are spending a considerable amount of time building them back up.  If we end up screwing up our management of our back up funds we might be faced with periods of stress due to our not having sufficient funds available or maybe we end up tapping into our bitcoin at a time that was not of our convenience.  Hopefully, we learn from any mistakes that we make and whatever mistakes we end up making do not have considerably materially negative impacts on us either financially or psychologically.

So, we might call the funds in different ways, yet knowing how the different funds are used and/or the ideas overlap might help us in  guiding ourselves in strengthening our cashflow management practices and to lessen the negative impacts of any mistakes that we might end up making. 

By the way, many of us might realize that mistakes sometimes end up having positive impacts upon our situation, yet if we recognize that we made some mistake we still should want to strive to button up (or fix) any mistakes that we are making that cause us to be overly sloppy in our investing and/or managing of our cashflows.   There seem to be some folks who prefer to operate with a certain level of looseness which brings risk yet may bring some potential for rewards, and so there surely could be some level of tolerance for those kinds of personality differences in any systems that we attempt to tailor to our own inclinations.

[Saltysugar99]

There can be a lot of frustration when the BTC price keeps dropping - and yeah, it can be good to also have various points in time that you are reassessing your investment.

Even though newbie investors should not be paying too much attention to price, it becomes quite hard to ignore when it is dropping so much an the explanation for the fall is also quite hard to figure out besides perhaps that momentum creates more momentum, yet at some point it seems there should be support too.... so it can be difficult to know sometimes, yet good if a person has an income and is putting an acceptable amount of his discretionary funds into bitcoin.

In some sense, each of us are "on our own" in terms of how we are going to deal financially and psychologically, and frequently I consider that if the finances are in a good place than good psychology will follow, yet if most if not all of your investment is in bitcoin and you don't have any other assets besides your income, then it can be a difficult period and there sometimes can be questions about if some changes might need to be attempted...

I have a very good amount of salary every month from where I work. From there, I invest in Bitcoin through discretionary income. I have no other investments. However, I have a larger amount of savings than expected. Which I have accumulated over the years. II consider it as a backup fund in my mind, that savings is much more than what is said to be a backup fund (3 to 6 months of expenses). Besides, I have my own house to live in. I do not have to pay any rent. And my family is also very small, so my responsibilities are much less at present. Since I am just starting to invest in Bitcoin. That is why this price drop was a little more difficult for me. However, since the money I was investing with was a waste to me every month, maybe that is why I did not break down mentally and not go into a state of panic selling.

Some of the current price drop is likely due to loss aversion, so if you had already invested more than you can afford to lose, then you feel loss aversion and so some of those overinvested folks will end up selling some, and it might not work out to sell in these situations.. Through the whole of 2014 the BTC price was dropping and I was buying every week, so I have been through such a situation..  yet it still can be difficult to suggest how any other person deals with the situation, since sometimes we don't know until afterwards if how we dealt with any particular situation was the better of ways.

My mental state is not at a point where I will panic sell. The reason for this is that the money I have invested is from my discretionary income. And the amount of my investment is also very small. It will be a little more than $300 in these 3-+ months. There are no major problems in my life and I will have no problem continuing to invest like this for the next 4 years or more. However, as a new investor, seeing the prices going down, there is some instability. Just its , maybe after a few more months, I will be mentally stronger. The decision to invest more aggressively from discretionary income

I think that it is problematic to change your level of aggressiveness based on price, even though it can feel good to buy the dip once it recovers, but sometimes it just keeps falling for way longer than anyone (except for the doomer/gloomers) expects. 

You only have so much money that you can use for buying before putting yourself into a compromised situation.  So if you had already structured a certain amount to invest each week, then sure maybe you could try to time the dip, but you probably should just stick with your weekly budget...

When I was first investing in bitcoin, I used to try to time my buys for the dips during the week, yet I am not sure if my attempts at timing dips made much of a difference, but sometimes timing my weekly buys would make me feel better.  At the same time, I still largely stuck with my weekly budgeted amount.. and had some various other methods of dealing with my own cashflows, even though I would always try to maintain a cash cushion and to make sure that I had enough to cover all my expenses, even projecting out several months into the future.. certain amounts of income expected to come in and certain expenses and ONLY so much that was available as a cash cushion, and sure if some extra cash were to come in or some expenses could reasonably be reduced, then I might take some of those actions to smooth things over.

I do not investment  base on the price of Bitcoin. A few weeks ago, my discretionary income decreased and I had to spend extra on a gift for a relative's wedding. That week, I bought Bitcoin with a little less money as per my convenience. Even if for some reason in the future I cannot buy Bitcoin for a week, I will not feel bad. Even after that, I will invest based on my planning. I have decided not to  buying Bitcoin with the money I need or by borrowing or taking money from savings. Overall, I try to follow most of the advice you have given .

[Sim_card]

I do not investment  base on the price of Bitcoin. A few weeks ago, my discretionary income decreased and I had to spend extra on a gift for a relative's wedding. That week, I bought Bitcoin with a little less money as per my convenience. Even if for some reason in the future I cannot buy Bitcoin for a week, I will not feel bad. Even after that, I will invest based on my planning. I have decided not to  buying Bitcoin with the money I need or by borrowing or taking money from savings. Overall, I try to follow most of the advice you have given .

Of course, it's not compulsory to buy bitcoin regularly with a specific amount of money only if you are using below half of your discretionary income to buy bitcoin because in some months, your expenses will be higher than the normal while in some months, it will be lesser. The most important thing is that you should be consistent and persistent with your bitcoin accumulation for 4-10 years and above irrespective of the amount that you are using to buy bitcoin weekly/monthly.

Through your long-term investment journey, you will learn more about bitcoin and gain more experience about the market which will give you confidence to continue investing overtime. You should have a bitcoin target and focus on reaching your bitcoin target.

[Bigjoe33]

There can be a lot of frustration when the BTC price keeps dropping - and yeah, it can be good to also have various points in time that you are reassessing your investment.

Even though newbie investors should not be paying too much attention to price, it becomes quite hard to ignore when it is dropping so much an the explanation for the fall is also quite hard to figure out besides perhaps that momentum creates more momentum, yet at some point it seems there should be support too.... so it can be difficult to know sometimes, yet good if a person has an income and is putting an acceptable amount of his discretionary funds into bitcoin.

In some sense, each of us are "on our own" in terms of how we are going to deal financially and psychologically, and frequently I consider that if the finances are in a good place than good psychology will follow, yet if most if not all of your investment is in bitcoin and you don't have any other assets besides your income, then it can be a difficult period and there sometimes can be questions about if some changes might need to be attempted...

I have a very good amount of salary every month from where I work. From there, I invest in Bitcoin through discretionary income. I have no other investments. However, I have a larger amount of savings than expected. Which I have accumulated over the years. II consider it as a backup fund in my mind, that savings is much more than what is said to be a backup fund (3 to 6 months of expenses). Besides, I have my own house to live in. I do not have to pay any rent. And my family is also very small, so my responsibilities are much less at present. Since I am just starting to invest in Bitcoin. That is why this price drop was a little more difficult for me. However, since the money I was investing with was a waste to me every month, maybe that is why I did not break down mentally and not go into a state of panic selling.

If all things been equal, and everything is in place as you have stated above, then I think it's time you increase your DCAing since you have enough built up your back up funds up to 3-6 months expenses. Of course, newbie investors can start out there investment using a very small amount of there discretionary, even though they have more than that, in a bid to get used to the market and plan a better Income allocation strategy that will suit there discretionary, and then later increase the DCA buys if they are  satisfied, comfortable and/or have striked a balance within themselves(mind) and the perfect use of there discretionary in going all in into Bitcoin investment, and if you have done, then I think you can increase your weekly DCA buys, offcourse, you will be advantageous in acquiring more BTC at the moment since the price seems a bit down, and if it increases, then you have the benefits of more added BTC to your portfolio, and even it declines the more, you have nothing much to worry about since you have solidified your back up funds and also buying only from your discretionary

[Juse14]

There can be a lot of frustration when the BTC price keeps dropping - and yeah, it can be good to also have various points in time that you are reassessing your investment.

Even though newbie investors should not be paying too much attention to price, it becomes quite hard to ignore when it is dropping so much an the explanation for the fall is also quite hard to figure out besides perhaps that momentum creates more momentum, yet at some point it seems there should be support too.... so it can be difficult to know sometimes, yet good if a person has an income and is putting an acceptable amount of his discretionary funds into bitcoin.

In some sense, each of us are "on our own" in terms of how we are going to deal financially and psychologically, and frequently I consider that if the finances are in a good place than good psychology will follow, yet if most if not all of your investment is in bitcoin and you don't have any other assets besides your income, then it can be a difficult period and there sometimes can be questions about if some changes might need to be attempted...

I have a very good amount of salary every month from where I work. From there, I invest in Bitcoin through discretionary income. I have no other investments. However, I have a larger amount of savings than expected. Which I have accumulated over the years. II consider it as a backup fund in my mind, that savings is much more than what is said to be a backup fund (3 to 6 months of expenses). Besides, I have my own house to live in. I do not have to pay any rent. And my family is also very small, so my responsibilities are much less at present. Since I am just starting to invest in Bitcoin. That is why this price drop was a little more difficult for me. However, since the money I was investing with was a waste to me every month, maybe that is why I did not break down mentally and not go into a state of panic selling.

Seeing from your expression of the financial condition you have is very healthy in my opinion, so why sell bitcoin because your psychology will be very strong due to good finances, I think you understand financial management, and of course when the price drop like now is a great opportunity for you to collect more bitcoin with DCA, you have supporting points for further accumulation, have a large reserve fund, having a large income and having small expenses for family needs means that you will have a very large difference in your income to save and invest, a situation like yours is very rare for many people, therefore the opportunity for you to invest is very large, don't waste that opportunity, holding too much in savings in cash is also not good because fiat will certainly depreciate over time.

[JayJuanGee]

[edited out]

Overall, I try to follow most of the advice you have given .

I am trying to not give advice, since i consider that each person has to make sure that he is responsible for his own choices, and we can brainstorm about some ideas.

It does seem a bit much to have more than 6 months of expenses in cash, but I understand that some folks feel comfortable with that - and it is usually not easy to keep that much cash, since the cash tends to ongoingly debase.

I know some guys would take some of their extra cash to invest on dips since it may not be necessary to have the cash to be way higher than the amount that had been put in BTC, and surely between 3-6 months of cash to cover expenses seems sufficient, and yeah of course, it is risky to overly buy bitcoin with extra cash since we can never know when the dip will stop dipping...and then if that cash is in bitcoin, it is not available in case some ongoing situation of high expenses and/or low income might take place.

I know when I started investing in bitcoin, I was searching for funds to take from in order that I could buy more bitcoin than my normal income would tolerate.  There was one point in late 2014 that I was considering the possibility to take 1/3 to 1/2 from my 401k (which is a form of retirement fund) and put it into bitcoin. It would have had doubled my bitcoin investment, yet I decided to reject that reallocation of my 401k and to just stick with regular buying of bitcoin.  I thought that it was better to maintain funds in other places besides bitcoin.

There is also no need for you to mention exact amounts that you are buying, since you never know about those kinds of details being out there on the interwebs.

I do not investment  base on the price of Bitcoin. A few weeks ago, my discretionary income decreased and I had to spend extra on a gift for a relative's wedding. That week, I bought Bitcoin with a little less money as per my convenience. Even if for some reason in the future I cannot buy Bitcoin for a week, I will not feel bad. Even after that, I will invest based on my planning. I have decided not to  buying Bitcoin with the money I need or by borrowing or taking money from savings. Overall, I try to follow most of the advice you have given .

Of course, it's not compulsory to buy bitcoin regularly with a specific amount of money only if you are using below half of your discretionary income to buy bitcoin because in some months, your expenses will be higher than the normal while in some months, it will be lesser. The most important thing is that you should be consistent and persistent with your bitcoin accumulation for 4-10 years and above irrespective of the amount that you are using to buy bitcoin weekly/monthly.

Through your long-term investment journey, you will learn more about bitcoin and gain more experience about the market which will give you confidence to continue investing overtime. You should have a bitcoin target and focus on reaching your bitcoin target.

Isn't any kind of a bitcoin target coupled with something that gives it meaning?  like dollar value or even number of years that the balance could be used for expenses - whether valuating by spot price, or by 200-WMA or by some other valuation?

Might be difficult to know what 1 BTC is worth in 2034 or some later date, unless it is coupled with some way of valuating it.

Otherwise I agree with the idea that accumulating more bitcoin is a good goal whether it is small, medium or large amounts of discretionary funds that come availablre on a weekly basis or however frequently a guy might be buying bitcoin.

I do personally like frequently, such as weekly, even though I agree with you that there is likely going to be variation from week to week in terms of how much cash is available - even though a guy could have a side fund that says that no matter what $30 of BTC will be bought every single week.. even if his average might be closer to $100, with some weeks being higher or lower than $100.. but the bare minimum being $30 (or whatever amount might be deemed acceptably set aside and presumptively in a side fund that might have 10 weeks built up (in other words $300) just for that purpose of being able to invest $30 per week minimum no matter what.. and yeah of course if something really major were to come up, then the $300 fund mght need to be used for the real major matter..

[drangos]

Because if they do not have a stable income of course some people still use the funds they have saved to make investments that they do because sometimes the weekly monthly income that someone has is sufficient for daily needs so that someone does not use the income they get but with the funds saved of course the funds are used for investments by disturbing the income they have because the income is indeed intended to meet family needs. This is what helps us not to get stuck in making investments is by having emergency funds saved as a tool to help us when our financial position is in a difficult situation.

These three words have the same meaning and their use is the same because emergency funds will help us when our financial position is difficult so that with these funds no matter how difficult the path is it will be easy to pass because in a situation like that not everyone can do it meaning if we have more income use it to save a little this is necessary when our finances are at a crossroads of course these funds are our tools of help so I dare to say to someone who has an income that sometimes we work there are several points that maybe at some points both make money for us of course this will really make it easier for us to save for us to make it as money or funds that are saved for us when a difficult situation comes to us because our difficult position will not know when the time will come.

I concur that it is quite important to maintain the total investment money as distinct money needed to live rather than investing it in Bitcoin which is highly volatile. When emergency buffer is absent, and an individual spends his vital income or savings, he/she will panic selling at a loss when the market crashes. Emergency fund provides breathing room and makes investors remain levelheaded and follow the long term plan. Investment should be done only on the excess income, although it may be minimal and regular. Investment must be established though family needs must never be jeopardized and all this should be done with financial stability.

[alankasman]

I know some guys would take some of their extra cash to invest on dips since it may not be necessary to have the cash to be way higher than the amount that had been put in BTC, and surely between 3-6 months of cash to cover expenses seems sufficient, and yeah of course, it is risky to overly buy bitcoin with extra cash since we can never know when the dip will stop dipping...and then if that cash is in bitcoin, it is not available in case some ongoing situation of high expenses and/or low income might take place.

Doing something like that maybe someone needs to balance the expenses but they still invest so that we can say they are still consistent in investing in Bitcoin even though what they do is sometimes with a small value this is because all the usual circumstances they cover up one of the things that is admirable about someone is having more cash for the needs to cover their expenses for the next 5-6 months so that for the investments they make even though not in large amounts they are not hampered by the activities carried out regarding their investments. This indicates that they are more towards maintaining adjustments to the expenses they make for the next 5-6 months with the aim of continuing to invest in Bitcoin even though the nominal amount they spend on daily needs is far away but they are clearly consistent with investments even though the amount is smaller than for the next 5-6 months.

I know when I started investing in bitcoin, I was searching for funds to take from in order that I could buy more bitcoin than my normal income would tolerate.  There was one point in late 2014 that I was considering the possibility to take 1/3 to 1/2 from my 401k (which is a form of retirement fund) and put it into bitcoin. It would have had doubled my bitcoin investment, yet I decided to reject that reallocation of my 401k and to just stick with regular buying of bitcoin.  I thought that it was better to maintain funds in other places besides bitcoin.

It depends on how we manage it. The reason why I say something like that is because someone sometimes has funds in the form of emergency funds that may not be used. Of course someone sometimes does not have the idea to invest by buying something that can be used as an asset for the future so the possibility of the saved funds will decrease day by day. So what we need to appreciate is the idea you have in making a decision is very good why because you have the idea to think about the future so what you do for me is someone who has a healthy mind and this is said not to praise because for those of us who have not done something like that of course this will be a lesson for the future.

You do it by taking money or retirement funds to accumulate by buying more Bitcoin this is an extraordinary decision because if at that time you do not do it to increase your assets of course I think the money will run out without realizing it because at that time sometimes there are two thoughts that you should be a little confused why because if you do not do it to invest of course the money will run out too so your decision is still to choose to buy Bitcoin by increasing your assets for your future by accumulating Bitcoin by doing DCA so this is one of the right steps you take and this is one day I should give an example.

[SamReomo]

I have a very good amount of salary every month from where I work. From there, I invest in Bitcoin through discretionary income. I have no other investments. However, I have a larger amount of savings than expected. Which I have accumulated over the years. II consider it as a backup fund in my mind, that savings is much more than what is said to be a backup fund (3 to 6 months of expenses). Besides, I have my own house to live in. I do not have to pay any rent. And my family is also very small, so my responsibilities are much less at present. Since I am just starting to invest in Bitcoin. That is why this price drop was a little more difficult for me. However, since the money I was investing with was a waste to me every month, maybe that is why I did not break down mentally and not go into a state of panic selling.

There's no need to panic sell even if Bitcoin drops like that, the coin is supported by millions of hodlers who would never sell it in pressure or in panic and when they see such dips they often eat those dips and accumulate as much Bitcoin as they possibly could. Your monthly salary is more than enough for your needs and needs of your family and investing in Bitcoin is one of the best decisions that you've taken in your life.

I suggest you to keep patience whatever the market condition be and when you see major dips just like the one that took place this week then at such times instead of panic selling you might consider accumulating more Bitcoin. Or simply follow the best advice about Bitcoin investment that's given by JJG to invest with DCA strategy weekly as that's the best approach for long term Bitcoin holders and accumulators.

[JayJuanGee]

Because if they do not have a stable income of course some people still use the funds they have saved to make investments that they do because sometimes the weekly monthly income that someone has is sufficient for daily needs so that someone does not use the income they get but with the funds saved of course the funds are used for investments by disturbing the income they have because the income is indeed intended to meet family needs. This is what helps us not to get stuck in making investments is by having emergency funds saved as a tool to help us when our financial position is in a difficult situation.

These three words have the same meaning and their use is the same because emergency funds will help us when our financial position is difficult so that with these funds no matter how difficult the path is it will be easy to pass because in a situation like that not everyone can do it meaning if we have more income use it to save a little this is necessary when our finances are at a crossroads of course these funds are our tools of help so I dare to say to someone who has an income that sometimes we work there are several points that maybe at some points both make money for us of course this will really make it easier for us to save for us to make it as money or funds that are saved for us when a difficult situation comes to us because our difficult position will not know when the time will come.

I concur that it is quite important to maintain the total investment money as distinct money needed to live rather than investing it in Bitcoin which is highly volatile. When emergency buffer is absent, and an individual spends his vital income or savings, he/she will panic selling at a loss when the market crashes. Emergency fund provides breathing room and makes investors remain levelheaded and follow the long term plan. Investment should be done only on the excess income, although it may be minimal and regular. Investment must be established though family needs must never be jeopardized and all this should be done with financial stability.

You have been registered here on the forum 3 months longer than me.  I started buying bitcoin in November 2013.

Have you started buying any bitcoin in order to apply the theory that you are suggesting to ONLY invest into bitcoin using extra money, presumptively not money that you need for expenses and also since you are referring to an emergency fund, then I presume that you are keeping some money on the side too, as back up, no?  

If you had started investing $10 per week since your forum registration date, you would have had invested right about $6k and you would have had accumulated about 6 BTC.  That would have had been a good investment.

I have a very good amount of salary every month from where I work. From there, I invest in Bitcoin through discretionary income. I have no other investments. However, I have a larger amount of savings than expected. Which I have accumulated over the years. II consider it as a backup fund in my mind, that savings is much more than what is said to be a backup fund (3 to 6 months of expenses). Besides, I have my own house to live in. I do not have to pay any rent. And my family is also very small, so my responsibilities are much less at present. Since I am just starting to invest in Bitcoin. That is why this price drop was a little more difficult for me. However, since the money I was investing with was a waste to me every month, maybe that is why I did not break down mentally and not go into a state of panic selling.

There's no need to panic sell even if Bitcoin drops like that, the coin is supported by millions of hodlers who would never sell it in pressure or in panic and when they see such dips they often eat those dips and accumulate as much Bitcoin as they possibly could. Your monthly salary is more than enough for your needs and needs of your family and investing in Bitcoin is one of the best decisions that you've taken in your life.

I suggest you to keep patience whatever the market condition be and when you see major dips just like the one that took place this week then at such times instead of panic selling you might consider accumulating more Bitcoin. Or simply follow the best advice about Bitcoin investment that's given by JJG to invest with DCA strategy weekly as that's the best approach for long term Bitcoin holders and accumulators.

Sometimes it is just better to stick to your regular budget and your weekly buys, even though sometimes additional dip might motivate some guys to think about other funds that they could use, and if they happen to have some savings, they might consider putting that into bitcoin. .. So if they had been investing around $80 per week into bitcoin for the past 3 months, then maybe after 3 months they had invested slightly more than $1k into bitcoin, and since we are in a dip, the value might be down to only around $700... so then they are feeling a bit depressed because the value of their holdings is only around 70% the amount that they had put into bitcoin. maybe they consider buying another 300, just because they have some extra savings...

or maybe they decide to just wait and continue to buy $80 each week.. and depending on which day of the week they make their buys, they may or may not end up catching the depths of the dip, yet they will still probably end up catching part of the dip, and each $80 invested each week does not really make any major difference and if they invest in bitcoin for 4-10 years or longer, when they get closer to 10 years, it likely would end up being the case that there were certain periods of time in which the bitcoin price was less expensive, and whether they had bought extra on those dates or not may or may not make a big difference, since a person who is investing around $80 per week will have had invested around $4,160 after a year, and after 10 years, he would have had invested $41,600, yet he probably can look back and see certain periods of time that he could have had bought more, yet the overall balances remains personal in terms of how much a guy wants to put into bitcoin, and he will live with the consequences, since 10 years down the road, he is not going to be able to turn back the clock and change whatever he had ended up doing and/or how much he had chosen to put into bitcoin.

I recall in 2015, I had quite a few cashflow issues, and so I recall that every time that I would come across an extra $50 or $100, I would divide it in half, and I would buy bitcoin with half of it, and put the other half into my general funds that would be available for me for dealing with whatever bills that I might have come in, yet since bitcoin was ONLY $250 around that time, then The $25 would have had gotten me about 0.1 BTC and the $50 would have had gotten me about 0.2 BTC.  Right now those are a lot, yet at the time, they were only worth what I was paying for them.

[As-Soon-As]

Because if they do not have a stable income of course some people still use the funds they have saved to make investments that they do because sometimes the weekly monthly income that someone has is sufficient for daily needs so that someone does not use the income they get but with the funds saved of course the funds are used for investments by disturbing the income they have because the income is indeed intended to meet family needs. This is what helps us not to get stuck in making investments is by having emergency funds saved as a tool to help us when our financial position is in a difficult situation.

These three words have the same meaning and their use is the same because emergency funds will help us when our financial position is difficult so that with these funds no matter how difficult the path is it will be easy to pass because in a situation like that not everyone can do it meaning if we have more income use it to save a little this is necessary when our finances are at a crossroads of course these funds are our tools of help so I dare to say to someone who has an income that sometimes we work there are several points that maybe at some points both make money for us of course this will really make it easier for us to save for us to make it as money or funds that are saved for us when a difficult situation comes to us because our difficult position will not know when the time will come.

I concur that it is quite important to maintain the total investment money as distinct money needed to live rather than investing it in Bitcoin which is highly volatile. When emergency buffer is absent, and an individual spends his vital income or savings, he/she will panic selling at a loss when the market crashes. Emergency fund provides breathing room and makes investors remain levelheaded and follow the long term plan. Investment should be done only on the excess income, although it may be minimal and regular. Investment must be established though family needs must never be jeopardized and all this should be done with financial stability.

Building a Bitcoin emergency fund is very important because an emergency fund is created to sustain Bitcoin for a long time. It is most important to build an emergency fund so that your Bitcoin investment remains safe and well-organized. However, those who hold Bitcoin aggressively generally face problems in sustaining their Bitcoin investment for a long time, so you should never invest in Bitcoin aggressively, otherwise your investment may fail and you may end up selling your holdings at a low price.

[iamsange]

These three words have the same meaning and their use is the same because emergency funds will help us when our financial position is difficult so that with these funds no matter how difficult the path is it will be easy to pass because in a situation like that not everyone can do it meaning if we have more income use it to save a little this is necessary when our finances are at a crossroads of course these funds are our tools of help so I dare to say to someone who has an income that sometimes we work there are several points that maybe at some points both make money for us of course this will really make it easier for us to save for us to make it as money or funds that are saved for us when a difficult situation comes to us because our difficult position will not know when the time will come.

It's true that these three words have the same meaning but some people simply misplace or misinterpret this, leading them to neglect their actions thus ignoring every expense as if it were a burden. However when we understand the usefulness of these words we will certainly set aside a small portion of our income to prepare for unexpected situations.

Therefore not everyone can respond carefully especially those who don't think about the future which is very concerning. Everyone's life doesn't always go as planned but with certainty, there will be situations that we may not know what will actually happen in the future. What we need to discuss is continuing to set aside an emergency fund. This is a tool to save us when we find ourselves in difficult times, which we may not know when they will occur.