Balancing Financial security and Bitcoin Accumulation

[Grace333]

2. Make use of the 50/30/20 allocation rule: 50% of your income allocation should go to taking care of essential expenses and immediate needs. The mistake people often make is neglecting this aspect, forgetting that it is actually inevitable and unavoidable, even when you manage to avoid it today, it'll come back tomorrow bigger, and you'll be forced to still sort them out, thereby messing up your plans. 30% goes to your discretionary income and the other 20% towards your savings and also for debt repayments.

Adopting the DCA strategy as guide was totally resourceful to me,though the 50%,30% and20% could be adjustable depending on personal priorities  at the moment,investment requires nothing but determination so that the end result  will turn out juicy,sometimes circumstances could  change the initial plan to 40%,40%,20%,this is where I totally advice investors to focus on initial decision and be determined  to survive outside the investment so that one's result wount fluctuate when others are rejoicing.

There are some problems with the division, and sure it could be possible that we could elect to have our basic expenses to be somewhere in the ballpark of 50% of our income, and once we figure out what our basic expenses, then the rest is discretionary income.

Portions of our discretionary income that we allocate towards debt servicing is not discretionary income, that is part of basic expenses.

With our discretionary income we can choose to invest (save), or consume. Each of us can figure out how much of our discretionary income we want to allocate to each of these.

Most people are not going to have 50% of their income as discretionary income, so 50% is pretty high.  many will fit somewhere in the ballpark of 10% and 30%.

Honestly, I get your point, and it makes a lot of sense because debt repayment should really be treated as a necessity and not part of discretionary spending..  But I think where many people struggle is that the whole percentage allocation Isn’t always a fixed formula that works. Life throws unexpected costs at us, maybe rent hikes, health bills, family responsibilities, and those can easily push what was once discretionary into being absorbed by basic needs..

In my opinion, the healthiest way to look at it is not strictly chasing a certain percentage, but more about building a flexible system where saving and investing become non negotiable, even if it is just 5% at first. Over time, as income grows or debts reduce, you can gradually shift more into discretionary investments. That way, you are not pressuring yourself into an unrealistic 50/30/20 type model, but you are still making progress without neglecting essentials..

[Mr_Brilliant$]

Life itself is unpredictable and as such there is need to always set aside some funds that may serve as a safety net whenever we are hit with unexpected events. So having an emergency funds is not just important for holding bitcoin since it is not only bitcoin investors that do face emergency. Both business owners do need emergency funds because whenever they are hit with unforeseen circumstances, without emergency funds they will be forced to fall back to there business. Hence emergency funds is crucial for everybody, having an emergency funds is really vital for holding bitcoin for a longer term without being pressured into selling before the anticipated timeline.

This is one of those aspects of financial planning that a lot of people overlook until they find themselves in a tight corner..  I feel like the beauty of having an emergency fund is that it gives you peace of mind, not just in terms of unexpected events but also in terms of how you relate with your investments..  Like you said, without it, there is always that temptation to liquidate assets at the wrong time simply because life decided to throw a curveball…. In fact, I would even argue that an emergency fund acts as a buffer of patience, it allows you to give your Bitcoin or any long term investment the time it truly needs to grow, without being dragged into a forced decision….  people once had solid portfolios but ended up cashing out in frustration, not because they did not believe in the investment, but because they did not have a backup plan for life’s shocks..

Another angle I will add is that emergency funds don’t just secure your investments, they also protect your mindset..  for instant when you know you have a fallback, you approach Bitcoin investments, or even your business moves with a calmer outlook, and that calmness often leads to better decisions..  The second thing i would talk about is that an emergency fund doesn’t have to be something massive before it becomes useful. Even building it up gradually, with small consistent savings, can make a world of difference when an unexpected need arises..  That way, you are not breaking your long term goals just to handle short term problems..

[Bigjoe33]

2. Make use of the 50/30/20 allocation rule: 50% of your income allocation should go to taking care of essential expenses and immediate needs. The mistake people often make is neglecting this aspect, forgetting that it is actually inevitable and unavoidable, even when you manage to avoid it today, it'll come back tomorrow bigger, and you'll be forced to still sort them out, thereby messing up your plans. 30% goes to your discretionary income and the other 20% towards your savings and also for debt repayments.

Adopting the DCA strategy as guide was totally resourceful to me,though the 50%,30% and20% could be adjustable depending on personal priorities  at the moment,investment requires nothing but determination so that the end result  will turn out juicy,sometimes circumstances could  change the initial plan to 40%,40%,20%,this is where I totally advice investors to focus on initial decision and be determined  to survive outside the investment so that one's result wount fluctuate when others are rejoicing.

There are some problems with the division, and sure it could be possible that we could elect to have our basic expenses to be somewhere in the ballpark of 50% of our income, and once we figure out what our basic expenses, then the rest is discretionary income.

Portions of our discretionary income that we allocate towards debt servicing is not discretionary income, that is part of basic expenses.

With our discretionary income we can choose to invest (save), or consume. Each of us can figure out how much of our discretionary income we want to allocate to each of these.

Most people are not going to have 50% of their income as discretionary income, so 50% is pretty high.  many will fit somewhere in the ballpark of 10% and 30%.

You are actually right and I agree with these points. Firstly, the 50%, 30% and 20% division may not work for some people due to high expenses demand and or the level of income that comes in. We know that expenses varies alot. Mr A might be spending a whole of 70% of his income on expenses while Mr B might just be needing 45, 50% or there about to clear up weekly of monthly basis needs, and offcours we know that this has a whole lot to do with how far you were able to clear or provide for previously and also the level of income that comes in weekly or monthly. However, everything boils down to your level of income. A high level of income earner can work with that division formula, not even always because at times expenses can increase as I explained earlier, while on the other hand, a low income earner will find the 50% discretionary worrisome and may not work with it comfortably.

So what really matters is getting to actually know what your expenses might be, or surely will be before the right discretionary can be discovered and allotted. And secondly, in picking out our discretionary, we shouldn't be too desperate or greedy in a bid to increase our accumulation speed over night by allocating big percentage to the discretionary income which in turns increases your accumulation without properly settling your basic needs and much needed expenses, because if this is done in any was, would hunt you within the week or month of such rash decision.

So I think individually, investors should check their possible income, determine there sure expenses and from it do there division to suit all sides and ensure peaceful living and accumulating simultaneously. It very clear that the formula that works for Mr A may not work for me

[GIF-JOBS]

If you divide your funds into three levels. For example, emergency fund, cash, reserve fund. If you divide your funds like this, then if you face such a problem, you can deal with your situation very well. Because when you need small money, you can invest money from cash if you want, if your cash does not solve the crisis, then you can use the reserve fund, in the last stage, if you cannot stabilize your situation with these two funds, then you can use the emergency fund in the last stage. If a person depends on the emergency fund for small things, then during a big financial crisis, it will become very difficult to deal with money from his emergency fund.

Many times it happens that some amount of money is needed more in a month. At that time, you can deal with these financial crises by taking money from your cash if you want. He can continue to invest with his discretionary income source.

If someone saves a large amount of cash step by step, the mindset of investing in Bitcoin can change, because it is not possible to make quick money by investing in Bitcoin, but long-term investment can be expected to yield profits. Due to excessive awareness, the mindset of taking risks with cash can be destroyed. Then you will prefer to save more cash step by step. A person can start investing in Bitcoin if he has a prudent income. In addition, an emergency fund is needed for 3 months to deal with unknown dangers so that long-term investment can be managed properly. So we need to save such an amount of cash so that the mindset of investing in Bitcoin does not change.

In Bitcoin investment what you should prioritize more as an investor is your discretionary income because that is what will be used in accumulating Bitcoin and if you don't have it, your investment won't work that means it is very vital to have or get it as an investor. There is no specific months to which you should keep an emergency funds but it is good that as you are keeping your discretionary income you are also at same time keeping your emergency funds for security reasons. I don't really know what you meant by prudent Income but I want to believe we don't need a prudent Income before we can investing, what will just need to invest is a source of income we can get a discretionary from.

Every body should know that discretionary income is really the base of any Bitcoin investment because without it, you will always feel pressured to sell when life hit.. I sha agree with you on emergency funds, it goes hand in hand, so you don’t end up touching your Bitcoin stack when urgent needs comes..

About the prudent income part, I think what some people mean by that is just being wise with whatever income you have, no matter how small…

We must be very aware in financial management, no matter how much we earn, we need to balance spending, saving and investing intelligently from within, people can consistently maintain an investment with any amount of money they want, many people think that only high-income people can invest in Bitcoin, those who think like this are definitely stuck in the wrong mindset, Bitcoin investment is for everyone, whatever your income, whatever amount you have, just keep depositing it consistently, then it will continue to grow over time, there is no need to invest a large amount of money at once for Bitcoin investment, rather consistency is the most effective strategy here.

Continue to buy consistently and create an emergency fund to protect your investment, be sure to prepare the necessary things, try to strengthen your income, and continue to deposit consistently, completely ignoring the volatility of Bitcoin, then it can bring very good results in the long run.

[gracreavix]

In Bitcoin investment what you should prioritize more as an investor is your discretionary income because that is what will be used in accumulating Bitcoin and if you don't have it, your investment won't work that means it is very vital to have or get it as an investor. There is no specific months to which you should keep an emergency funds but it is good that as you are keeping your discretionary income you are also at same time keeping your emergency funds for security reasons. I don't really know what you meant by prudent Income but I want to believe we don't need a prudent Income before we can investing, what will just need to invest is a source of income we can get a discretionary from.

Every body should know that discretionary income is really the base of any Bitcoin investment because without it, you will always feel pressured to sell when life hit.. I sha agree with you on emergency funds, it goes hand in hand, so you don’t end up touching your Bitcoin stack when urgent needs comes..

About the prudent income part, I think what some people mean by that is just being wise with whatever income you have, no matter how small…

If someone is putting money into Bitcoin without having any discretionary income, it is almost like they are setting themselves up to fail because the moment life throws them an emergency, the first thing they will do is panic and sell off their Bitcoin at the wrong time..  That is why emergency funds and discretionary income almost go hand in hand, like you said. If you have a cushion aside, you don't feel the pressure to liquidate your stack. I would even add that it’s not just about emergencies, sometimes opportunities come up in life, and if you have no spare funds (separate allocation), you’ll be forced to touch your Bitcoin…. Having those safety net gives you peace of mind to truly hold long term..

On the prudent income part, I agree with your view. It doesn’t matter how small your earnings are, what counts is how wisely you allocate them. Even someone earning little can still grow a Bitcoin position if they are disciplined with their spending and consistent with DCA.  A rich guy wasting half of his income will end up worse than a poor man who is careful and intentional with his..  To me, being prudent also means not trying to overexpose yourself, don’t put everything in Bitcoin out of desperation, but also don’t neglect it entirely.. It’s all balance and discipline.

[Joeboy]

In Bitcoin investment what you should prioritize more as an investor is your discretionary income because that is what will be used in accumulating Bitcoin and if you don't have it, your investment won't work that means it is very vital to have or get it as an investor. There is no specific months to which you should keep an emergency funds but it is good that as you are keeping your discretionary income you are also at same time keeping your emergency funds for security reasons. I don't really know what you meant by prudent Income but I want to believe we don't need a prudent Income before we can investing, what will just need to invest is a source of income we can get a discretionary from.

Every body should know that discretionary income is really the base of any Bitcoin investment because without it, you will always feel pressured to sell when life hit.. I sha agree with you on emergency funds, it goes hand in hand, so you don’t end up touching your Bitcoin stack when urgent needs comes..

About the prudent income part, I think what some people mean by that is just being wise with whatever income you have, no matter how small…

If someone is putting money into Bitcoin without having any discretionary income, it is almost like they are setting themselves up to fail because the moment life throws them an emergency, the first thing they will do is panic and sell off their Bitcoin at the wrong time..  That is why emergency funds and discretionary income almost go hand in hand, like you said. If you have a cushion aside, you don't feel the pressure to liquidate your stack. I would even add that it’s not just about emergencies, sometimes opportunities come up in life, and if you have no spare funds (separate allocation), you’ll be forced to touch your Bitcoin…. Having those safety net gives you peace of mind to truly hold long term..

On the prudent income part, I agree with your view. It doesn’t matter how small your earnings are, what counts is how wisely you allocate them. Even someone earning little can still grow a Bitcoin position if they are disciplined with their spending and consistent with DCA.  A rich guy wasting half of his income will end up worse than a poor man who is careful and intentional with his..  To me, being prudent also means not trying to overexpose yourself, don’t put everything in Bitcoin out of desperation, but also don’t neglect it entirely.. It’s all balance and discipline.

You are mixing up Discretionary Income with Emergency Funds. This two things are different and they serve different purposes.....

1) Discretionary income is that extra money that's left after settling yourr basic needs and responsibilities, like food, rent, transportation, children school fees, etc. And because it is that extra money, you can choose whatever you want to do with it, you can  spend it on expensive lifestyle, clothing, or even take the wiser approach and invest it in an assets liike Bitcoin. In order to have your peace of mind the wiser approach is to invest in Bitcoin using yourr discretionary income and not your emergency funds.

2) Emergency Funds on the other hand are those  savings that an investoor keepss aside only for unexpected problems,  like hospital bills, urgent family needs etc...... This money is not meant for investment, it is simply  meant to protect you so you don’t run into panic or selling off your Bitcoin investment when life takes an unexpected turn of event for you.

[yixichloro2xx]

We must be very aware in financial management, no matter how much we earn, we need to balance spending, saving and investing intelligently from within, people can consistently maintain an investment with any amount of money they want, many people think that only high-income people can invest in Bitcoin, those who think like this are definitely stuck in the wrong mindset, Bitcoin investment is for everyone, whatever your income, whatever amount you have, just keep depositing it consistently, then it will continue to grow over time, there is no need to invest a large amount of money at once for Bitcoin investment, rather consistency is the most effective strategy here.

Continue to buy consistently and create an emergency fund to protect your investment, be sure to prepare the necessary things, try to strengthen your income, and continue to deposit consistently, completely ignoring the volatility of Bitcoin, then it can bring very good results in the long run.

The biggest mistake people make is believing that investing in Bitcoin is reserved for those with big money, when in reality it is the opposite. Bitcoin was designed so that anyone, no matter their income level, can participate and build wealth gradually. What really matters is consistency and discipline, not the size of each purchase. Even small, regular deposits over time can turn into something meaningful when combined with Bitcoin’s long term growth.

If anything, the smarter path is to focus on balance. Spending wisely, saving for emergencies, and using discretionary income to stack Bitcoin creates a safety net that protects the investment from being sold in difficult times. Ignoring short term volatility and staying consistent ensures that the habit of accumulation becomes stronger than emotions. Over time, that combination of discipline and patience is what separates successful long term investors from those who give up too early.

[Gost ms]

There are some problems with the division, and sure it could be possible that we could elect to have our basic expenses to be somewhere in the ballpark of 50% of our income, and once we figure out what our basic expenses, then the rest is discretionary income.

Portions of our discretionary income that we allocate towards debt servicing is not discretionary income, that is part of basic expenses.

With our discretionary income we can choose to invest (save), or consume. Each of us can figure out how much of our discretionary income we want to allocate to each of these.

Most people are not going to have 50% of their income as discretionary income, so 50% is pretty high.  many will fit somewhere in the ballpark of 10% and 30%.

You are actually right and I agree with these points. Firstly, the 50%, 30% and 20% division may not work for some people due to high expenses demand and or the level of income that comes in. We know that expenses varies alot. Mr A might be spending a whole of 70% of his income on expenses while Mr B might just be needing 45, 50% or there about to clear up weekly of monthly basis needs, and offcours we know that this has a whole lot to do with how far you were able to clear or provide for previously and also the level of income that comes in weekly or monthly. However, everything boils down to your level of income. A high level of income earner can work with that division formula, not even always because at times expenses can increase as I explained earlier, while on the other hand, a low income earner will find the 50% discretionary worrisome and may not work with it comfortably.

So what really matters is getting to actually know what your expenses might be, or surely will be before the right discretionary can be discovered and allotted. And secondly, in picking out our discretionary, we shouldn't be too desperate or greedy in a bid to increase our accumulation speed over night by allocating big percentage to the discretionary income which in turns increases your accumulation without properly settling your basic needs and much needed expenses, because if this is done in any was, would hunt you within the week or month of such rash decision.

So I think individually, investors should check their possible income, determine there sure expenses and from it do there division to suit all sides and ensure peaceful living and accumulating simultaneously. It very clear that the formula that works for Mr A may not work for me

A person's discretionary income is calculated based on his expenses. For example, if a person's expenses are much higher than his income, then he will never be able to earn discretionary income. It is very important for a person to have proper financial management. If a person keeps 50% of his income as discretionary income, then it will never be a right decision. He has to calculate his discretionary income based on his expenses. If a person spends 70% of his basic income and if he keeps 50% of his income as discretionary income, then how will he meet the 20% of his expenses.

The amount of money left after the amount of expenses of a person is discretionary income. There are many people whose expenses are very low, their discretionary income is very high, while there are many people whose expenses are very high, their discretionary income is very low. It is very important for a person to reduce his excess expenses. For example, eating out at restaurants, etc. There are many types of excess expenses that need to be reduced.

[Cryptokuus]

.If a person keeps 50% of his income as discretionary income, then it will never be a right decision

This really depends on the person expenses,if the person has a low expenses I don't think if it is wrong to keep 50% of one income as discretionary income. If a person that has low expenses after attending to all his needs may have more than 50 % of his income remaining and this is the person discretionary income. To say that is not a right decision doesn't sound proper since what determine one discretionary income is the person expenses.

[JayJuanGee]

.If a person keeps 50% of his income as discretionary income, then it will never be a right decision

This really depends on the person expenses,if the person has a low expenses I don't think if it is wrong to keep 50% of one income as discretionary income. If a person that has low expenses after attending to all his needs may have more than 50 % of his income remaining and this is the person discretionary income. To say that is not a right decision doesn't sound proper since what determine one discretionary income is the person expenses.

Presumptively if one is reasonably establishing his basic expenses, then there is no discretion in regards to what is discretionary income, since whatever income is left over after basic expenses is discretionary income.

Sure some folks mis-assign some of their expenses as basic, when those expenses are in fact discretionary.... and I am not even proclaiming that the line is clear in regards to which expenses are basic and which expenses are discretionary... yet the idea is that if the expenses are basic, then we might not have much of a choice, such as our rent our our car payments or our utilities or our transportation costs, even though we might know certain ways that we could save money, even within our basic expenses.. ye t some of the basic expenses would take more time to cut than others, and some of the basic expenses are actually better not to cut so that we can improve our health and well-being, since it might be better that we live in a comfortable and safe place that is close to where we work, rather than living in a place that might be much less expensive, but maybe not safe or close to our work or even comfortable in terms of size and/or other modern features that might help us to be more productive.  We can buy quality food that does not cost much or low quality food, and sure there are various combinations in regards to the kind of food that we are able to buy , and we can attempt to plan around our food selection choices.

So yeah, we know that discretionary income can be increased by increasing income and/or cutting expenses, and once we establish our discretionary income we can do whatever we like with such discretionary income.. that is why it is called discretionary income, yet the three categories in which we can do whatever we like fit into 1) consume, 2) save and/or 3) invest.

The percentage of cost per expenses and/or what is left over (discretionary income) might be a little bit beyond our control in great ways, and it might take some time to figure out ways to increase it, in the event we wanted to be able to put more aside for investing into bitcoin or maybe to make sure that our back up funds are sufficiently large in order to give us a cash cushion in case we make mistakes or in case our expenses as compared with our income.

I am responding to these posts in the first place, since it seems that some members seem to misunderstand the order of choices, since we do not just choose our discretionary income, even though we choose the kind of work that we do and the kinds of things that we buy, yet some of those income and expense matters are not very flexible, so we should still be thinking about choices within discretionary income once it is established each month (or each pay period) rather than presuming that we choose the discretionary income first, which is a wrong way of thinking about discretionary income.. or even discretionary funds that we might have available to us. 

Discretionary income is a flow of income coming to us after our expenses, and discretionary funds can be money taken from any place or just money that we have available that is available for us to do whatever we like in terms of consume, save or invest, since it does not need to be used to cover basic living expenses.

[Nightwatchmare]

In Bitcoin investment what you should prioritize more as an investor is your discretionary income because that is what will be used in accumulating Bitcoin and if you don't have it, your investment won't work that means it is very vital to have or get it as an investor. There is no specific months to which you should keep an emergency funds but it is good that as you are keeping your discretionary income you are also at same time keeping your emergency funds for security reasons. I don't really know what you meant by prudent Income but I want to believe we don't need a prudent Income before we can investing, what will just need to invest is a source of income we can get a discretionary from.

Every body should know that discretionary income is really the base of any Bitcoin investment because without it, you will always feel pressured to sell when life hit.. I sha agree with you on emergency funds, it goes hand in hand, so you don’t end up touching your Bitcoin stack when urgent needs comes..

About the prudent income part, I think what some people mean by that is just being wise with whatever income you have, no matter how small…

If someone is putting money into Bitcoin without having any discretionary income, it is almost like they are setting themselves up to fail because the moment life throws them an emergency, the first thing they will do is panic and sell off their Bitcoin at the wrong time..  That is why emergency funds and discretionary income almost go hand in hand, like you said. If you have a cushion aside, you don't feel the pressure to liquidate your stack. I would even add that it’s not just about emergencies, sometimes opportunities come up in life, and if you have no spare funds (separate allocation), you’ll be forced to touch your Bitcoin…. Having those safety net gives you peace of mind to truly hold long term..

It has been proven that we can only succeed in holding our Bitcoin investment for a very long time if we use discretionary income to invest in Bitcoin. So if there are investors that are not using discretionary income to invest in Bitcoin, they won't succeed with Bitcoin investment because it's obvious they are using the money meant for their expenses to invest in Bitcoin, and they will surely sell their Bitcoin too early to solve their expenses. That's why it's advisable for every investor to prioritise using discretionary income to invest in Bitcoin so that we can always take care of expenses and free ourselves from being under pressure to Bitcoin for a very long time.

[DubemIfedigbo001]

There are some problems with the division, and sure it could be possible that we could elect to have our basic expenses to be somewhere in the ballpark of 50% of our income, and once we figure out what our basic expenses, then the rest is discretionary income.

Portions of our discretionary income that we allocate towards debt servicing is not discretionary income, that is part of basic expenses.

With our discretionary income we can choose to invest (save), or consume. Each of us can figure out how much of our discretionary income we want to allocate to each of these.

Most people are not going to have 50% of their income as discretionary income, so 50% is pretty high.  many will fit somewhere in the ballpark of 10% and 30%.

So what really matters is getting to actually know what your expenses might be, or surely will be before the right discretionary can be discovered and allotted. And secondly, in picking out our discretionary, we shouldn't be too desperate or greedy in a bid to increase our accumulation speed over night by allocating big percentage to the discretionary income which in turns increases your accumulation without properly settling your basic needs and much needed expenses, because if this is done in any was, would hunt you within the week or month of such rash decision.

One thing I've found to be very effective and advantageous in cashflow management is being able to project what your expenses would take out of your total income. If you cannot calculate your expenses before the funds come around, then you might not be able to utilize the funds properly. Being able to carve out a definite budget for your expenses would give you a clearer insight into what might be remaining as your discretionary income which you'll find easier to allocate it into accumulating Bitcoin and building out backup funds without any skepticism that you've used the money meant for your expenses for accumulating Bitcoin.

Another good point is that while projecting our expenses, we should have a clear classification of pending expenses into needs and wants. Every need should be considered but not all wants, some wants can be shifted to be handled by the next income to give you more leverage and not overburdening yourself to attending to many less important things at once thereby shooting your expenses budget so high unnecessarily.

[Umulala-alala]

In Bitcoin investment what you should prioritize more as an investor is your discretionary income because that is what will be used in accumulating Bitcoin and if you don't have it, your investment won't work that means it is very vital to have or get it as an investor. There is no specific months to which you should keep an emergency funds but it is good that as you are keeping your discretionary income you are also at same time keeping your emergency funds for security reasons. I don't really know what you meant by prudent Income but I want to believe we don't need a prudent Income before we can investing, what will just need to invest is a source of income we can get a discretionary from.

Every body should know that discretionary income is really the base of any Bitcoin investment because without it, you will always feel pressured to sell when life hit.. I sha agree with you on emergency funds, it goes hand in hand, so you don’t end up touching your Bitcoin stack when urgent needs comes..

About the prudent income part, I think what some people mean by that is just being wise with whatever income you have, no matter how small…

If someone is putting money into Bitcoin without having any discretionary income, it is almost like they are setting themselves up to fail because the moment life throws them an emergency, the first thing they will do is panic and sell off their Bitcoin at the wrong time..  That is why emergency funds and discretionary income almost go hand in hand, like you said. If you have a cushion aside, you don't feel the pressure to liquidate your stack. I would even add that it’s not just about emergencies, sometimes opportunities come up in life, and if you have no spare funds (separate allocation), you’ll be forced to touch your Bitcoin…. Having those safety net gives you peace of mind to truly hold long term..

It has been proven that we can only succeed in holding our Bitcoin investment for a very long time if we use discretionary income to invest in Bitcoin. So if there are investors that are not using discretionary income to invest in Bitcoin, they won't succeed with Bitcoin investment because it's obvious they are using the money meant for their expenses to invest in Bitcoin, and they will surely sell their Bitcoin too early to solve their expenses. That's why it's advisable for every investor to prioritise using discretionary income to invest in Bitcoin so that we can always take care of expenses and free ourselves from being under pressure to Bitcoin for a very long time.

This is true those who invest in bitcoin without using their discretionary income is only gambling with their investment because bitcoin investment is not like other investment that you will invest now and expect profit soon, it is a long term investment so using your discretionary income is the right approach so you won't feel bad if things didn't turn out as you expected.

[Olatundespo]

In Bitcoin investment what you should prioritize more as an investor is your discretionary income because that is what will be used in accumulating Bitcoin and if you don't have it, your investment won't work that means it is very vital to have or get it as an investor. There is no specific months to which you should keep an emergency funds but it is good that as you are keeping your discretionary income you are also at same time keeping your emergency funds for security reasons. I don't really know what you meant by prudent Income but I want to believe we don't need a prudent Income before we can investing, what will just need to invest is a source of income we can get a discretionary from.

Every body should know that discretionary income is really the base of any Bitcoin investment because without it, you will always feel pressured to sell when life hit.. I sha agree with you on emergency funds, it goes hand in hand, so you don’t end up touching your Bitcoin stack when urgent needs comes..

About the prudent income part, I think what some people mean by that is just being wise with whatever income you have, no matter how small…

If someone is putting money into Bitcoin without having any discretionary income, it is almost like they are setting themselves up to fail because the moment life throws them an emergency, the first thing they will do is panic and sell off their Bitcoin at the wrong time..  That is why emergency funds and discretionary income almost go hand in hand, like you said. If you have a cushion aside, you don't feel the pressure to liquidate your stack. I would even add that it’s not just about emergencies, sometimes opportunities come up in life, and if you have no spare funds (separate allocation), you’ll be forced to touch your Bitcoin…. Having those safety net gives you peace of mind to truly hold long term..

It has been proven that we can only succeed in holding our Bitcoin investment for a very long time if we use discretionary income to invest in Bitcoin. So if there are investors that are not using discretionary income to invest in Bitcoin, they won't succeed with Bitcoin investment because it's obvious they are using the money meant for their expenses to invest in Bitcoin, and they will surely sell their Bitcoin too early to solve their expenses. That's why it's advisable for every investor to prioritise using discretionary income to invest in Bitcoin so that we can always take care of expenses and free ourselves from being under pressure to Bitcoin for a very long time.

You can use discretionary income to accumulate Bitcoin and floating cash to invest during bearish periods. Although investment and accumulation are used in the same sense, there is a slight difference between them. In one sense, consistent accumulation comes from your consistent income but when you consider investment, it refers to a lump sum buy. Those who do not have the ability to buy Bitcoin at a time can continue Bitcoin through discretionary income. This is a simple strategy for them and is equally effective for the wealthy. This is why the DCA strategy for Bitcoin accumulation is very simple and effective for long term. The term accumulation refers to a small amount that gradually increases in size when we consider it as an investment and an investor with a small income can build a large investment stack of Bitcoin by accumulating a small amount of Bitcoin.

[Creeper0]

You can use discretionary income to accumulate Bitcoin and floating cash to invest during bearish periods. Although investment and accumulation are used in the same sense, there is a slight difference between them. In one sense, consistent accumulation comes from your consistent income but when you consider investment, it refers to a lump sum buy. Those who do not have the ability to buy Bitcoin at a time can continue Bitcoin through discretionary income. This is a simple strategy for them and is equally effective for the wealthy. This is why the DCA strategy for Bitcoin accumulation is very simple and effective for long term. The term accumulation refers to a small amount that gradually increases in size when we consider it as an investment and an investor with a small income can build a large investment stack of Bitcoin by accumulating a small amount of Bitcoin.

Are you talking about waiting for a bear market? Saving and investing in Bitcoin are the same thing. When you consider it from the perspective of Bitcoin, it is saving, because the number of Bitcoins will not increase. But when you consider it from the perspective of money, it is investing. Because your money has the potential to increase and decrease. Saving is that, the amount of which does not increase or decrease. Investment is that, where you have the potential to make a profit and lose.

Whether you buy in large quantities or small quantities, buy continuously or buy at once, you can call it investment or saving. Continuous (DCA) buying or one-time buying, both are investment strategies. Now you have to decide which strategy is better for you to invest in, from my point of view, investing in the DCA strategy may be the best plan. We should not wait at all to buy in the bear market, keep buying continuously and try to be aggressive in investing based on your ability. Be it a bear market or a bull market. There is nothing wrong with buying in a bear market, but waiting is wrong.

[GIF-JOBS]

In Bitcoin investment what you should prioritize more as an investor is your discretionary income because that is what will be used in accumulating Bitcoin and if you don't have it, your investment won't work that means it is very vital to have or get it as an investor. There is no specific months to which you should keep an emergency funds but it is good that as you are keeping your discretionary income you are also at same time keeping your emergency funds for security reasons. I don't really know what you meant by prudent Income but I want to believe we don't need a prudent Income before we can investing, what will just need to invest is a source of income we can get a discretionary from.

Every body should know that discretionary income is really the base of any Bitcoin investment because without it, you will always feel pressured to sell when life hit.. I sha agree with you on emergency funds, it goes hand in hand, so you don’t end up touching your Bitcoin stack when urgent needs comes..

About the prudent income part, I think what some people mean by that is just being wise with whatever income you have, no matter how small…

If someone is putting money into Bitcoin without having any discretionary income, it is almost like they are setting themselves up to fail because the moment life throws them an emergency, the first thing they will do is panic and sell off their Bitcoin at the wrong time..  That is why emergency funds and discretionary income almost go hand in hand, like you said. If you have a cushion aside, you don't feel the pressure to liquidate your stack. I would even add that it’s not just about emergencies, sometimes opportunities come up in life, and if you have no spare funds (separate allocation), you’ll be forced to touch your Bitcoin…. Having those safety net gives you peace of mind to truly hold long term..

It has been proven that we can only succeed in holding our Bitcoin investment for a very long time if we use discretionary income to invest in Bitcoin. So if there are investors that are not using discretionary income to invest in Bitcoin, they won't succeed with Bitcoin investment because it's obvious they are using the money meant for their expenses to invest in Bitcoin, and they will surely sell their Bitcoin too early to solve their expenses. That's why it's advisable for every investor to prioritise using discretionary income to invest in Bitcoin so that we can always take care of expenses and free ourselves from being under pressure to Bitcoin for a very long time.

This is true those who invest in bitcoin without using their discretionary income is only gambling with their investment because bitcoin investment is not like other investment that you will invest now and expect profit soon, it is a long term investment so using your discretionary income is the right approach so you won't feel bad if things didn't turn out as you expected.

Yes, an investor must first understand that Bitcoin will never bring him quick profits, it will only bring success in the long term, so he must invest money that he can hold for a long time without any such problem, and for this he should only decide to invest from prudent income. We can never say exactly where Bitcoin will go in the future, everything depends on uncertainty, so you should never decide to invest with money that you cannot afford to lose, so after meeting all your necessary expenses from your income, start investing only with the amount of money left (no matter how much smoll the amount), this will continue to grow over time.

[Xhowdhury]

The idea of borrowing to invest in Bitcoin just sounds like placing yourself in double risk, because not only are you relying on the uncertainty of the market, you are also dragging in a liability that must be serviced whether profit comes or not..  People forget that Bitcoin does not move at our command, it does not care if you borrowed or not, it will do what it does and if it decides to dip for months, the lender would not care that you’re still HODLing,  they’ll want their money back. That pressure alone can make someone panic sell at the worst possible time, losing both the Bitcoin and still being stuck with the repayment stress..

Another thing is, Bitcoin in its real sense is not even designed for quick money rescue missions, it’s more of a long term preservation tool. When you look at people who succeeded big in Bitcoin, it is mostly those that bought with money they could forget about for a while, not money they needed back next month. Borrowing for such an investment is like planting a tree today and hoping to chop it for firewood tomorrow, it just doesn’t work that way. Even if luck shines and it pumps right after you borrow, that gamble is not sustainable as a strategy, because the same market that went up in your favor can just as easily dump next time..

In my opinion, the smarter way is to always use disposable income, the kind of money you would not cry over if the market takes its time. That way, you give yourself peace of mind and also allow Bitcoin to do its natural growth over the years without forcing your hand. The truth is, investing should never put you in a corner where you are sleepless thinking of how to balance a loan. It is better to miss a move than to force it with debt, because another opportunity will always come. Bitcoin  always have opportunities, but your financial peace of mind should not be gambled away just because of fear of missing out…

Although it might look tempting to borrow and jump into Bitcoin, the real issue isn’t just about whether you can repay the loan, but also what kind of mindset it builds. Borrowing makes people treat Bitcoin like a get rich quick scheme because there’s pressure to see fast results. That goes against the whole idea of Bitcoin as a long-term savings technology. If every dip starts to look like a threat to paying back a loan, then the person isn’t really investing anymore, they’re gambling with borrowed time.

The real strength of Bitcoin comes when you buy with calm money, the type you don’t need for survival or obligations. That’s what allows someone to hold through cycles without fear. Even if the market stalls or drops, there’s no creditor breathing down their neck. Borrowing might get you in faster, but it also sets you up for panic decisions that erase the very benefits of holding.

it’s better to grow slow with your own spare money than to rush in with debt that might choke you later. Bitcoin is not going anywhere, and opportunities will always show up again.

True, a solid advice. A lot of people get carried away thinking Bitcoin is a race, so they throw in borrowed money meant to be used for their business which they can’t really afford, and when the market dips, it starts choking them. Instead of enjoying the process, they will be panicking and be stress out, and sometimes even sell at a loss…

I will say taking it slow with just your spare cash makes the whole journey way easier..  No pressure and sleepless nights.. Bitcoin isn’t disappearing anytime soon, and new opportunities always come around…

And this is the wrong mindset, Bitcoin is not a get rich quick scheme, so the mindset that you can get rich overnight must be withdrawn here, many people buy Bitcoin beyond their means in the hope of getting rich quick, because they think that they will be able to profit from it very soon and pay off their debts, but this never happens, rather they face more danger as a result of making such a decision, because Bitcoin behaves the opposite of their expectations, that is, they expected Bitcoin to increase but due to volatility, the price of Bitcoin has decreased, so they sell their Bitcoin holdings at a loss.

So the first thing is that this is a long-term investment, so you must invest money here that you can hold for a long time without any problems, there may be a sudden fall due to market volatility, but at that time you cannot decide to sell your holdings in any way, because these will recover after some time normally, besides, unexpected situations can come in people's lives at any time, and because of this, you must prepare an emergency fund, so that during unexpected situations, your Bitcoin holdings can be dealt with without damaging those unexpected situations.

In general, try to strengthen your source of income, keep buying Bitcoin consistently from discretionary income, Keep an emergency fund ready for unexpected situations, and manage everything properly, just keep buying without worrying about the price, volatility is only short-term, but in the long term Bitcoin can become much bigger than we expect, so allow yourself to invest for the long term, those who hold Bitcoin long-term with patiently, they  can get the results of their patience to a much greater extent.

Most people agree that borrowing to buy volatile assets like Bitcoin is risky. What I will add is that first, investing with debt is like buying a lottery ticket. You have to win it before you can repay the loan. Then the natural rule of holding Bitcoin for the long term does not hold. Your mind is unstable, when will the price of Bitcoin increase and when can it be sold. Sometimes the lender will pressure you so much that you cannot hold it for the desired period of time. This damages your financial condition as well as your mental health.

Secondly, Bitcoin is compared to gold as a store of value. Which is what almost everyone compares. But have you ever seen someone buying gold with debt? Actually, no one does that. It seems completely unreasonable. If we consider it unreasonable to buy a stable asset like gold with debt, then taking a loan to buy a volatile asset like Bitcoin seems even more unreasonable to me. What do you think?

That's why my personal opinion would be that Bitcoin is a technological opportunity that will create opportunities for many generations. So it's best to take the time to build up an emergency fund and gradually enter the Bitcoin market with the extra money.

[Yorubek]

This is why the DCA strategy for Bitcoin accumulation is very simple and effective for long term. The term accumulation refers to a small amount that gradually increases in size when we consider it as an investment and an investor with a small income can build a large investment stack of Bitcoin by accumulating a small amount of Bitcoin.

DCA is a smart investment plan, by following this process consistently, it is possible to build a large investment stack in the long term by gradually accumulating small amounts of Bitcoin. By following the DCA process, a person can easily accumulate Bitcoin, for which there is no need to invest a large amount of money at once, thus there is no additional stress on the investor. A person gets the opportunity to invest the small amount of money remaining after fulfilling his basic needs, which cannot be done in the case of any other valuable asset. By investing our valuable money in the right place, it is possible to avoid inflation in the future.

[gracreavix]

If someone is putting money into Bitcoin without having any discretionary income, it is almost like they are setting themselves up to fail because the moment life throws them an emergency, the first thing they will do is panic and sell off their Bitcoin at the wrong time..  That is why emergency funds and discretionary income almost go hand in hand, like you said. If you have a cushion aside, you don't feel the pressure to liquidate your stack. I would even add that it’s not just about emergencies, sometimes opportunities come up in life, and if you have no spare funds (separate allocation), you’ll be forced to touch your Bitcoin…. Having those safety net gives you peace of mind to truly hold long term..

It has been proven that we can only succeed in holding our Bitcoin investment for a very long time if we use discretionary income to invest in Bitcoin. So if there are investors that are not using discretionary income to invest in Bitcoin, they won't succeed with Bitcoin investment because it's obvious they are using the money meant for their expenses to invest in Bitcoin, and they will surely sell their Bitcoin too early to solve their expenses. That's why it's advisable for every investor to prioritise using discretionary income to invest in Bitcoin so that we can always take care of expenses and free ourselves from being under pressure to Bitcoin for a very long time.

This is true those who invest in bitcoin without using their discretionary income is only gambling with their investment because bitcoin investment is not like other investment that you will invest now and expect profit soon, it is a long term investment so using your discretionary income is the right approach so you won't feel bad if things didn't turn out as you expected.

Yes, an investor must first understand that Bitcoin will never bring him quick profits, it will only bring success in the long term, so he must invest money that he can hold for a long time without any such problem, and for this he should only decide to invest from prudent income. We can never say exactly where Bitcoin will go in the future, everything depends on uncertainty, so you should never decide to invest with money that you cannot afford to lose, so after meeting all your necessary expenses from your income, start investing only with the amount of money left (no matter how much smoll the amount), this will continue to grow over time.

Fact, I will also add that the mindset behind the investment matters a lot..  Many people go in with the idea of let me just hold until it pumps, but the reality is Bitcoin does not move on our personal timeline.  Sometimes it takes years before those small contributions really show their worth. So apart from only using spare income, an investor also needs to train his patience and detach emotionally from the price movements.
If you invest and keep staring at the chart every hour, it will drain you and might even push you to sell too early. The people who win big with Bitcoin are usually the ones who manage both their money and their emotions..

[Alonso_]

.If a person keeps 50% of his income as discretionary income, then it will never be a right decision

This really depends on the person expenses,if the person has a low expenses I don't think if it is wrong to keep 50% of one income as discretionary income. If a person that has low expenses after attending to all his needs may have more than 50 % of his income remaining and this is the person discretionary income. To say that is not a right decision doesn't sound proper since what determine one discretionary income is the person expenses.

Presumptively if one is reasonably establishing his basic expenses, then there is no discretion in regards to what is discretionary income, since whatever income is left over after basic expenses is discretionary income.

Sure some folks mis-assign some of their expenses as basic, when those expenses are in fact discretionary.... and I am not even proclaiming that the line is clear in regards to which expenses are basic and which expenses are discretionary... yet the idea is that if the expenses are basic, then we might not have much of a choice, such as our rent our our car payments or our utilities or our transportation costs, even though we might know certain ways that we could save money, even within our basic expenses.. ye t some of the basic expenses would take more time to cut than others, and some of the basic expenses are actually better not to cut so that we can improve our health and well-being, since it might be better that we live in a comfortable and safe place that is close to where we work, rather than living in a place that might be much less expensive, but maybe not safe or close to our work or even comfortable in terms of size and/or other modern features that might help us to be more productive.  We can buy quality food that does not cost much or low quality food, and sure there are various combinations in regards to the kind of food that we are able to buy , and we can attempt to plan around our food selection choices.

So yeah, we know that discretionary income can be increased by increasing income and/or cutting expenses, and once we establish our discretionary income we can do whatever we like with such discretionary income.. that is why it is called discretionary income, yet the three categories in which we can do whatever we like fit into 1) consume, 2) save and/or 3) invest.

The percentage of cost per expenses and/or what is left over (discretionary income) might be a little bit beyond our control in great ways, and it might take some time to figure out ways to increase it, in the event we wanted to be able to put more aside for investing into bitcoin or maybe to make sure that our back up funds are sufficiently large in order to give us a cash cushion in case we make mistakes or in case our expenses as compared with our income.

I am responding to these posts in the first place, since it seems that some members seem to misunderstand the order of choices, since we do not just choose our discretionary income, even though we choose the kind of work that we do and the kinds of things that we buy, yet some of those income and expense matters are not very flexible, so we should still be thinking about choices within discretionary income once it is established each month (or each pay period) rather than presuming that we choose the discretionary income first, which is a wrong way of thinking about discretionary income.. or even discretionary funds that we might have available to us. 

Discretionary income is a flow of income coming to us after our expenses, and discretionary funds can be money taken from any place or just money that we have available that is available for us to do whatever we like in terms of consume, save or invest, since it does not need to be used to cover basic living expenses.

You’re correct, and I’m glad you did breakdown this to my understanding, mostly I have been struggling with my expenses and how to manage my expenses have been a hugely difficult stressful and challenging situation, it’s very important for an investor that have that mindset of buying and accumulating bitcoin for a very long term should be able to identify his basic needs, because basic needs are something that we can’t do without, now let me consider that I have to pay for my expenses of basic needs which paying for my rents is a basic expense and probably I have to pay a certain amount of money for that in a monthly basis, and even if I have to pay yearly I will have to save some money little by little for it, and also I will have to pay for my food, because for sure I will have to eat to have energy to survive and hustle for more money, and considering if I have a family I will also have to put them into consideration of groceries and food stuffs available, and also paying for utilities and also paying for gas, which falls into the category of my transportation and very important my phone bills and internet, which are all essential and basic needs.

However I think after figuring out our basic essential needs I think we can now fully comprehend and understand how much we are supposed to be left with our discretionary income, well sometimes it’s mostly possible that we would end up not having enough discretionary income because of the amount of basic needs that we have available, and we can also try to figure out our financial situation and apply some financial management, more like if we have some expenses that we think that isn’t necessarily necessary then we can decide to adjust with them,
And also try to apply some strategies of how to create some different cashflow or probably increase our cashflow but working on other little details, it is true that we wouldn’t be able to choose the amount of discretionary income that we would have available, because of the amount of our expenses which we can’t probably avoid paying for them, because I think there are things that we can afford to avoid and there are also things that we wouldn’t neglect, so since discretionary income are just income left over after paying for our basic expenses then we can always decide to invest or whatever we fill comfortable that is why we can always try investing in bitcoin with our discretion income.