Balancing Financial security and Bitcoin Accumulation

[I_Anime]

I don't want to invest more than 10%-15% of my total discretionary income in volatile assets like Bitcoin.

Your are in charge of your investment so you can invest as you please provided you are using your discretionary income. If what you can afford to invest is 5% of your discretionary income,it is still a good start as it will still go a long way as long as you're  investing consistently over the long term. You can invest with any amount regardless of size,so the 5% is not a bad start if you can keep the consistency going. I believe you haven't built a strong confidence in bitcoin yet that's was why you are skeptical about investing up to 15% of your discretionary income but it's fine as we were once skeptical about bitcoin before we finally trusted it. So I believe as time goes on, as you are practically investing, your trust in bitcoin will increase,it's a gradual process.

As you are investing make sure you are also learning , understanding what are investing in will help build your confidence more . The reason many are still having doubt about Bitcoin is because they don't understand the technology behind it, the purpose it was invented the first place .

No, I’m not saying you should go into some complex tech aspect of bitcoin before investing. You can start with just the basics, then with time you will advance as you accumulate. Doing so you will be able to build a better confidence in bitcoin and it will make embarking folks (those interested in bitcoin) easier too .

[Sunshine1525]

As you are investing make sure you are also learning , understanding what are investing in will help build your confidence more . The reason many are still having doubt about Bitcoin is because they don't understand the technology behind it, the purpose it was invented the first place .

No, I’m not saying you should go into some complex tech aspect of bitcoin before investing. You can start with just the basics, then with time you will advance as you accumulate. Doing so you will be able to build a better confidence in bitcoin and it will make embarking folks (those interested in bitcoin) easier too .

Investing is a process, so far someone is doing it the right way, the person would definitely learn new things on the long run, even if there's a mistake along the line you’ll learn from it an take correction. For instance those who stored their coins with coldcard would learn to store in a safer wallet by moving it to a wallet backed with passphrase.

What people need to start investing is discretionary funds, with common sense they can figured out other things and gain knowledge simultaneously while on the investment.

[samadam007]

As you are investing make sure you are also learning , understanding what are investing in will help build your confidence more . The reason many are still having doubt about Bitcoin is because they don't understand the technology behind it, the purpose it was invented the first place .

No, I’m not saying you should go into some complex tech aspect of bitcoin before investing. You can start with just the basics, then with time you will advance as you accumulate. Doing so you will be able to build a better confidence in bitcoin and it will make embarking folks (those interested in bitcoin) easier too .

You seem to be giving unnecessary requirement needed to build confidence to invest. Beginners don’t need all of that. The thought of how bitcoin skyrocketed in the past and how long term investors benefitted more is enough to build your confidence. Of course, past result does not guarantee future performance, but it can help beginners to understand why other people believe in its long term value. At the same time, folks should not only focus on Bitcoin potential and ignore the risks. Understanding it is volatile in nature will help you make good investment decisions.

While investing, if a person feels he needs to go deeper into bitcoin and understand the technical aspect too, then that is his choice. If he feels there’s no need for all that, and his interest is just regular buying and holding, then that is also fine too. Don’t make it sound like it is compulsory to learn the deeper part of bitcoin to be able to build confidence to accumulate long term.

[Futurexxx]

How much % you invest in Bitcoin is completely your personal decision. As you mentioned, you will not be willing to invest more than 10% to 15% in a volatile asset like Bitcoin. Every investment has risks, if you mean investing in gold, then I would say that Bitcoin has become a much better asset than gold at present. The future of Bitcoin seems to be bright because, every person now wants their financial security and financial freedom. For this financial security and financial freedom, Bitcoin is the most reliable and safe asset.

The main reason why Bitcoin is more of a better asset to invest in right now than gold is that it's still far away from it peak price, it's more like a 17 year old that still has a lot of life ahead of him, unlike gold that is closer to it peak price, and has been around since from the beginning of mankind. So it's because of that Bitcoin is more of a better asset to invest in than gold.

. I believe that when you are able to deal with the volatility of Bitcoin day by day and are able to build complete faith in Bitcoin, then you will decide to invest between 40% and 50% of your total wealth in Bitcoin.

This should never be taken as a financial advice because it's a bad advice. If you invest 40-50% of your total  wealth as you are proclaiming, you are actually going all in on your investment, or you are investing with what you cannot afford to lose, which will compel you to always be in a state of panic anytime their is a dip in the market, so this is a terrible idea bro.

[cxtreenal]

I don't want to invest more than 10%-15% of my total discretionary income in volatile assets like Bitcoin.

Your are in charge of your investment so you can invest as you please provided you are using your discretionary income. If what you can afford to invest is 5% of your discretionary income,it is still a good start as it will still go a long way as long as you're  investing consistently over the long term. You can invest with any amount regardless of size,so the 5% is not a bad start if you can keep the consistency going. I believe you haven't built a strong confidence in bitcoin yet that's was why you are skeptical about investing up to 15% of your discretionary income but it's fine as we were once skeptical about bitcoin before we finally trusted it. So I believe as time goes on, as you are practically investing, your trust in bitcoin will increase,it's a gradual process.

As you are investing make sure you are also learning , understanding what are investing in will help build your confidence more . The reason many are still having doubt about Bitcoin is because they don't understand the technology behind it, the purpose it was invented the first place .

No, I’m not saying you should go into some complex tech aspect of bitcoin before investing. You can start with just the basics, then with time you will advance as you accumulate. Doing so you will be able to build a better confidence in bitcoin and it will make embarking folks (those interested in bitcoin) easier too .

This is how long term investors in Bitcoin develop. I didn't know much about Bitcoin at the beginning, I had a source of knowledge, but it would take a lot of time to learn the technical aspects. I started DCA with basic knowledge about Bitcoin investment and I am still accumulating Bitcoin.

Accumulating Bitcoin and gaining knowledge along with it is a great learning experience and in this method, your knowledge base becomes stronger and it takes relatively less time to learn because you are implementing what you are learning. Just as there is a focus on learning, so is there on accumulating Bitcoin regularly. The summary of the DCA method is that you can accumulate Bitcoin through discretionary income and learn to be responsible for basic needs and keep a balance in money management.

[SmartCharpa]

[Edited out]

In most cases, we neglect our personal comfort or forget or don't want to accept that we need to spend money to make life beautiful and enjoyable beyond some basic needs. Most people want to prove that discretionary income is "just for investment" but I don't want to invest more than 10%-15% of my total discretionary income in volatile assets like Bitcoin. Because this expenditure should also be divided into separate sub-categories along with emergency funds, reserves and financial security. This doesn't change the basic principle of investment and can also make life enjoyable. We are dividing money into different categories but the main purpose of creating a budget is not just to increase investment but it should use the investment as people enjoy.

I know that everyone is entitled to do what ever they like, but don't you think that investing only 10-15 of your discretionary income to small? because I believe that after taking proper care of your basic needs, the discretionary income left wouldn't be that huge, so investing only 10-15 is good, but your accumulation will be very slow.

The best way I knew off, which sir jayjuangee has spoken of on several occasions here is by dividing your discretionary income into three equal part, one place for investing, one place to set up your back up funds and the final part for discretionary consumption, which you can use to enjoy life, if you are that type of person that loves going out, this way you can invest effectively and still live a normal life. Investing only 10-15 of your discretionary income only entails one thing, which is you intend making more reservations for enjoyment than doing the right thing, or am I getting it all wrong?
Correct me if am misunderstanding you here.

You are claiming that using 10 to 15% of your discretionary income to invest is too low. Do you know the amount the person earns per month? People can’t invest more than they can afford to lose.

Let assume that a guy earns around 200k a month, after taking care of their expenses, they have 70k left, investing 10k naira every month is not a bad idea, but they should also know that those who are using huge amounts to accumulate will have more holdings than those who buy with small amounts.

In any case, if you are guy who parties a lot, you need to reduce the way of lifestyle. We know that we only have one life to enjoy, but if we have what it takes, we can increase the amount we use to buy at the end of the month. It’s not as if we are saying anyone should compete with other people who are more financially stable, but for your own benefit, you should stop spending your money on unnecessary things.

[Rhow]

This should never be taken as a financial advice because it's a bad advice. If you invest 40-50% of your total  wealth as you are proclaiming, you are actually going all in on your investment, or you are investing with what you cannot afford to lose, which will compel you to always be in a state of panic anytime their is a dip in the market, so this is a terrible idea bro.

The recommendation to keep 40-50 percent of your total assets in Bitcoin may not be realistic for everyone. However, at the same time, it is not possible to say by looking at the percentage that someone is investing all of their assets or can withstand losses by keeping 40-50 percent. Because he may have sufficient usable cash in the remaining relationship, income may be stable, and there may be no major expenses in the near future. Again, your allocation to Bitcoin may be low, but the rest of your assets are tied up in land or something that cannot be easily used in an emergency. If you calculate that aspect, even if your Bitcoin is low, the pressure to sell may be high.

Again, the monthly purchase allocation and the current share of Bitcoin in total assets are also different. If you bought a small proportion earlier and the price of Bitcoin increases compared to other assets, it may become a large part of your total assets. Then the large percentage by itself does not prove that you actually bought with the money you need.

[JayJuanGee]

[Edited out]

As far as I remember, Sir JJG never suggests dividing discretionary income into three equal percentages, rather he does not make a ratio for everyone and asks to decide according to one's own ability. He says discretionary income can be divided into three, but it is not mandatory that it should be equal.

I think that I frequently suggest that dividing into 1/3 each is a good conceptual starting point to make sure to consider all three of the categories, yet in the end, each person has to figure out for himself whether to further adjust those proportions, and if so how much to adjust.

If someone has a small or non-existent emergency fund, then he may need to give more there to protect him. Again, someone who has sufficient cash security can allocate more in Bitcoin. This means that each person needs to make a responsible decision according to their own situation, not a fixed equal share.

Exactly, and don't forget the guy who might have to purposefully allocate money to attend a party to celebrate one of the birthdays of his family member or some other celebration occasion that is optional in the spending of the money, but he likely would rather makes sure to spend those discretionary funds on such party attendance (or gift or otherwise) rather than to contribute to problems in his relationships.