Bitcoin Accumulation Is Easier When Your Finances Are in Order

[gracreavix]

I recently just finished reading Rich Dad Poor Dad by Robert T. Kiyosaki, and I won’t lie, the book really made me sit back and rethink a lot of things about money, income, and how most of us approach investing. It is one of those books that have good information and quietly changes the way you look at finance if you really pay attention.
After reading it, I kidda try to relate many of the lessons directly to my Bitcoin investment, especially for those of us who are buying and holding Bitcoin with a very long term mindset..

A Quick Note on the Book (For Those Who Haven’t Read It)
Rich Dad Poor Dad is not really focused about Bitcoin directly..  It is a book that talks strictly about finance and mindset, how money works, how people manage it, and how wealth is intentionally built..

And one main thing Kiyosaki emphasized throughout the book is building your asset column..  "Assets are things that put money into your pocket, while liabilities are things that take money out"  He kept explaining how most people work hard, earn money, and then spend that money mostly on liabilities, while the wealthy focus more on acquiring assets that put money back into their pockets.. i feel that single idea alone connects very strongly with how we should think about Bitcoin accumulation..
so let me bring this idea into Bitcoin investment, but i think it is important to look at things based on income levels, because not everyone here is starting from the same place..

>>>For those who earn very little and are trying to build a decent Bitcoin portfolio, first of all, respect.. Because to be honest It is not easy trying to invest when income is small. And I want to be very clear here: this is not about saying you should stop buying Bitcoin until your income improves. Waiting for perfect conditions usually leads to never starting..

Bitcoin accumulation through DCA is still one of the best and still makes sense, no matter how small the amount is.  But, from my understanding of Rich Dad Poor Dad and from observing real life, the truth is that building a meaningful Bitcoin portfolio becomes much easier when income improves..  When someone earns very little, after rent, food, transport, and basic needs, there is often almost nothing left. That is where those frustration and impatience come from..

What makes the difference is being intentional..  If you earn little, you need to be very deliberate with: 1. how you spend money 2. what expenses are actually necessary  &  3. which ones are just liabilities draining you slowly..

After setting aside your discretionary income for Bitcoin, the next important question should be, how can I slightly improve my income with time?

This does not mean abandoning Bitcoin accumulation.. It means understanding that Bitcoin alone cannot fix a weak income structure. You can buy Bitcoin consistently and still feel stuck if your earning power never changes..
Building an asset does not  have to be something big. It could be learning a skill, starting something small on the side, or investing time into something that can eventually generate extra income. With time, even a small increase in income will give you: 1. more breathing space  2. less emotional stress   &   most importantly 3. more power to accumulate Bitcoin consistently...

>>>Now, for middle class investors, I honestly believe this lesson applies even more strongly here. Most middle class people earn reasonably well compared to the low earners, but the common problem is lifestyle expansion. As income increases, expenses increase with it. Bigger houses, nicer cars, subscriptions, loans, and obligations that quietly eat up future wealth. Which might not be a problem in the present, but definitely will in the future.

From the book perspective, this is dangerous because income is rising, but assets are not. For a middle class Bitcoin investor, this is actually a strong position if handled properly. You already have more financial strength, which means you have more room to: 1. reduce unnecessary liabilities 2. avoid lifestyle upgrades that don’t add real value  &  3. channel extra funds into assets that can increase income.

When this is done well, Bitcoin accumulation becomes easier and less stressful. You will no longer be forcing yourself to buy BTC every month or week. Your assets begin to support your accumulation naturally. At that point, Bitcoin accumulation will stop feeling like a sacrifice and starts feeling like a simple way of life and strategy.


>>>While for those who are already rich or high earners, obviously you have already put in the work to reach that level. You likely have a standard of living you are comfortable with and do not want to reduce, which is completely understandable.

But even at this level, i feel the lesson from Rich Dad Poor Dad still applies. Instead of cutting your lifestyle just to buy more Bitcoin, the smarter approach is to strengthen your asset column even further. By doing this: 1. your Bitcoin accumulation becomes more effective  2. your lifestyle remains untouched  &  3. your financial stress stays minimal..

You allow your assets to fund your Bitcoin accumulation, instead of your lifestyle competing with it...   I would say my big takeaway for me from Rich Dad Poor Dad is that wealth is not accidental. It is intentional. The same applies to Bitcoin. Bitcoin is a powerful long term asset, but your spending habits, income structure, and financial decisions determine how far you can really go..

Obviously bitcoin will not magically fix poor money management. But good money management can improve your Bitcoin journey. These are just some of my thoughts from the book.. I believe if more Bitcoin investors focus not only on buying and holding, but also on strengthening their financial base, the long term results will be much better..

[GreatArkansas]

I agree with how you appreciate Bitcoin here, but for me I am against people who treat Bitcoin like easy money, like some people think investing in Bitcoin will make them a millionaire overnight or in a week.

What Bitcoin taught me over time is how to manage my finances or my money. I became responsible when it comes to money since I started to get introduced to Bitcoin, which includes your habits, lifestyle, income, etc.

[Frankolala]

Everything boils down to proper financial management. You don't invest in bitcoin when you don't have a discretionary income. Bitcoin is a long-term investment therefore, you should be patient, ready to sacrifice, discipline and make it a habit for you to always buy bitcoin when your extra funds is available. It's not compulsory for you to DCA when you don't have regular discretionary which is the reason improving your income is very necessary in life.

[JaanusRaim]

I am against people who treat Bitcoin like easy money, like some people think investing in Bitcoin will make them a millionaire overnight or in a week.

It is all about PROBABILITIES. It is difficult to find ways to get a million (with zero financial investment) overnight with 100% probability (or even with 1% probability). It is easy to find ways to get a million overnight (with zero financial investment) with 0.0001% probability.

[AVE5]

Bitcoin in the first place wasn't designed to manage your finance but to basically profer alternative for payment service and otherwise, a store of values.
The book in the reference is only inspiring for financial exploration such that shapes good managements with the edge of future goals that may involve investments not prioritizing on bitcoin. Already, good management is what makes investors achieve their long goal in bitcoin investment, not also every rich or average earners may bear the risks of bitcoin.
The aspiration of the book Rich Dad and Poor Dad can be versatile in terms of economy structures and with your points of contacts on this discussion, it'd be better to have this post on the economy section not on the bitcoin discussion board.
Perhaps this is a very interesting financial planning discussion what a strong approach of investment strategy which can be applicable in bitcoin and other basis to achieve successful goals.

Meanwhile I've come across some threads where Ops are making good senses with the opinions but because it was posted on the wrong discussion board, it got moves to off-topic board. I hope this get move to the economy section where it's best fit in.

[maknyos]

Financial management is the basic thing that can shape everything neatly in the future. Someone who can manage finances well will look more neat in his life. They will be able to control stress and anything that makes them depressed and so on.
In today's life, one of the things that we must learn and understand is how to manage finances well. This is part of preparing for the future, with good financial management we can know our income and expenses so that we can make investments comfortably and more directed.

[bitzizzix]

Personally, I have to start with the potential that motivates me, and that can be achieved through discipline and consistency. I mean, after experiencing and seeing Bitcoin's track record and experiencing its incredible returns, the potential for greater long-term returns motivated me to continue buying Bitcoin through DCA (Dollar Cost Averaging). With that strong motivation and conviction, I strive to manage my finances well from my monthly salary, by minimizing unnecessary expenses and creating a strict budget so I can continue buying Bitcoin regularly and setting aside an emergency fund so that when I really need money, I can use it without having to resort to Bitcoin. And so far, everything is going well, and I also have a small business to help manage my finances and have been able to slightly increase my Bitcoin purchases, including for vacations, dining out, and other things I believe my family should continue to enjoy. Family and Bitcoin are equally important to me and are my motivations, and I must continue to do my best for both because in the future, they will reap the many benefits Bitcoin has to offer.

[DPHOR]

I think there is something people are getting wrongly in terms of bitcoin investment and everyone are liable to manage their financial system properly without including and featuring bitcoin over there. Bitcoin is a digital asset created as an alternatives means of payment and not as a tools for investment, but due to its growth and changes in prices people now sees it as the right tools for investment whereas is designed as alternative means of payment/transaction. However, everyone has the same equal access to invest and hold bitcoin without them using it for its originally made purposes. For investment, you can directly do your investment or you can gradually accumulates your bitcoin on your portfolio, again, anyone who has a stable income or has emergency funds or discretionary income can as well manages their investment as those funds could serve them whenever they are in need without them having to overly or aggressively uttering their investment until they are sufficiently enough in their accumulation processes.

[Bobrox]

Overall is about money, if you don't have much money difficult to accumulate bitcoin and keep investing consistent in bitcoin how many people believing potential increasing assets by invest in bitcoin. Financial management easily manage if you have more income than outcome and not difficult if want accumulate how much hundred or thousand USD every week and every month. If your financial not stable yet have outcome than income I don't think easily for investing in bitcoin although have good money management because impossible to allocate for investing have much outcome than income.
Due bitcoin price have reach most expensive nowadays, investment small fund in bitcoin difficult to increase much with our assets in the future so improving firstly with higher income and lower outcome before investing in bitcoin.

[Marvelockg]

Obviously bitcoin will not magically fix poor money management. But good money management can improve your Bitcoin journey. These are just some of my thoughts from the book.. I believe if more Bitcoin investors focus not only on buying and holding, but also on strengthening their financial base, the long term results will be much better..

The reality still remains that there's a clear distinction between building your bitcoin stack and building your financial strength. Doing one at the negligence of another only means that the investor isn't ready to be successful in his investment. One thing every investor ought to know is that when you're holding bitcoin as an asset,  it's just one of the options you've chosen as a means of growing your wealth. The same way you pay attention to other factors should be the same way you should also pay attention to your investment. A reduction on your earning means one that and that's the fact that it's going to lead to a proportionate reduction in the quantity of bitcoin you're accumilating. In all, the importance you place on your finance also affects how well and effortlessly you will be able to invest in bitcoin.

[Odusko]

I am against people who treat Bitcoin like easy money, like some people think investing in Bitcoin will make them a millionaire overnight or in a week.

It is all about PROBABILITIES. It is difficult to find ways to get a million (with zero financial investment) overnight with 100% probability (or even with 1% probability). It is easy to find ways to get a million overnight (with zero financial investment) with 0.0001% probability.

JaanusRaim now you make everything sound like gambling and game of luck, and if you have such mindset towards Bitcoin investment it means you are taking Bitcoin as a miracle Money tree, that probability without commitment can give results, that is not true, to gain any bits of Bitcoin, you must own it either by buying it or working to get paid with Bitcoin.

[mrust_mobile]

Most people think bitcoin is a magic stick that will make them rich and solve any financial problems they have and that’s a very wrong assumption. Bitcoin can itself may make you rich if you hodl it persistently but if your financial  decisions are wrong, eventually you’ll end up poor because structurally you are destined to lose.

The book you mentioned is a great start to learn the basics of finance and once you understand that book, the rest will follow. Just keep learning and add knowledge brick by brick.

If you don’t build the infrastructure that manages the wealth, the structure will collapse. In this case, that infrastructure is your experience and knowledge.

[Proty]

Yes before any investors can be able to hold bitcoin for a long time they should have a good source of income. Without having a good financial management it will be hard to be able to hold bitcoin for a long time. So having one finances in good shape will help in making it easier for bitcoin accumulation. It is mostly those investors that doesn't have a good financial management that mostly end up selling out there bitcoin holdings before the anticipated timeline. So good financial management is important for successful bitcoin investment.

[Grace333]

Everything boils down to proper financial management. You don't invest in bitcoin when you don't have a discretionary income. Bitcoin is a long-term investment therefore, you should be patient, ready to sacrifice, discipline and make it a habit for you to always buy bitcoin when your extra funds is available. It's not compulsory for you to DCA when you don't have regular discretionary which is the reason improving your income is very necessary in life.

This is the real foundation of everything. Without proper financial management, even the best investment would not work. Bitcoin is not something you jump into with money meant for survival. If there is no discretionary income, the pressure alone will push you into bad decisions.

Bitcoin is a long term play, and long term requires patience and discipline. It is not about forcing yourself to buy every time the price moves. It is about making it a habit to buy whenever extra funds are available, without stressing yourself or your daily life.
A lot of people misunderstand DCA and think it must be done religiously. It does not. If your income is not stable, it is okay to pause and focus on fixing that first. Improving your income is actually part of being a good investor.

[shinratensei_]

It's not only easier when your finances are in order. When you don't get distracted with trading shitcoin or memecoins you can put the money to use for DCA.
The main reason why retailers are forcefully pushed out of the market is because they like the memecoins distraction too much letting the real cryptocurrency to be in the hand of institutional investors who hoard it and boguht it in bulk.

Can you imagine how much bitcoin gonna go if people don't keep giving money to memecoin ruggers.

[gracreavix]

I agree with how you appreciate Bitcoin here, but for me I am against people who treat Bitcoin like easy money, like some people think investing in Bitcoin will make them a millionaire overnight or in a week.

What Bitcoin taught me over time is how to manage my finances or my money. I became responsible when it comes to money since I started to get introduced to Bitcoin, which includes your habits, lifestyle, income, etc.

That mindset you are talking about, being more responsible with money, paying attention to your habits, lifestyle, and income, that is the kind of mindset someone needs if they want to last long in finance and Bitcoin.. And also not just with Bitcoin, but with money in general..  Anyone who truly wants financial independence has to grow into that way of thinking at some point..

That is actually one of the main things Rich Dad Poor Dad was trying to pass across. The book was not really about making fast money or getting rich overnight.  It was more like how you think about money, how you manage the money and how your daily habits affect your future.  Th Author kept stressing that wealth is built intentionally, not through shortcuts.

Bitcoin kind of do the same thing if you approach it the right way. If you stop seeing it as easy money and start seeing it as a long term asset, it forces you to look at yourself. How you spend, how patient you are, what you prioritize, and whether you do have control of your finances…

So when you say Bitcoin taught you how to manage your money better, that is a big deal. Because without that mindset, even if someone see money quickly, it would not last. But with that mindset, even small and slow progress will turn into something solid with time.   That is really where I try to connect the book and Bitcoin.  If the mindset is not right, neither of them will work. But once the mindset is right, the results might be slow, but they stick.

[reagansimms]

Everything boils down to proper financial management. You don't invest in bitcoin when you don't have a discretionary income. Bitcoin is a long-term investment therefore, you should be patient, ready to sacrifice, discipline and make it a habit for you to always buy bitcoin when your extra funds is available. It's not compulsory for you to DCA when you don't have regular discretionary which is the reason improving your income is very necessary in life.

Financial planning will make it easier to allocate funds for investment, manage investment risks more wisely, avoid impulsive decisions that can lead to the risk of loss and allow you to continue focusing on long-term investment strategies. It is highly discouraged to force yourself to invest if you do not have the income to spend as you please, as this can lead to you feeling stressed and making unwise decisions.

To achieve success in investing, you must increase your patience, be prepared to face risks, be disciplined, and get used to always buying Bitcoin when you have additional funds from other sources. DCA is a good strategy, but this strategy is not mandatory, especially if you do not have regular disposable income. So, you should always try to increase your income and have proper financial management to give you the freedom and be more prepared to invest in Bitcoin to achieve success.

[el kaka22]

Rich dad poor dad was a simple guidebook that doesn't tell anything that is brand new or anything innovative, but at the same time doing it is not easy. A simple life lesson that you can learn while living would be that you are going to end up with a lot of debt because of unexpected issues that you face and for that reason you may not become like a rich dad.

I faced way too many obstacles in my life so far that I had to pay out of pocket and had so many payments and bills that I failed so far, does that mean I did not know Robert Kiyosaki? Of course I knew him, but how could I save when I was spending twice as much as I was earning on medical bills alone? It is not as easy as it sounds, just because it's an easy idea, doesn't mean everyone can do it.

[EarnOnVictor]

The book is a good one, and so is your conclusion that balances the investment part of Bitcoin and the readiness of the investors. A smart man once said that "gathering money for savings or/investment is not the problem, but the problem is income." I tell you, everyone would have amassed Bitcoin in its volumes, but for the lack of capacity.

Still, I will continue to encourage people to take their Bitcoin journey seriously. Had it been I did that, it would have been a different story for me today. Who knows? Bitcoin could "hit the moon" in the future, what would pain most is the fact of not HODLing Bitcoin at all, and not having it so big. If we relax too much on excuses of wanting to have all it takes 100%, we may not invest at all.

[348Judah]

Once we have a stipulated amount of money for the purpose of bitcoin investment, it will be more easier for us to achieve doing, because its all about what we already planned for and have the financial resources to invest in it, however, it is also necessary that we make use of a strategy to use in accumulating for our asset in bitcoin, because this is also very important, after we must have defined well the kind of investor we are.