Does the DCA strategy inspire newbies to invest?

[Marvelockg]

But in the case of unstable or irregular sources of income, it may be wise to focus on backup funds based on instability. 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.

What you said seems completely imaginary. In reality, if a person saves the amount of emergency fund up to 12-13 months of expenses, how much time will he have to spend or he may not be able to create all the other funds while creating an emergency fund. For a person, creating an emergency fund equal to 3 months of expenses is enough, but if a person wants to keep more than this, then he can do so. But after creating an emergency fund, he can create all the other funds so that he does not depend only on the emergency fund.

The better way to deal with this and avoid unnecessary procrastination is to divide your income into different portions. A portion goes into your investment, another portion goes into your emergency fund and another goes into your daily expenses. That way, you don't need to wait too long before getting started in your investment all because you're trying to build your emergency fund first.

Regardless of the kind of job you're doing, it's not too deficult factoring in an aspect of your income that goes into these three areas. All you need do is plan well and follow your plans with proper action because that's the only way you can effectively DCA even when your income isn't too perfect.

[Sim_card]

The better way to deal with this and avoid unnecessary procrastination is to divide your income into different portions. A portion goes into your investment, another portion goes into your emergency fund and another goes into your daily expenses. That way, you don't need to wait too long before getting started in your investment all because you're trying to build your emergency fund first.

Regardless of the kind of job you're doing, it's not too deficult factoring in an aspect of your income that goes into these three areas. All you need do is plan well and follow your plans with proper action because that's the only way you can effectively DCA even when your income isn't too perfect.

You don't need to divide your income into three parts as you mentioned because you need to first take care of your weekly needs and expenses before you can figure out which amount is leftover and how much from it you want to use to buy bitcoin regularly through DCA that wouldn't be stressful to you.

It's your discretionary income that you must use to invest in bitcoin and to build up your backup funds. If you haven't taken care of your basic needs and weekly expenses, you decide to share your money into three parts what if the amount that you allocated into buying bitcoin is bigger than your discretionary income, it means that you're doing it the wrong way because if you buy bitcoin and your needs arises, you will sell at loss if bitcoin price is below your entry point.

As brand new investor it's good that you start your bitcoin investment with the right amount of money and continue to build and grow your bitcoin investment overtime and at the same time learn a good cash inflow management to enable you use the right amount of money for the right purpose so that you don't depreciate your bitcoin portfolio by your actions.

[Agathamay]

I find investors using the DCA strategy invest for the long term.
Special Considerations Should Beginners Follow the DCA Method for Bitcoin Investments? What Can Be the Outcome -Future

be you a newbie or a pro investor, as it stands now, the DCA method is one strategy for holding that has proven itself to be efficient for buying and holding of bitcoin especially while considering how much the price of bitcoin have grown over the years making it almost impossible for a newbie to afford a whole bitcoin and that is where the DCA technique comes in, because it allows investor buy bitcoin at any given time without considering the market price or the amount the investor  intend buying as long as it is a consistent process.

[Brizi5000]

But in the case of unstable or irregular sources of income, it may be wise to focus on backup funds based on instability. 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.

What you said seems completely imaginary. In reality, if a person saves the amount of emergency fund up to 12-13 months of expenses, how much time will he have to spend or he may not be able to create all the other funds while creating an emergency fund. For a person, creating an emergency fund equal to 3 months of expenses is enough, but if a person wants to keep more than this, then he can do so. But after creating an emergency fund, he can create all the other funds so that he does not depend only on the emergency fund.

The better way to deal with this and avoid unnecessary procrastination is to divide your income into different portions. A portion goes into your investment, another portion goes into your emergency fund and another goes into your daily expenses. That way, you don't need to wait too long before getting started in your investment all because you're trying to build your emergency fund first.

Regardless of the kind of job you're doing, it's not too deficult factoring in an aspect of your income that goes into these three areas. All you need do is plan well and follow your plans with proper action because that's the only way you can effectively DCA even when your income isn't too perfect.

Don’t you think that it will be somehow difficult to solve this mathematics of dividing income and allocating each part to basic expenses, emergency funds  bitcoin accumulation and investment because the income you are to use for bitcoin investment is a discretionary income and this discretionary income can only be realized after we finished sorting out our basic needs and sometimes we cannot really determine the amount of cash our basic needs will consume perfectly because this basic needs usually increase in prices due to the unstable economic situation of our country where by you can get some groceries for food today in a shop for a particular price and you can come back the next week for such item they will tell you the price is no longer the same as of what you bought previously. In this case you might be left stranded because you have already allocated your funds to each functions, which may prompt you to go back to the one you used in buying bitcoin and sell your holding very early to get money to complete for the food which may now prove detrimental to your long term investment goal because you’ve sold too early and sometimes due to high volatility you may even sell at a loss which is very bad.

Personally I think the best thing to do here when you receive income is to first focus on sorting out the basic needs then any money left with you after doing that should be the one to use in allocating for bitcoin investment and emergency funds and any other non essential needs.

[Odohu]

But in the case of unstable or irregular sources of income, it may be wise to focus on backup funds based on instability. 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.

What you said seems completely imaginary. In reality, if a person saves the amount of emergency fund up to 12-13 months of expenses, how much time will he have to spend or he may not be able to create all the other funds while creating an emergency fund. For a person, creating an emergency fund equal to 3 months of expenses is enough, but if a person wants to keep more than this, then he can do so. But after creating an emergency fund, he can create all the other funds so that he does not depend only on the emergency fund.

I noticed that a lot of you are making this process complicated and that is not good. The most important aspect of this is supposed to be able to figure out the discretionary income from where the investment will be made. As soon as the discretionary income is figured out, the bulk of the work comes down to protecting the investment and that is where we have the various protective funds. It should be so easy to apply and not complicated; set up protective funds starting with emergency funds, then you can consider reserved funds and then others will follow as you continue with the investment. They must not happen at the same time which is something beautiful, so the investor have the time to set them up gradually and independently but the accumulation process must be continuous while these funds are being set up.

[JayJuanGee]

It may be better to divide our funds into three layers, such as emergency fund, reserve fund, cash fund. S

Cash fund is the same as reserve fund and/or emergency fund.

How do you consider "cash fund" to be different from "reserve fund" and/or "emergency fund?"

[edited out]

The better way to deal with this and avoid unnecessary procrastination is to divide your income into different portions. A portion goes into your investment, another portion goes into your emergency fund and another goes into your daily expenses.

How does that make sense in the order that you presented the matter and your proposed division?

You cannot invest at all until you make sure that all of your basic expenses are covered (accounted for) first... then whatever is left, after your basic expenses can be used for investing, savings (backup fund) and/or discretionary consumption.

Sure there can be inaccuracies in terms of how guys might account for needs versus wants, so frequently there can be overlap in terms of what is basic.. yet guys who are really serious about sorting out these kinds of matters could well improve upon his own expenses by making sure that he understands the differences between his own choices in regards to his needs and his wants.

By the way, if a guy has a lot of discretionary income, then he likely could be spoiled and/or sloppy in terms of his own spending choices, and surely the guys who want to prioritize bitcoin investing and maximize their bitcoin investing aggressiveness, they likely would be considering ways to better understand and sort through their needs and wants.. and, yeah, I understand that many times guys won't want to be that detailed in regards to their own spending choices, yet there are guys who may well be potentially marginally unable to invest into bitcoin, yet the ONLY way that they really are able to structure and follow through with some kind of bitcoin investing is by figuring out ways to really make sure that they are distinguishing between their needs and their wants.

That way, you don't need to wait too long before getting started in your investment all because you're trying to build your emergency fund first.

Sure.  It is true that guys do not tend to need to build their emergency funds (back up funds) prior to getting started investing into bitcoin, and many times, guys already have some practice that is in place in which they already have some back up funds, so if they add the buying of bitcoin into their weekly habit, then even if they determine that their back up funds might not be enough, they likely can figure out ways (and proportions) so that they can build both their bitcoin holdings and the quantity of their back up funds at the same time and at least in a proportion that they consider to be reasonable for their own circumstances and likely the longer and longer that they are in bitcoin, whether 4-10 years or longer or some other timeline, they will likely increasingly perceive that there is value to both building their bitcoin holdings and also strengthening how they think about back up funds and how they manage such back up funds in order to support their bitcoin holdings and other aspects of their life that will also likely improve too, so long as they are being intentional with their bitcoin investment and cashflow management practices and process.

Regardless of the kind of job you're doing, it's not too deficult factoring in an aspect of your income that goes into these three areas. All you need do is plan well and follow your plans with proper action because that's the only way you can effectively DCA even when your income isn't too perfect.

It seems to me that any guy who is considering whether he has extra money to potentially invest, save or discretionarily consume, he should be accounting for basic expenses first.. and then whatever amount is remaining after basic expenses can be dedicated towards: 1) investing, 2) savings and/or 3) discretionary consumption.

[cocadalcan]

It seems to me that any guy who is considering whether he has extra money to potentially invest, save or discretionarily consume, he should be accounting for basic expenses first.. and then whatever amount is remaining after basic expenses can be dedicated towards: 1) investing, 2) savings and/or 3) discretionary consumption.

You have given good advice. The most important thing for a person should be to make basic expenses and then buy Bitcoin from the funds that will be left. And it is a good strategy to accumulate Bitcoin through a person's discretionary income.

If the basic expenses are not done properly, long term Bitcoin investment can be hampered because if it is not met this week, it will be necessary to meet it next week. As a result of accumulating Bitcoin, the funds are arranged in a proper management and are entering a long term portfolio and that Bitcoin holding can be adopted for a cycle of 4 years and gradually another cycle and the strategy of continuing to deposit more Bitcoin and more time in accordance with the financial flow.

[Jody.Drummer]

It seems to me that any guy who is considering whether he has extra money to potentially invest, save or discretionarily consume, he should be accounting for basic expenses first.. and then whatever amount is remaining after basic expenses can be dedicated towards: 1) investing, 2) savings and/or 3) discretionary consumption.

You have given good advice. The most important thing for a person should be to make basic expenses and then buy Bitcoin from the funds that will be left. And it is a good strategy to accumulate Bitcoin through a person's discretionary income.

If the basic expenses are not done properly, long term Bitcoin investment can be hampered because if it is not met this week, it will be necessary to meet it next week. As a result of accumulating Bitcoin, the funds are arranged in a proper management and are entering a long term portfolio and that Bitcoin holding can be adopted for a cycle of 4 years and gradually another cycle and the strategy of continuing to deposit more Bitcoin and more time in accordance with the financial flow.

It is one of the right ways to meet the needs first and with the rest then used to invest but it seems better to set the amount too, because in my opinion the needs that must be met tend to be different every time but for the funds used in bitcoin it is better to be determined with certainty and not burden the needs that must be met. The inhibition of investment that occurs may be true because we do not know what our income will be like in the future but we should be able to strive for the best, so in addition to meeting our needs and investment we must pay attention to emergency funds, because it can help unexpected situations that could hinder the investment made. As the third point has been said by @JayJuanGee.