Post
Topic
Board Bitcoin Discussion
Merits 1 from 1 user
Re: Strong Hands Are Buying
by
salad daging
on 28/07/2022, 14:45:20 UTC
⭐ Merited by JayJuanGee (1)
There can be a variety of ways that you could set up your DCA in terms of your cashflow - when you get paid and maybe even attempting to account for a variety of uncertainties in your cashflow and even expenses.

For years, I have had a tendency to project my cashflow out for a couple of years (using an excel spread sheet), and it can be more important (helpful) to project out for longer periods when there are possible complications in your cashflow, expenses and investment goals that you want to attempt to plug into your cashflow projection.

So you could have a kind of worse case scenario figured out that you would project that you would invest $10 per week into bitcoin (and of course, it makes sense that some of this might be more reasonably framed in terms of monthly), and so if the whole month ends up going well, then you might be able to inject more into your BTC investment for that month because your cashflow might have ended up being higher and/or your expenses might have ended up being lower, so then you can end up folding the excess into bitcoin.. but only after you have pretty much cleared the month or assured that you have the short term sufficiently covered, and you know that you had exceeded your expectations for that month.  Some months might have higher levels than others, but you may also have a kind of budget that attempts to maintain a base level - such as $10 per week on average to invest into bitcoin, and of course people with higher cashflows and/or lower expenses might be able to establish a higher base level and to see that they still have cushion cashflow reserves in their budget that might be projected out for a couple of years but have more attention paid to the shorter time frames in which bills are coming due and assessments can be made about whether cashflows expectations have been met.
To calculate my cash flow in terms of monthly income and later expenses I have projected it in a document (spreadsheet) from the beginning of the DCA that was applied, everything will be recorded in detail so that I know everything that has been done in this typical monthly flow is important so I do it's probably the same as you.
Well every long-term investment must have a record in it so that we can calculate it easily.

So even though the scenario has been pre-arranged, the initial monthly DCA investment income is maybe if my cash flow is stable I can project weekly or biweekly, whatever it is that has been generated during my monthly work, I think this will not last long it becomes stable, of course there are bad things, but with the notes in the (spreadsheet) I know my investment income with the planned annual DCA.