JJG’s Outline of Bitcoin Investment Ideas

[Halifat]

people forget that the important thing is to have a plan that can be keep repeating for  many years, they only focus on buying bitcoin as much as possible. Putting all your discretionary funds into bitcoin, I don’t see it as sign of seriousness, I only see it as lack of financial management, because you leave nothing for small personal needs or unexpected emergency, that may cause them to sell bitcoin whenever they have financial problems and that goes against the rules of long term investment. but any plan that keep you accumulating bitcoin during good times and bad times is better than one that pushes your limit every month.

Because Bitcoin is a good investment, some people don't mind making a good plan to invest an amount they can afford; they only prefer to invest all the money they have with them. However, in Bitcoin investment, investing all the money one has does not guarantee success.

One must consider uncertainties that can occur, and it is essential to prepare for them. If an emergency arises, there is a greater chance that one might risk their Bitcoin investment by selling to address the situation. Investing all discretionary funds one has does not make someone a good investor; rather, planning how to handle emergencies that can affect one's investment is what makes one a good investor in Bitcoin.

Of course this is going to be a very wrong move for any investment most especially Bitcoin, the way death is inevitable is also the same thing that emergency is inevitable too, so if anyone can know this, i think planning will be the most important thing which you have to put forward before any investment takes place. Investing in Bitcoin is a very positive way but do it in a such way that your investment will be saved from any interruption, this is the most important part, because it will be very difficult for you to have an investment for a period of 4 to 10 years without any emergency arises, so building it together is actually the best.

[Rockson1]

people forget that the important thing is to have a plan that can be keep repeating for  many years, they only focus on buying bitcoin as much as possible. Putting all your discretionary funds into bitcoin, I don’t see it as sign of seriousness, I only see it as lack of financial management, because you leave nothing for small personal needs or unexpected emergency, that may cause them to sell bitcoin whenever they have financial problems and that goes against the rules of long term investment. but any plan that keep you accumulating bitcoin during good times and bad times is better than one that pushes your limit every month.

Because Bitcoin is a good investment, some people don't mind making a good plan to invest an amount they can afford; they only prefer to invest all the money they have with them. However, in Bitcoin investment, investing all the money one has does not guarantee success.

One must consider uncertainties that can occur, and it is essential to prepare for them. If an emergency arises, there is a greater chance that one might risk their Bitcoin investment by selling to address the situation. Investing all discretionary funds one has does not make someone a good investor; rather, planning how to handle emergencies that can affect one's investment is what makes one a good investor in Bitcoin.

There are decisions investors take, that are caused by ignorance, especially that of the newbies, someone might be serious in acumulating Bitcoin but ignore to follow the the investment properly, I'm glad that many of us are making things very clear for those that think that they are doing the right thing by investing all their discreationary income without considering that they are to have some left to tackle emergencies.
A good investor does not undermine what could hinder him or slow him down, which is why they make a strong plans to match up unforseen circumstances, emergencies are sudden occurrence that must be prepared for, as a bitcoin investor that have decided to hodl for a long-term.

[Cyber_warrior]

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Emjay24 may have been too fixed with the sharing formula, but then I don't think he isn saying that all folks must follow that same formula.. Infact I see those his figures more as guidelines rather than some strict rules that all investors must follow..Coz the truth remains that every investor financial situation differs( Just like you pointed out).. Some folks earn higher, while some others earn lower in an inconsistent manner.. And so each folks should be able to assess themselves to determine their financial and investment capacity and then invest... After allocating funds for investment and also consumption, emergency funds is also very important since it can help protect your investment especially in times of emergency... And so while investing, folks should also ensure they allocate money for they emergency saving...

It's true there is no formula that fits everyone's financial situation and no formula should be made a strict rule when investing since different people have different income.The formula can work for some but can't work for everyone because of the differences. To me I think it's not about meeting a certain percentage but maintaining discipline and building a sustainable investment habit that matches your financial situation. Everyone has different income, different expenses and responsibilities so we should invest In a way that we try not not neglect our essential needs and still be able to set aside emergency funds for emergency situations so we do not end up being stressed financially or taking out from our investment.

[Hardyrobust]

people forget that the important thing is to have a plan that can be keep repeating for  many years, they only focus on buying bitcoin as much as possible. Putting all your discretionary funds into bitcoin, I don’t see it as sign of seriousness, I only see it as lack of financial management, because you leave nothing for small personal needs or unexpected emergency, that may cause them to sell bitcoin whenever they have financial problems and that goes against the rules of long term investment. but any plan that keep you accumulating bitcoin during good times and bad times is better than one that pushes your limit every month.

Because Bitcoin is a good investment, some people don't mind making a good plan to invest an amount they can afford; they only prefer to invest all the money they have with them. However, in Bitcoin investment, investing all the money one has does not guarantee success.

One must consider uncertainties that can occur, and it is essential to prepare for them. If an emergency arises, there is a greater chance that one might risk their Bitcoin investment by selling to address the situation. Investing all discretionary funds one has does not make someone a good investor; rather, planning how to handle emergencies that can affect one's investment is what makes one a good investor in Bitcoin.

There are decisions investors take, that are caused by ignorance, especially that of the newbies, someone might be serious in acumulating Bitcoin but ignore to follow the the investment properly, I'm glad that many of us are making things very clear for those that think that they are doing the right thing by investing all their discreationary income without considering that they are to have some left to tackle emergencies.
A good investor does not undermine what could hinder him or slow him down, which is why they make a strong plans to match up unforseen circumstances, emergencies are sudden occurrence that must be prepared for, as a bitcoin investor that have decided to hodl for a long-term.

An investor is not supposed to use all their discretionary income to invest in bitcoin, this is being over aggressive and this will make them to sell their bitcoin when they never planned to. For anyone that is investing in bitcoin they should understand that building a good portfolio in bitcoin requires time and patience and there is no need for them to be over aggressive by investing with all there Discretionary and leaving there bitcoin investment unprotected by failing to set up an emergency funds. Not having an emergency funds will only make an investor to sell there bitcoin at loss when an emergency happens. Patience and being consistent matters most in the long run , and not necessarily trying to accumulate as much bitcoin in a go using all ones discretionary income.

[oll]

There are decisions investors take, that are caused by ignorance, especially that of the newbies, someone might be serious in acumulating Bitcoin but ignore to follow the the investment properly, I'm glad that many of us are making things very clear for those that think that they are doing the right thing by investing all their discreationary income without considering that they are to have some left to tackle emergencies.
A good investor does not undermine what could hinder him or slow him down, which is why they make a strong plans to match up unforseen circumstances, emergencies are sudden occurrence that must be prepared for, as a bitcoin investor that have decided to hodl for a long-term.

Beginners, if desired, will quickly understand the meanings according to which the DCA principles operate. But it is difficult for inexperienced investors to imagine how to accurately calculate their discretionary income, and this is extremely important. I would compare the budget for saving my investments from unforeseen situations with the foundation of a building. And the investment itself with the building that is being built on this foundation.
You understand perfectly well that no building can stand on a bad foundation. Therefore, every beginner should understand the importance of absolutely accurately calculating the amount of money that will help him survive any unforeseen events in life without closing his investments.

[Agbam]

This is why I like a clearly defined ratio of dividing our discretionary income between our investment fund, savings and discretionary consumption to ensure adequate priority is given to all parties. I recommend a 40:40:20 or 50:30:20 formula to give your investment a greater priority, while not neglecting the importance of savings and discretionary consumption.

What you’re suggesting may not be convenient for everyone, while it works for you it may not work for others or may not be reasonable or practical especially for someone who has built his emergency fund up to 3 months and more, he’ll likely reduce the amount he’ll save as backup funds and increase on his aggressiveness.

Assigning a specific ratio or percentage to each category of the discretionary income is good but should be done by the discretion of the investor. There’s no recommending a standard or universal ratio that everyone should use because financial situations, goals and risk tolerance differ from one person to the other.

[The Founding Titan]

This is why I like a clearly defined ratio of dividing our discretionary income between our investment fund, savings and discretionary consumption to ensure adequate priority is given to all parties. I recommend a 40:40:20 or 50:30:20 formula to give your investment a greater priority, while not neglecting the importance of savings and discretionary consumption.

What you’re suggesting may not be convenient for everyone, while it works for you it may not work for others or may not be reasonable or practical especially for someone who has built his emergency fund up to 3 months and more, he’ll likely reduce the amount he’ll save as backup funds and increase on his aggressiveness.

Assigning a specific ratio or percentage to each category of the discretionary income is good but should be done by the discretion of the investor. There’s no recommending a standard or universal ratio that everyone should use because financial situations, goals and risk tolerance differ from one person to the other.

If someone wants to o split their discretionary in order to be able to buy bitcoin, set up their emergency fund and also ensure that their discretionary consumptions are taken care of them they should consider splitting it 3 ways, I would advise using 1/3 to buy bitcoin, 1/3 for their emergency fund and the remaining 1/3 for their discretionary consumption, most people think that their discretionary consumption don't matter until they actually try to cut it off.
It's about finding a balance on how to split your discretionary income in a way that will work for you without having to ignore anything, you can distribute more of it to your investment after setting up your backup funds.

[Silikiem]

There are decisions investors take, that are caused by ignorance, especially that of the newbies, someone might be serious in acumulating Bitcoin but ignore to follow the the investment properly, I'm glad that many of us are making things very clear for those that think that they are doing the right thing by investing all their discreationary income without considering that they are to have some left to tackle emergencies.
A good investor does not undermine what could hinder him or slow him down, which is why they make a strong plans to match up unforseen circumstances, emergencies are sudden occurrence that must be prepared for, as a bitcoin investor that have decided to hodl for a long-term.

Beginners, if desired, will quickly understand the meanings according to which the DCA principles operate. But it is difficult for inexperienced investors to imagine how to accurately calculate their discretionary income, and this is extremely important. I would compare the budget for saving my investments from unforeseen situations with the foundation of a building. And the investment itself with the building that is being built on this foundation.
You understand perfectly well that no building can stand on a bad foundation. Therefore, every beginner should understand the importance of absolutely accurately calculating the amount of money that will help him survive any unforeseen events in life without closing his investments.

Setting aside some cash for emergency funds as a bitcoin investor is really important for every bitcoin investor, and is especially vital that beginners should understand the importance of the emergency funds in their bitcoin investment. but I think it’s going to be unlikely for anyone or beginners to accurately calculate the amount of money that will help them survive or settle any unforeeen events in life because the emergencies are unforeseen events, no one can see it coming or predict the nature it will occur and the magnitude of such an emergency situation.

It’s not really possible to know and accurately calculate the exact total ahead of time or occurrence of such an unexpected events and the severities of events do vary, so trying to tell newbies to calculate all of these might be frightening them, and most beginners will think as though they will have to save up all the funds for their emergency situations which are even yet to happen before they can start investing In bitcoin. The truth is, the emergency funds can be built gradually, and not having the emergency funds fully available shouldn’t stop beginners from getting started with buying bitcoin and invest, they can be buying bitcoin with their discretionary income and along the line keeping some part of their discretionary income for building up their emergency funds and take it one step at a time just as the emergency situation occurs.

[Grease5000]

This is why I like a clearly defined ratio of dividing our discretionary income between our investment fund, savings and discretionary consumption to ensure adequate priority is given to all parties. I recommend a 40:40:20 or 50:30:20 formula to give your investment a greater priority, while not neglecting the importance of savings and discretionary consumption.

I love  the idea of having a plan, but I don't think one ratio will work for everyone. Because everyone's income and responsibilities are not the same so a fixed 40:40:20 or 50:30:20 formula may not work for every investor.

For example if two friends each  have $100 in discretionary income one may be single with few expenses, while the other  may have a family he fend for. It would  be almost be impossible for both to follow the same ratio. The better approach t I think is the best is to create a plan that matches your own financial situation and not follow a plan set by other with different financial needs.

At last the important thing is to be able to keep investing with discretionary income, save for unexpected needs and stay consistent over the long term.

[Moreno233]

It's true there is no formula that fits everyone's financial situation and no formula should be made a strict rule when investing since different people have different income.The formula can work for some but can't work for everyone because of the differences. To me I think it's not about meeting a certain percentage but maintaining discipline and building a sustainable investment habit that matches your financial situation. Everyone has different income, different expenses and responsibilities so we should invest In a way that we try not not neglect our essential needs and still be able to set aside emergency funds for emergency situations so we do not end up being stressed financially or taking out from our investment.

Generally, no one is being forced to use any method of investing as no one can even be forced on how to invest his money. What we are doing here is sharing of ideas to know what work best for the generality of the people and from the discussion, the DCA method seems to be the widely accepted method that is suitable for all income classes. This is owing to the fact that the DCA method is systematic, easy to use and does not understand mastery of complex technical analysis methods, somehow immune to FOMO and readily makes the investors think more of buying than selling. This means the people using the DCA method is more likely to succeed as long term investors than those using other methods. although there will always be some exception to this because investment tend to be more of individual thing.

[AYOBA]

Because Bitcoin is a good investment, some people don't mind making a good plan to invest an amount they can afford; they only prefer to invest all the money they have with them. However, in Bitcoin investment, investing all the money one has does not guarantee success.

One must consider uncertainties that can occur, and it is essential to prepare for them. If an emergency arises, there is a greater chance that one might risk their Bitcoin investment by selling to address the situation. Investing all discretionary funds one has does not make someone a good investor; rather, planning how to handle emergencies that can affect one's investment is what makes one a good investor in Bitcoin.

Of course this is going to be a very wrong move for any investment most especially Bitcoin, the way death is inevitable is also the same thing that emergency is inevitable too, so if anyone can know this, i think planning will be the most important thing which you have to put forward before any investment takes place. Investing in Bitcoin is a very positive way but do it in a such way that your investment will be saved from any interruption, this is the most important part, because it will be very difficult for you to have an investment for a period of 4 to 10 years without any emergency arises, so building it together is actually the best.

In life whatever a person comes to do and he has a good background everything will goes smoothly. So same thing with the Bitcoin investments if a person has a great idea and plan on how him/she can move their investments forward after they are started, they will not have any issues with their investments. Because even those that we see are having some headache with their investments, is lack of good plan and understanding make some of investors invest in a wrong way; if not there’s possibility of a good return from bitcoin investments that’s why everyone keep buying and holding it for a long period of time.

[ZeroVinsonN]

~

I see your point but when I talked about overaggressive buying I was talking about those people who use so much from their discretionary income that they don't have enough for setting up their backup funds talk more about their discretionary consumption and when they when they buy bitcoin like this they will not be able to sustain it because even though there is no immediate emergency and they don't bother with their emergency fund they will even come to the realization that they can't go without their discretionary consumption for too long making their over agressiveness unsustainable.

Yes there should always be a balance so that we don't give an overly small priority to our backup funds in such a way that we are left with little funds for it and when emergency hits, our backup funds might be too small to tackle it and we have to tap into our bitcoin portfolio to solve it . That would be a very bad situation and a product of bad cashflow management practice. This is why I like a clearly defined ratio of dividing our discretionary income between our investment fund, savings and discretionary consumption to ensure adequate priority is given to all parties. I recommend a 40:40:20 or 50:30:20 formula to give your investment a greater priority, while not neglecting the importance of savings and discretionary consumption.

I think I would support a more equal ratio depending on how much discretionary income the person has,, divide it too unevenly and you might not have enough for your discretionary spendings so while you might be able to do it for a few time you ultimately won't be able to sustain and sustainability is something every bitcoin investor should try to work towards if they want to be able to keep up with their investment in the long run.

[BluebloodCXVI]

An investor is not supposed to use all their discretionary income to invest in bitcoin, this is being over aggressive and this will make them to sell their bitcoin when they never planned to. For anyone that is investing in bitcoin they should understand that building a good portfolio in bitcoin requires time and patience and there is no need for them to be over aggressive by investing with all there Discretionary and leaving there bitcoin investment unprotected by failing to set up an emergency funds. Not having an emergency funds will only make an investor to sell there bitcoin at loss when an emergency happens. Patience and being consistent matters most in the long run , and not necessarily trying to accumulate as much bitcoin in a go using all ones discretionary income.

You seem to be assuming that once an investor uses all their discretionary income to invest then that means they won’t have any emergency funds left with them, that is not entirely true.
If the investor already has emergency funds tucked away and they have already built a sufficient cash reserve, they can decide to allocate their whole discretionary income into bitcoin for that period if they want as long as they are not doing it without having any cash buffer to fall back on or without considering their financial predicament first.

Aggressive investing is relative to the individual’s circumstances and so what one person may see as aggressive investing might not be aggressive to another person.

And as for the possibility of being forced to sell that you mentioned, I don’t think that risk can completely be eliminated.
An emergency fund is created to help reduce the likelihood of selling your bitcoin unexpectedly but it’s not really a guarantee that it will never happen.
In an instance where an emergency happens to last longer than anticipated or when several unexpected incidents happen at once, even a well prepared investor might be forced to liquidate some of their holdings, that’s just the reality of financial planning.

[Frankolala]

You seem to be assuming that once an investor uses all their discretionary income to invest then that means they won’t have any emergency funds left with them, that is not entirely true.
If the investor already has emergency funds tucked away and they have already built a sufficient cash reserve, they can decide to allocate their whole discretionary income into bitcoin for that period if they want as long as they are not doing it without having any cash buffer to fall back on or without considering their financial predicament first.

You need discretionary consumption. Will you ignore that and go dip your hands into your reserve funds for your discretionary consumption which is the main reason why you have a discretionary income. I don't think it's realistic for an investor to use all his discretionary income to buy bitcoin because he will definitely get tired of doing it if he tries it once or twice.

Your reserve funds is flexible doesn't mean that you used use it for your discretionary consumption because if you have that in mind, you will end up consuming your reserve funds quickly without using it for the right purpose. This is why it's good that as you are investing you also learn about financial management so that, you can use the right funds for the right purpose and don't make careless mistakes or decisions that will affect the growth of your bitcoin stash.

Of course, reserve funds can still be used first to take care of any unforseen circumstances that pops up  and when it's not enough, you can start using from your emergency funds. Reserve funds is also used to buy at the dip to mix it up with your ongoing DCA. You shouldn't use it for your discretionary consumption. Only your discretionary income should be used for your discretionary consumption as the name implies. I feel anyone using 100% of his discretionary income to buy bitcoin is buying over aggressively.

[Jostern]

people forget that the important thing is to have a plan that can be keep repeating for  many years, they only focus on buying bitcoin as much as possible. Putting all your discretionary funds into bitcoin, I don’t see it as sign of seriousness, I only see it as lack of financial management, because you leave nothing for small personal needs or unexpected emergency, that may cause them to sell bitcoin whenever they have financial problems and that goes against the rules of long term investment. but any plan that keep you accumulating bitcoin during good times and bad times is better than one that pushes your limit every month.

Because Bitcoin is a good investment, some people don't mind making a good plan to invest an amount they can afford; they only prefer to invest all the money they have with them. However, in Bitcoin investment, investing all the money one has does not guarantee success.

One must consider uncertainties that can occur, and it is essential to prepare for them. If an emergency arises, there is a greater chance that one might risk their Bitcoin investment by selling to address the situation. Investing all discretionary funds one has does not make someone a good investor; rather, planning how to handle emergencies that can affect one's investment is what makes one a good investor in Bitcoin.

Going into Bitcoin, you should have it at the back of your mind that you’re meant to be investing in Bitcoin with your discretionary income, you’re not expected to invest all your discretionary income, you need to make room for reserved funds, and emergency funds, it’s not ideal to invest all your money in bitcoin that would be a terrible decision that can jeopardize your Bitcoin portfolio.

We should always be aware of anything that we are doing with our bitcoin investments, it doesn’t matter how much you’re buying Bitcoin, but buying bitcoin within your own means what you can actually afford on a weekly or monthly basis, instead of buying bitcoin with all our money is better to accumulate little by little, as much as we can possibly afford, emergency funds are very important to use solve any unforeseen circumstances.

[Olatundespo]

people forget that the important thing is to have a plan that can be keep repeating for  many years, they only focus on buying bitcoin as much as possible. Putting all your discretionary funds into bitcoin, I don’t see it as sign of seriousness, I only see it as lack of financial management, because you leave nothing for small personal needs or unexpected emergency, that may cause them to sell bitcoin whenever they have financial problems and that goes against the rules of long term investment. but any plan that keep you accumulating bitcoin during good times and bad times is better than one that pushes your limit every month.

Because Bitcoin is a good investment, some people don't mind making a good plan to invest an amount they can afford; they only prefer to invest all the money they have with them. However, in Bitcoin investment, investing all the money one has does not guarantee success.

One must consider uncertainties that can occur, and it is essential to prepare for them. If an emergency arises, there is a greater chance that one might risk their Bitcoin investment by selling to address the situation. Investing all discretionary funds one has does not make someone a good investor; rather, planning how to handle emergencies that can affect one's investment is what makes one a good investor in Bitcoin.

There are decisions investors take, that are caused by ignorance, especially that of the newbies, someone might be serious in acumulating Bitcoin but ignore to follow the the investment properly, I'm glad that many of us are making things very clear for those that think that they are doing the right thing by investing all their discreationary income without considering that they are to have some left to tackle emergencies.
A good investor does not undermine what could hinder him or slow him down, which is why they make a strong plans to match up unforseen circumstances, emergencies are sudden occurrence that must be prepared for, as a bitcoin investor that have decided to hodl for a long-term.

Having an emergency fund available will provide you with many benefits. If you want to stay consistent in your long term Bitcoin investment and not be mentally stressed during price fluctuations, make sure to keep discretionary income as well as a cash fund. Even if a new investor does not have an emergency fund, he can build this emergency fund as soon as he accumulate Bitcoin because many unexpected events can happen in life that you are not prepared for. You need to focus on living a normal life and staying consistent in your Bitcoin investment and not having any negative events of withdrawing your Bitcoin holdings in that emergency situation.

Prioritize the present and build wealth for the future and this wealth should be similar to a decentralized and independent financial system such as Bitcoin investment. If you prioritize the present, you will achieve financial capacity and emphasize income growth and if you prioritize the future, you will need to accumulate Bitcoin regularly and build a decent holdings. Both are most important for your financial success.

[Muba20]

There are decisions investors take, that are caused by ignorance, especially that of the newbies, someone might be serious in acumulating Bitcoin but ignore to follow the the investment properly, I'm glad that many of us are making things very clear for those that think that they are doing the right thing by investing all their discreationary income without considering that they are to have some left to tackle emergencies.
A good investor does not undermine what could hinder him or slow him down, which is why they make a strong plans to match up unforseen circumstances, emergencies are sudden occurrence that must be prepared for, as a bitcoin investor that have decided to hodl for a long-term.

Beginners, if desired, will quickly understand the meanings according to which the DCA principles operate. But it is difficult for inexperienced investors to imagine how to accurately calculate their discretionary income, and this is extremely important. I would compare the budget for saving my investments from unforeseen situations with the foundation of a building. And the investment itself with the building that is being built on this foundation.
You understand perfectly well that no building can stand on a bad foundation. Therefore, every beginner should understand the importance of absolutely accurately calculating the amount of money that will help him survive any unforeseen events in life without closing his investments.

While it is important to be prepared for emergencies, a new investor cannot accurately calculate how much money will be needed for all future uncertainties before they start investing. This is because emergencies do not follow any fixed numbers. For some, one month's expenses may be enough, while for someone whose job is uncertain, several months' worth of expenses may be needed as an emergency fund. Again, there are some events that cannot be accurately calculated in advance, for example, medical expenses, family problems, or loss of income. So when you are busy looking for an accurate calculation, you are actually spending a long time preparing, and you may not even be able to start.

So the simple strategy is to first understand all your essential expenses, set aside discretionary income, start small and learn along with regular savings. At the same time, you will also get the opportunity to gradually increase your safety fund. For example, if your discretionary income is $60, then there is no condition that you have to pay $60 in Bitcoin. From there, you can start with $20-$25 according to your comfort. You can keep the rest in the safety fund and personal use. This gives you the opportunity to start without having to calculate accurately for future uncertain events and also think about safety.

[ejikeme24]

Of course this is going to be a very wrong move for any investment most especially Bitcoin, the way death is inevitable is also the same thing that emergency is inevitable too, so if anyone can know this, i think planning will be the most important thing which you have to put forward before any investment takes place. Investing in Bitcoin is a very positive way but do it in a such way that your investment will be saved from any interruption, this is the most important part, because it will be very difficult for you to have an investment for a period of 4 to 10 years without any emergency arises, so building it together is actually the best.

In life whatever a person comes to do and he has a good background everything will goes smoothly. So same thing with the Bitcoin investments if a person has a great idea and plan on how him/she can move their investments forward after they are started, they will not have any issues with their investments.Because even those that we see are having some headache with their investments, is lack of good plan and understanding make some of investors invest in a wrong way; if not there’s possibility of a good return from bitcoin investments that’s why everyone keep buying and holding it for a long period of time.

So you mean without emergency funds that our investment can still move smoothly, How are you sure about that? For the fact that your investment is going smoothly without emergency funds doesn't mean it will work the same for other beginners or investors. If truly that you're investing without an emergency funds I will tell you that you're making a very big mistake because emergency might happen at anytime and if you don't have your emergency funds set up at that time you would end up selling your investment to take care of the emergency especially when it has to do with health like sickness or other related issues. However No matter how good a person background may be, yet I see reasons why they need to create emergency funds for the safety of Their long term investment. Moreover your  background does not even have anything to do with you creating emergency funds for your investment , emergency funds is one of the things every long term investors should have so as to enable them to stick to Their long term investment plans.

[Shadiq]

If you want to stay consistent in your long term Bitcoin investment and not be mentally stressed during price fluctuations, make sure to keep discretionary income as well as a cash fund.

I don't see any connection between cash funds and managing stress during price volatility. Whether you have cash funds or not, the stress during price fluctuations will not change. You can try to manage that stress by investing with discretionary money, but cash funds are not for managing stress.

The main function of cash funds or backup funds is to protect the investment fund in the long term by bearing various expenses of life, I don't think even having cash funds can affect you mentally during market volatility. Stress can arise if you are involved in short-term investments or invest with the required amount.

[GIF-JOBS]

~

I see your point but when I talked about overaggressive buying I was talking about those people who use so much from their discretionary income that they don't have enough for setting up their backup funds talk more about their discretionary consumption and when they when they buy bitcoin like this they will not be able to sustain it because even though there is no immediate emergency and they don't bother with their emergency fund they will even come to the realization that they can't go without their discretionary consumption for too long making their over agressiveness unsustainable.

Yes there should always be a balance so that we don't give an overly small priority to our backup funds in such a way that we are left with little funds for it and when emergency hits, our backup funds might be too small to tackle it and we have to tap into our bitcoin portfolio to solve it . That would be a very bad situation and a product of bad cashflow management practice. This is why I like a clearly defined ratio of dividing our discretionary income between our investment fund, savings and discretionary consumption to ensure adequate priority is given to all parties. I recommend a 40:40:20 or 50:30:20 formula to give your investment a greater priority, while not neglecting the importance of savings and discretionary consumption.

I think I would support a more equal ratio depending on how much discretionary income the person has,, divide it too unevenly and you might not have enough for your discretionary spendings so while you might be able to do it for a few time you ultimately won't be able to sustain and sustainability is something every bitcoin investor should try to work towards if they want to be able to keep up with their investment in the long run.

The investment amount should be such that it is possible to maintain it for a long time without stress. The main thing in investment is consistency, no matter how much you invest, the main thing is whether you are able to maintain it consistently, now if you decide to invest beyond your capacity, then you will definitely not be able to maintain one for the long term. Therefore, the main thing is to invest only the amount of your capacity. Investing a large amount in one month, and another month is zero, this should not be like that, but investing in regular and realistic amounts is much more effective, which can ensure long-term stability. Because after all, Bitcoin is volatile in the short term, and creates possibilities in the long term, and therefore long-term stability is the most important thing here.