Bitcoin Accumulation Is Easier When Your Finances Are in Order

[Fiatless]

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.

I guess you mean that the rich shouldn't increase expenses. Instead, extra funds should be used to buy more Bitcoin.

By doing this: 1. your Bitcoin accumulation becomes more effective  2. your lifestyle remains untouched  &  3. your financial stress stays minimal..

I read the book a long time ago, and it has shaped my financial life. I remember it said that you shouldn't emphasise things that take money out of your pocket. Our focus should be to invest in assets that bring financial returns.

In this forum, some people will never go broke for the rest of their lives, even if they don't work, all thanks to Bitcoin. If you can properly manage your Bitcoin asset, it is one of the best investments.    

[cryptomaniac_xxx]

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.

You are correct, many newbies here treat like Bitcoin will be the answer to all of their financial problems, like it was a magic been or something. But then when they try to invest and see how "hard" it is because you really need to be consistent of doing DCA, they quit right away.

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.

Sooner or later we will be force to manage our finances and then it will have a trickle effect on other things in our life. For me that is the best thing that I've learn thru investing in Bitcoin. You need patience and then it will have a carry over and then you became good in handling money.

[Mr_Brilliant$]

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.

This financial management is something many people do not like to hear. Some feels it limits them to live below their standard and all that.. Because holding Bitcoin long term is much easier when your personal finances are stable..  If your income is shaking or you are always struggling to cover expenses, Bitcoin will just turn into emergency money. At that point, any small pressure will force you to sell earlier than you planned..

When your finances are in good shape, accumulation feels natural.. You are buying with spare money, not money meant for rent or food, so price drops do not scare you at all..  Most people who sell their Bitcoin too early did not want to, they just did not have their money well organized. So before chasing long term gains, getting your finances right is a good thing to consider...

[Darker45]

For those who earn very little, those who almost have nothing left after bills and groceries and other expenses, perhaps Bitcoin might not be the priority. The truth is that these people or families need to grow their regular income first.

I believe they aren't yet in the level of investing for the long term. Their focus should be on the short term. The goal should instead be on how their monthly income increase by 20%, 25%, 30%. Putting whatever little left into Bitcoin won't give them that.

Bitcoin accumulation may come later when finances aren't anymore as tight.

[gracreavix]

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.

Woah, medical bills, I won’t lie, medical bills alone is a lot for anyone to carry. Spending twice as much as you earn just to stay healthy or keep going is not a small thing at all. That is heavy, both financially and emotionally. TBH Anyone in that situation would struggle, no matter how financially aware they are. So I completely respect that..

The fact that Life can put someone in survival mode for years is so sad, and when you are there, the goal is not even building assets or saving, it is just making it through. Medical bills do not give room to think long term, they force someone to think day by day.

And for sure Robert talked about the fear controlling financial decisions, acknowledging that those fear often comes from real pressure, not ignorance. So when health is involved, priorities change instantly. So no, struggling under that weight does not mean you did not understand the book. It just that you were dealing with something bigger than money, and i respect that.

I also just want to ask, how are you doing now? Hope things are better on the medical side? I really hope you are in a much better place health wise, because honestly, without health, none of these money and Bitcoin conversations even matter..

[Ishicryptic]

I have studied Bitcoin investment and I have realized that it is not for everybody, if you don't have a discretionary fund don't bother about it until you can be able to take care of your essential needs. We can agree as experienced holders that Bitcoin value increases and reaches ATH on the long term, so anything that would compel you to sell prematurely should be avoided. What can make you to sell prematurely on the short term is the need of urgent money. Aside from having money to take care of your essential needs like food you also need to make provisions in your discretionary funds for emergency expenses that can occur unexpectedly. This is the main reason why your finances should be in order, to achieve this is to always have cash flow so it is either you are cutting down on your expenses or you are looking for ways to increase your income.

[aysha9853]

This also explains why some people panic sell while others are calm during long flat periods, it’s not about belief in Bitcoin but about position size relative to income, if you are overexposed every month feels like a test of faith, when accumulation is funded by surplus not sacrifice the psychology changes completely. Bitcoin is long term but your financial structure decides if you can actually stay long term.

[gracreavix]

I have studied Bitcoin investment and I have realized that it is not for everybody, if you don't have a discretionary fund don't bother about it until you can be able to take care of your essential needs.

I get what you are saying, but I would not really say Bitcoin is not for everybody.  I think anyone can invest in Bitcoin if they are willing to learn how to do it the right way..

Doing it right comes down to few basics things like, having the right mindset, understanding what you are buying, and most importantly using discretionary income like you mentioned, not money meant for survival.. When someone ignores those things, that is when Bitcoin starts looking like it is not for them.
So yeah, Bitcoin can be for anyone, but only for those who are ready to learn, be patient, and accept the rules that come with it..  If you are not willing to do that, then it is better to wait until you are.

[Don Pedro Dinero]

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.

That's not true. The book was successful precisely because it highlighted concepts that no one had ever discussed in a book aimed at the general public, as he did. Such as the fact that your home, the house you live in, is not an asset, or that the middle class buys liabilities thinking they are assets.

Regarding what the OP says, it should be noted that when Kiyosaki talks about accumulating assets, he is mainly thinking about assets that generate cash flow. Once you have cash flow, he focuses on accumulating what would be real money such as gold and bitcoin, but that is not the main thing; the main thing is cash flow. 

[retreat]

Obviously bitcoin will not magically fix poor money management. But good money management can improve your Bitcoin journey.

Bitcoin won't fix someone's poor financial management. If they're prone to FOMO, spend too much, don't have an emergency fund, and don't manage their money properly, they'll never be able to build a long-term portfolio. However, if they have good financial management, they can accumulate Bitcoin more planned, even with limited income, because they understand how to budget and prioritize emergency funds before investing. They also avoid an extravagant lifestyle and are able to consistently allocate a small portion of their income to Bitcoin. And over time, they're able to build a portfolio that grows steadily, all because of their good financial habits and understanding of the value of Bitcoin.

[capokmerah]

It's true that with good financial management, accumulating Bitcoin becomes easier and can be achieved according to plan or targets. With financial management support, we can effectively and efficiently manage our money.
We spend some of our money on daily needs and investments, while the rest can be saved as a reserve fund in case of emergencies.
This way, we can use our money according to our means, and if our investments suffer losses, it will at least not disrupt other needs.

[Just Say]

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.

Definitely, before any investor can hold digital gold for a long time, they should have a good source of income, this will be the real foundation of everything because if you do not know proper money management, then during the dumping of the market, during the market upswing and during the sudden stabilization of the market, you will have to struggle to provide enough money to buy electronic currency at the appropriate level. Therefore, the provision of money should be done first, which is the main force of this modern era even if you jump into digital gold investment, it has to be managed smoothly with this money. However, these days it seems that even top institutional investors are wise about proper financial management as they have created USDT reserves to accumulation Bitcoin and that company increased their USD reserves again today.

[sotelorene]

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.

You are right but we don't use source of income to invest in Bitcoin rather what is needed is a discrestionary income and this discretionary income comes from a source of income and the reason I said we can not or we don't invest with a source of income is because, there are people with a good source of income yet they are not investing because they are unable to figure out there discretionary income so source of income will be unless if you can not get a discrestionary to invest with.

[bangjoe]

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.

Doesn't that sound like hallucinations and dreams of people who have no sense? It's really ridiculous for people who have thoughts like that, he's like gambling, and that's an extreme thought in this world, can't think like that, bitcoin must have time to benefit even any investment must have time to achieve financial success by investing, the longer we hold bitcoin, the more likely we are to benefit from bitcoin, even for early bitcoin investors, they cannot immediately become rich after buying today and tomorrow's profit, those who hold it in the long run become rich.

Financial structuring is very important from income or inflow to outflow must be considered in detail so that we have organized finances and know that our income is sufficient or not to add this investment kola to be a serious requirement that must be understood.

[Jegileman]

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.

Due to the big benefits involved after investing in bitcoin, it has made a lot of people to be able to manage their finances well and spend wisely just to get and spare some money to invest in bitcoin. The potentials of investing in bitcoin cannot be overemphasized, so it calls for one to be well coordinated in how they manage and spend their money after agreeing to invest in bitcoin.

Financial discipline is well taught, defined and established more when investing in bitcoin is part of the major objective of a person. It gives room for more coordination in financial responsibility, discipline and accountability of money. Bitcoin investment has its natural characteristics that will be embedded in one that’s willing to invest into it, so it’s going to be a purposeful investment in the long run.

[Grace333]

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.

You are right but we don't use source of income to invest in Bitcoin rather what is needed is a discrestionary income and this discretionary income comes from a source of income and the reason I said we can not or we don't invest with a source of income is because, there are people with a good source of income yet they are not investing because they are unable to figure out there discretionary income so source of income will be unless if you can not get a discrestionary to invest with.

Normally, having a source of income alone does not automatically mean someone can invest. The real key is being able to separate that income into responsibilities and what is left after everything important is settled. A lot of people earn well, but because they do not track or understand their discretionary income, it feels like there
Is nothing left to invest with.
So until someone figures that part out, the source of income on its own does not really matter. Bitcoin investment only becomes realistic when that leftover money is defined and not tied to survival.

[OgNasty]

One of the worst things that can happen is if you have to sell your Bitcoin in a down market. Having your finances in order makes it so you will never fall victim to this. That is another plus to having sound financial footing.

[ultrloa]

One of the worst things that can happen is if you have to sell your Bitcoin in a down market. Having your finances in order makes it so you will never fall victim to this. That is another plus to having sound financial footing.

That shows lack of experience and making bad judgements towards selling their at that situation.

Selling their Bitcoins when market is down is not really a good idea since instead of they still have chance to recover especially that market down trend is temporary, they are already cutting of those chances for deciding to throw away their balances at loss.

If they just relax and think about they still have available balance to spend then let those BTC they accumulate to be stored in their wallet for a while for sure they will never suffer from losses and will not have any regrets especially Bitcoin will start to recover.

[gracreavix]

One of the worst things that can happen is if you have to sell your Bitcoin in a down market. Having your finances in order makes it so you will never fall victim to this. That is another plus to having sound financial footing.

Exactly, finance been in order is the main thing, because being forced to sell Bitcoin in a down market is most times not a conviction problem, it is a cash flow and improper finance management, Most people do not sell because they stopped believing in Bitcoin, they sell because life bills showed up and they can’t settle it..

That is why having finances in order is just like another hidden risk management strategy for Bitcoin holders. Planned finance, manageable expenses, and stable income give you time. And in investing, time is everything. It allows you to sit through any market conditions without panic and without touching your long term holdings.

[macson]

The mistake people make when investing their money in Bitcoin is that they are already struggling to manage their finances, yet they force themselves to invest without properly preparing their financial situation.

What comes to their mind first is how bitcoin can provide them with fast profits in a short time, without considering the risk of volatility from Bitcoin.

What happens to them is that they struggle to accumulate more Bitcoin due to financial difficulties. They also lack an emergency fund and a clear budget, which are crucial for Bitcoin investment. And in the end it makes it more difficult for them and they end up selling their Bitcoin when the price drops because they are forced to need funds for urgent needs.

Having good financial arrangements before investing in bitcoin is very important so that we can have a clear budget and understanding of investing in bitcoin in the long term.