Investment Become Gambling

[Olatundespo]

It is not certain when the market will go, so if we are too confident and make decisions beyond our capabilities, then our problems may increase. Those who buy and sell in the short term only hoping that the price will increase, and when the price decreases, they decide to buy a lot more, even beyond their capabilities, then their problems may increase. Because if the price does not go up as they expect, then their panic will increase and as a result they may make wrong decisions, which can lead them to losses. The question is, for what purpose, with what mentality and with what money are you investing. If you invest with long-term objectives, invest through discretionary income, then there will be no problem.

Having the right mindset when investing in Bitcoin, makes them to be able to make decisions that are helpful and supportive in their journey of investment. Though, there are some times that Bitcoin will appear to be helpful, which will make investors to make decisions and at the end, the thing turn out to be what they didn't expect, that is why at times people are ought to stay calm and observe, because Bitcoin does confused people sometimes and if one is not being careful and observant, they will make decisions that will turn out to be a mistake that they will regret later in life.

If you are an investor, you can get confused when the situation goes against you. Consider this confusion as a catalyst and you need to move forward with the best strategy for them. Continuous buying can create a kind of mentality and this happens in reality. Sometimes thinking yourself overly knowledgeable through market analysis creates problems. After reaching the over accumulation height, your decisions may prove to be wrong if you are not able to continue accumulating till that point.

Part of the advantage in thinking about investing as a way to incrementally gain your position is that you may well recognize and appreciate that the price may well be going up and down and at the same time, that you have already decided that you are going to be investing into the asset for the long term and in the case of bitcoin having something like a 4-10 year or longer timeline will put you into a better kind of a mindset that does not expect to necessarily get positive concerns in the short term and even an expectation that the price will move against you, which largely just means continuing to buy it - unless you consider that your investment thesis has been broken based on the price going down and perhaps other factors.

Keeping on buying is a great way to continue to reinforce that you are investing rather than trading.. and by extension, you are not gambling either.  You are putting money into something that you tend to believe has good chances of going up in price, even though in the short term you might not have confidence of the price direction.

Keeping on buying Bitcoin regularly it is almost certain that investors are not involved in gambling like short term trading. I agree with you on this point. Real investors keep their buying regular even in the expansion or contraction of the market price. Traders find various excuses not to buy. The risk of investing in Bitcoin can be reduced to a large extent but even then, if the guys cannot use that opportunity they will have to suffer the consequences of their wrong decisions.

Regular buying are a well-structured investment strategy through which you can potentially increase the value of Bitcoin in the future as you hold it. An example is that a small fund gradually grows in size with the long term mentality and proper fund management. If someone is skeptical about Bitcoin price appreciation but they can still accumulating Bitcoin for 4-10 years through discretionary income, they may be surprised by the financial gains after that period as seen in the example of early Bitcoin investors.

[Cgrexp]

Some people overdo it with backup funds and waste time in starting their investments. As soon as a new investor makes Bitcoin accumulation comfortable, he should set his her goals and gradually focus on building an emergency fund to do so. Surely... I completely agree with you that it is not necessary for a new investor to have an emergency fund in the beginning, nor would it be right to completely reject it. Balancing between accumulating Bitcoin and long term efforts is like you never know if there will be a bad time in your life in the future. You have to assume that bad times are waiting for you and be mentally and physically prepared.

Investors are responsible for their own preparation. This includes deciding how much of their discretionary income to invest in BTC, how much to keep in cash (such as an emergency fund), and how much to spend on additional expenses. However, there may come a time when they do everything right and still suffer losses. While investing and cash flow management are designed to minimize mistakes and risks, they cannot protect us completely in all situations. While an emergency fund may be helpful in some cases, it may not be enough to cover serious or long-term losses. Others sell too much Bitcoin too quickly because they do not have enough savings, which is a result of their own lack of preparation. And if the situation worsens, or if losses could have been avoided or minimized, they must take responsibility for how to strengthen or improve their cash flow management systems and practices for the future.

[Joeboy]

most folks have really abused this freedom of bitcoin and its purpose, Bitcoin is an investment and not just a business set up where a trader buys and sell to his customers daily. Bitcoin is a long term investment and at such anyone venturing in it should treat it as such and not as a quick profit making venture. Investing for the long term mindset should be the goal of every bitcoin investor and if this is strictly adhered to I think most of the challenges, agony and panic people usually face in bitcoin investment will be minimal if not totally eliminated.

Hahaha, I really like way the analogy you have about traders.  Bitcoin is volatile, so when folks decide to trade it, it  just seem like a a waste of time to me, due to the high possibility of risk and loss that is always attached to it.... But then when Bitcoin is approached with a long term mindset, a mindset of constantly accumulating for a period of like 10 years while using their discretionary income, the risk of loss reduces drastically...

Trading and Investment are two ways one can venture into Bitcoin depending on what you want or your intention so Bitcoin is not actually made for holding alone but it can be traded also but over time we realized that it is more better and profitable to hold it for long term than to trade it and of course we can not force or make everyone to invest and hold as people have different problem and mindset what I'm saying in essence is that trading is not crime in Bitcoin but among the pathway but anyone who doesn't want to go through trauma or depression after incurring loss should just accumulate and hold for a long term.

Are you a trader? Coz you seem to be encouraging trading, and I just wonder why... You could do whatever you seem comfortable with, that's your concern..but then all I would say is that Bitcoin doesn't work well with trading.. Trading carries a lot of risk and losses, and as such, folks should even be fiddling around with trading for their own sake... It's best that folks invest and hodl Bitcoin for at least 4years, rather than trading it.

[Bitcoin.com97]

To me I think you both miss understand the concept of Bitcoin and it’s function, Bitcoin is mainly for investment and normally for long term goals , and it’s alway advisable to invest from discretionary income, and most importantly you must have an emergency fund , so that when such circumstances arise you won’t temper your Bitcoin  investment , a real investor don’t put his of herself in a situation whereby any unfavorable conditions they rush to their journey to sort themselves out, which means it has automatically turn to business of profit , when it rises you sell and take the profit  , when their is problem you sell and sort it out , that is not the function,  have the long term mindset .

[Obulis]

That's a good lesson for your friend.
Indeed investment became gambling. The joy of the initial profits made was what stole his common sense until that significant loss. I wonder how he would have reacted towards you, maybe as an enemy of progress. You explained friendship by standing by him even in his losses and another time you offer a word to him he would put up his thinking cap to compare and contrast idea instead of being one-sidedly carried away.

[Xackie]

Some people overdo it with backup funds and waste time in starting their investments. As soon as a new investor makes Bitcoin accumulation comfortable, he should set his her goals and gradually focus on building an emergency fund to do so. Surely... I completely agree with you that it is not necessary for a new investor to have an emergency fund in the beginning, nor would it be right to completely reject it. Balancing between accumulating Bitcoin and long term efforts is like you never know if there will be a bad time in your life in the future. You have to assume that bad times are waiting for you and be mentally and physically prepared.

Investors are responsible for their own preparation. This includes deciding how much of their discretionary income to invest in BTC, how much to keep in cash (such as an emergency fund), and how much to spend on additional expenses. However, there may come a time when they do everything right and still suffer losses. While investing and cash flow management are designed to minimize mistakes and risks, they cannot protect us completely in all situations. While an emergency fund may be helpful in some cases, it may not be enough to cover serious or long-term losses. Others sell too much Bitcoin too quickly because they do not have enough savings, which is a result of their own lack of preparation. And if the situation worsens, or if losses could have been avoided or minimized, they must take responsibility for how to strengthen or improve their cash flow management systems and practices for the future.

One more thing to consider is that loss is not always a sign of failure. Even in Bitcoin, market cycles are normal. The important thing is how you prepare yourself mentally not just financially. We have lots of investors who plan for money management risk but forget emotional risk. What they don't know is that when fear becomes strong, good plans break. That is why building patience, realistic expectations, and a flexible mindset is just as important as having savings.

[POPOLUV]

Well most folks chose not to listen, so definitely experience is the only thing that can make them realise their losses. That said the concept of listening to everything you hear on social media YouTube, X, and the rest is not bad what is bad is when you listen and you fail to do proper research to confirm your knowledge about it .Unfortunately to me when it comes to one's finances management in investment I believe it is only there to help you figure out when to buy and your behaviour control tells you when not to. So it's easy to say they both work together and failure to control them will lead to one's investment turning into a gamble...

Overall I can't say your friend learnt his lesson no that would be wrong. He simply went through experience and that experience gave him knowledge. It's up to him to make use of it. So yeah it was his decision anyways and the best thing about the market is that it tends to favour those who are patient with their investment... that's just it...

To be honest with you on these is that most people in this generation that has not understood the potential of investing in long term investment has given most of the individuals the mindset of listening practice what they are seeing in the social media, because social media is place were some private individuals has as means of communicating to the public and which some of them end up being scammers still they advertising trading of Bitcoin as a best strategy to follow in making quick money  and without also letting the public know the risks involved and many will be a victim because they don't have the ideas on how crypto world work, yet many are convince in wasting their money and with desperation of this current generation that their mind is basically focus in making quick money, they will not think twice because they don't the discipline of being patient enough to accumulate Bitcoin in a long term.

[Grace333]

Even though we do not have to have much if any back up funds when we start investing in bitcoin, we better be careful not to overly dismiss the idea of having back up funds, and/or to build our back up funds simultaneously to building up our bitcoin stash.

Each of us is responsible to figure out, how reliable our income and/or our expenses and also to build our bitcoin investment in such a way that we should never have to tap into it - absent some somewhat unexpected irregularities.

Some people overdo it with backup funds and waste time in starting their investments. As soon as a new investor makes Bitcoin accumulation comfortable, he should set his her goals and gradually focus on building an emergency fund to do so. Surely... I completely agree with you that it is not necessary for a new investor to have an emergency fund in the beginning, nor would it be right to completely reject it. Balancing between accumulating Bitcoin and long term efforts is like you never know if there will be a bad time in your life in the future. You have to assume that bad times are waiting for you and be mentally and physically prepared.

Mr Jay didn't say it's not necessary for new investor to have emergency funds at the beginning, he said "we do not have to have much" meaning it's still important that we have but it's not necessary to overdo it at the initial stage of accumulation. I like to think of bitcoin investment without emergency fund as a risky investment strategy irrespective of status of the investor either a newbie or a advanced bitcoin investor because, when emergency happens at any instance if your emergency fund is not intact your bitcoin might be the victim of such consequences.

[JayJuanGee]

Even though we do not have to have much if any back up funds when we start investing in bitcoin, we better be careful not to overly dismiss the idea of having back up funds, and/or to build our back up funds simultaneously to building up our bitcoin stash.

Each of us is responsible to figure out, how reliable our income and/or our expenses and also to build our bitcoin investment in such a way that we should never have to tap into it - absent some somewhat unexpected irregularities.

Some people overdo it with backup funds and waste time in starting their investments. As soon as a new investor makes Bitcoin accumulation comfortable, he should set his her goals and gradually focus on building an emergency fund to do so. Surely... I completely agree with you that it is not necessary for a new investor to have an emergency fund in the beginning, nor would it be right to completely reject it. Balancing between accumulating Bitcoin and long term efforts is like you never know if there will be a bad time in your life in the future. You have to assume that bad times are waiting for you and be mentally and physically prepared.

Mr Jay didn't say it's not necessary for new investor to have emergency funds at the beginning, he said "we do not have to have much" meaning it's still important that we have but it's not necessary to overdo it at the initial stage of accumulation. I like to think of bitcoin investment without emergency fund as a risky investment strategy irrespective of status of the investor either a newbie or a advanced bitcoin investor because, when emergency happens at any instance if your emergency fund is not intact your bitcoin might be the victim of such consequences.

I think that a reasonably good way to think about the matter is to start out from where we are at, and most people will have a least a week or two of funds that are enough to cover their expenses in the event that they don't get paid.. .. yet surely when we are investing in bitcoin, we likely need to improve the level of our back up funds since bitcoin is so volatile and it is also so liquid, so we could be tempted to tap into bitcoin when we should not be tapping into it, so we need to improve our back up fund systems so that we never have to tap into our bitcoin (or close to never), and so we can build up our back up funds and our bitcoin stash at the same time.

Surely, we have even used extreme examples of guys who have absolutely no back up funds, so when they get paid, they receive a certain amount of income from that.. . So let's say that the guy makes $2,500 per month and his expenses are $1,500 per month, yet he get's paid right around $1,250 twice a month.. so if he accounts for his expenses, then he has ONLY $500 left for his discretionary funds until the next time that he gets paid in 2 weeks... so perhaps he can divide that $500 into 3 parts and dedicate $166.67 for each of the three categories of 1) invest, 2) save (back up funds) and 3) discretionary consumption.

If he continues to do something  similar for a whole year, then after a year he will have had invested right around $4k into bitcoin, his back up funds will be $4k and he would have had discretionarily spent $4k.

Of course, he can adjust the numbers, but 1/3 in each of the categories might be a reasonably good way to build up his bitcoin investment, his back up funds and making sure that he has some money for discretionary spending too.

The smaller the discretionary income, then the less money that there is to work with, so even if we are very organized in our thinking, sometimes we might need to try to figure out ways to increase our discretionary funds (increasing our income and/or decreasing our expenses) so that our investment and savings budgets become larger.

[Grace333]

so perhaps he can divide that $500 into 3 parts and dedicate $166.67 for each of the three categories of 1) invest, 2) save (back up funds) and 3) discretionary consumption.

If he continues to do something  similar for a whole year, then after a year he will have had invested right around $4k into bitcoin, his back up funds will be $4k and he would have had discretionarily spent $4k.

Of course, he can adjust the numbers, but 1/3 in each of the categories might be a reasonably good way to build up his bitcoin investment, his back up funds and making sure that he has some money for discretionary spending too.

The smaller the discretionary income, then the less money that there is to work with, so even if we are very organized in our thinking, sometimes we might need to try to figure out ways to increase our discretionary funds (increasing our income and/or decreasing our expenses) so that our investment and savings budgets become larger.

Indeed splitting our discretionary income into 3 part respectively due to the size of the discretionary from your example is a good idea. Now I see why you do give examples, if the discretionary income was to be bigger let's say 5k it would be a good idea to split them 40% for investment, 40% for emergency fund and 20% for discretionary consumption. And this means the size of the discretionary also determines how much is allocated to 1. investing 2. Saving 3. Consumption.

If anyone feels their discretionary income is way too small and if they've tried cutting expenses then the only option they have left is increasing their source of income probably with a part time job. The internet has made it easy for people to work remotely off their free hours.

[Rockson1]

Some people overdo it with backup funds and waste time in starting their investments. As soon as a new investor makes Bitcoin accumulation comfortable, he should set his her goals and gradually focus on building an emergency fund to do so. Surely... I completely agree with you that it is not necessary for a new investor to have an emergency fund in the beginning, nor would it be right to completely reject it. Balancing between accumulating Bitcoin and long term efforts is like you never know if there will be a bad time in your life in the future. You have to assume that bad times are waiting for you and be mentally and physically prepared.

As much we know that emergency funds are very important in Bitcoin investment we should also understand that it not a must that we must build it before we can start investing in Bitcoin, that could lead to individuals delaying time Bitcoin investment, instead it is adviceable to build it along with your investment although this requires knowledge because I believe that learning is a process that has to do with people seeking clarification of what they do not know or understand, why much emphasis are been made about emergency fund is that, as humans, we might face emergencies at any given time and of course we should know that our bitcon portfolio should not be an option tackle the emergency, we call it emergency because it arises when we do not expect it to, infact it appears unannounced which should be the reason why we are to be prepared for it anytime but that does not mean that we can not get along with it as we acumulate our Bitcoin too.

[Out of mind]

Financial management, risk management, mental and behavioral control, if these three are not together, investment will not be successful in the long run. If someone uses money accumulated in one place in investment, then it is not an investment at all, but rather a normal amount of investment must be determined. For risk management in investment, we must avoid leverage and it is important to use stop loss. The market is not always at the same level and when it falls from the highest ATH, it is necessary to be patient rather than disappointed, many people cannot control their behavior and lose patience. Therefore, in investment, one should focus on these things, if one does not focus on these and cannot control himself, then he will not be able to invest in the long term.

[Hardyrobust]

so perhaps he can divide that $500 into 3 parts and dedicate $166.67 for each of the three categories of 1) invest, 2) save (back up funds) and 3) discretionary consumption.

If he continues to do something  similar for a whole year, then after a year he will have had invested right around $4k into bitcoin, his back up funds will be $4k and he would have had discretionarily spent $4k.

Of course, he can adjust the numbers, but 1/3 in each of the categories might be a reasonably good way to build up his bitcoin investment, his back up funds and making sure that he has some money for discretionary spending too.

The smaller the discretionary income, then the less money that there is to work with, so even if we are very organized in our thinking, sometimes we might need to try to figure out ways to increase our discretionary funds (increasing our income and/or decreasing our expenses) so that our investment and savings budgets become larger.

Indeed splitting our discretionary income into 3 part respectively due to the size of the discretionary from your example is a good idea. Now I see why you do give examples, if the discretionary income was to be bigger let's say 5k it would be a good idea to split them 40% for investment, 40% for emergency fund and 20% for discretionary consumption. And this means the size of the discretionary also determines how much is allocated to 1. investing 2. Saving 3. Consumption.

If anyone feels their discretionary income is way too small and if they've tried cutting expenses then the only option they have left is increasing their source of income probably with a part time job. The internet has made it easy for people to work remotely off their free hours.

It is really logical to do so by splitting discretionionary income into three parts this will create a safe net for our bitcoin investment. This will reduce the pressure of wanting to temper with our bitcoin investment. There will be back funds available which will equal our savings and also our bitcoin investment and whenever our expenses increase instead of making used of our bitcoin investment we will have to fall back to our back up funds.

[sotelorene]

Financial management, risk management, mental and behavioral control, if these three are not together, investment will not be successful in the long run. If someone uses money accumulated in one place in investment, then it is not an investment at all, but rather a normal amount of investment must be determined. For risk management in investment, we must avoid leverage and it is important to use stop loss. The market is not always at the same level and when it falls from the highest ATH, it is necessary to be patient rather than disappointed, many people cannot control their behavior and lose patience. Therefore, in investment, one should focus on these things, if one does not focus on these and cannot control himself, then he will not be able to invest in the long term.

I agree with your first line of sentence I mean the things you listed that an investor should have before starting their investment or accumulation journey but when you talk about stop loss, I really could not help it but to consider you a trader because what does Bitcoin investment has to do with stop loss? Of course it doesn't have any business with that and this thing you mentioned is a strategy traders used incased they can not be able to watch or monitor their trade all the time and again an investor don't have that time to be monitoring or watching over market and that is why it is not advisable or encouraging to trade because of putting oneself in unnecessary pressure.

[Frankolala]

Financial management, risk management, mental and behavioral control, if these three are not together, investment will not be successful in the long run. If someone uses money accumulated in one place in investment, then it is not an investment at all, but rather a normal amount of investment must be determined. For risk management in investment, we must avoid leverage and it is important to use stop loss. The market is not always at the same level and when it falls from the highest ATH, it is necessary to be patient rather than disappointed, many people cannot control their behavior and lose patience. Therefore, in investment, one should focus on these things, if one does not focus on these and cannot control himself, then he will not be able to invest in the long term.

Some people are traders unknown to them and they think that they investors. A long-term bitcoin investor has nothing to do with leverage stop loss. That's a trader thing. I hope you are not trading and if Yes! You should stop trading and divert into investing in bitcoin for long term. When investing, you are only buying regularly every week with part of your extra funds that's leftovers after taking care of your basic needs and weekly/monthly expenses.

You can build a good future for yourself with your bitcoin accumulation for 4-10 years and above if you can be consistent and persistent with your bitcoin accumulation. Don't sell till you reach your bitcoin target and over accumulation stage.

[TokenTikas]

I think that a reasonably good way to think about the matter is to start out from where we are at, and most people will have a least a week or two of funds that are enough to cover their expenses in the event that they don't get paid.. .. yet surely when we are investing in bitcoin, we likely need to improve the level of our back up funds since bitcoin is so volatile and it is also so liquid, so we could be tempted to tap into bitcoin when we should not be tapping into it, so we need to improve our back up fund systems so that we never have to tap into our bitcoin (or close to never), and so we can build up our back up funds and our bitcoin stash at the same time.

Your reply about investing in bitcoin is important because anyone who wants to invest in bitcoin should first make sure they have enough financial funds. On the other hand, even if someone does not have a large amount of funds, it is not necessarily a problem but they should have a stable and decent income so they can continue their investment consistently. People who come into investing should first set their mindset that investing in bitcoin requires patience and a long waiting period. During that time, the market will experience many pumps and dumps, but even then they should not lose patience or give up on bitcoin.

Improving one’s financial funds is very important in order to continue bitcoin investment properly. It is necessary to strengthen the funds because if the financial condition stays the same all the time, it may create problems, so keeping an eye on the funds is important to maintain investment consistently. It is rare to see someone who invested in Bitcoin properly and still ended up in loss. That is why if we choose to invest, we should do it with a long-term plan and clear understanding, while remaining patient. By doing so, it becomes possible to earn profit from it.

[JayJuanGee]

I think that a reasonably good way to think about the matter is to start out from where we are at, and most people will have a least a week or two of funds that are enough to cover their expenses in the event that they don't get paid.. .. yet surely when we are investing in bitcoin, we likely need to improve the level of our back up funds since bitcoin is so volatile and it is also so liquid, so we could be tempted to tap into bitcoin when we should not be tapping into it, so we need to improve our back up fund systems so that we never have to tap into our bitcoin (or close to never), and so we can build up our back up funds and our bitcoin stash at the same time.

Your reply about investing in bitcoin is important because anyone who wants to invest in bitcoin should first make sure they have enough financial funds. On the other hand, even if someone does not have a large amount of funds, it is not necessarily a problem but they should have a stable and decent income so they can continue their investment consistently.

Sure.  One thing is starting the bitcoin investment out, whether that is $100 or $10 or some other amount, and then another thing is being able to continue to add to the investment.

A person might have a preference to be able to continue to add to his bitcoin investment, yet he does not need to continue to add to the investment.

He might well invest as discretionary funds come available, and if he is having some trouble generating more income than his expenses, then he may well have a lot of irregularities in his bitcoin investment, yet he should still try to create systems so that he does not have to tap into his bitcoin investment at a time that is not of his choosing.. and surely some folks are in better situations than others in their abilities to be able to consistently, persistently and ongoingly buy bitcoin for 4-10 years or longer.. ..

So, even though it may well be preferable that we figure out ways to continue to have assurances that in the future we will continue to have discretionary funds available to are enough for us to be able to invest in bitcoin, we do not necessarily need to know all of our future income and/or future expenses in order to make a determination to buy some bitcoin with a plan to continue to hold such recently purchased bitcoin for 4-10 years or longer.

People who come into investing should first set their mindset that investing in bitcoin requires patience and a long waiting period. During that time, the market will experience many pumps and dumps, but even then they should not lose patience or give up on bitcoin.

None of us can tell anyone else about how confident that they should feel about bitcoin, yet at the same time it seems to me that an overwhelming majority of normal people would prefer not to lose money, and when they invest into bitcoin, they make such investment with an expectation that in the future they will be better off for having had invested into bitcoin as compared with a set of circumstances in which they had chosen not to invest into bitcoin.  So, in that sense, it is likely that even if we might be putting a relatively small amount of our income into bitcoin, the fact that we are putting money in bitcoin is likely to inspire us  to continue to learn about bitcoin and also to attempt to learn about how to manage our own cashflow circumstances so that we will continue to have ongoing abilities to continue to buy bitcoin for however long it takes us to accumulate a decent sizedstash.

Improving one’s financial funds is very important in order to continue bitcoin investment properly. It is necessary to strengthen the funds because if the financial condition stays the same all the time, it may create problems, so keeping an eye on the funds is important to maintain investment consistently. It is rare to see someone who invested in Bitcoin properly and still ended up in loss. That is why if we choose to invest, we should do it with a long-term plan and clear understanding, while remaining patient. By doing so, it becomes possible to earn profit from it.

That's right.  We are not guaranteed to profit, yet we likely will be advantaged by both organizing our finances and putting time, energy and value into bitcoin.

[ZeroVinsonN]

Even though we do not have to have much if any back up funds when we start investing in bitcoin, we better be careful not to overly dismiss the idea of having back up funds, and/or to build our back up funds simultaneously to building up our bitcoin stash.

Each of us is responsible to figure out, how reliable our income and/or our expenses and also to build our bitcoin investment in such a way that we should never have to tap into it - absent some somewhat unexpected irregularities.

Some people overdo it with backup funds and waste time in starting their investments. As soon as a new investor makes Bitcoin accumulation comfortable, he should set his her goals and gradually focus on building an emergency fund to do so. Surely... I completely agree with you that it is not necessary for a new investor to have an emergency fund in the beginning, nor would it be right to completely reject it. Balancing between accumulating Bitcoin and long term efforts is like you never know if there will be a bad time in your life in the future. You have to assume that bad times are waiting for you and be mentally and physically prepared.

Mr Jay didn't say it's not necessary for new investor to have emergency funds at the beginning, he said "we do not have to have much" meaning it's still important that we have but it's not necessary to overdo it at the initial stage of accumulation. I like to think of bitcoin investment without emergency fund as a risky investment strategy irrespective of status of the investor either a newbie or a advanced bitcoin investor because, when emergency happens at any instance if your emergency fund is not intact your bitcoin might be the victim of such consequences.

I think the point there is that as a newbie having to much emergency fund will ultimately mean that you have more fund saved for emergencies than you have actually used to accumulate bitcoin but this is also subjective to you starting to save for emergency around the same time you started investing in bitcoin, if for any reason your were already saving for emergency before you even found out about investing in bitcoin or before you decided to start investing in bitcoin then it's obvious that your emergency fund will be more than what you have invested in bitcoin, this is okay because you already saved before the idea of bitcoin investment came to you BUT. if you decided to do thevteo at the same time, then it's not very  smart to pour more into your emergency fund than into your bitcoin investment, the importance of the emergency fund can not be underestimated but that doesn't mean you should rank it to be higher then your actual investment, between the two your bitcoin investment should always take priority.

[Obulis]

so perhaps he can divide that $500 into 3 parts and dedicate $166.67 for each of the three categories of 1) invest, 2) save (back up funds) and 3) discretionary consumption.

If he continues to do something  similar for a whole year, then after a year he will have had invested right around $4k into bitcoin, his back up funds will be $4k and he would have had discretionarily spent $4k.

Of course, he can adjust the numbers, but 1/3 in each of the categories might be a reasonably good way to build up his bitcoin investment, his back up funds and making sure that he has some money for discretionary spending too.

The smaller the discretionary income, then the less money that there is to work with, so even if we are very organized in our thinking, sometimes we might need to try to figure out ways to increase our discretionary funds (increasing our income and/or decreasing our expenses) so that our investment and savings budgets become larger.

Indeed splitting our discretionary income into 3 part respectively due to the size of the discretionary from your example is a good idea. Now I see why you do give examples, if the discretionary income was to be bigger let's say 5k it would be a good idea to split them 40% for investment, 40% for emergency fund and 20% for discretionary consumption. And this means the size of the discretionary also determines how much is allocated to 1. investing 2. Saving 3. Consumption.

If anyone feels their discretionary income is way too small and if they've tried cutting expenses then the only option they have left is increasing their source of income probably with a part time job. The internet has made it easy for people to work remotely off their free hours.

I guess the split can go in different frequency from 1 to 3 that's discretionary for investment 50%, emergency 30%, consumption 20% (or any frequency that places investment highest). Doing these makes personal target simple and clear. The size of discretionary income is discretionary as in personal because you might see $4k as big while someone is seeing their $8k as small. Somehow whether the discretionary income is big or small, an investor can still decide to earn more much more when there're clear chances. However, an investor can develop the zeal to earn more.

[Son Of Blockchain (SOB)]

so perhaps he can divide that $500 into 3 parts and dedicate $166.67 for each of the three categories of 1) invest, 2) save (back up funds) and 3) discretionary consumption.

If he continues to do something  similar for a whole year, then after a year he will have had invested right around $4k into bitcoin, his back up funds will be $4k and he would have had discretionarily spent $4k.

Of course, he can adjust the numbers, but 1/3 in each of the categories might be a reasonably good way to build up his bitcoin investment, his back up funds and making sure that he has some money for discretionary spending too.

The smaller the discretionary income, then the less money that there is to work with, so even if we are very organized in our thinking, sometimes we might need to try to figure out ways to increase our discretionary funds (increasing our income and/or decreasing our expenses) so that our investment and savings budgets become larger.

Indeed splitting our discretionary income into 3 part respectively due to the size of the discretionary from your example is a good idea. Now I see why you do give examples, if the discretionary income was to be bigger let's say 5k it would be a good idea to split them 40% for investment, 40% for emergency fund and 20% for discretionary consumption. And this means the size of the discretionary also determines how much is allocated to 1. investing 2. Saving 3. Consumption.

If anyone feels their discretionary income is way too small and if they've tried cutting expenses then the only option they have left is increasing their source of income probably with a part time job. The internet has made it easy for people to work remotely off their free hours.

I guess the split can go in different frequency from 1 to 3 that's discretionary for investment 50%, emergency 30%, consumption 20% (or any frequency that places investment highest). Doing these makes personal target simple and clear. The size of discretionary income is discretionary as in personal because you might see $4k as big while someone is seeing their $8k as small. Somehow whether the discretionary income is big or small, an investor can still decide to earn more much more when there're clear chances. However, an investor can develop the zeal to earn more.

Don't you think the person's responsibilities should also be put into consideration when spilting their income for different purposes, for instance a bachelor has less responsibilities and could easily afford more for discretionary so such person can assign more for investment compared to a married man with kids.
 The married man would have school bills, and money for the upkeep of his family to put into consideration and reduce the amount assigned for discretionary so other essential expenses doesn't get affected cause of their investment plan so I think JayJuanGee's approach is more preferable.