JJG’s Outline of Bitcoin Investment Ideas

[Cossyblack]

For those who are really disciplined, they can actually do without emergency funds, at least they know how their funds will be corrected. The other way round, I feel like everything still depends on themself, but even then I still suggest you have an emergency fund.
 

There is no different from what you re doing and gambling because when you accumulate bitcoin without making provision for your emergency fund you are actually gambling with your portfolio. Emergency could happen at anytime and when it happens  and you don't have an emergency fund in place to protect your investment, you will be forced to sell your investment to sort out the unexpected expenses at your neck. So don't feel like because you are a discipline person, therefore you can control your emotions not to sell your investment when an emergency's happen which is not true because no matter how disciplined you are, you won't be able to think correctly or concentrate on your investment while you have an emergencies at your doorstep knocking, you will surely sell your bitcoin investment prematurely to sort out the unexpected expenses.

[UpTober]

Sometimes it's not just about poor orientation or any of them being misled, but it may be that the newbie investor is doing what I call ITK, which is "I too know" when they knows nothing. Such types of people believe that common sense can help them figure out everything the right way all the time, without knowing that they are just trying to fuck themselves up by applying common sense on everything.

An inform investor knows that Bitcoin accumulation and putting down your backup funds in place is done simultaneously, not by pay more attention to one and neglecting the other.

So are you saying that common sense does not work, even though I agree with you point that both Bitcoin stacking and building a back up funds done at a go, I still think that common sense can apply here as long as it works, I was not expecting anyone to criticize common sense when it comes to anything especially in Bitcoin investment, I'm very sure that you understand why almost everyone here kick against creating an emergency funds before starting Bitcoin investment journey proper, it is not that it is bad, but the reason is that, the energy that will be channeled in having your emergency funds first can as well be channelled to doing the two concurrently which is using one stone to kill two birds, instead of preparing to safeguard what you don't have.

I feel you can't just take away common sense when it comes to Bitcoin investment or investment in general.
Reason because everybody didn’t really know everything about Bitcoin before they started investing, including I myself, with the little knowledge I had then plus common sense, I was able to divide my finance into different segments and then invest into Bitcoin, rightly.
And also even without a pro Bit coiner telling a beginner, common sense will let him know that he shouldn't start building emergency funds first before he/she start investing in bitcoin. That he/she can literally build both emergency funds along with his/her Bitcoin investment.

One's common sense can play a good role in making investment decisions. The role of common sense here does not mean that the investor has to have a complete idea about the investment first, but rather if the investor can distinguish some common issues or take the right decision by considering the overall issues, it is important.

First, we have to understand our financial limitations and I think our common sense here will help us understand these financial limitations quite well. In many cases, we think that an emergency fund is mandatory for investing or it is not possible to invest in any way without an emergency fund, that is, we consider emergency funds as a competitor to investment, but in reality, this is not the case. Investment and emergency fund formation depend on the income of the person and its proper management, now if an investor has a stable source of income, then he can continue his investment at the same time as he can prepare an emergency fund.  But for those who do not have much money left after meeting their basic needs, there is actually no need to take so much pressure with an emergency fund. Rather, if they have some discretionary income left after meeting all their basic expenses, then they should start with a part of that discretionary income.

The prerequisite for investing is not that we have to first ensure an emergency fund and then invest, but rather the prerequisite for investing should be that the amount of money we are investing is beyond all basic expenses.

[Gravitypull$]

People should stop using lack of emergency fund as an excuse to delay their investment. Such an excuse is baseless since they can build both their emergency fund and bitcoin investment simultaneously by splitting their discretionary income in half. One half can be used for investing while the other half can be use for building their emergency fund.

Dividing your discretionary income into two and forgetting about your discretionary consumption doesn't make sense to me because for how long will you stay without discretionary consumption when you're on a long term journey. You don't need to deprive yourself from your discretionary consumption just because you're investing into bitcoin because bitcoin investment is to build wealth for yourself in a way that it wouldn't stress yourself financially and not punishment to deprive yourself from some of your wants.

It's impossible and doesn't look real that a long term bitcoin investor will stay without discretionary consume all through his investment journey. Your discretionary income should be divided into three parts. 1) for investing, 2)for savings and 3)discretionary consume.

[Ashawowo(OS)]

But if you do not yet have an emergency fund and your income is irregular, it may be reasonable to temporarily focus on building an emergency fund. Setting the same ratio for both now will ignore their real financial differences.

For how long do you think it's proper to focus on building emergency fund and leave out your bitcoin investment?
I don't find it very efficient to focus only on your emergency fund and not consider your investment for the said period of time. You can always focus on the two, even if you've decided to leave out discretionary consumption based on your own financial situation.

If your definition of temporary is a year, then you would've missed out on buying bitcoin for a whole year despite having discretionary income just because your finances is irregular. That's not ideal. You should still divide it and keep adding to your portfolio no matter how little, even though you've decided to give your emergency fund more priority than bitcoin investment which I don't still find very ideal.

[BluebloodCXVI]

A person may or may not have basic financial reasoning when he gets started buying bitcoin, yet hopefully, his common sense would help him to arrive at the conclusion to invest less into bitcoin  if there might be basic areas that the person is lacking in knowledge, skills and/or experiences.

I think that’s a reasonable way to look at it.
A person doesn’t necessarily have to know everything first before getting started in investing, but they should at least recognise what they don’t know and let that be a guide for them to decide how much that they are willing to put into bitcoin.

There’s nothing wrong with a person learning as they go, provided that  they’re not exposing themselves to more risk than they can be able handle because having interest in an investment and knowing how much that you’re reasonably prepared to commit are two different things.