JJG’s Outline of Bitcoin Investment Ideas

[ZeroVinsonN]

...

My friend what are you on about? Emergency funds is an obligation that you owe yourself, it’s for the safety of your investments and this are situations no one can predict happening, you don’t decide when an emergency will happen that’s why you plan for it.

The fact that we suggest that you can start investing even when you don’t have emergency fund doesn’t mean it’s not necessary or you’ll start without having some sort of backup.

Successful investing is inseparable from having an emergency fund. A person cannot succeed without it. There are times when emergency funds are desperately needed, especially when the time or situation is different. Having an emergency fund makes solving these problems easier.

The impact of not having an emergency fund is that the victim is only focused on the accumulated amount, which must be sold to resolve the problem. Therefore, an emergency fund is an obligation for those investing in Bitcoin, especially long-term investments. It must always be used when needed, as its purpose is to avoid dipping into the invested amount.

People who overlook having an emergency fund act like they're immune to emergency situations, my advice is that instead of playing God they should do the need regardless of how tough it may be for them cause humans would always face challenges that we can't tell when they'll occur and if we're not financially ready to solve them, we could end up using money meant for other things to solve it.

 Investing without an emergency funds is as good as doing nothing cause on the long run if an emergency situation occur, the investment might or would end up withdrawing too early from the investment to solve the situation so to avoid such complications in the investment it's good to have it sorted out.

You don't even need to be investing to have an emergency fund, this is the mistake most people make and that why even though they are probably buying bitcoin now they still don't see the need for having an emergency fund, they have this false belief that they will be able to handle whatever comes their way, forgetting to realize that the way to handle whatever comes their way is to have their emergency fund ready to handle those unexpected situations, emergencies are emergencies because no one knows when they will happen.

[Yablee0]

lol, I never though of Bitcoin as a religion to have much faith in first before a guy can get started in his investment base on how faith is defined, let’s assume a newbie has faith in Bitcoin that it’ll turn the way his faith has lead him to believe, and it doesn’t work out that way, what will be of his faith then. . If the newbie want, let him be overly religious  with Bitcoin, Bitcoin will still do it thing whenever it wants. Realistically speaking, a guy doesn’t believe or have conviction in a thing, until he has either tried it out or heard the other persons talk about it. But in this case, it’s best you start already with your discretionary fund and grow your conviction in Bitcoin as you go. In the stead of waiting until God knows when your conviction will get to a satisfactory level.

In my opinion having faith in bitcoin is understanding and believing that bitcoin is something we can rely on and hope on because it has proven itself to be a reliable projects with great potentials and it has proven it self many years to be something worth giving a shot. 
And however the transparency of bitcoin on how transactions are made publicly and how it isn’t an individual projects or a project govern by the government then we should have faith in it but still that doesn’t mean bitcoin can’t go for dips or highs just because we have faith in it.
The price movement of bitcoin is govern by many factors but mainly on supplies and demands so you talking about faith in religious way isn’t applicable to this at all.

Only those who don’t want to believe in Bitcoin will be the ones to doubt it, otherwise Bitcoin itself has proved itself for over a decade now. I don’t know why some people are still having negative views about it. Bitcoin is something that you and I do not have any power over, so we don’t know what the future holds. Everyone investing for the long term believes that it will be more profitable in the future than what we are seeing now because of the history it has made.

Of course, changes in price are a normal thing to happen. believing in its future value does not mean the price is not going to fall, we are going to experience dips as well because they are also part of the journey. even though a newbie believe that Bitcoin will be much greater in the future and later it does not turn out the way they expected, there is nothing they can do because right from the beginning they knew that risk is also involved.

Attaching religious faith to Bitcoin is like going to buy a car and you haven't been on the driver's seat in a moving vehicle (that's you don't know how to drive a car) but you have faith that as you are buying the car you will be able to drive it home. There's no point attaching religious faith to Bitcoin investment as it can lead some people into financial mismanagement or breakdown. In as much as you hope for profit from investing in Bitcoin in future that should have nothing to do with religious faith as that can be misleading

I still can't figured out what does religious faith or beliefs has to do with Bitcoin investment, Because if I'm not mistaken they have no business or whatsoever with each other. Bitcoin investment is what it is and nothing is changing that, perhaps you might be doing it the wrong way by investing outside your discretionary funds or by not setting up your emergency funds in place in case of unforeseen situations and be expecting some miracle to happen when in deep mess, capital NO because it won't work. Necessary measures most be followed to get it worked perfectly. Furthermore, despite the fact that we can always count on Bitcoin investment when on a long term plan, it's still not guaranteed therefore investing what we can always let go still remains the best decision any Bitcoin enthusiast can ever think of when dealing with it.

[johnsaributua]

You don't even need to be investing to have an emergency fund, this is the mistake most people make and that why even though they are probably buying bitcoin now they still don't see the need for having an emergency fund, they have this false belief that they will be able to handle whatever comes their way, forgetting to realize that the way to handle whatever comes their way is to have their emergency fund ready to handle those unexpected situations, emergencies are emergencies because no one knows when they will happen.

I think those who invest without an emergency fund are making a big mistake, even though the emergency fund isn't needed immediately. But every problem that arises without us realizing it is what allows us to solve it by having an emergency fund.

It will not be possible to succeed in investing if someone does not have the funds because investing without having the funds I think when a problem comes to them, of course one of the things they have to do is to touch the amount that we have collected, but it is different with the emergency fund, of course the amount that we have collected does not need to be touched again because we can solve the situation with the emergency fund, so the mistake of the current party in failing to invest is by not having the emergency fund, even though the emergency fund is not immediately needed, but we only prepare the situation to protect the amount that we have collected so that we do not need to touch it when a situation occurs that we have to solve.

[Stive009]

You don't even need to be investing to have an emergency fund, this is the mistake most people make and that why even though they are probably buying bitcoin now they still don't see the need for having an emergency fund, they have this false belief that they will be able to handle whatever comes their way, forgetting to realize that the way to handle whatever comes their way is to have their emergency fund ready to handle those unexpected situations, emergencies are emergencies because no one knows when they will happen.

Those who invest without an emergency fund are undoubtedly making a big mistake. In my opinion, investing in Bitcoin without a specific Emergency fund is not a strategic decision but rather a suicidal financial decision. An emergency fund is a liquid cash that can be withdrawn at any time. With which you can easily cover at least 3 to 6 months of basic expenses such as rent, food, electricity bills, medical or insurance expenses. Its sole purpose is to protect you when life suddenly stops, such as losing your job, sudden physical illness, etc.
What happens if you put all your money in Bitcoin and suddenly you lose your job in a bad market or a major medical emergency occurs? You will be forced to sell Bitcoin at a huge loss just to meet your daily expenses.
As a result, you have permanently accepted the loss and your entire investment is destroyed. An emergency fund saves you from this shock. It covers the cost of unexpected problems in your life so that you never have to sell Bitcoin during a bad market.
Without an emergency fund, even a 10% decline in the market price will feel like a life or death crisis for you. Because a decline in your portfolio means less money for rent or food. You can't sleep at night checking the charts again and again and in extreme mental stress you end up selling everything and running out of the market. And if you have an emergency fund no matter what happens on the charts you know that it won't affect your lifestyle for the next six months. This peace of mind will help you ignore short term fluctuations and stay patient even in a bear market and follow your DCA plan.
If an emergency suddenly arises and you don't have cash and you don't want to sell Bitcoin at a loss Your last resort is to take out a loan.
People are forced to use high-interest credit cards or personal loans. Meanwhile if the market continues to fall further the stress doubles. Trying to build wealth through Bitcoin, while accumulating high-interest personal loans, is like drawing water from a bucket. It is true that the purchasing power of money decreases due to inflation. But the job of an emergency fund is not to bring profit, but to provide security and reduce risk. The permanent loss that will be incurred by being forced to sell Bitcoin when the market is down 70%, compared to the small inflation loss of holding cash for 6 months is very insignificant.
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[JayJuanGee]

You don't even need to be investing to have an emergency fund, this is the mistake most people make and that why even though they are probably buying bitcoin now they still don't see the need for having an emergency fund, they have this false belief that they will be able to handle whatever comes their way, forgetting to realize that the way to handle whatever comes their way is to have their emergency fund ready to handle those unexpected situations, emergencies are emergencies because no one knows when they will happen.

Those who invest without an emergency fund are undoubtedly making a big mistake. In my opinion, investing in Bitcoin without a specific Emergency fund is not a strategic decision but rather a suicidal financial decision. An emergency fund is a liquid cash that can be withdrawn at any time. With which you can easily cover at least 3 to 6 months of basic expenses such as rent, food, electricity bills, medical or insurance expenses. Its sole purpose is to protect you when life suddenly stops, such as losing your job, sudden physical illness, etc.
What happens if you put all your money in Bitcoin and suddenly you lose your job in a bad market or a major medical emergency occurs? You will be forced to sell Bitcoin at a huge loss just to meet your daily expenses.
As a result, you have permanently accepted the loss and your entire investment is destroyed. An emergency fund saves you from this shock. It covers the cost of unexpected problems in your life so that you never have to sell Bitcoin during a bad market.
Without an emergency fund, even a 10% decline in the market price will feel like a life or death crisis for you. Because a decline in your portfolio means less money for rent or food. You can't sleep at night checking the charts again and again and in extreme mental stress you end up selling everything and running out of the market. And if you have an emergency fund no matter what happens on the charts you know that it won't affect your lifestyle for the next six months. This peace of mind will help you ignore short term fluctuations and stay patient even in a bear market and follow your DCA plan.
If an emergency suddenly arises and you don't have cash and you don't want to sell Bitcoin at a loss Your last resort is to take out a loan.
People are forced to use high-interest credit cards or personal loans. Meanwhile if the market continues to fall further the stress doubles. Trying to build wealth through Bitcoin, while accumulating high-interest personal loans, is like drawing water from a bucket. It is true that the purchasing power of money decreases due to inflation. But the job of an emergency fund is not to bring profit, but to provide security and reduce risk. The permanent loss that will be incurred by being forced to sell Bitcoin when the market is down 70%, compared to the small inflation loss of holding cash for 6 months is very insignificant.

This is a bitcoin investment thread, and sure of course, in order to start investing in bitcoin we have to assure that we have discretionary funds, so there should be at least some back up  funds that help to assure us that we are not using funds beyond our discretionary funds. 

Surely in practice many normal people might already have some back up funds even before they get into buying bitcoin, yet with bitcoin, in order to protect our bitcoin holdings, we likely need to build up back up funds, even if we had not had a prior practice of keeping back up funds.

In bitcoin we also emphasize getting started buying bitcoin as soon as possible, yet in  a practical sense, there may need to be a week or so minimum of back up funds just to make sure that we are not buying bitcoin beyond our discretionary funds.

Another thing is that we tend to suggest to build up our bitcoin stash and our back up funds at the same time, and it could take a year or more to get our bitcoin stash and/or our back up funds up to amounts of having had put in 3-ish months of our expenses, yet along the way in building up that bitcoin stash and back up funds, we can choose the extent that we feel that we need to emphasize one side or another, perhaps in part based on how steady our income and/or expenses tend to be, and so guys who have less regular income/expenses, they are likely going to need to put greater emphasis on their back up funds to make sure that their back up funds are able to deal with any of the fluctuations that are coming from their income/expenses.

The longer we build, we may well continue to build both, yet once our back up funds get to levels that are more than 3 months of our expenses, we might start to believe that we don't need to continue to build that, yet it is quite likely that we are going to be better off to continue to build up back up funds, even if we put more emphasis on the bitcoin side of building, and there may also be more inclinations to keep greater levels of cash in other kinds of assets, even if those assets may well still be considered to be ones that we would tap into first, prior to touching our bitcoin, which may well be one of the last, if not the last asset that we would tap into in the event that our income goes down and/or our expenses go up and our various back up funds are getting depleted.

[Bigjoe33]

The amount of investment depends on the monthly or weekly expenses, if the expenses are high, the amount of investment will be less and if the expenses are low, the amount of investment will increase. Here the effect of inflation works and daily needs also work. But if we consider it as a percentage, then I think 50-60 percent of the discretionary money can be allocated for investment and from the rest, you can create necessary funds like emergency fund and reserve fund and entertainment expense fund which are included in the backup fund.

Basically, during investment planning, we have to plan considering the events of our complete life and be skilled in financial management. It is important to have a deep knowledge about how much to spend in which month/week and which money to keep in which fund. It is not possible to be successful in investment by just putting money in investment funds, it is important to protect the investment rather than moving fast in investment.

You can't get all this right if you haven't started your investment, because when you actually start, you would notice other things and your 50-60% sharing formula might not work well for you.

I think the bets has always been to get started if you are able to figure out your discretionary income. The advice has always been that newbie investors can actually start out there investment using little amounts of there discretionary to invest, while allocating other portions to back up funds. The reason is for safety. Allocating little amounts as newbie allows you to understand the best sharing formula to divide your money for investment while also building confidence about your investment. In this period, you learn the beat way to allocate your income and also learn income management so that you don't get affected. When you have grown confidence and gave also gotten the best sharing formula in term of allocation of funds, then you can now increase your allocation and or follow the best sharing formula that suits your income. The major thing is starting, because there are personal experiences to be gotten first hand.

[AuchanX]

You don't even need to be investing to have an emergency fund, this is the mistake most people make and that why even though they are probably buying bitcoin now they still don't see the need for having an emergency fund, they have this false belief that they will be able to handle whatever comes their way, forgetting to realize that the way to handle whatever comes their way is to have their emergency fund ready to handle those unexpected situations, emergencies are emergencies because no one knows when they will happen.

Those who invest without an emergency fund are undoubtedly making a big mistake. In my opinion, investing in Bitcoin without a specific Emergency fund is not a strategic decision but rather a suicidal financial decision. An emergency fund is a liquid cash that can be withdrawn at any time. With which you can easily cover at least 3 to 6 months of basic expenses such as rent, food, electricity bills, medical or insurance expenses. Its sole purpose is to protect you when life suddenly stops, such as losing your job, sudden physical illness, etc.
What happens if you put all your money in Bitcoin and suddenly you lose your job in a bad market or a major medical emergency occurs? You will be forced to sell Bitcoin at a huge loss just to meet your daily expenses.
As a result, you have permanently accepted the loss and your entire investment is destroyed. An emergency fund saves you from this shock. It covers the cost of unexpected problems in your life so that you never have to sell Bitcoin during a bad market.
Without an emergency fund, even a 10% decline in the market price will feel like a life or death crisis for you. Because a decline in your portfolio means less money for rent or food. You can't sleep at night checking the charts again and again and in extreme mental stress you end up selling everything and running out of the market. And if you have an emergency fund no matter what happens on the charts you know that it won't affect your lifestyle for the next six months. This peace of mind will help you ignore short term fluctuations and stay patient even in a bear market and follow your DCA plan.
If an emergency suddenly arises and you don't have cash and you don't want to sell Bitcoin at a loss Your last resort is to take out a loan.
People are forced to use high-interest credit cards or personal loans. Meanwhile if the market continues to fall further the stress doubles. Trying to build wealth through Bitcoin, while accumulating high-interest personal loans, is like drawing water from a bucket. It is true that the purchasing power of money decreases due to inflation. But the job of an emergency fund is not to bring profit, but to provide security and reduce risk. The permanent loss that will be incurred by being forced to sell Bitcoin when the market is down 70%, compared to the small inflation loss of holding cash for 6 months is very insignificant.

The importance of an emergency fund cannot be denied. But isn't it a bit of an exaggeration to call buying Bitcoin without an emergency fund a downright suicidal financial decision?

If a new investor has $30 or $40 in discretionary income after paying their weekly expenses, they don't need to wait until they have a full emergency fund in 3-6 months. Instead, they can consider their financial situation and put a portion of their discretionary income into Bitcoin and another portion into an emergency fund. This doesn't require them to wait until they have a full emergency fund. Instead, they get the opportunity to strengthen their position at the same time and possibly build an emergency fund before they know it.

[The Founding Titan]

I'm in full agreement with discretionary income being the lifeblood of a sound Bitcoin investment plan. When you invest funds that you know you will need in the near future, you may make emotional decisions that can cause you to invest at the wrong time in the wrong place. Constructing an emergency fund along with regular Bitcoin investments will lead to financial stability, and help keep them sticking to a long-term strategy. Regular contributions, with above average earnings, and patience and discipline, are more beneficial than attempting to time the market. But in the long run, it's as crucial to do good financial management as it is to decide to invest in Bitcoin.

We don't yet have reliable capabilities, and we're not elite men with established financial capacity and holding assets reaching tens or hundreds of millions. However, how we think about multiplying amidst the current financial system thrown here and there by market players. If you already have the ability to read the risk map, just do it slowly. If you have more fortune, add to it.

The DCA makes it possible for anyone who can generate discretionary income to be able to buy bitcoin, you don't have to be rich and you definitely don't need to buy a huge amount of bitcoin at once, but by bit over some years and you will see how much bitcoin you have been able to accumulate, it's all about being consistent and not losing focus, bitcoin investment is a long term investment so anyone who's investing in bitcoin should be ready to accumulate snd hold for a long time of at least 4 to 10 years.

[Supreme Donvic]

I'm in full agreement with discretionary income being the lifeblood of a sound Bitcoin investment plan. When you invest funds that you know you will need in the near future, you may make emotional decisions that can cause you to invest at the wrong time in the wrong place. Constructing an emergency fund along with regular Bitcoin investments will lead to financial stability, and help keep them sticking to a long-term strategy. Regular contributions, with above average earnings, and patience and discipline, are more beneficial than attempting to time the market. But in the long run, it's as crucial to do good financial management as it is to decide to invest in Bitcoin.

We don't yet have reliable capabilities, and we're not elite men with established financial capacity and holding assets reaching tens or hundreds of millions. However, how we think about multiplying amidst the current financial system thrown here and there by market players. If you already have the ability to read the risk map, just do it slowly. If you have more fortune, add to it.

The DCA makes it possible for anyone who can generate discretionary income to be able to buy bitcoin, you don't have to be rich and you definitely don't need to buy a huge amount of bitcoin at once, but by bit over some years and you will see how much bitcoin you have been able to accumulate, it's all about being consistent and not losing focus, bitcoin investment is a long term investment so anyone who's investing in bitcoin should be ready to accumulate snd hold for a long time of at least 4 to 10 years.

Those who still believe that bitcoin is too high in price and that is why they cannot invest in it or accumulate and hold it are those who are thinking that or who believe that accumulating it at once is the best way to go, if you are into bitcoin investment you can be accumulating little by little and if you are very consistent with your accumulation in the next 2 to 4 years you have accumulated a good amount of Bitcoin. I started accumulating Bitcoin little by little and today I am proud to say that I have accumulated a good amount of Bitcoin and it happened because I was very consistent in my accumulation I did not give up.

[Gost ms]

Those who invest without an emergency fund are undoubtedly making a big mistake. In my opinion, investing in Bitcoin without a specific Emergency fund is not a strategic decision but rather a suicidal financial decision. An emergency fund is a liquid cash that can be withdrawn at any time. With which you can easily cover at least 3 to 6 months of basic expenses such as rent, food, electricity bills, medical or insurance expenses. Its sole purpose is to protect you when life suddenly stops, such as losing your job, sudden physical illness, etc.
What happens if you put all your money in Bitcoin and suddenly you lose your job in a bad market or a major medical emergency occurs? You will be forced to sell Bitcoin at a huge loss just to meet your daily expenses.
As a result, you have permanently accepted the loss and your entire investment is destroyed. An emergency fund saves you from this shock. It covers the cost of unexpected problems in your life so that you never have to sell Bitcoin during a bad market.
Without an emergency fund, even a 10% decline in the market price will feel like a life or death crisis for you. Because a decline in your portfolio means less money for rent or food. You can't sleep at night checking the charts again and again and in extreme mental stress you end up selling everything and running out of the market. And if you have an emergency fund no matter what happens on the charts you know that it won't affect your lifestyle for the next six months. This peace of mind will help you ignore short term fluctuations and stay patient even in a bear market and follow your DCA plan.
If an emergency suddenly arises and you don't have cash and you don't want to sell Bitcoin at a loss Your last resort is to take out a loan.
People are forced to use high-interest credit cards or personal loans. Meanwhile if the market continues to fall further the stress doubles. Trying to build wealth through Bitcoin, while accumulating high-interest personal loans, is like drawing water from a bucket. It is true that the purchasing power of money decreases due to inflation. But the job of an emergency fund is not to bring profit, but to provide security and reduce risk. The permanent loss that will be incurred by being forced to sell Bitcoin when the market is down 70%, compared to the small inflation loss of holding cash for 6 months is very insignificant.

Of course we need an emergency fund, but emergency funds should never be a barrier to starting investments. Many times it is seen that many people give so much importance to emergency funds that they wait to start investing for emergency funds, which is not the right decision at all. Yes, investing with zero emergency funds is very risky, but that does not mean that a person will wait to start investing for emergency funds.

If you want, you can create money for investments and emergency funds and extra expenses in parallel. You can divide your discretionary income into three levels, namely, emergency funds, investment funds and extra expenses. It is completely your decision how much money you keep for any fund. However, if you proceed by adopting this method, you can create your emergency fund and investments simultaneously and you will not have to sell holdings to get money during emergency situations and you will not have to wait to start investing to create an emergency fund.

[IceLincoln]

Of course we need an emergency fund, but emergency funds should never be a barrier to starting investments. Many times it is seen that many people give so much importance to emergency funds that they wait to start investing for emergency funds, which is not the right decision at all. Yes, investing with zero emergency funds is very risky, but that does not mean that a person will wait to start investing for emergency funds.

It’s not that so many people give importance to emergency funds it’s actually is important, we can’t overemphasise the need for it especially if you’re going to be a long term investor. Yes it shouldn’t delay your starting investing but at the beginning make sure you have some sort of leftover cash that can act as buffer for unexpected situations until you’ve built your emergency funds.

If you want, you can create money for investments and emergency funds and extra expenses in parallel. You can divide your discretionary income into three levels, namely, emergency funds, investment funds and extra expenses. It is completely your decision how much money you keep for any fund. However, if you proceed by adopting this method, you can create your emergency fund and investments simultaneously and you will not have to sell holdings to get money during emergency situations and you will not have to wait to start investing to create an emergency fund.

Yeah you’re correct about how the discretionary income can be shared or divided to cover for all aspects but your explaining of it isn’t quite clear.
A investor chooses how he allocates money to each section according to his discretion and financial circumstances. The important thing is starting and maintaining consistency in your investment.