Discretionary Income for Low-Income Earners: Expectations vs Reality

[Xackie]

‎I have been on the this Forum for a while now, and I have come across multiple post talking about how an investor can still figure out discretionary income even if they have unstable or low income. But my own confusion is that, we often use U.S.A  logic when talking about figuring out discretionary income even if it's ($5-$10) but don't use that logic for Nigeria. It's very easy for 1st world country person or guy to save more than $10 after receiving their income unlike a Nigerian citizen. Because they have a better economy than ours.
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‎Why I am saying this, is that, I have a friend who teaches in a private school and earns ₦50k/months. He also make additional ₦30k for private tutoring, which brings his total income to 80k/months. Now this guy's has been showing interest in investing into bitcoin recently. But according to some people, he can still figure out his discretionary income. Let's call a spade a spade its not simple for a Nigerian with low income.
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‎Number one factor is our economy, we know how bad things are in Nigeria. High inflation, higher fuel/gas prices which affects his transportation cost to his work place, food prices are costly, Rents have increased significantly, bills (Nepa etc), personal expenses and raining day savings. What ₦80k can cover years ago, is far different from what it covers now.  So when ever he budget everything down , he doesn't have any money left. Sometimes he will have to start doing Ajo or borrow just to support himself.
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‎Now back to the first paragraph, since we always say investors can still be able to figure out discretionary income, my question is how can he do it without hurting himself as a Nigerian. Some might suggest that he should cut his expenses, but even if he cut it ,he won't be able to cope for long. Because this guy has been showing lots of interest in bitcoin investment, but his salary is holding him back. Can this kind low income earner survive in Bitcoin long term investments?  If you were in his position what would do differently to invest into Bitcoin.

[Charles-Tim]

Not everyone can invest in bitcoin.

You should know what people will reply as answers to your question already. He is not having up to the savings that can make him invest in bitcoin. He is not having any discretionary income. So he has no money to invest in bitcoin. He just have to hope and get a better job instead of being underemployed.

[Bright0515]

‎I have been on the this Forum for a while now, and I have come across multiple post talking about how an investor can still figure out discretionary income even if they have unstable or low income. But my own confusion is that, we often use U.S.A  logic when talking about figuring out discretionary income even if it's ($5-$10) but don't use that logic for Nigeria. It's very easy for 1st world country person or guy to save more than $10 after receiving their income unlike a Nigerian citizen. Because they have a better economy than ours.
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Don't let anybody deceive you; there's no 100% easy life anywhere in the world. Even in the US you are talking about, many poor people live on the streets, so don't think it's easy for everyone in the USA. Some of them barely see $50 - $100 (you can agree with me or disagree, but that's the simple truth). Not everyone is comfortable in the USA. Likewise, many other 1st-world countries, as you may call them.

‎Why I am saying this, is that, I have a friend who teaches in a private school and earns ₦50k/months. He also make additional ₦30k for private tutoring, which brings his total income to 80k/months. Now this guy's has been showing interest in investing into bitcoin recently. But according to some people, he can still figure out his discretionary income. Let's call a spade a spade its not simple for a Nigerian with low income.
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That's right, it's not easy for a Nigerian with a low income, but it can be quite easy if he starts small. One thing I have noticed about so many Nigerians is that they always want to start big, but they forget the fact that if they don't have the complete money yet, they will keep on procrastinating and even though in the future, they finally get a huge amount of money, they will give an excuse not to use the money on what they talked about previously.
My point here is that you can start small, if your friend is really interested in Bitcoin investment, he can start buying N5k Bitcoin monthly, and with time he might get something from it. But every Nigerians want the amount of money that can buy a whole Bitcoin before they can start, which is very wrong because money doesn't just come out of nowhere.

‎Number one factor is our economy, we know how bad things are in Nigeria. High inflation, higher fuel/gas prices which affects his transportation cost to his work place, food prices are costly, Rents have increased significantly, bills (Nepa etc), personal expenses and raining day savings. What ₦80k can cover years ago, is far different from what it covers now.  So when ever he budget everything down , he doesn't have any money left. Sometimes he will have to start doing Ajo or borrow just to support himself.
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That's right, we all know that things are hard everywhere, but the simple truth here is that so long as he doesn't have any family to take care of, he can start up something. Just like I said earlier, he can buy N5k Bitcoin monthly. If he can't afford N5k monthly, then he can minimize his spending limits so that he can meet up with his investment plans.

‎Now back to the first paragraph, since we always say investors can still be able to figure out discretionary income, my question is how can he do it without hurting himself as a Nigerian. Some might suggest that he should cut his expenses, but even if he cut it ,he won't be able to cope for long. Because this guy has been showing lots of interest in bitcoin investment, but his salary is holding him back. Can this kind low income earner survive in Bitcoin long term investments?  If you were in his position what would do differently to invest into Bitcoin.

It's either he cuts unnecessary expenses, or he increases his cash flow, or he starts buying Bitcoin with a low amount, and these were DCA strategies coming in.

[Stormisover]

Investing in Bitcoin is not a quick money scheme and part of the reason using a discretionary income is very important, it is not enough to have interest in investing in Bitcoin as there must be a discretionary income before investing. Before anyone can talk about having a discretionary income it proves that the basic expense is already secured or taking care of. With this, anyone struggling to meet up with their basic expense is not eligible to invest in Bitcoin as doing it will result in selling back your Bitcoin to sort out your essentials bills which make no sense because in some cases it will be sold under pressure and can be in lost, your friend can not invest in Bitcoin for now until he is able to figure out a discretionary income at some point of his life when he has improved in his financial condition.

[Gost ms]

At this moment, it is not easy to find money for all expenses and investments with this amount of money and it is never possible for an uncontrolled person. Yes, if he can reduce his expenses a little, then he can take that approach, but even then I do not think that this solution will be very convenient for him. At this moment, he needs to try to find a separate source of income so that he can earn some more money. For example, if he wants, he can finish his school and find another high-paying source of income instead of teaching students and if he does not get it, he can start some kind of small business according to his ability so that he can earn a second income and improve his financial situation by expanding his business. Your friend will not only have to reduce his expenses but he will also have to increase his income.

[Mia Chloe]

‎~snip

Don't let motivational talks and theoretical statistics deceive you or take you far from the truth. The fact remains if you are making just enough to survive you'll not be able to invest or take random risks like people often suggest as a key factor to accumulating wealth. In both business and investment volume is key.

The first target of a low income earner is skill set development that can generate a higher revenue relative to time and mastery it is when you have more than enough "relatively" you can even try to invest or grow a portfolio be it crypto ,stocks , real estate , mutual funds etc...

[BIT-BENDER]

‎~snip

Don't let motivational talks and theoretical statistics deceive you or take you far from the truth. The fact remains if you are making just enough to survive you'll not be able to invest or take random risks like people often suggest as a key factor to accumulating wealth. In both business and investment volume is key.

The first target of a low income earner is skill set development that can generate a higher revenue relative to time and mastery it is when you have more than enough "relatively" you can even try to invest or grow a portfolio be it crypto ,stocks , real estate , mutual funds etc...

To double down on your point, if you are making money for survival and you have people you are depending on you would definitely not have enough to think about investment in any way.
It's good to increase your source of income to give yourself the opportunity to invest but it's one thing to have multiple sources of income and another thing to leave below your means.
Some people could have several sources of income but as it increases so those their wants, standard and interest which still leaves them in the same position.

[Creeper0]

The most important basic thing to invest is to have the financial capacity to invest, if you do not have that capacity then do not try to make yourself an investor in vain. Rather, first acquire that capacity to invest, then try to become a Bitcoin investor.

No one will tell you that even if your income source is not enough to invest, you should try to acquire the capacity to invest. If your income source does not provide discretionary money, you should try to increase your income source, stay away from investment until you can. Because this investment can make you face losses instead of giving you profits. If I were in his position, I would be so busy running my own life that the thought of investing would not even come to my mind, in fact it would have been a dream. But I would definitely fight with myself to acquire that capacity.

[Cryptomultiplier]

I can suggest you advice your friend to try learn how to trade, let's see if he would use that hunger to better himself amidst the risk involved in trading.
Yea, we have professional traders who have built successful income from trading and maybe he might just find trading simple to apply and make more profit than losses.

Besides trading, he could try increasing his income by either looking for a better job in a better environment and then invest some fraction of his earnings in Bitcoin, else, with his current earnings percentage, it might be quite difficult to invest in Bitcoin and have a good return.

[fredericktaylor]

It is usually difficult for people with low income to invest in Bitcoin because most of their income is used for necessities, making it difficult to invest consistently. If your income is very low, it is not right to put extra stress on yourself to invest. I think that if a person spends all their money on necessities, then investing in Bitcoin is not for them.

I think it is very important for a low-income person to first diversify their income, and then invest in Bitcoin. This will not put additional financial stress on the investor and they will be able to manage their investments with discipline and hold on to them for a long time.

Bitcoin is a long-term asset, in order to achieve success through investment, it is very important for the investor to have basic knowledge about Bitcoin. In addition, it is very important to have a discretionary income and a long-term investment mindset. In addition, it is very important to have an emergency fund for three months to properly manage long-term planning continuity from unknown dangers.

[Bright0515]

I can suggest you advice your friend to try learn how to trade, let's see if he would use that hunger to better himself amidst the risk involved in trading.
Yea, we have professional traders who have built successful income from trading and maybe he might just find trading simple to apply and make more profit than losses.

Besides trading, he could try increasing his income by either looking for a better job in a better environment and then invest some fraction of his earnings in Bitcoin, else, with his current earnings percentage, it might be quite difficult to invest in Bitcoin and have a good return.

Honestly, I don't think this is completely good advice at all because we all already know that trading is very risky and it involves so much awareness in other to learn trading. I'm not trying to say that it's not partially correct, but from my point of view it's wrong to suggest trading to him because he's a complete beginner and from the way op sounds, I believe his friend can't afford to risk money in learning how to trade.

The reason why I don't think trading will be a good idea for the person is that even an experienced trader normally lose his trade most times, talk more of a total beginner who's not even aware of the crypto space.

[PhilosopherKing]

For some fellas #80k is just peanut to them . But there are some lots that actually live on that #80k that you think is peanut, and still even have little discretionary income left that they can use to ongoingly invest. I have a guy, we went to the university together. The guy is married right now with 1 lad. The guy has three jobs he is doing for a living, but his major job is teaching.As a teacher what they pay him is not even up to 70k. So he will now use income from the other jobs he is doing to support his expenses. His wife is very hardworking and she is really helping him out. This my guy has bought a bike using the little money he has been gathering.

So dude, don't let anyone to deceieve you, know that any thing is possible. This same country that plenty person are complaining of, it is the same country that you see your colleagues buying cars, building housing and doing Igbeyawo. Them say that there is no money in Nigeria , but a Saturday cannot pass by without them doing party especially in places like Lagos, Enugu state, Ogbomoso, Ontisha, Bayelsa State, Ogun, Imo and others. My guys that are into photographers in this places I mentioned are always very busy every Saturdays with work.

So investing ongoingly in bitcoin can happen even with small income. Those people that even do Ajo, don't you think that the money they use is discretionary income, because many of them can afforded to leave it untouched for long, a month at minimum. After getting your money from the thrift contribution you do, you can even share it into part and invest with some of it, anything is possible, hell yeah it is. The problem with some people is that they actually have discretionary income, but they don't value investing in bitcoin, they should just call a spade a spade.

[SOKO-DEKE]

Hope your friend knows that Bitcoin is not a get-rich-quick scheme, because I don't know why someone whose monthly income is 80k would be showing interest in investing in Bitcoin when even that money can't take care of his expenses, even if he has to manage it.In fact, if he were to invest, how much would he be able to invest in Bitcoin every month? What I'm thinking is that maybe your friend doesn't know much about Bitcoin, and I would encourage you to tell him to do proper research so he can understand more about Bitcoin.

Because, due to my own thinking, investing in Bitcoin may not work out for him or her. So, the best thing for him is just to take care of himself and forget about investing in Bitcoin for now because his income is very low.Even if he tries to invest a small amount now, if a problem arises, he may definitely end up selling it. And by the time he decides to sell his Bitcoin, the price may be down. With that salary, he can't cover his expenses, have enough money left to invest, and also build up an emergency fund at the same time.

[Agbamoni]

If you are a good friend, you know what to tell him. Dont act like you dont know the best advise to this person.

Think of his basic needs expenses, his rent, his clothing, transportation to the school where he teaches, and also think of his little responsibilities, perhaps as a family owner. N80 per month isn't enough for his needs. It won't yield any discretionary income currently.

[NewRevelation]

‎I have been on the this Forum for a while now, and I have come across multiple post talking about how an investor can still figure out discretionary income even if they have unstable or low income. But my own confusion is that, we often use U.S.A  logic when talking about figuring out discretionary income even if it's ($5-$10) but don't use that logic for Nigeria. It's very easy for 1st world country person or guy to save more than $10 after receiving their income unlike a Nigerian citizen. Because they have a better economy than ours.
‎
‎Why I am saying this, is that, I have a friend who teaches in a private school and earns ₦50k/months. He also make additional ₦30k for private tutoring, which brings his total income to 80k/months. Now this guy's has been showing interest in investing into bitcoin recently. But according to some people, he can still figure out his discretionary income. Let's call a spade a spade its not simple for a Nigerian with low income.

Maybe you got the whole thing wrong, yea. Nobody they force you go invest for Bitcoin when you no get money oo, if not, you go sell am when you no ready, something self, you go sell  for loss.

When them say you go fit figure out your discretionary income, that English na for person wey don fit settle in basic needs finish ooo. No be when you don chop na him you go fit meet up your every other important or necessary needs? How 80k wey you use do example won take survive an average Nigerian or adult for this hard economy let alone com dey keep some for where you never ready to use for long, no way.

It's not that Nigerians can't invest, nope. We can, but it lagerly depends on your income. Investment isn't for everybody, and it's never by force. It's compulsory you first figure out your discretionary income, yea, that's the pattern. And before you can have discretionary income, it means you have been able to settle your basic needs properly. So, if you don't have enough pay to settle your basic needs, it means you won't have a dhscreu, meaning there is no investment for you, as simple as that. No be by force my brothy, if you get you invest, if you no get, you rest till you get a better income wey go allow you invest.

[Coyster]

This "problem" is not only specific to bitcoin, but any other investment. It is difficult for people who are not sure where their next meal is coming from, to invest in bitcoin, stocks, gold or whatever. It is definitely not practical. Motivational speakers try to make it seem possible and say you can invest from whatever you earn, but the reality is untrue.

People in such conditions have to try and find other sources of income, maybe a job on the side, learn a skill and offer a service, etc. It could be anything, but they just have to invest in themselves first and then increase their earnings, in order to start saving and investing in assets.

[Agbam]

‎I have been on the this Forum for a while now, and I have come across multiple post talking about how an investor can still figure out discretionary income even if they have unstable or low income. But my own confusion is that, we often use U.S.A  logic when talking about figuring out discretionary income even if it's ($5-$10) but don't use that logic for Nigeria. It's very easy for 1st world country person or guy to save more than $10 after receiving their income unlike a Nigerian citizen. Because they have a better economy than ours.
‎
‎Why I am saying this, is that, I have a friend who teaches in a private school and earns ₦50k/months. He also make additional ₦30k for private tutoring, which brings his total income to 80k/months. Now this guy's has been showing interest in investing into bitcoin recently. But according to some people, he can still figure out his discretionary income. Let's call a spade a spade its not simple for a Nigerian with low income.
‎
‎Number one factor is our economy, we know how bad things are in Nigeria. High inflation, higher fuel/gas prices which affects his transportation cost to his work place, food prices are costly, Rents have increased significantly, bills (Nepa etc), personal expenses and raining day savings. What ₦80k can cover years ago, is far different from what it covers now.  So when ever he budget everything down , he doesn't have any money left. Sometimes he will have to start doing Ajo or borrow just to support himself.
‎
‎Now back to the first paragraph, since we always say investors can still be able to figure out discretionary income, my question is how can he do it without hurting himself as a Nigerian. Some might suggest that he should cut his expenses, but even if he cut it ,he won't be able to cope for long. Because this guy has been showing lots of interest in bitcoin investment, but his salary is holding him back. Can this kind low income earner survive in Bitcoin long term investments?  If you were in his position what would do differently to invest into Bitcoin.

I understand what you’re saying, I mean most of us do but it all depends on the person and his financial discipline. Forget the economy and the size of his salary, if you’ve planned something and you’re determined to do it you’ll definitely achieve it.

People should live according to their means, don’t go trying to impress anybody. When I served NYSC we were paid ₦33k monthly but I was able to save 200 and something after my service. You can’t say things weren’t as bad then, though I worked one day in a bar during the weekend to support myself.

Bitcoin investment is open to everyone and yet not everyone can invest but a low income earner can definitely invest in bitcoin if he’s determined to.

[Brizi5000]

‎Can this kind low income earner survive in Bitcoin long term investments?  If you were in his position what would do differently to invest into Bitcoin.

There is a reason why the said investment money is called a discretionary income, it is the money left after sorting out basic financial needs and obligations and from the look of things your friend is clearly struggling to meet up with sorting out his basic obligations leaving him with no discretionary income to invest in bitcoin at the end of the day so he doesn’t need to overdo because bitcoin investment is not a do or die. But if clearly he really want to invest In bitcoin then he can look for a way to increase his income and somehow also try to cut down on his normal expenses, maybe he can be able to remain a discretionary income to get started with first. To survive in bitcoin investment one needs to be consistent with what you do in regards to bitcoin accumulation, no matter how little you’re buying and HODL gradually you’re building a portfolio. I can recommend the DCA strategy where he can get to buy bitcoin and hold anytime he’s able to figure out a discretionary income.

[Marykeller]

Not everyone can invest in bitcoin.

OP, Have this piece of advice in your head, and have peace that not everyone who earns little or huge money in Nigeria or anywhere in the world will invest in Bitcoin. That's very simple not to do because it wasn't mandated that everyone will invest in Bitcoin, as there are many businesses or skills someone can start up with little or big money; they will live their life happily with the money they will be making from it to sustain them in the bad economy.

Don't make it sound to everyone that they should invest in Bitcoin. If what they earn is no way enough for them after monthly expenses, they should never force themselves to map out an amount to invest in Bitcoin by fire or by force

[Richbased]

Bitcoin investment na for everybody and no be for everybody too. If you dey earn low salary, wetin you go do na to dey save small small money for naira, when it don sum up better amount you fit consider to invest in Bitcoin. Make nobody go put himself under stress because say him wan invest in Bitcoin. Bitcoin no dey finish anytime soon, the only difference be say you fit buy am high when you don get sustainable income but e better say you buy am high than to put yourself for high tension while trying to buy when you are a low income earner.

if you are making money for survival and you have people you are depending on you would definitely not have enough to think about investment in any way.

Someone who is in survival mode don't need to sort out bills for anyone except in cases of health challenges. When you are in survival mode or living on low income, it is not a time to lend a helping hand to anybody. It is a time to try and increase your source of income or save some money and start a small business while still receiving salary from your place of work. When you get a balance in your finances you can then help whoever you want to help. The reason why most youths are not progressing is because they are earning low income with high responsibilities. We should have that mindset that without you, those people who depends on you will find a way to survive without you.