JJG’s Outline of Bitcoin Investment Ideas

[JayJuanGee]

Investing with an emergency fund does not guarantee success because we do not know what the future will be like, but obviously starting an investment does not have to wait for an emergency fund first and investment should go well with an emergency fund.

Its true that having an emergency fund does not guarantee success in investment,  because it does not determine the direction of Bitcoin, it main functions is to prevent or reduces  the chances of selling off one's Bitcoin whenever there is an emergency situation that requires urgent funds. It's use to sort out emergency expenses

Well, that's the most important point that beginners often overlook when starting to invest in Bitcoin. An emergency fund isn't meant to make someone rich, but rather acts as a brake, preventing investors from being forced to sell Bitcoin at the wrong time. The reason why an emergency fund is so important is to avoid selling Bitcoin during a bearish period to cover living expenses or hospital costs.
A highly recommended rule of thumb in investing in Bitcoin is to prepare an emergency fund first, after which they start with DCA, emergency funds should not be used for investment because if at any time they are needed, maybe the price of Bitcoin is dropping 30%. An emergency fund isn't meant to win against Bitcoin, but rather to win against yourself, preventing you from panicking and selling when the price drops.

Get the fuck out of here.

You must be lost Razmirraz.  We are not in any ole random thread, and this thread relates to my ideas about investing in bitcoin, and I have never said to build emergency funds first.

In fact I have said the opposite.  I said get started as soon as possible and as soon as you know that you  have discretionary funds, and to build your back up funds (including emergency funds) at the same time that you build your bitcoin investment.

Maybe you want to read the thread and get oriented to where you are at, or otherwise take your off-topic and contrary information to some other thread - or create your own thread.

[edited out]

It may not be a bad idea for an investor to set up an emergency funds before they start buying bitcoin.

It is a bad idea to set up an emergency fund before starting to buy bitcoin - especially if you already know that you have discretionary funds sufficiently to get started buying bitcoin.  At the same time, surely bitcoin newbies start buying bitcoin from wherever they are at and figure out what to do with their bitcoin buying and/or their cashflow management based on where they are at.  

As stated many times, the most important thing to figure out in order to get started buying bitcoin is if they have discretionary funds, and if they have very little back up funds at the time that they get started buying bitcoin, then it might be a bit unclear if they have enough discretionary funds because they have to make sure that they don't end up buying bitcoin with money that they would end up needing for their expenses. So even to get started buying bitcoin, there is a need to have at least a bare minimum amount of back up funds in order to have confidence that the bitcoin newbie is not investing in bitcoin with money that is beyond his discretionary funds.  There likely would be a desire to get into a situation of having 3 months or more of their expenses as their back up funds, yet if a bitcoin newbie is in process of building those back up funds from a starting point that is quite low, then it could take quite a long time to get their back up funds up to that level, and surely they are likely figuring out how much back up funds to keep, and if they have been investing into bitcoin for several years, and maybe their bitcoin stack size starts to get to 6 months to a year or their expenses, then they may well choose to keep higher levels of back up funds, and not to keep all of those funds in cash, which may also would be serving as a way of diversifying their bitcoin investment, which diversification might not be much needed in the beginning of their investment, yet they might start to consider diversification to become important as their bitcoin holdings are growing, such as when then bitcoin holdings might become 6-12 months or more of their annual expenses.

At the same time, if the bitcoin newbie had already built up a lot of back up funds prior to coming into bitcoin and they have absolutely no bitcoin or hardly any bitcoin, then they may well need to allocate some of their back up funds towards their bitcoin investment.  Those allocation decisions are judgement calls regarding how much back up funds they need and then otherwise to build up their back up funds and their bitcoin at the same time, even if they might choose to skew more towards one or the other, which would also be their choice about how to allocate.. ... and likely choices about how to allocate, whether towards bitcoin or towards putting more in emergency funds, may well relate to how stable and/or reliable they consider their future income and/or expenses to be.

Maybe beginner bitcoiners are not able to commit to investing into bitcoin for 4-10 years or longer, yet it would seem that the longer that they are in bitcoin and learning about bitcoin, they will recognize and appreciate that bitcoin is an investment rather than a trade, even though surely a lot of normies get distracted into either trading or shitcoining, so that might be one of the dangers for any newbie to make sure to try to avoid, even though some newbies might have more of a trader and/or adventurous personality, which they might need to try to figure out how to limit, such as making sure to put 10% or less of the amount that they put into bitcoin into shitcoins and/or trading (gambling).

As long someone is able to identify his or her discretionary income they  can start accumulating bitcoin through DCA or lump depending on their finance while also building their emergency fund alongside it.  the important thing is to invest using only discretionary income  and not invest money meant for basic needs. This way, one can keep accumulating bitcoin also preparing for unexpected situations.

Someone using discretionary income to can still be able to build emergency fund and accumulate Bitcoin at the same time. The two goals does not have to compete with each other. Let take for example, your left with $250 every month after covering basic needs. Instead of you to put everything into emergency funds or Bitcoin, you can actually split it and maybe save like $150 for emergencies and invest $100 into Bitcoin with DCA. As time goes on, the emergency funds grows while you’re building a solid position…very balanced approach

You are not going to have any discretionary consumption?  That kind of an allocation plan/practice seems unrealistic, and not very "balanced."

[Gragebox]

As long someone is able to identify his or her discretionary income they  can start accumulating bitcoin through DCA or lump depending on their finance while also building their emergency fund alongside it.  the important thing is to invest using only discretionary income  and not invest money meant for basic needs. This way, one can keep accumulating bitcoin also preparing for unexpected situations.

Someone using discretionary income to can still be able to build emergency fund and accumulate Bitcoin at the same time. The two goals does not have to compete with each other. Let take for example, your left with $250 every month after covering basic needs. Instead of you to put everything into emergency funds or Bitcoin, you can actually split it and maybe save like $150 for emergencies and invest $100 into Bitcoin with DCA. As time goes on, the emergency funds grows while you’re building a solid position…very balanced approach

The important thing is folks should never buy BTC with funds meant for their basic needs. There is nothing wrong with working towards the two goals at the same time. It allows you to prepare for emergencies without delaying to take the first step of Bitcoin accumulation

Yes, I completely agree with this method of investment as financial stability should be linked to long-term investing. Most people believe that you cannot begin to buy bitcoins until you are finished with saving money, while in reality, you can pursue both goals at once, provided you have sufficient discretionary income.

This is quite a reasonable illustration. If a person has 250 dollars remaining after his expenses per month, he can save some of them and use the rest to buy bitcoins. At the same time, this means that the person does not need to try to time the market perfectly as it is already known how many coins you are going to buy on certain days or weeks.

The first thing to remember about investments in this case is precisely what you have said. Never invest money that you are using for rent, utilities, groceries, etc. It is crucial to avoid the necessity to sell your bitcoins if something unexpected happens as it is the biggest mistake of an investor.

As for the proportion, you do not need to follow it all the time. If the person has made his emergency fund sufficiently big, he can start devoting more

[Joeboy]

~snip~

It is a bad idea to set up an emergency fund before starting to buy bitcoin - especially if you already know that you have discretionary funds sufficiently to get started buying bitcoin.  At the same time, surely bitcoin newbies start buying bitcoin from wherever they are at and figure out what to do with their bitcoin buying and/or their cashflow management based on where they are at.  

As stated many times, the most important thing to figure out in order to get started buying bitcoin is if they have discretionary funds, and if they have very little back up funds at the time that they get started buying bitcoin, then it might be a bit unclear if they have enough discretionary funds because they have to make sure that they don't end up buying bitcoin with money that they would end up needing for their expenses. So even to get started buying bitcoin, there is a need to have at least a bare minimum amount of back up funds in order to have confidence that the bitcoin newbie is not investing in bitcoin with money that is beyond his discretionary funds.  There likely would be a desire to get into a situation of having 3 months or more of their expenses as their back up funds, yet if a bitcoin newbie is in process of building those back up funds from a starting point that is quite low, then it could take quite a long time to get their back up funds up to that level, and surely they are likely figuring out how much back up funds to keep, and if they have been investing into bitcoin for several years, and maybe their bitcoin stack size starts to get to 6 months to a year or their expenses, then they may well choose to keep higher levels of back up funds, and not to keep all of those funds in cash, which may also would be serving as a way of diversifying their bitcoin investment, which diversification might not be much needed in the beginning of their investment, yet they might start to consider diversification to become important as their bitcoin holdings are growing, such as when then bitcoin holdings might become 6-12 months or more of their annual expenses.

At the same time, if the bitcoin newbie had already built up a lot of back up funds prior to coming into bitcoin and they have absolutely no bitcoin or hardly any bitcoin, then they may well need to allocate some of their back up funds towards their bitcoin investment.  Those allocation decisions are judgement calls regarding how much back up funds they need and then otherwise to build up their back up funds and their bitcoin at the same time, even if they might choose to skew more towards one or the other, which would also be their choice about how to allocate.. ... and likely choices about how to allocate, whether towards bitcoin or towards putting more in emergency funds, may well relate to how stable and/or reliable they consider their future income and/or expenses to be.

Maybe beginner bitcoiners are not able to commit to investing into bitcoin for 4-10 years or longer, yet it would seem that the longer that they are in bitcoin and learning about bitcoin, they will recognize and appreciate that bitcoin is an investment rather than a trade, even though surely a lot of normies get distracted into either trading or shitcoining, so that might be one of the dangers for any newbie to make sure to try to avoid, even though some newbies might have more of a trader and/or adventurous personality, which they might need to try to figure out how to limit, such as making sure to put 10% or less of the amount that they put into bitcoin into shitcoins and/or trading (gambling).

Well explained... Surely at times I think that folks mostly misunderstand your idea that you clearly stated here of them starting as soon as their discretionary income is available, and so they may end up thinking otherwise... Starting is very good because it obviously prevents a whole lot of things, things like spending a whole lot of years waiting for the perfect financial situation... Yet again, the point isn't that emergency funds has no value, or that folks can go ahead to invest recklessly.. Rather it is about ensuring that folks dont miss out on their buying opportunity.. And the truth is that emergency funds can very well be built while gradually investing, so there should be no reason for folks to keep delayin...

[Jewan420]

This is quite a reasonable illustration. If a person has 250 dollars remaining after his expenses per month, he can save some of them and use the rest to buy bitcoins. At the same time, this means that the person does not need to try to time the market perfectly as it is already known how many coins you are going to buy on certain days or weeks.

You are a little wrong here, how many coins (sats /$) you will buy is not something that will be predetermined. Your income may remain stable, but your expenses are not stable. If the expenses are not stable, the discretionary fund will not be stable. This is normal, if the discretionary fund is not stable, then it is not possible to keep the number of coins (sats /$) you will buy predetermined. You may have to change the amount every month or every week. The time frame may also change depending on the situation, but it is possible to keep the time frame stable for a long time.

Since in Bitcoin you are not buying the whole coin at once, so refer to the amount as dollars or sats. Since we are talking about DCA, the word dollar is correct. The amount does not play much role in investing in DCA, invest the amount that you have available for investment after the entire month / week of expenses. Never invest more than the discretionary amount to keep the amount of money fixed.

[JayJuanGee]

[edited out]

Well explained... Surely at times I think that folks mostly misunderstand your idea that you clearly stated here of them starting as soon as their discretionary income is available, and so they may end up thinking otherwise... Starting is very good because it obviously prevents a whole lot of things, things like spending a whole lot of years waiting for the perfect financial situation... Yet again, the point isn't that emergency funds has no value, or that folks can go ahead to invest recklessly.. Rather it is about ensuring that folks dont miss out on their buying opportunity.. And the truth is that emergency funds can very well be built while gradually investing, so there should be no reason for folks to keep delayin...

Getting started as soon as we can (once we figure out that we have enough of a discretionary income) does not mean that we are in a rush to FOMO into a bitcoin position, but instead to perhaps create some urgency and/or priority in organizing our finances in a way that also includes bitcoin in the mix, and surely there may be a whole hell of a lot of bitcoin newbies who have a lot of skepticisms about bitcoin, so then on purpose they end up starting out buying bitcoin in a somewhat conservative (whimpy) way, and perhaps it takes them several months, maybe even close to a year or more before they start to feel some confidence in bitcoin so that they can increase their aggressiveness levels to a more meaningful amount, yet at the same time, it is likely that they are not going to build any conviction about bitcoin without spending time buying it and also spending time studying it (as well as making sure that bitcoin fits comfortably in their understanding of their 9 individual factors).

Sure, there are some guys (beginner bitcoiners) who learn fast about bitcoin and they become convicted and convinced about the values of bitcoin early on within their looking into it, yet those kinds of people are likely more the exception rather than the rule, since it seems to take quite a few people a long time before they start to both sufficiently understand bitcoin and to also develop confidence in bitcoin and also confidence in their own strengthening of their cashflow management systems and/or practices so that they can put themselves into a place that they can start to feel comfortable buying bitcoin ongoingly, persistently, consistently, regularly and perhaps also in aggressive ways.

[Popkon6]

And the truth is that emergency funds can very well be built while gradually investing, so there should be no reason for folks to keep delayin...

At this time, both investors can invest correctly, so keep moving forward towards the future by maintaining the continuity of purchases and buy Bitcoin at any time and in any situation. If you want to sustain Bitcoin investment in the long term, of course, the value of all types of strategies is very high, we should look at every aspect seriously, and emergency funds are one of them.
In the current situation, those who will keep moving forward towards the future by maintaining the continuity of purchases will be the best investors. Because now there is still enough time to buy in the Bitcoin market, any investor can buy Bitcoin at any time.

[Silikiem]

[edited out]

Well explained... Surely at times I think that folks mostly misunderstand your idea that you clearly stated here of them starting as soon as their discretionary income is available, and so they may end up thinking otherwise... Starting is very good because it obviously prevents a whole lot of things, things like spending a whole lot of years waiting for the perfect financial situation... Yet again, the point isn't that emergency funds has no value, or that folks can go ahead to invest recklessly.. Rather it is about ensuring that folks dont miss out on their buying opportunity.. And the truth is that emergency funds can very well be built while gradually investing, so there should be no reason for folks to keep delayin...

Getting started as soon as we can (once we figure out that we have enough of a discretionary income) does not mean that we are in a rush to FOMO into a bitcoin position, but instead to perhaps create some urgency and/or priority in organizing our finances in a way that also includes bitcoin in the mix, and surely there may be a whole hell of a lot of bitcoin newbies who have a lot of skepticisms about bitcoin, so then on purpose they end up starting out buying bitcoin in a somewhat conservative (whimpy) way, and perhaps it takes them several months, maybe even close to a year or more before they start to feel some confidence in bitcoin so that they can increase their aggressiveness levels to a more meaningful amount, yet at the same time, it is likely that they are not going to build any conviction about bitcoin without spending time buying it and also spending time studying it (as well as making sure that bitcoin fits comfortably in their understanding of their 9 individual factors).

Sure, there are some guys (beginner bitcoiners) who learn fast about bitcoin and they become convicted and convinced about the values of bitcoin early on within their looking into it, yet those kinds of people are likely more the exception rather than the rule, since it seems to take quite a few people a long time before they start to both sufficiently understand bitcoin and to also develop confidence in bitcoin and also confidence in their own strengthening of their cashflow management systems and/or practices so that they can put themselves into a place that they can start to feel comfortable buying bitcoin ongoingly, persistently, consistently, regularly and perhaps also in aggressive ways.

I agree with you, no well meaning investor is rushing to invest in bitcoin because of FOMO, and for a fact that an investor who have carefully calmed down and have sorted out his basic financial responsibilities or obligations first, before investing and using his remaining or left over cash (discretionary income) to invest In bitcoin after sorting out those basic needs then I think such investor isn’t rushing  to invest In bitcoin. Because if the investor is actually rushing I don’t think he will be able to wait until he finishes sorting out his basic needs prior to his getting started In bitcoin investment. The only case scenario I can say that an investor is rushing to invest is when the investor fails to sort out his basic needs and then collects his earned income or cash to  invest in bitcoin without taking care of his basic financial responsibilities first.

Most people also fail to understand that getting started is not the same thing as continuing investing. If an investor deems it necessary for him to get started first especially when his discretionary income is ready even though he have no emergency funds yet, then I think it should be regarded quite a good gesture because it kills procrastination and laziness. The only area we can all frown at such investor is if after getting started without available emergency funds, and he continues the same way by just buying bitcoin without getting to be building up the emergency funds along the line.

[BluebloodCXVI]

It may not be a bad idea for an investor to set up an emergency funds before they start buying bitcoin. But it is still a good thing  if they decide to start investing in bitcoin provided they have discretionary income to do so and not necessarily that they must have set up an emergency funds. Those without emergency funds can be building up there emergency funds along side there bitcoin investment and not delaying to start up there bitcoin investment because they want to set up an emergency funds first. The issue of being carried away, will only happen when such an investor fails to appreciate the importance of emergency funds in achieving there long term investment goals.

What about predictability of cash flow?
You know that two people can have the same amount of discretionary income but yet still be in totally different positions financially right ?

Let’s take for example an investor who earns a fixed salary every month and has a fairly predictable expense, if they decide to spend some of their discretionary income on bitcoin while still gradually building an emergency fund, there’s a good chance that they will still be able to continue doing both(investing and building emergency funds) consistently. And even if another expense comes up, there’s gonna be a sort of confidence that another paycheck is likely on the way and will be used to sort it.

But for somebody who is self employed, works on a commission or perhaps has seasonal income, there are some months in which they may earn well while some other months they may earn little. In that instance if they decide to buy bitcoin aggressively before building any cash reserves and maybe along the line something happens that slows down the course of their lives, they can be forced to sell some of their coins or even all if care is not taken.
So in a situation like this, every dollar of available cash is gonna be very valuable to them because it will give the person time to deal with their setback without having to disrupt their long term investment.

That’s why i don’t believe there’s a one size fits all rule for deciding whether an emergency fund should come before investing or be built alongside it. Focus on avoiding becoming a forced seller whenever life throws an unexpected expense your way.
If your investment plan allows you the pleasure of being able to keep holding your Bitcoin through those difficult situations, then you’re probably on the right track.

[MarjorieZimmermanGinger]

At this time, both investors can invest correctly, so keep moving forward towards the future by maintaining the continuity of purchases and buy Bitcoin at any time and in any situation. If you want to sustain Bitcoin investment in the long term, of course, the value of all types of strategies is very high, we should look at every aspect seriously, and emergency funds are one of them.
In the current situation, those who will keep moving forward towards the future by maintaining the continuity of purchases will be the best investors. Because now there is still enough time to buy in the Bitcoin market, any investor can buy Bitcoin at any time.

We are fighting the impact of inflation that has occurred and the prices of most goods have risen too high so that society is struggling to recover from this condition. Talking about investing in conditions like this seems a little more difficult, although I believe that we can solve something difficult if we previously have a strategy for managing our finances properly. That is why it is necessary to divide several parts of every money we earn so that when inflation occurs and the price of goods gets higher it does not completely affect the life process we live.

When people understand the concept of financial management, their lives can be much younger and this can affect the level of consistency in investing. Smart investors understand the conditions and they will take the slightest opportunity to build financial freedom and this is where the best ability in managing finances is needed so that investments can be carried out consistently even though the purchase amount is small and is not affected by the prevailing inflationary conditions.

[Stive009]

At this time, both investors can invest correctly, so keep moving forward towards the future by maintaining the continuity of purchases and buy Bitcoin at any time and in any situation. If you want to sustain Bitcoin investment in the long term, of course, the value of all types of strategies is very high, we should look at every aspect seriously, and emergency funds are one of them.
In the current situation, those who will keep moving forward towards the future by maintaining the continuity of purchases will be the best investors. Because now there is still enough time to buy in the Bitcoin market, any investor can buy Bitcoin at any time.

We are fighting the impact of inflation that has occurred and the prices of most goods have risen too high so that society is struggling to recover from this condition. Talking about investing in conditions like this seems a little more difficult, although I believe that we can solve something difficult if we previously have a strategy for managing our finances properly. That is why it is necessary to divide several parts of every money we earn so that when inflation occurs and the price of goods gets higher it does not completely affect the life process we live.

When people understand the concept of financial management, their lives can be much younger and this can affect the level of consistency in investing. Smart investors understand the conditions and they will take the slightest opportunity to build financial freedom and this is where the best ability in managing finances is needed so that investments can be carried out consistently even though the purchase amount is small and is not affected by the prevailing inflationary conditions.

The importance of proper financial management increases during times of high inflation. when the prices of essential goods increase you not only have to think about investments But also reevaluate your budget. Because if your income remains the same but your expenses increase your previous plan may not always be realistic.
In my opinion in such a situation, there is no need to completely close the DCA. Rather It is more reasonable to temporarily adjust the investment amount in line with your current financial situation. Consistency does not mean that you have to invest the same amount every month. Rather, real consistency is being able to continue the plan within your means no matter what the situation is.
Another thing is that inflation not only reminds you to reduce expenses But also teaches you to think about income in a new way. if there is an opportunity You should try to create a new source of income increase your skills or increase your current income. Because if you want to accumulate more Bitcoin in the long term the most sustainable way is to improve your cash flow, not increase your investments by taking out a loan or using an emergency fund.
To me, the key strength of a successful DCA is creating a plan that can be followed not only in good markets but also in difficult economic conditions. Because long term success in Bitcoin depends not on who buys the most but on who is able to accumulate Bitcoin consistently year after year in line with their financial reality.

[johnsaributua]

Most people also fail to understand that getting started is not the same thing as continuing investing. If an investor deems it necessary for him to get started first especially when his discretionary income is ready even though he have no emergency funds yet, then I think it should be regarded quite a good gesture because it kills procrastination and laziness. The only area we can all frown at such investor is if after getting started without available emergency funds, and he continues the same way by just buying bitcoin without getting to be building up the emergency funds along the line.

But this is difficult for them to separate because they may equate the two too much always doing them simultaneously. It's clear that starting and continuing to invest are very different. This is why they sometimes forget to consider the separation leading many of them to always delay starting.

On the other hand they also often do it without having the emergency fund prepared that they have so this is a reason why they always postpone the goal of doing this because there are several options that are indeed obstacles for them one of which is doing it without having an emergency fund prepared in starting an investment so for me this is the main reason for always postponing to do it without being able to do it in a sustainable way on the investment they started unless they have additional funds of course this will be more optimal for them in buying Bitcoin.

[Exitoral]

And the truth is that emergency funds can very well be built while gradually investing, so there should be no reason for folks to keep delayin...

At this time, both investors can invest correctly, so keep moving forward towards the future by maintaining the continuity of purchases and buy Bitcoin at any time and in any situation. If you want to sustain Bitcoin investment in the long term, of course, the value of all types of strategies is very high, we should look at every aspect seriously, and emergency funds are one of them.
In the current situation, those who will keep moving forward towards the future by maintaining the continuity of purchases will be the best investors. Because now there is still enough time to buy in the Bitcoin market, any investor can buy Bitcoin at any time.

Let's look at it from this angle. If consistency is very important, what if someone's income is not consistent? That can be a problem. We can't all be always be financially capable to continuously buying Bitcoin all the time. Circumstances can arise and make it difficult. At the same time we can't ignore our finances just to serve an obligation of the continuous accumulation of Bitcoin. Not saying we shouldn't, but ignoring factors in the house will eventually bring that accumulation of Bitcoin to an end. We should also pay very close attention to our finances. That is the very backbone we accumulate Bitcoin with ease.

[Sim_card]

Let's look at it from this angle. If consistency is very important, what if someone's income is not consistent? That can be a problem. We can't all be always be financially capable to continuously buying Bitcoin all the time.

You are not buying bitcoin with your income but with your discretionary income. Some people have consistent income but they don't have any discretionary income. Whereas, some people income isn't consistent but they have enough discretionary income to keep them in the bitcoin accumulation game overtime. Example of such people are contractors.

It's good to be consistent in your bitcoin accumulation to reach your target fast but you don't need to force yourself to buy bitcoin when you don't have a discretionary income at that moment. Skipping one or two buys in six months doesn't mean you ain't consistent. It becomes a problem when you have discretionary income but choose not to buy bitcoin for no reason.

Circumstances can arise and make it difficult. At the same time we can't ignore our finances just to serve an obligation of the continuous accumulation of Bitcoin. Not saying we shouldn't, but ignoring factors in the house will eventually bring that accumulation of Bitcoin to an end

That's true. There are times that your expenses will eat up your discretionary income and you will be left with nothing, you don't need to buy bitcoin that week/month until, when your discretionary income is available again the next week, you can buy again. It's a must for a long term bitcoin investor to put his basic needs and monthly expenses prior to his bitcoin investment.

You can also look for other means to increase your income in order for you to be consistent overtime so that, you can always have discretionary income to buy bitcoin till you reach your bitcoin target.

[The Founding Titan]

Investing with an emergency fund does not guarantee success because we do not know what the future will be like, but obviously starting an investment does not have to wait for an emergency fund first and investment should go well with an emergency fund.

Its true that having an emergency fund does not guarantee success in investment,  because it does not determine the direction of Bitcoin, it main functions is to prevent or reduces  the chances of selling off one's Bitcoin whenever there is an emergency situation that requires urgent funds. It's use to sort out emergency expenses

Well, that's the most important point that beginners often overlook when starting to invest in Bitcoin. An emergency fund isn't meant to make someone rich, but rather acts as a brake, preventing investors from being forced to sell Bitcoin at the wrong time. The reason why an emergency fund is so important is to avoid selling Bitcoin during a bearish period to cover living expenses or hospital costs.
A highly recommended rule of thumb in investing in Bitcoin is to prepare an emergency fund first, after which they start with DCA, emergency funds should not be used for investment because if at any time they are needed, maybe the price of Bitcoin is dropping 30%. An emergency fund isn't meant to win against Bitcoin, but rather to win against yourself, preventing you from panicking and selling when the price drops.

Get the fuck out of here.

You must be lost Razmirraz.  We are not in any ole random thread, and this thread relates to my ideas about investing in bitcoin, and I have never said to build emergency funds first.

In fact I have said the opposite.  I said get started as soon as possible and as soon as you know that you  have discretionary funds, and to build your back up funds (including emergency funds) at the same time that you build your bitcoin investment.

Maybe you want to read the thread and get oriented to where you are at, or otherwise take your off-topic and contrary information to some other thread - or create your own thread.

They probably think that setting up their emergency fund won't take any time at all, we are talking about setting up at least 3 months worth of your expenses in emergency funds which implies that if for any reason person isn't making money from any source they can sustain themselves on their emergency fund for at least 3 months, even if you use all of your discretionary income to set up your emergency fund and your discretionary income on average is about 25% of your income (monthly income) which means that the other 75% goes to your expenses it will still take take you 9 months to be able to save up to 3 months worth of your expenses, judging from Razmirraz's advise, someone who wants to start investing in bitcoin should spend 9 months setting up their emergency fund before they can finally start buying bitcoin.
Sometimes before we make certain suggestions we should actually check out how realistic they are first.

[Exitoral]

Let's look at it from this angle. If consistency is very important, what if someone's income is not consistent? That can be a problem. We can't all be always be financially capable to continuously buying Bitcoin all the time.

You are not buying bitcoin with your income but with your discretionary income. Some people have consistent income but they don't have any discretionary income. Whereas, some people income isn't consistent but they have enough discretionary income to keep them in the bitcoin accumulation game overtime. Example of such people are contractors.

It's good to be consistent in your bitcoin accumulation to reach your target fast but you don't need to force yourself to buy bitcoin when you don't have a discretionary income at that moment. Skipping one or two buys in six months doesn't mean you ain't consistent. It becomes a problem when you have discretionary income but choose not to buy bitcoin for no reason.

Circumstances can arise and make it difficult. At the same time we can't ignore our finances just to serve an obligation of the continuous accumulation of Bitcoin. Not saying we shouldn't, but ignoring factors in the house will eventually bring that accumulation of Bitcoin to an end

That's true. There are times that your expenses will eat up your discretionary income and you will be left with nothing, you don't need to buy bitcoin that week/month until, when your discretionary income is available again the next week, you can buy again. It's a must for a long term bitcoin investor to put his basic needs and monthly expenses prior to his bitcoin investment.

You can also look for other means to increase your income in order for you to be consistent overtime so that, you can always have discretionary income to buy bitcoin till you reach your bitcoin target.

Are they not all classified as income? Yes they are. But there's the main income that allows you do split your income across board of which one of the board is discretionary income.

Moving forward, as I have clarified that. Can discretionary income remain the same in inflation period? Of course not. In as much as you said one shouldn't force himself to buy Bitcoin he or she has to adjust to keep up the pace. It's not all about increasing. What if there is no way to increase your income? Then the alternative is to adjust your income across board. Pending when you find a way to increase your income.

[Sim_card]

Are they not all classified as income? Yes they are. But there's the main income that allows you do split your income across board of which one of the board is discretionary income.

Moving forward, as I have clarified that. Can discretionary income remain the same in inflation period? Of course not. In as much as you said one shouldn't force himself to buy Bitcoin he or she has to adjust to keep up the pace. It's not all about increasing. What if there is no way to increase your income? Then the alternative is to adjust your income across board. Pending when you find a way to increase your income.

My bad that I didn't throw an highlight on what discretionary income is. Discretionary income is the leftover money after you must have taken care of your basic needs and monthly expenses. The extra money can be used to do anything. Some use it to gamble, smoke, drink,womanize, club and all sort of consumable activities but it's wise to use part of this money to invest into bitcoin for the future because bitcoin is a long term stor of value.

If after taking care of your basic needs and monthly expenses, yet you still don't have an extra funds, there's no need of investing if not you are not buying bitcoin but gambling. So you don't just divide your money as you like as call one part you discretionary income so that, you don't mistakenly use money for your basic needs to buy bitcoin thinking that it's your discretionary income.

Lastly, let's forget about bitcoin investment and face reality of life. Anyone whose income doesn't increase from time to time wouldn't even be able to take care of his basic needs and might end up becoming a beggar due to the consistent debasement of dollar overtime caused by inflation.

 This is why you need to grow in life and not just that but also financially. You don't need to starve yourself because you want to invest in bitcoin. However, it's not a must to be consistent when your discretionary income is once in a while. A low coiner is better than a no coiner.

[Exitoral]

Are they not all classified as income? Yes they are. But there's the main income that allows you do split your income across board of which one of the board is discretionary income.

Moving forward, as I have clarified that. Can discretionary income remain the same in inflation period? Of course not. In as much as you said one shouldn't force himself to buy Bitcoin he or she has to adjust to keep up the pace. It's not all about increasing. What if there is no way to increase your income? Then the alternative is to adjust your income across board. Pending when you find a way to increase your income.

My bad that I didn't throw an highlight on what discretionary income is. Discretionary income is the leftover money after you must have taken care of your basic needs and monthly expenses. The extra money can be used to do anything. Some use it to gamble, smoke, drink,womanize, club and all sort of consumable activities but it's wise to use part of this money to invest into bitcoin for the future because bitcoin is a long term stor of value.

If after taking care of your basic needs and monthly expenses, yet you still don't have an extra funds, there's no need of investing if not you are not buying bitcoin but gambling. So you don't just divide your money as you like as call one part you discretionary income so that, you don't mistakenly use money for your basic needs to buy bitcoin thinking that it's your discretionary income.

Lastly, let's forget about bitcoin investment and face reality of life. Anyone whose income doesn't increase from time to time wouldn't even be able to take care of his basic needs and might end up becoming a beggar due to the consistent debasement of dollar overtime caused by inflation.

 This is why you need to grow in life and not just that but also financially. You don't need to starve yourself because you want to invest in bitcoin. However, it's not a must to be consistent when your discretionary income is once in a while. A low coiner is better than a no coiner.

It seems you misunderstood me and went ahead to define Discretionary income. My main point was different and you didn't even address it. I was pointing out that during inflation periods, living expenses increase. That is why people adjust their budget. Budget adjustment will also affect discretionary income. And moreover, not everyone income increases as the pace of inflation. And that doesn't mean they cannot afford sharing allocated income for investment. That's the point I was making.

You also make mention of dividing money as you like and calling one part discretionary income. You are just misunderstanding me from your reply from the top to finish. What do I mean by allocating funds to different boards and one of them can be discretionary income. Different boards can be food, travel, family, health and so on. That's the board I was referring to. Is that now anyhow dividing of funds? I'll leave you to answer that.

You are so sure as if all Bitcoiners grow in life at a good pace. Maybe in where you are from that is how it is. But you should keep an open mind and visualise the world properly. Every hands are not equal. So therefore saying one needs to grow in life before investing whereas he or her income can afford investment without problems but growth is not there. Will you now say they too shouldn't invest simply because they are not growing? And another thing. I am not referring to people who cannot invest. I see no reason why you brought up starvation.

[Saltysugar99]

Let's look at it from this angle. If consistency is very important, what if someone's income is not consistent? That can be a problem. We can't all be always be financially capable to continuously buying Bitcoin all the time. Circumstances can arise and make it difficult. At the same time we can't ignore our finances just to serve an obligation of the continuous accumulation of Bitcoin. Not saying we shouldn't, but ignoring factors in the house will eventually bring that accumulation of Bitcoin to an end. We should also pay very close attention to our finances. That is the very backbone we accumulate Bitcoin with ease.

It is important to maintain consistency when investing in Bitcoin. But this does not mean that you have to invest in any situation. And those who have irregular income can also invest in Bitcoin. In fact, there is no obligation that income should be regular. Only if you have discretionary income, you have the ability to do DCA in Bitcoin. There are many people who are freelancers, small business owners, seasonal income earners, even if their income does not come in the same amount every week or every month, if there is extra money left after basic expenses and family responsibilities, then DCA can be done very easily in Bitcoin. DCA can even be done consistently on a weekly basis. DCA can be done weekly by calculating when the next income will come. However, a good approach for irregular income earners may be to keep a flexible system. For example, when income comes, instead of pouring the entire extra money into Bitcoin, some money should be kept aside. Because since income can come late, any kind of small financial problems can be solved. As a result, the pressure on the backup fund will be reduced regularly.

And consistency means that you should never increase your financial pressure. DCA should be done according to cash flow. If you cannot invest in Bitcoin in a month or week, there is no problem. However, it is important to keep Bitcoin holding for a long time. So that in the accumulation stage, there is never any panic selling or forced selling. So irregular income is not an absolute barrier. But more careful planning is needed in the presence of irregular income.

[Different patterns]

[edited out]

Well explained... Surely at times I think that folks mostly misunderstand your idea that you clearly stated here of them starting as soon as their discretionary income is available, and so they may end up thinking otherwise... Starting is very good because it obviously prevents a whole lot of things, things like spending a whole lot of years waiting for the perfect financial situation... Yet again, the point isn't that emergency funds has no value, or that folks can go ahead to invest recklessly.. Rather it is about ensuring that folks dont miss out on their buying opportunity.. And the truth is that emergency funds can very well be built while gradually investing, so there should be no reason for folks to keep delayin...

Getting started as soon as we can (once we figure out that we have enough of a discretionary income) does not mean that we are in a rush to FOMO into a bitcoin position, but instead to perhaps create some urgency and/or priority in organizing our finances in a way that also includes bitcoin in the mix, and surely there may be a whole hell of a lot of bitcoin newbies who have a lot of skepticisms about bitcoin, so then on purpose they end up starting out buying bitcoin in a somewhat conservative (whimpy) way, and perhaps it takes them several months, maybe even close to a year or more before they start to feel some confidence in bitcoin so that they can increase their aggressiveness levels to a more meaningful amount, yet at the same time, it is likely that they are not going to build any conviction about bitcoin without spending time buying it and also spending time studying it (as well as making sure that bitcoin fits comfortably in their understanding of their 9 individual factors).

I think this is important issue that a beginners fail to understand, starting as early doesn’t mean you should buy bitcoin out of fear thinking that you may miss the price, it simply means as a investor you should make bitcoin priority once you have your discretionary income available. A lot of beginners started with doubt, that’s perfectly normal, it’s better to start with small amount while still continuing study bitcoin than to invest without really understanding what you own, As they have the experience and keep learning, they confidence grows naturally.

[B-BossMan]

Are they not all classified as income? Yes they are. But there's the main income that allows you do split your income across board of which one of the board is discretionary income.

Moving forward, as I have clarified that. Can discretionary income remain the same in inflation period? Of course not. In as much as you said one shouldn't force himself to buy Bitcoin he or she has to adjust to keep up the pace. It's not all about increasing. What if there is no way to increase your income? Then the alternative is to adjust your income across board. Pending when you find a way to increase your income.

My bad that I didn't throw an highlight on what discretionary income is. Discretionary income is the leftover money after you must have taken care of your basic needs and monthly expenses. The extra money can be used to do anything. Some use it to gamble, smoke, drink,womanize, club and all sort of consumable activities but it's wise to use part of this money to invest into bitcoin for the future because bitcoin is a long term stor of value.

If after taking care of your basic needs and monthly expenses, yet you still don't have an extra funds, there's no need of investing if not you are not buying bitcoin but gambling. So you don't just divide your money as you like as call one part you discretionary income so that, you don't mistakenly use money for your basic needs to buy bitcoin thinking that it's your discretionary income.

Lastly, let's forget about bitcoin investment and face reality of life. Anyone whose income doesn't increase from time to time wouldn't even be able to take care of his basic needs and might end up becoming a beggar due to the consistent debasement of dollar overtime caused by inflation.

 This is why you need to grow in life and not just that but also financially. You don't need to starve yourself because you want to invest in bitcoin. However, it's not a must to be consistent when your discretionary income is once in a while. A low coiner is better than a no coiner.

Good point. Newbies should know that bitcoin should be bought with only thier discretionary income and make sure before buying or investing into bitcoin, all thier expenses should be settled before purchasing bitcoin. These are some of the silly mistakes that many beginners made and landed themselves into regret. Because forcing thier self to invest into bitcoin without properly settling their bills is not an investment and that may creat a financial pressures, because there's no way they will not panic selling when they even needs money for common school fees. Advisable, build your incomes strongly and reduces some unnecessary spending where it's not necessary, and then have smooth investment, begins accumulating bitcoin gradually without putting yourself into high risk financial instability.