JJG’s Outline of Bitcoin Investment Ideas

[Son Of Blockchain (SOB)]

You are right, keeping an emergency fund is important when investing in bitcoin. It is important to hold bitcoin for the long term and to form an emergency fund to accumulate bitcoin regularly. There is no way to predict when an emergency situation may arise for a person. So, some funds should be kept for that period so that one does not have to sell bitcoin directly.

I don't know if there's anyone that would think otherwise but such person should know that emergency situations are not bargained for but would definitely happy and sometimes when it's least expected so if someone isn't prepared for it, there's high chances of selling at lose to settle the problem.
 Therefore investors need to take it seriously so it doesn't contribute to the ruins of their investment, even though one doesn't have it ready before starting the investment, it can be built in unison with the investment.

[Gentle_Soul]

I wonder where he thinks beginners would get money for investment, perhaps who could be one of those who don't understand that the discretionary income is what's needed to start up and investment using any funds other than that would definitely attract future complications, maybe he forgot that settling necessities is more important before others including investment.

Getting money is one of the easiest things because you can always work, and from there you will be able to make money, and from there you can use your discretionary income to make proper use of it because most people don't even know how to make use of it, because most people don't know how to make proper use of their discretionary income and that way they will be able to put it in a better use.

I don’t know what makes you think that getting money is easy for everybody or that everyone has access to equal employment opportunities.

Even the people that jobs, in some cases can’t even cover their basic expenses cleanly not to talk of having discretionary income left to invest in bitcoin.
So don’t make it sound like people who struggle financially simply haven’t figured out how to work and earn money, when the reality is that earning an income and having discretionary income left are two different things.

Financial discipline is not gonna create money for you that wasn’t there in the first place even though it is important.

I feel like there are more to be understood about this discretionary income of a thing because if you really understand what it means you will discover that at every financial level that you find yourself you can actually raise a discretionary income no matter how small it is just like you mentioned financial discipline does not generate create funds I agree with you on that but don't forget that financial discipline can help you accumulate bits of funds that you can turn into your discretionary income and by do doing you don't need all the money in the world to be able to DCA all you need to do is to stay within your level of investment and trust me when you do that over a period of time you will definitely accumulate some real investment in the long run.

When you talk about people who struggle financially figuring out how to work and earn money and probably have discretionary income don't forget that at every level that you find yourself you definitely will be needing more money to level up because human wants are insatiable but then with discipline you can be able to sustain and then find a way to DCA with your current level.

[MusaPk]

I don't know if there's anyone that would think otherwise but such person should know that emergency situations are not bargained for but would definitely happy and sometimes when it's least expected so if someone isn't prepared for it, there's high chances of selling at lose to settle the problem.
 Therefore investors need to take it seriously so it doesn't contribute to the ruins of their investment, even though one doesn't have it ready before starting the investment, it can be built in unison with the investment.

If we are talking about emergency funds of newcomers then we have to see Hypo 13 to 15 to understand three different cases. It is important to highlight that every newbie that is coming to invest in Bitcoin doesn't necessarily is struggling to maintain emergency funds. If we look at Hypo 13 and 14 then such newcomers have emergency funds already in place because they were already investing somewhere else and they also have adequate cash to invest in Bitcoin. These people can straight away start investing in Bitcoin without worry of emergency funds and cash flow.

We have Hypo-15, which is about a person who doesn't have any investment portfolio before coming to Bitcoin and he has a task at his disposal to build his emergency funds while investing in Bitcoin.

Emergency funds case varies from person to person and need to viewed in that context.

[Cgrexp]

You are right, keeping an emergency fund is important when investing in bitcoin. It is important to hold bitcoin for the long term and to form an emergency fund to accumulate bitcoin regularly. There is no way to predict when an emergency situation may arise for a person. So, some funds should be kept for that period so that one does not have to sell bitcoin directly.

I don't know if there's anyone that would think otherwise but such person should know that emergency situations are not bargained for but would definitely happy and sometimes when it's least expected so if someone isn't prepared for it, there's high chances of selling at lose to settle the problem.
 Therefore investors need to take it seriously so it doesn't contribute to the ruins of their investment, even though one doesn't have it ready before starting the investment, it can be built in unison with the investment.

You never know when an emergency will strike. If you don't have financial preparation in advance to deal with a loss of income, medical expenses or other urgent family obligations you may find yourself without the necessary cash despite having invested assets. When the market goes through a downturn selling those assets can result in significant losses. Building an emergency fund makes it possible to meet necessary expenses without selling investments in unexpected situations. In addition to investing regularly, the ability to not be forced to sell those investments at unexpected times is also important. Selling assets that you have planned to hold for the long term for an emergency can disrupt the original plan. The purpose of investing is not just to increase wealth. It is to create a financial position where you don't have to break your long-term plans in every unexpected situation.

[IceLincoln]

Your statement is contradictory to what is needed to start investing in bitcoin, since isn’t mandatory for a newbie to have discretionary income before they can start investing in bitcoin, so what is required for a brand new investor to start investing in bitcoin, what is required to start investing in bitcoin is a discretionary income, so if you’re saying this here, then you’re going to be misleading newbies here with your statement, considering your rank I will assume you’ve been investing and buying bitcoin, if I may ask when you started investing in bitcoin did you start your investment outside your discretionary income ?, because if you did invest outside your discretionary incomes, by investing with money meant for your expenses then that is a huge blunder you’re making, and you might end up buying selling like a trader.

What if someone doesn't have disposable income When needs arise, how can we meet the basic necessities of life with our families such as kitchen utensils which can't be postponed Meanwhile my friend said that for beginner investors, if they follow the previous question, they don't need or are required to have disposable income. I completely agree with your answer, my friend. The answer doesn't align with what is being discussed, especially since what you said is not in our opinion.

How can someone facilitate their Bitcoin investment without disposable income I was also surprised after understanding what they said, when they sentenced beginner investors not to need such funds. The main reason for protecting investments is simply having these funds as something that can save investments that are sometimes only recently accumulated through DCA.

Please what is disposable income?.. if you mean discretionary income please use it instead of disposable income, it doesn’t make sense and you used it repeatedly. The rest of your reply is just all over the place, no direction for someone to pinpoint what you’re saying.
For Clarity sake; Discretionary income is simply the money left over after sorting your essential needs and it is from this remnant you invest, save (backups) and discretionary spend. You don’t use the discretionary money to sort out basic necessities.

[Junii]

Getting money is one of the easiest things because you can always work, and from there you will be able to make money, and from there you can use your discretionary income to make proper use of it because most people don't even know how to make use of it, because most people don't know how to make proper use of their discretionary income and that way they will be able to put it in a better use.

Easy🤔?? In my perspective the opportunities for every human being regarding money making is different. Maybe it is easy for someone who already has money and opportunities and also the government supporting its people because in my country people can work hard and still struggle to save some amount because the average expense is approximately PKR 2500 to PKR 3500 per day ($8 to $12 USD) while the average income of a person is from pkr Rs1000 to Rs 1540 per day ($4.50 to $5.50 USD) . So in this type of scenarios people are just struggle for survival for them investment is like climbing a mountain.

[Lida93]

You are right, keeping an emergency fund is important when investing in bitcoin. It is important to hold bitcoin for the long term and to form an emergency fund to accumulate bitcoin regularly. There is no way to predict when an emergency situation may arise for a person. So, some funds should be kept for that period so that one does not have to sell bitcoin directly.

I don't know if there's anyone that would think otherwise but such person should know that emergency situations are not bargained for but would definitely happy and sometimes when it's least expected so if someone isn't prepared for it, there's high chances of selling at lose to settle the problem.
 Therefore investors need to take it seriously so it doesn't contribute to the ruins of their investment, even though one doesn't have it ready before starting the investment, it can be built in unison with the investment.

building
No sane person would dare to think otherwise about having an emergency funding package amidst the  of bitcoin  investment. and then about having emergency funds and having your investment altogether in one process, its really not a difficult one since there is no consensus amount stamped for investment or emergency funds build up. Assuming the new investor thats about to start investing  has $50 as his discretionary funds after all essentials expenses has being satisfied, he can use $35 for his and $15 to his emergency funding. With this the investor is well position for any uncertain emergence in the future that could have threaten the continuity of his investment in the absence of an emergency funds.

[Sticky Bomb]

he can use $35 for his and $15 to his emergency funding. With this the investor is well position for any uncertain emergence in the future that could have threaten the continuity of his investment in the absence of an emergency funds.

You seem to neglect the importance of discretionary needs. There should be some provision for discretionary consumption so that the investor doesn't starve himself of having some fun or relaxation because he is investing into bitcoin, this might make bitcoin investment seem more like a struggle and choking for the investor, the investor should not be overly serious because he got into bitcoin.

I would suggest he invests $25 into bitcoin, $15 into emergency fund and $10 as discretionary consumption. This would help him live a balanced life amidst investing into bitcoin and preparing for emergencies.

[Perfect-World]

Assuming the new investor thats about to start investing  has $50 as his discretionary funds after all essentials expenses has being satisfied, he can use $35 for his and $15 to his emergency funding. With this the investor is well position for any uncertain emergence in the future that could have threaten the continuity of his investment in the absence of an emergency funds.

What about your discretionary consumption, you didn't allocate any funds for it, or you wouldn't be needing it?

Your discretionary income is shared into three places, which are 1) investing 2)back up funds and 3) discretionary consumption. You can't possibly share the discretionary into 2 places as you have done while neglecting your discretionary spending since it is important, because even though one is investing in Bitcoin, one also needs to take care of oneself. There could be some personal treats and stuffs like that, and our discretionary income covers all of this. So I think your sharing formula is wrong.

[Homemade-IQ]

Easy🤔?? In my perspective the opportunities for every human being regarding money making is different. Maybe it is easy for someone who already has money and opportunities and also the government supporting its people because in my country people can work hard and still struggle to save some amount because the average expense is approximately PKR 2500 to PKR 3500 per day ($8 to $12 USD) while the average income of a person is from pkr Rs1000 to Rs 1540 per day ($4.50 to $5.50 USD) . So in this type of scenarios people are just struggle for survival for them investment is like climbing a mountain.

I don't care to know the economic situation of your country, but what I just want to point out here is that, you have no business investing in Bitcoin if you can't take care of your basic needs, because that is the main thing you should focus your attention to.

And in addition to what I have already said, such person should focus more on looking for an additional source of discretionary income that he can invest with, because if he goes ahead to invest without first figuring out his discretionary income, it will only be but a matter of time before he sell off all his holdings to sort out the important basic needs at hand,  that the money he invested was meant for, so investing without figuring out our discretionary income first is an investment that will lead to nowhere, since it has no solid foundation.

[Brizi5000]

You are right, keeping an emergency fund is important when investing in bitcoin. It is important to hold bitcoin for the long term and to form an emergency fund to accumulate bitcoin regularly. There is no way to predict when an emergency situation may arise for a person. So, some funds should be kept for that period so that one does not have to sell bitcoin directly. Suppose a person has been accumulating bitcoin every week from his discretionary income for the last 4 years and his plan is to extend this period. Then if his income suddenly stops then it will take time for him to create a new income source. So that his necessary expenses can be met during that time, it is good to keep a fund equal to 3 to 6 months of expenses aside which creates a positive effect in investing in bitcoin. I also think that a big advantage of backup funds is that it puts an investor in a good financial position to maintain his plan during market volatility. Because if the necessary money was invested, then naturally that investor would not be able to control himself when he saw the price of bitcoin falling. Because there are many necessary needs involved in his investment in bitcoin.

Emergency funds are built from the discretionary income which can be gradually collected even while bitcoin investments is ongoing, and that’s why for brand new investors, they must not keep aside a 3-4 months of living expenses before they start Bitcoin investments. Although it’s possible for most wealthy folks to keep aside such funds but for others it may take time and that’s why it’s meant to be built up gradually instead of saying keeping aside which might trigger new investors to think they must keep aside a 3-4 months living expenses before they start investing In bitcoin. And investor who is using money meant to sort his basic needs is gambling with his investment because at the end of the day he will sell off his bitcoin holdings when is not yet time and because bitcoin is very volatile, there’s a tendency he might be selling at a loss.

[Odohu]

Assuming the new investor thats about to start investing  has $50 as his discretionary funds after all essentials expenses has being satisfied, he can use $35 for his and $15 to his emergency funding. With this the investor is well position for any uncertain emergence in the future that could have threaten the continuity of his investment in the absence of an emergency funds.

What about your discretionary consumption, you didn't allocate any funds for it, or you wouldn't be needing it?

Your discretionary income is shared into three places, which are 1) investing 2)back up funds and 3) discretionary consumption. You can't possibly share the discretionary into 2 places as you have done while neglecting your discretionary spending since it is important, because even though one is investing in Bitcoin, one also needs to take care of oneself. There could be some personal treats and stuffs like that, and our discretionary income covers all of this. So I think your sharing formula is wrong.

This depends on the investor and how he plans to live his life in order meet his accumulation objective. That is why an investor can just divide his discretionary income into investment funds and protective funds since his basic needs are already taken care of before arriving at the discretionary income. This pattern will make more money available for investing and will cut down spending on frivolities.

This does not mean that the investor is not taking good care of himself, he is already doing that by setting aside funds for basic needs which cover things like food medicine, utilities, and others that are compulsory for comfortable living.

[Chinesebaby]

Easy🤔?? In my perspective the opportunities for every human being regarding money making is different. Maybe it is easy for someone who already has money and opportunities and also the government supporting its people because in my country people can work hard and still struggle to save some amount because the average expense is approximately PKR 2500 to PKR 3500 per day ($8 to $12 USD) while the average income of a person is from pkr Rs1000 to Rs 1540 per day ($4.50 to $5.50 USD) . So in this type of scenarios people are just struggle for survival for them investment is like climbing a mountain.

But do you know that even in the most wealthiest countries of the world we still have poor people? Have you ever thought about that? And in situations like this, are you still going to blame the economy of that country? The answer is "NO", because it is the individual who is to be blame for being in the midst of rich people and still staying poor. And in a nutshell, the very point i was trying to emphazie on is the fact that investing is what everybody can do, irrespective of your income. Because just as you said the average expenses in your country is PKR 2500 (i.e $8) per day, while the average income  is pkr Rs1000  (i.e $4.5) per day, It's still also possible for any individual who is intentional about investing to sacrifice certain pleasure and spend just $3.5 from his daily income while he save $1 daily. And a dollar daily in 1year will be $365, while in 10years would have accumulated to $3,650.

[Hardyrobust]

he can use $35 for his and $15 to his emergency funding. With this the investor is well position for any uncertain emergence in the future that could have threaten the continuity of his investment in the absence of an emergency funds.

You seem to neglect the importance of discretionary needs. There should be some provision for discretionary consumption so that the investor doesn't starve himself of having some fun or relaxation because he is investing into bitcoin, this might make bitcoin investment seem more like a struggle and choking for the investor, the investor should not be overly serious because he got into bitcoin.

I would suggest he invests $25 into bitcoin, $15 into emergency fund and $10 as discretionary consumption. This would help him live a balanced life amidst investing into bitcoin and preparing for emergencies.

This is a good investment strategy to save some parts of your discretionary income for discretionary spending. This way the person won't feel as if there investment is becoming a burden to them or too demanding. It is best to always have a backup funds and not to be too aggressive to the extent of using all your discretionary income for buying bitcoin.

[blackisbeauty]

I don't know if there's anyone that would think otherwise but such person should know that emergency situations are not bargained for but would definitely happy and sometimes when it's least expected so if someone isn't prepared for it, there's high chances of selling at lose to settle the problem.
 Therefore investors need to take it seriously so it doesn't contribute to the ruins of their investment, even though one doesn't have it ready before starting the investment, it can be built in unison with the investment.

If we are talking about emergency funds of newcomers then we have to see Hypo 13 to 15 to understand three different cases. It is important to highlight that every newbie that is coming to invest in Bitcoin doesn't necessarily is struggling to maintain emergency funds. If we look at Hypo 13 and 14 then such newcomers have emergency funds already in place because they were already investing somewhere else and they also have adequate cash to invest in Bitcoin. These people can straight away start investing in Bitcoin without worry of emergency funds and cash flow.

We have Hypo-15, which is about a person who doesn't have any investment portfolio before coming to Bitcoin and he has a task at his disposal to build his emergency funds while investing in Bitcoin.

Emergency funds case varies from person to person and need to viewed in that context.

It is no doubt that everyone as a newbie coming into Bitcoin investment are not the same. Some are coming with zero knowledge of Bitcoin and/or emergency funds, while some too must have been investing in other things such as gold or real estate or whatever, and they are coming into Bitcoin with an already existing emergency funds, so they might tend to react to setting up emergency funds differently like the ones who are just coming in without any na k up funds.

Whichever way, emergency funds are important, and must be built since it's very important. However, the fresh Bitcoin investor with zero emergency funds must ensure to start building his back up funds immediately and simultaneously alongside his investment. On the other hand, the investor who already has some built up emergency funds prior to joining Bitcoin investment might exercise some liverage and pay much attention to buying more Bitcoin and putting little amounts into his emergency funds. In all, emergency funds must be kept readily available.

[Obari]

You are right, keeping an emergency fund is important when investing in bitcoin. It is important to hold bitcoin for the long term and to form an emergency fund to accumulate bitcoin regularly. There is no way to predict when an emergency situation may arise for a person. So, some funds should be kept for that period so that one does not have to sell bitcoin directly.

I don't know if there's anyone that would think otherwise but such person should know that emergency situations are not bargained for but would definitely happy and sometimes when it's least expected so if someone isn't prepared for it, there's high chances of selling at lose to settle the problem.
 Therefore investors need to take it seriously so it doesn't contribute to the ruins of their investment, even though one doesn't have it ready before starting the investment, it can be built in unison with the investment.

A lot of people don't take the emergency funds serious and that's one things that's supposed to be taken very serious because without it, there are always high possibilities of investors touching their investment but in situations where the investor has a very good budget for their emergency funds, there wouldn't be any reason for the investor to touch their investment and that's will make such an investor hold their coin for a much more longer time.

I have said it before that, for someone who doesn't even have an emergency funds and wants to go into the industry, instead of wanting to wait to get an emergency fund gathered, I would rather prefer that you save your emergency funds in bitcoin so you can be on a safer side.

[JayJuanGee]

[edited out]

For a person who has a certain job and a fixed amount of money is deposited in his account at the end of the month, it may be a good idea to prepare an emergency fund equal to at least three months of basic expenses, but for those whose income is not consistent or who do not have a job guarantee, you have to think differently. For example, a freelancer, a freelancer's income is not fixed, sometimes he earns a lot and sometimes he does not have any work, so if these freelancers want to invest, they will need to have a different plan for preparing an emergency fund.
A different plan means that when they have more money, they will deposit a relatively larger amount as an emergency fund, so that this emergency fund will be of great use to them at that time when they have less work.

In regards to the example that you gave above, I doubt that it is accurate to describe the saved up funds as emergency funds, even though sure in your example, the "emergency funds" that you mentioned are intended for anticipated expenses that are likely to take place in the time before the next paycheck arrives, and sure there could be some uncertainties in regards to when the date for when the next pay check might end up arriving, and even the nature of the expenses might have some routine and expected expenses and some expenses that go beyond expectations - that may well even include both needs and wants, but they are not really "emergency" expenses because they are largely known, even though the exact amounts might not be known.  The money saved for such anticipated expenses seem to fit in the category of float or maybe reserve funds or maybe just designated anticipated expenses, yet at the same time, many of us likely realize if we do not really know the scope or the timeline for the expenses, then we likely would end up erroring on the side of the worst case scenario (meaning having to keep more cash) rather than the best case scenario. and yeah, of course, if we know that we have potentially other ways to either bring in more money or to cut some expenses, then we may well be able to keep a smaller amount of funds available for the anticipated expenses.

And yes, the investor should always try to continue investing with his discretionary income. Because when an investor tries to invest consistently with his discretionary income, he will be able to continue that investment consistently for a long time without additional stress.

Of course, your example describes greater potential complexities than the mere suggestion to invest within the confines of discretionary funds.

[edited out]

You are right, keeping an emergency fund is important when investing in bitcoin. It is important to hold bitcoin for the long term and to form an emergency fund to accumulate bitcoin regularly. There is no way to predict when an emergency situation may arise for a person. So, some funds should be kept for that period so that one does not have to sell bitcoin directly. Suppose a person has been accumulating bitcoin every week from his discretionary income for the last 4 years and his plan is to extend this period. Then if his income suddenly stops then it will take time for him to create a new income source. So that his necessary expenses can be met during that time, it is good to keep a fund equal to 3 to 6 months of expenses aside which creates a positive effect in investing in bitcoin.

Holy shit ruykeri. You really think that there are very many cases that it might be appropriate and/or reasonable to keep 6 months of back up funds?  even if a person had spent 4 years accumulating bitcoin, as your above example describes, you really think that there would be very many normal situations in which holding onto 6 months of cash (presumptively measured by expenses) would be a reasonable idea?

In this thread, we frequently talk about getting up to 3 months of expenses, which also causes me some potential concerns that guys might be holding onto too much cash in light of whatever amount of BTC and/or other investment that they had been able to build up. .so surely I am having trouble imagining too many situations in which guys might have had built their bitcoin up so much to justify holding 6 months of cash, especially after merely 4 years of investment, unless he frontloaded his bitcoin investment or he might have had other ways to invest in bitcoin in large amounts within his first 4 years of investing.

I am not proclaiming that frontloading abilities do not exist, yet I believe that it is safer to presume that newbies to bitcoin are tending to be in the ballpark of being able to invest 5% to 25% of their income in bitcoin, and surely the safer presumption is in the ballpark of 10%, which means that by 4 years, at best normal guys would have had invested somewhere in the ballpark of 40% to 50% of their income into bitcoin.. which still seems problematic to justifying that such guy would be holding much more than 3-4 months of cash, perhaps some of that emergency funds and some of that reserve funds.. .and you are proclaiming that they might be justified in holding up to 6 months of their expenses in cash?

I also think that a big advantage of backup funds is that it puts an investor in a good financial position to maintain his plan during market volatility. Because if the necessary money was invested, then naturally that investor would not be able to control himself when he saw the price of bitcoin falling. Because there are many necessary needs involved in his investment in bitcoin.

O.k.  I usually tend to think about back up funds as a form of insurance that gives us options if our income goes down and/or if our expenses go up, yet you seem to think that back up funds are to help guys out in cases that BTC prices might go down.  You are implying buying bitcoin with the extra money rather than just covering shortages in cashflow, which also might be part of the reason why you believe that there is value in holding onto 6 months of expenses in cash, so you can buy bitcoin with it?  Your whole post seems to have confusing motivations and confusing justifications.

I don't know if there's anyone that would think otherwise but such person should know that emergency situations are not bargained for but would definitely happy and sometimes when it's least expected so if someone isn't prepared for it, there's high chances of selling at lose to settle the problem.
 Therefore investors need to take it seriously so it doesn't contribute to the ruins of their investment, even though one doesn't have it ready before starting the investment, it can be built in unison with the investment.

If we are talking about emergency funds of newcomers then we have to see Hypo 13 to 15 to understand three different cases. It is important to highlight that every newbie that is coming to invest in Bitcoin doesn't necessarily is struggling to maintain emergency funds. If we look at Hypo 13 and 14 then such newcomers have emergency funds already in place because they were already investing somewhere else and they also have adequate cash to invest in Bitcoin. These people can straight away start investing in Bitcoin without worry of emergency funds and cash flow.

We have Hypo-15, which is about a person who doesn't have any investment portfolio before coming to Bitcoin and he has a task at his disposal to build his emergency funds while investing in Bitcoin.

Emergency funds case varies from person to person and need to viewed in that context.

I appreciate that you are grappling with the various Hypothetical examples, since they can be very helpful for guys to attempt to understand how various investing approaches might play out depending on whether guys are aggressive or not and also depending on how much financial resources that any guy might be able to muster up.

If you are referring to the hypotheticals, as a courtesy to other members, you should provide the link so that they can easily find your reference.

Your statement is contradictory to what is needed to start investing in bitcoin, since isn’t mandatory for a newbie to have discretionary income before they can start investing in bitcoin, so what is required for a brand new investor to start investing in bitcoin, what is required to start investing in bitcoin is a discretionary income, so if you’re saying this here, then you’re going to be misleading newbies here with your statement, considering your rank I will assume you’ve been investing and buying bitcoin, if I may ask when you started investing in bitcoin did you start your investment outside your discretionary income ?, because if you did invest outside your discretionary incomes, by investing with money meant for your expenses then that is a huge blunder you’re making, and you might end up buying selling like a trader.

What if someone doesn't have disposable income When needs arise, how can we meet the basic necessities of life with our families such as kitchen utensils which can't be postponed Meanwhile my friend said that for beginner investors, if they follow the previous question, they don't need or are required to have disposable income. I completely agree with your answer, my friend. The answer doesn't align with what is being discussed, especially since what you said is not in our opinion.

How can someone facilitate their Bitcoin investment without disposable income I was also surprised after understanding what they said, when they sentenced beginner investors not to need such funds. The main reason for protecting investments is simply having these funds as something that can save investments that are sometimes only recently accumulated through DCA.

Please what is disposable income?.. if you mean discretionary income please use it instead of disposable income,

Disposable and discretionary income are the same thing.  There is no need for us to quibble about how guys use those terms, since they are used interchangably in financial discussion circles.

it doesn’t make sense and you used it repeatedly. The rest of your reply is just all over the place, no direction for someone to pinpoint what you’re saying.
For Clarity sake; Discretionary income is simply the money left over after sorting your essential needs and it is from this remnant you invest, save (backups) and discretionary spend. You don’t use the discretionary money to sort out basic necessities.

That part is true.  Basic needs are sorted out first, and what is left over is discretionary income (or it can also be called disposable income).

Discretionary/disposable income can be used to invest, save (create back up funds such as emergency funds and/or reserve funds) and/or discretionarily spend, and yeah, of course if a person does not have sufficient discretionary/disposable income (funds), then he cannot invest, since if he used non-discretionary money then he would be using money that he needs for basic expenses which would be non-discretionary funds or non-disposable funds.

[LogitechMouse]

Getting money is one of the easiest things because you can always work,
---

Easy🤔?? In my perspective the opportunities for every human being regarding money making is different. Maybe it is easy for someone who already has money and opportunities and also the government supporting its people because in my country people can work hard and still struggle to save some amount because the average expense is approximately PKR 2500 to PKR 3500 per day ($8 to $12 USD) while the average income of a person is from pkr Rs1000 to Rs 1540 per day ($4.50 to $5.50 USD) . So in this type of scenarios people are just struggle for survival for them investment is like climbing a mountain.

Well, what he said might be true to some, but we  know that it differs from person to person.

It might be easy for some because they're at their prime years meaning they're at the 20's, 30's and even 40's so it's easier for them since they can still work perfectly fine. On the flip side, the older ones have a harder time getting or making money because some might have some illnesses already, or some might have frail body, or for whatever reason it is.

In the scenario that you shared, I don't live there obviously, but I'm thinking of some ways for anybody out there to have a better lifestyle. You said that the average expense is higher than the average income, right? You have some options like:
1. Find a better source of income that would give you a higher daily income than your daily expenses. This is much easier if you have a skill.
2. Find a way to lessen your average expense. Take note that this is just an average expense so some have either higher or lower.
3. Go to another country and work there.

Obviously, these are just options, and if you will ask me, I think the 2nd one is more doable because you can always find ways to lessen your expense, but the first is easier especially if you have a skill that you can use to leverage yourself. Overall, it's hard, but not impossible.

[UpTober]

[edited out]

For a person who has a certain job and a fixed amount of money is deposited in his account at the end of the month, it may be a good idea to prepare an emergency fund equal to at least three months of basic expenses, but for those whose income is not consistent or who do not have a job guarantee, you have to think differently. For example, a freelancer, a freelancer's income is not fixed, sometimes he earns a lot and sometimes he does not have any work, so if these freelancers want to invest, they will need to have a different plan for preparing an emergency fund.
A different plan means that when they have more money, they will deposit a relatively larger amount as an emergency fund, so that this emergency fund will be of great use to them at that time when they have less work.

In regards to the example that you gave above, I doubt that it is accurate to describe the saved up funds as emergency funds, even though sure in your example, the "emergency funds" that you mentioned are intended for anticipated expenses that are likely to take place in the time before the next paycheck arrives, and sure there could be some uncertainties in regards to when the date for when the next pay check might end up arriving, and even the nature of the expenses might have some routine and expected expenses and some expenses that go beyond expectations - that may well even include both needs and wants, but they are not really "emergency" expenses because they are largely known, even though the exact amounts might not be known.  The money saved for such anticipated expenses seem to fit in the category of float or maybe reserve funds or maybe just designated anticipated expenses, yet at the same time, many of us likely realize if we do not really know the scope or the timeline for the expenses, then we likely would end up erroring on the side of the worst case scenario (meaning having to keep more cash) rather than the best case scenario. and yeah, of course, if we know that we have potentially other ways to either bring in more money or to cut some expenses, then we may well be able to keep a smaller amount of funds available for the anticipated expenses.

I agree with the difference you have highlighted between emergency fund and expected expenses. Maybe I could not explain these things fully in the previous post. As I said, a freelancer's income is irregular, so he needs to save more money in advance, especially to meet his necessary expenses such as house rent, children's tuition fees, his own expenses or medical expenses and some unexpected needs beyond that. I probably called the money that will be saved for these as an emergency fund, but it will not actually be an emergency fund, rather it can be considered as a reserve fund for expected expenses, prepared in advance to meet these needs.

Freelancer's payment is uncertain, but the expenses that I mentioned are known to them, so when they get enough money, freelancers can consider and keep a reserve fund ready for expected expenses.

Those whose income is irregular, especially the freelancers I mentioned in the example, often have a lot of work pressure, as a result of which they get a few months of income in a month and sometimes they have no work, so they have to adjust. For example, to meet the necessary expenses, they can keep a fund ready for expected expenses and they can keep a fund aside for some unexpected expenses.

Now if we discuss the investment of these people with irregular income, the first thing that comes to my mind is that they should follow the direct dca investment strategy. Since their income is irregular, they have to consider an amount that will not be a pressure for them or the amount they decide to invest and they can easily continue it. In addition to investing consistently, if the investor keeps a strong emergency fund ready, then his investment will definitely continue and any major financial need they can meet from that emergency fund.

[JayJuanGee]

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This depends on the investor and how he plans to live his life in order meet his accumulation objective. That is why an investor can just divide his discretionary income into investment funds and protective funds since his basic needs are already taken care of before arriving at the discretionary income. This pattern will make more money available for investing and will cut down spending on frivolities.

This does not mean that the investor is not taking good care of himself, he is already doing that by setting aside funds for basic needs which cover things like food medicine, utilities, and others that are compulsory for comfortable living.

You are lying to yourself @Odohu, if you believe that you can cut out all non-compulsory costs (and perhaps you are also lying to others if you are proclaiming it to be realistic for other guys to cut all non-compulsory costs).  

It seems to me that you (and each other guy) have (has) to allocate some portion of discretionary funds towards discretionary consumption.. and if you say that you are not going to allocate any to discretionary funds on an ongoing, persistent and consistent basis, then I will call you a liar.. even if you are a monk.  In other words, it would be quite difficult, if not impossible to keep all discretionary consumption at or near zero.

By the way, you can still be a miser and/or keep your discretionary consumption quite low, but zero allocation to discretionary consumption on an ongoing basis is not realistic.

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I agree with the difference you have highlighted between emergency fund and expected expenses. Maybe I could not explain these things fully in the previous post. As I said, a freelancer's income is irregular, so he needs to save more money in advance, especially to meet his necessary expenses such as house rent, children's tuition fees, his own expenses or medical expenses and some unexpected needs beyond that. I probably called the money that will be saved for these as an emergency fund, but it will not actually be an emergency fund, rather it can be considered as a reserve fund for expected expenses, prepared in advance to meet these needs.

Freelancer's payment is uncertain, but the expenses that I mentioned are known to them, so when they get enough money, freelancers can consider and keep a reserve fund ready for expected expenses.

Those whose income is irregular, especially the freelancers I mentioned in the example, often have a lot of work pressure, as a result of which they get a few months of income in a month and sometimes they have no work, so they have to adjust. For example, to meet the necessary expenses, they can keep a fund ready for expected expenses and they can keep a fund aside for some unexpected expenses.

Now if we discuss the investment of these people with irregular income, the first thing that comes to my mind is that they should follow the direct dca investment strategy. Since their income is irregular, they have to consider an amount that will not be a pressure for them or the amount they decide to invest and they can easily continue it. In addition to investing consistently, if the investor keeps a strong emergency fund ready, then his investment will definitely continue and any major financial need they can meet from that emergency fund.

Each guy has to figure for himself, the extent to which he is able to buy bitcoin every week if he has income that is irregular, and so there surely can be stress in managing money and making sure that he is not investing beyond his discretionary funds.

There are no guarantees that he will be successful, even if he does everything perfectly, yet each guy is still in charge to figure out how much balance he believes that he needs and how much he believes that he is able to invest in bitcoin in light of whenever he expects that his next paycheck might come and the extent to which his paychecks might have irregularities in their amount and/or their timing.