Why you should use spare money to invest

[Litzki1990]

Why would we invest the amount of loss we cannot bear?  Each of us should invest according to our specific ability. We have no ability to invest but only because of greed of money we invest by borrowing from others or taking loan from bank or by selling house then that investment will never bring us any benefit. Because if the market goes down due to market swings then the money that was invested by taking a loan or selling the house will be lost and I don't think anyone can accept this loss. So one should invest with that amount of money without which life will go well.

[YUriy1991]

It seems very realistic but, using small money will be worth the expected results. Business is business and it highlights financial readiness especially in trading apart from advice for beginners. If someone is logged in and invests in this space, that thirst will just keep coming back and fueling you to buy more and this is where emotions arise and get out of control.

[Smack That Ace]

what I am doing now is gradually buying land for old age investment because land investment will not lose and grow rapidly. it all depends on the investment finance management that we need to be able to produce, I always use crypto investment income for various budget needs. the older we get, we have to be wise in managing money to avoid what we don't want before it's too late

It is a better investment if you have a large enough amount to invest in real estate, as it is the most valuable asset. I agree with you, investing in the land will not lose, but it will not be profitable quickly, and it takes a long time to be profitable. That is also the reason many people who do not have much money and do not want to wait too long when investing in real estate have chosen cryptocurrencies and bitcoin.
In short, investing with idle money or borrowing money depends on each person's circumstances. But to succeed, we need to have a plan and a backup plan for every scenario.

[Dr.Bitcoin_Strange]

Why would we invest the amount of loss we cannot bear?  Each of us should invest according to our specific ability. We have no ability to invest but only because of greed of money

We? Not we, but some people do so, and the possible reason why someone will invest what they can't afford to lose is because they totally lack some Bitcoin investment education. It's true that Bitcoin may not have any serious written or unwritten investment rules, but if someone truly understands the technology, they will know how to invest their funds in a way that it will not affect their financial life or put them in financial pressure to sell off when the market is red. So I guess that the number one reason why people invest an amount that can chock them up when the price is down is because they lack the knowledge to do so, followed by their greed to make a quick profit.

we invest by borrowing from others or taking loan from bank or by selling house then that investment will never bring us any benefit. Because if the market goes down due to market swings then the money that was invested by taking a loan or selling the house will be lost and I don't think anyone can accept this loss. So one should invest with that amount of money without which life will go well.

Is a typical risk to do so, but I have read in this forum and also witnessed a few cases outside the forum, where people borrowed to invest and got some profit at the end of their investment period, while in the other case, some people borrowed and sold some properties to invest and did not make any profit at the end, because they sold so quick. Some people are still in the process of holding the Bitcoin they bought with the loan they took. So, what I am just saying is that it profited some people but did not for others too.

[southerngentuk]

Investments should be made with idle, surplus money that you can afford to lose without significant negative consequences for your financial situation. Using idle or unallocated money for essential expenses is a conservative approach to investing. In addition, it is also necessary to prioritize financial stability and security when considering investment because investment is always risky and there is no guarantee of profit. So remember the saying that investing is a long-term game and patience is key; you must take your risks, set realistic expectations, and make informed investment decisions based on research and thorough understanding.

[justdimin]

Potential for Growth,Building Wealth,Beating Inflation,Diversification,Retirement Planning,Funding Goals and Dreams.
that why we should spare our money to invest.

Yes that's right. So if we talk about investment, of course, our income must be greater than expenses, meaning that there are indeed more funds that can be invested. the key is not to use mediocre money to invest, especially with debt because if we are already using debt, it means that it is not an investment, actually the aspect is more speculative, the first short term is too risky.

if you want to invest, we have to talk about financial conditions that must be healthy first, of course, income must be greater, indeed, there are already emergency funds set aside. then also other things that are already available in advance including protection. The rest we can make spare money. The meaning of reserve money is settling money that is owned in the long term, this money is not used for living needs for at least the next five years. The suggestion is, create a scenario where you get a salary at the beginning of each month, you are used to setting aside funds for savings every month, you place the remaining funds at the end of the month in an investment instrument because you think these funds will not be used, that is reserve money.

Depends on the investment, even apple (which has tens of billions of dollars worth of cash) gets loans to build stuff. Because that means they have to pay less taxes, considering how big their investments are and how much investment they make, I think it is obvious to say that if they take out a loan that would make it a lot better for them for tax reasons, the tax they will pay drops higher than the interest rate they will pay on that loan.

That's just one example but basically it is obvious that if we do end up with anything that is big or small like that, I think it would be something that is profitable for all of us and should be considered as a good thing. I believe that we can have something like that made for all of us in a short while if we figure out how to.

[carlisle1]

Investments should be made with idle, surplus money that you can afford to lose without significant negative consequences for your financial situation. Using idle or unallocated money for essential expenses is a conservative approach to investing. In addition, it is also necessary to prioritize financial stability and security when considering investment because investment is always risky and there is no guarantee of profit. So remember the saying that investing is a long-term game and patience is key; you must take your risks, set realistic expectations, and make informed investment decisions based on research and thorough understanding.

Good point, taking steps in investing should be accompanied by good knowledge with line of business that you will going to involve yourself,
even it's an idle or spare money, consider it as a hard earned saving.

By doing your research gives you that good edge to anticipate the potential of your chosen assets. It's your good judgement that will lead you to success,

always find time to work with the industry that you'll going to invest, finding ways to grow your spare money will help you a lot
if you succeed in choosing the right and fit investment for you.

[irsykes]

what I am doing now is gradually buying land for old age investment because land investment will not lose and grow rapidly. it all depends on the investment finance management that we need to be able to produce, I always use crypto investment income for various budget needs. the older we get, we have to be wise in managing money to avoid what we don't want before it's too late

It is a better investment if you have a large enough amount to invest in real estate, as it is the most valuable asset. I agree with you, investing in the land will not lose, but it will not be profitable quickly, and it takes a long time to be profitable. That is also the reason many people who do not have much money and do not want to wait too long when investing in real estate have chosen cryptocurrencies and bitcoin.
In short, investing with idle money or borrowing money depends on each person's circumstances. But to succeed, we need to have a plan and a backup plan for every scenario.

I have a dream in my old age not to be a burden on my children or generations and to have enough land for my old age activities, the lesson from my parents is to own this real estate, it is better to prepare it now before it arrives. yes, maybe now people's views are still normal, I'm sure from time to time there will be a large increase in the human population, making it difficult for land to adjust. and crypto will be an important material for my generation and continue for efficient ways to use, invest or save and other things

[flyingcarpet]

There is no normal being that loves getting losses on business, career, investment and trades that's why even company holders make financial policies to keep record of investment and profits flows. And unlike other business bitcoin also makes sales and losses if you do not investment wisely....is nice when you put in what can not put you sickbed or gives you hypertension, don't invest out of what you cannot withstand the loss.

Is better to use small money or learn risk management first before investing especially newbies.

It may be more accurate to trade with demo accounts and learn the market. Everyone has an amount to risk. These risks increase over time. That's why you can't find out how much you're really risking before you enter the market. Sometimes risk management is learned by making a loss in the market. It is important that these damages do not cause major damage.

If you are very novice, you can get information about the market by watching someone else. In this way, you can learn market mechanics without any loss.

[killerfrost]

Using idle money to invest will make you feel less anxious than using money every day or borrowing because, even if you lose it, you still have the money you earn from work. But I encourage you to do it if you are unsure of your knowledge of this market. While you may be comfortable losing that investment, it's a waste of money. Instead, it is better to do some research before spending a small amount or maybe using the beginner coins at some exchanges.

[lienfaye]

Is better to use small money or learn risk management first before investing especially newbies.

It's important to educate ourselves first about the investment that we'll be entering in. This is to have a better understanding and that includes risk management and the amount of capital to use. Because if you have idea on the nature of what you're getting into, you'll know the best thing to do in order to minimize the possibility of facing losses.

It doesn't matter if the progress is slow as long as you're doing it right (trying demo, using small capital and learning through experience). Because if you already have deeper knowledge then chances to gain are getting bigger since you already know the do's and don'ts to avoid losses when you invest your money. Of course using spare money is always better, even you didn't profit it's not hard to accept it since the money you use is the amount that you can live without.

[slapper]

Is better to use small money or learn risk management first before investing especially newbies.

It's important to educate ourselves first about the investment that we'll be entering in. This is to have a better understanding and that includes risk management and the amount of capital to use. Because if you have idea on the nature of what you're getting into, you'll know the best thing to do in order to minimize the possibility of facing losses.

It doesn't matter if the progress is slow as long as you're doing it right (trying demo, using small capital and learning through experience). Because if you already have deeper knowledge then chances to gain are getting bigger since you already know the do's and don'ts to avoid losses when you invest your money. Of course using spare money is always better, even you didn't profit it's not hard to accept it since the money you use is the amount that you can live without.

You hit the nail on the head about the importance of educating oneself before diving headfirst into the ocean of investment. I'm 100% on board with that, just like I'm 100% sure that pizza is the best food ever. Knowledge and risk management go hand in hand like peanut butter and jelly. The more we know, the better we can navigate the tumultuous waves of the financial sea.

However, I'd play the skeptic card here and argue that not all experiences are good teachers. You might lose half your capital in a risky trade and learn a valuable lesson, but hey, you've still lost half your capital. It's like learning not to touch a hot stove by burning your hand - sure, you've learned something, but at what cost?

It's indeed tempting to throw caution to the wind and use more than just spare money when the promise of big gains is dangling in front of us like a shiny lure. But like you said, keeping investments within our risk tolerance is crucial. It's like ordering dessert - you might really want that extra slice of cheesecake, but can your waistline afford it?

[karmamiu]

In any investment or even gambling, it is best to use your spare money which is different from your savings and your emergency money since anythinf can happen and you will just think of that money as for entertainment purpose only. That means it is the amount in which intended for throwing, it also means if that amount lost, you won't have a hard time accepting such losses.

One thing I commonly noticed about investment and gambling is that, people used to expect too much out of it. That also means the thing called "EXPECTATION", is the one responsible why people always be tempted to greed.

[mamesso]

Is better to use small money or learn risk management first before investing especially newbies.

Volatility can create profit opportunities if you want to invest in Cryptocurrency, if you want to invest in Bitcoin, you must manage your finances wisely. That is the reason why you must use money you can afford to lose or your investment portfolio must be diversified. Normally loss in business, career and investment is a valuable lesson for mental formation to achieve success.
It takes patience to win, that's why it's so important to manage risk, you have to set aside some money for your personal needs or to pay for your daily needs. If a position moves against the tide, you still have some spare cash to fund investment if needed.

[DrBeer]

The answer is extremely simple:
1. Money lying around without movement loses its value.
2. Investments are an opportunity to receive additional income in the future, which may be much higher than pension and social benefits.
3. Your investments are new companies, new workplaces, more taxes in the state budget

Investments are the development of both the economy and the strengthening of your financial position in the future!

[awik p]

The main step before investing is to fulfill daily living needs, so if it's safe, then we look at our savings as a backup if something happens so we can move quickly to handle it. after that, if both have been fulfilled, we can budget funds for investment, these funds are truly idle funds, which need to be developed rather than losing value if stored, because of the growth rate of inflation from time to time. This way of thinking aims so that in investing we can be calm in facing obstacles as long as fluctuations occur

[KiaKia]

We use spare money to invest into crypto because

1. Crypto is a risky investment, and it's highly volatile.

2. We can lose access to the assets because of hacks or our mistakes.

3. Something bad can happen to any crypto project at any time.

Everything crypto is too risky to be fully comfortable about, that's why using spare money is the best way to handle crypto investment, some people are out of crypto today because of the risks.

[Wend]

Most people agree with OP's point and what OP said is absolutely true. But I really doubt that too many people will do that because we all have greed, and everyone wants to get rich quickly. I still believe many people are supporting the OP, but they are doing the opposite, they are still using their savings and emergency money to invest in bitcoin because they crave wealth. To be honest, to do that is not easy at all, it seems easy to say, but escaping the temptation of money is very difficult.

[Inwestour]

Most people agree with OP's point and what OP said is absolutely true. But I really doubt that too many people will do that because we all have greed, and everyone wants to get rich quickly. I still believe many people are supporting the OP, but they are doing the opposite, they are still using their savings and emergency money to invest in bitcoin because they crave wealth. To be honest, to do that is not easy at all, it seems easy to say, but escaping the temptation of money is very difficult.

It's very simple, if the money is just lies in a safe, then they will lose their purchasing power, this is the worst option that you can choose for your capital.

Investing makes it possible to increase capital and achieve financial independence, probably everyone would like to achieve this, but this will not happen if the money just lies in a safe. Of course, to make successful investments, you need certain knowledge, but no one said that this would be easy to achieve, you need to work hard to achieve wealth.

[Pierre 2]

It is sad truth that millions of people are working towards saving money to buy unnecessary things like 100s of clothes/dresses. 50s shoes etc. They can't realize they could buy their future life if they use their savings towards investments. Many stock markets are in very cheap prices right now around the world. Bitcoin is also fairly cheap in my opinion. Why would someone save money to not use it at all? People should not worry about potential losses through investment. You can have new lessons anytime you waste money.