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It would not be reasonable to reduce our food expenses at all. However, there are some food expenses that we can reduce, such as eating extra restaurant meals. It is necessary to reduce this expense because. If we cook at home with the same amount of money as we eat at a restaurant, we can eat for three days, so to reduce the extra expense, we have to reduce our eating at a restaurant. There are many other expenses that we definitely need to reduce and hope for, such as smoking, drinking, showing off and increasing the amount of expenses with others, etc. All such expenses need to be reduced and hope for. We should not always look at high-income people or rich people, but we need to look at people with lower incomes than us.
A friend of mine works and he earns a good amount of money every month, he does not have to pay any money for his house or family expenses from the money he earns. He spends the entire amount of his income and even then he has some amount of debt at the end of the month. He always spends extra and hangs out with people with higher incomes than himself. His spending increases even more as he moves in parallel with them.
These are judgement calls. Sometimes hanging around with people with higher income, there might be opportunities for higher paying jobs, yet I also understand that you are suggesting that your friend's hanging out with higher income people causes him to live beyond his means.. which surely I can understand that some folks do end up spending way more than they otherwise would have based on their exercising bad judgement in regards to goods and services that they believe that they need yet those goods and services might not be causing them to be able to increase their income..and they are ONLY getting the negatives of the increased and unnecessary expenses.
By the way, I recall when I had first left home, I had tended to have a car, and so cars tend to be fairly expensive items, yet frequently my co-workers would buy new cars and put themselves in debt, and I tended to buy used cars that were in the ballpark of 5-8 years old, so they would operate fairly well, yet they would not cost as much, I could pay for them in cash, and I did not have to make car payments for 3-5 years like they were doing. I did not end up buying a new car until after around 25 years after I had moved out of my parents house.. haha.. but then once I bought new cars, I thought that I should have had done this earlier.. even though by the time I started to buy new cars, my income had gone up around 5x more than i had been making 25 years earlier.. so I was in a way better income situation and I felt some kind of a justification for my starting to drive relatively new cars (and even nice cars).. which I have been doing ever since.
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.....Great investor should always have liquid emergency fund available with at least 3-6 months of living expenses before investing in Bitcoin....
That is retarded to build up emergency funds (or back up funds) to that level of "at least 3-6 months" prior to getting started investing in bitcoin, unless you already happen to have that level of emergency funds in place when you first start to consider investing into bitcoin, and if that were to be the case, it may well be a better approach for someone with that level of back up funds and absolutely no bitcoin, the invest good portions of those back up funds, perhaps half into bitcoin. Of course, it is a judgement call in regards to how to treat a situation in which a person is sitting on so much "non-working" cash and no bitcoin.. and surely it could be the case that other aspects of that person's income and/or expenses might need to be taken into account and also considerations in regards to how long it had taken for the person to build up their back up funds to that level prior to getting involved with bitcoin.
Some investors that understand BTC investment very well, they will not try to invest what they cannot afford to lose in BTC, because they know that BTC investment is different from other investment in real life. But when you invest what you can afford to lose in BTC that is when you will begin to see some boldness in you to hodl until you confirm that if you release your BTC you are going to earn massive profits from the market.
Never you invest all your money in BTC, because BTC movement will make you understand that this is a decentralized asset that is not control by the government or presidents in the world. But the movement of BTC depends on buyers and sellers in the general market, which is the reason people prefer to store their money on decentralized asset.
Strategies like invest only that you can afford to lose are reserved only for Shit coins. In case of Bitcoin, we must try to invest as much as we can because the chances of getting good profit exceeds the chances of getting loss. For that, one need to develop a mindset that Bitcoin is an asset that can give good return in the long run because without developing that mindset its not possible to get profit from Bitcoin. Once you have that kind of mindset with you, then you can invest aggressively in Bitcoin.
The general idea of not investing any more than you can afford to lose applies to bitcoin as it does to trading and to shitcoins.
Of course, I would not recommend trading or investing in shitcoins, except maybe at more 10% of the size of the bitcoin holdings for those guys who are unable to resist their gambling and emotional FOMO tendencies regarding trading and/or shitcoins.
It seems best for newbies to start out investing in bitcoin fairly conservatively and not too aggressively until getting used to the process of how to buy and hold bitcoin and also making sure that there is a sufficient comfort level in regards to the strength of the cashflow management systems/practices including the back up funds that are built up in such cashflow management practices.
Even though we also might want to build up to investing into bitcoin as aggressively as we are able to do without overdoing it, we still have to be careful that we don't overdo it, since bitcoin's price tends to be quite volatile and can be volatile for extended periods of time, and we likely are in a better position while we are relatively new in accumulating bitcoin to be trying to put systems in place and to maintain systems that allow us to buy bitcoin every week no matter the price, even though surely we might also choose to vary our buy amounts, yet we likely want to try to mostly be buying bitcoin regularly, persistently, consistently, ongoingly and perhaps even aggressively, so long as our overall cashflows support such ongoing aggressive buying of bitcoin... and also from time to time, besides bitcoin investing we do sometimes need to save space for putting some of our discretionary funds into our back up funds and we also likely have some ongoing needs (wants) to be engaging in some discretionary consumption, too.
Actually throwing all of your discretionary income isn't as realistic as it might seem, even for veteran investors they still know that they have other things that they might want to spend their discretionary income on, for newbies even more so, they are new so putting everything into bitcoin investment would be very difficult, they are still learning to trust bitcoin which means they will most likely not be willing to trust bitcoin with all of their discretionary income, plus there is the need to set up their backup funds and if they are investing everything they won't have any for their backup funds, I personally won't advise anyone to invest all of their discretionary income when accumulating bitcoin.
Middle of the road approach always beats out blind aggressiveness in my opinion. Great investor should always have liquid emergency fund available with at least 3-6 months of living expenses before investing in Bitcoin. After creating that safety cushion, it is time to automate portion of additional income with consistent DCA strategy. This way, you can live life in comfort, have some protection from unexpected, and also can reasonably hold onto Bitcoin in long term without worrying about your finances.
An emergency fund protects an investor from being forced to sell. But having an emergency fund at the beginning of an investment is not mandatory. While it is a good idea to have an emergency fund of for several moths 3-6, this rule is not the same for everyone.
For some, it can be more. It depends on the person’s income, expenses, family responsibilities etc. And it can take a year or more for a person to build an emergency fund. It is foolish to wait that long to build an emergency fund just because they already have discretionary income. If someone has discretionary income after expenses, they can divide that money as they wish. Some in an emergency fund and some in Bitcoin savings. This will help them start early and build an emergency fund gradually to avoid being forced to sell.
I have difficulties imagining too many situations where newbie no coiners and/or low coiner guys need even close 6 months worth of back up funds and even more than 6 months seems like a total waste of ongoing depreciating garbage that would be quite difficult to maintain it at those kinds of high levels... and seems a bit retarded to even be attempting to do so... except maybe for unserious folks who are busy worshiping the dollar and don't come close to understanding the value and importance of a sound money like bitcoin.
But hey, whatever, people do dumb shit and have troubles figuring out how to prioritize ongoing, regular and persistent bitcoin accumulation.
How is DCA passive income?
Do you know DCA well at all?
DCA itself is not a source of income, rather DCA is an investment method. We do not get income from DCA, but rather we invest by deducting expenses from our income and following the DCA method with investable money. Apart from DCA, there are other investment methods, but since DCA averages our purchase price over the long term and provides the opportunity to invest small amounts, it is a very popular method, but it is not a source of income.
Yeahhhh..... I agree DCA (Dollar-Cost Averaging) is not a source of income or a means of passive income, it is essentially a risk management investment strategy.
From my experience, I have seen that lump-sum investments in highly volatile markets like Bitcoin are quite risky. DCA keeps us away from those emotional decisions (FOMO) and averages out the market fluctuations over the long term.
There are different paths to passive income, such as staking or lending, but DCA is a disciplined approach to building wealth while preserving capital.
Weather an investor is DCAing, or buying in lump sum what matters most is that you do all of these with your discretionary income or according to your financial means or capacity. If you’re DCAing with the money meant for sorting other basic needs then you’re probably putting your investment in a risk by such a gamble. And again if you’re doing lump sum out of your financial capacity without also being able to sort out your basic financial needs then you’re putting your investment in a risk . Generally bitcoin investment is not a risk free investment due to its volatility so which ever strategy you invest with, it is very important you do so with a discretionary income of yours according to your financial muscle in such a way that the money will be the cash you won’t be needing anytime soon.
Good, you are correct it's not actually matter weather one should invest at once ot gradually the main point is, investing through dollar cost Average DCA with a readily discretionaryincome....I saw a something today that got me develop more intrest on Dollar-Cost Averaging seriously like I was so curious. Like six years of DCA to reach 10 BTC says more about discipline than timing. The hard part now is custody, liquidity planning, and not letting one milestone turn into unnecessary risk. This is really and intresting one. Indeed DCA is the best bitcoin strategy to approach.
Source:
https://x.com/BitcoinMagazine/status/2057474376694366272Sure, 6 years in the past a guy might have had been able to accumulate 10 BTC by front loading his bitcoin investment, and perhaps buying more than $600 per week in the earlier years of investing such in 2020... and maybe if he got some raises too.
Even if a guy were to invest $600 per week in the next 10 years, he would invest around $300k into bitcoin and he may well be lucky to get more than 2 bitcoin if you believe that bitcoin might be able to retain an average cost of less than $150k in the next 10 years, and I surely have my doubts about bitcoin staying that low in the next 10-ish years.
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If your income source is more irregular or unstable, then you can save up to 12-13 months of expenses in the emergency fund based on that, and you can also prepare other backup funds strongly. Because, there is some risk with your income source which you need to be strong prepared to bear. In this case, you need to adopt a defensive investment strategy.
I have trouble understanding too many situations in which anyone who is of working age is going to be expecting to be out of work for 12-13 months or more.. or to be having such emergencies.. Sure.. there could be examples, but it seems ridiculous to be keeping that much cash around even if calamity is expected... but hey, guys have to prepare for what they reasonably believe to be realistic amounts, and others do not necessarily need to agree with them.. and they will be making the mistakes if they are fucking around or using poor judgement with too much or too little in their back up funds.
Having an in-depth knowledge of Bitcoin is not needed to start your investment and even the little knowledge needed might be important but is not a reason enough to not invest. Waiting to learn is a delay and can be costly. For your information learning how to send and receive doesn't take time, it can be learned easily and can even be understood with our common sense so it's also not a necessity and it's not a reason to delay. All the things are things that can be learned later after investing.
I learnt from Sir JayJuanGee that an investor doesn't necessarily need basic knowledge to start but common sense should let the person know that what the mostly need to start an investment is their discretionary funds and once the person has got it figured they can start buying and from the practical experience the person understand the investment better.
Basic knowledge is important too cause with that an investor can know how to buy/ where to buy from and how the investment can be stored properly cause knowing the right way to store an investment is very important too. Waiting to learn isn't only delay but wasted opportunities cause the person would have missed several dips which are buying opportunities before she/he might have learnt it all.
I doubt that any of us should be rushing to get into bitcoin based on FOMO considerations, yet each of us comes to bitcoin with various already existing experience, skills and knowledge, and if we are able to assess that we have discretionary funds, then we can get started investing in bitcoin, yet there may be various points along the way that we recognize and appreciate that we don't know what we don't know, and we may well have to start out slowly, even if we might have had identified some exchange in which we might want to use to source our initial purchases, whether we are intending to buy $100 per week, $10 per week or some other amount, and even after we get started, if we are identifying areas that we feel that we need to spend time learning about, then it is up to us to figure that out, and perhaps even to figure out how to spend some time to learn about those kinds of matters. There can be people who are busy with work, family and even a variety of other matters and projects, so they might have to purposefully figure out how to change their priorities around so that they can learn more about bitcoin and/or perhaps learn more about their cashflow management situation and whether they might need to make adjustments to it in accordance with their needs to protect their bitcoin investment, whether they continue their ongoing bitcoin buys to continue or not.
The answers and/or the motivations to learn about bitcoin and/or cashflow management might not be apparent from the beginning, yet there are many bitcoin newbies who fail/refuse to either understand what they are investing into and/or they fail/refuse to understand and appreciate the value in building up back up funds and/or protecting their bitcoin investment, even with understandings that bitcoin tends to be quite liquid and quite volatile which further justifies the bulding and the maintenance of back up funds.
So, yeah, if newbies have trouble figuring out relevant aspects in regards to how investing and trading are different and coming to the realization that bitcoin should be a 4-10 year or longer investment, then they may well end up making mistakes of selling too much too soon and/or failing/refusing to sufficiently accumulate it so that they can build their bitcoin holdings to a sufficient quantity and even perhaps figuring out that there is value to prioritizing bitcoin and trying to get it to overaccumulation status.
So newbie investors may or may not end up learning what they need to learn about bitcoin, cashflow management and/or other important attributes of bitcoin and they will have to suffer the consequences for their failure/refusal to deploy sufficient and/or adequate due diligence in regards to bitcoin related matters.
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Bitcoin does not offer any guaranteed result, because its common knowledge to anyone that Bitcoin is volatile asset and this is how the risky part what people need to consider. Since any wrong decisions they made will result to losses.
But what good thing about Bitcoin is this coin is good to be held for long term. Because for many years Bitcoin always have an impressive run, those good runs it get usually give good rewards to those investors choose to HODL their Bitcoin. Also Bitcoin potential didn't stop there, because there's chance that we could see more pumps in future. Although again there's no guarantee that it will happen in future, but if they are willing to risk and have good discipline maybe they can also get great rewards same with those people from the past which trust the greatness of Bitcoin.
Yep there are a lot of bitcoin newbies who cannot even make it through a whole bitcoin cycle because maybe they end up selling too much too soon, or stopping their bitcoin accumulation because they do not understand the asset that they had gotten into (namely bitcoin)... and that is up to each person to figure out both what he has got, how to continue to ongoingly accumulate it and how to make sure to be able to hold onto any new purchases for 4-10 years or longer.. and yeah, there may be needs to figure out how to valuate their bitcoin holdings too, and I am a pretty big fan of valuating bitcoin by its bottom prices, like
the 200-WMA.
