Discretionary Income for Low-Income Earners: Expectations vs Reality

[sokani]

Nah person wey don chop belle full naim dey save for tomorrow.

As your friend dey eat from hand to mouth, him no go fit save in Bitcoin. According to you, him salary sef no dey even sustain am through di month, not to talk of to save. Make him just shun di idea for now. Whenever him get a better job, or start a business and money do begin to dey come in, then him fit run am.

[Somto9Light]

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.

I want to ask if that your friend has wife and kids or just a single bachelor. If he is married then it is impossible to earn that low salary and still invest in Bitcoin but if he is single, he can still manage to squeeze out a little amount, like 10k from his salary will not affect him so much. I know that 80k income is not even enough for a single guy to manage but he should consider the future, is he going to depend on that low salary for the rest of his life? Investment is important, though not everyone can invest due to their financial capacity but we should also make sacrifices for the future because every action we take today will reflect in time to come. Investing in bitcoin is not easy for a low income earner but there always a way to manage things and still bring out something from nothing.

[Rhow]

Discretionary income certainly has some relation to the source of income. But it is not always the case that there will be no discretionary income just because the main income is low. There are some people who, even though their monthly income is very high, may not have any money left after paying for rent, medical treatment, food or other necessary expenses. Again, someone may have a low income but if their expenses are controlled and family responsibilities are low, then in their case they may have discretionary income despite their low income. But if someone's expenses are higher than their income, then it may not be a bad idea for them to wait. They should first increase their income and spend as little as possible. Then if they have discretionary income, they can definitely invest.

[Obari]

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.

Which brings it to the fact that, bitcoin isn't met for everyone right ?
Because I've also seen several other discussions where people make it seem like, it's totally the fault of anyone who doesn't invest in bitcoin and it breaks my heart when I see post like because I've seen people who genuinely wants to invest in bitcoin but are so limited because of some circumstances beyond them considering the kind of society we've found ourselves.

I've always been on the opinion that bitcoin is for everyone but not everyone can actually afford to take advantage of the opportunities the market offers and I wouldn't blame them if sincerely they're doing their best to it always to no avail.

[CryptoHeadlineNews]

‎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.

So let's call a spade a spade, are you trying to tell us that before this your friend got this extra private tutorial job of #30k, wasn't he managing his #50k per month amicably? I'm pretty much sure the answer is YES. Because if he was managing his life while earning #50k, and he now earns #80k while he can't be able to just sacrifice even if it's the least #5k or #10k in investing in Bitcoin if only he is that serious about it. Because one thing you need to know is that as humans our needs are insatiable, which means the more money you have, the more your needs and want will also increase, irrespective if you are in Nigeria or outside the country like in the United States. Because inasmuch that our economy is bad and inflation have rapidly affected price of things, because I'm sure if there was no extra #30k for his tutorial job, he would have still managed his #50k per month.

[Sammye3]

Nah person wey don chop belle full naim dey save for tomorrow.

As your friend dey eat from hand to mouth, him no go fit save in Bitcoin. According to you, him salary sef no dey even sustain am through di month, not to talk of to save. Make him just shun di idea for now. Whenever him get a better job, or start a business and money do begin to dey come in, then him fit run am.

This is common logic. Bitcoin investment does not have to be a punishment, it is something that should be done from a place of comfort and commitment not out of distress. This is because with such pattern of investment, it is very likely that he would withdraw his bitcoin in the future during hard times. Surviving should always come first before investment, bitcoin rewards patience not quick money scheme.

[DiMarxist]

‎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.

I don't completely agree with your position when it comes to saving for the purpose of investment, for the low  earners.when you say that An American citizens can comfortably do a save up a certain amount at the end of the day, to invest no matter how little his salary is while it will be difficult for a Nigerian to do that simply due to the difference in economic development of the two countries.

What you should know is that, saving is a personal decision which is influenced by the way and manner an individual has been able to train himself. To be disciplined and have a good budget which is at the end of the day. No matter the country that one is if you don't plan yourself , especially when it comes to your finances there is definitely going to be a very big problem.

Discretionary funds means that money that has been removed after every possible expenses, and for a low salary earner whose source of income is stable even in Nigeria can, actually maintain that even though the economy is not good .What is important is just discipline and commitment.

[Bitcoin-Forever]

Always plan ahead before you invest; don't go into it just because you discover others are doing the same thing, because what you might get may be different from theirs.

Anything we do is at our own risk, and we can't hold anyone responsible for any consequences that come after it; therefore, try as much as possible to see that you are an investor that understand anything regarding what you intended to do in Bitcoin investment.

[Cryptoprincess101]

Discretionary funds means that money that has been removed after every possible expenses, and for a low salary earner whose source of income is stable even in Nigeria can, actually maintain that even though the economy is not good .What is important is just discipline and commitment.

Just because the income is coming regularly does not mean that a low income earner can invest in Bitcoin with the little discretionary income he gets if at all he will be left with anydiscretionary income after his expenses. Before a low income earner can be able to invest in Bitcoin, he will first check if his income can comfortably take care of his basic needs. If we go by the amount that OP used about his friend which is 80k, it's not even enough for feeding not to talk of buying other essentials like soap, cream and even data. That amount is too poor because he can't even afford a meal of 3k daily so how will he be able to invest. I know that bitcoin investment is good but we should consider things with present economic situation.

[Miles2006]

Bitcoin investment is not possible with such budget, discretionary income simply means leftover or money we can actually do without for a long period of time. The truth is if such person should start their bitcoin journey gradually they’ll end up using the savings no offense but, such amount is not enough to sustain anyone for long talk more of a month.
The economy is not helping matters likewise the pay render to masses for a job well done, the government need to do better I guess low income is also a major factor resulting to bad economy.
If we should advise the person in question to find another paying job join together still such person can’t keep up with bitcoin investment because other bills might likely cover up the space of bitcoin investment, discretionary income is only available when an individual earn more than the average minimum.

[CryptopreneurBrainboss]

‎‎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.

The problem with we Nigerians is that we dey sabi wan do pass ourselves. We do things that we aren't supposed to be doing then then we over do it because we want to feel among. If you don't have a good job that's paying you well you first have to change that job so looking for a better one should be your first focus as to improve your  finances. Na rich man dey invest close eye as poor man no go fit invest rest because of fear say him go lose the small investment wey him get therefore, he has to first get himself a stable income before thinking about investing in Bitcoin. Make we no dey over do pass ourself and make we know wetin we go give priority first as person go first move leg before him go begin waka and then running go enter (get a stable income, start investing then accumulate wealth).

[Africolo]

‎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.

Bitcoin is not meant for everyone to invest because it requires a large sum and someone who is earning a very low income such as your friend can't invest into Bitcoin, the way we talk about USA is not the way it seems to be when people from here gets over there I know the system is a bit softer there but some of the citizens over there are still struggling to survive just the way we are trying to find our feet here it not as juicy as we think.

Nigeria is a failed country and those who have the opportunity are beginning to travel out of this country to find a greener pasture elsewhere because the bills in the country is just too much and the income is very small compounding the hardship with a naira that is weak and not valuable. Someone who's not rich can't invest because what will he eat if he uses the little amount he has to invest and it won't even be sufficient for the investment so that kind of income can't survive a long-term investment it requires large income to invest.

[Salahmu]

Indeed the investment of Bitcoin have made us not to realize that their are some income earners who cannot afford even a bit of Bitcoin due to the salary or even see any money they could called a discretionary income, although the reason why we most times feels that every earners needs to invest in Bitcoin is because we usually give the instance of earning through dollars and we no is usually higher than naira but however with how the op have given his own instance of ₦80k is difficult for anybody to cope with all the bills and still be thinking about money for Bitcoin, so actually the investment is important but everybody knows how it is for them so if they currently don't earn what could fetch them the opportunity for Bitcoin they shouldn't force it except they have started earning more.

[Mayor of ogba]

No one is forcing your friend to invest in bitcoin, if your friend knows very well the 80,000 his earning from his teaching job can't take care of his important expenses (things he needs to survive), he should never invest in bitcoin because he will end up selling his bitcoin portfolio even at a loss just to solve his problem. We can figure out discretionary income after we have paid for all our important things, any money that remains after then is our discretionary income, and we can use it on anything (things we don't need to survive). So if your friend solved all his important expenses and there's no leftover money that means he didn't have discretionary income, he shouldn't cut his expenses because by doing that he's just trying to force himself to invest in bitcoin and it won't end well for him.

[Xackie]

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.

I want to ask if that your friend has wife and kids or just a single bachelor. If he is married then it is impossible to earn that low salary and still invest in Bitcoin but if he is single, he can still manage to squeeze out a little amount, like 10k from his salary will not affect him so much. I know that 80k income is not even enough for a single guy to manage but he should consider the future, is he going to depend on that low salary for the rest of his life? Investment is important, though not everyone can invest due to their financial capacity but we should also make sacrifices for the future because every action we take today will reflect in time to come. Investing in bitcoin is not easy for a low income earner but there always a way to manage things and still bring out something from nothing.

He's single, but  looking at my guy condition I don't think he can squeeze any extra 10k from his salary ooo. Out of that income, he will buy food stuffs, fill gas, transport to work place , rent and other bills.  Normally it's just that economy is bad due to high inflation, if not I am very sure that he can save up to 10k out of the money. The best thing for him is to focus on his survival first, if he gets opportunity to get more cash flow through another side hustle then he can figure out his discretionary income.

[TrialBitcoin]

No one is forcing your friend to invest in bitcoin, if your friend knows very well the 80,000 his earning from his teaching job can't take care of his important expenses (things he needs to survive), he should never invest in bitcoin because he will end up selling his bitcoin portfolio even at a loss just to solve his problem. We can figure out discretionary income after we have paid for all our important things, any money that remains after then is our discretionary income, and we can use it on anything (things we don't need to survive). So if your friend solved all his important expenses and there's no leftover money that means he didn't have discretionary income, he shouldn't cut his expenses because by doing that he's just trying to force himself to invest in bitcoin and it won't end well for him.

I completely agree. Bitcoin investment should come from discretionary income, not money meant for essential needs. If someone earns ₦80,000 and that income is barely enough to cover food, transportation, rent, bills, and other necessities, investing in Bitcoin is simply not practical.

The moment an emergency comes up, they may be forced to sell their Bitcoin at a loss just to survive. There’s no need to force an investment strategy when the financial foundation isn’t there yet. Take care of your needs first, build some financial stability, and only invest what you can genuinely afford to leave untouched for the long term.