Let's say that the person who has a $3k per month income has been investing 1/3 of his income $1k per month, so if his income ends up going up by more than the cost of living (goes up to nearly $4k per month.. and maybe cost of living is $3,500, so then has an additional $500 per month to do what s/he likes), then s/he can choose the extent to which to invest that extra income or to increase his/her standard of living.. and it does not need to be all or nothing - even though there could be some advantage and incentives to invest with the money in order to either accelerate the timeline of getting to fuck you status or to increase the odds of getting to fuck you status... which maybe instead of taking 40 years to get to fuck you status, the investor might be able to get to fuck you status in 30 years.... or maybe less time to get to fuck you status if there might be some greater luck along the way... .. both preparations and luck.. but not just expecting luck without making preparations along the way.
I hope I understood something from the quote above, especially about the time it takes to achieve success in investing. Not everyone will succeed from their investment within 1-5 years, most require a longer time, namely 10-30 years. However things can be different when we invest in bitcoin especially when they invest heavily on down cycles. I would think investors do well to earn good returns if they are willing to be long term holders or when they are taking advantage of price cycles.
I believe bitcoin investing will provide good returns if we take advantage of down cycles. I mean when the correction has reached 70% since ATH, then this is the best time for investors to take profits by investing more. Accumulation can be thought, buy on the dip and obviously these are the best of times.
There are all kinds of ways to attempt to project out how long it might take a person to reach fuck you status - if things go correctly, and there are a lot of people who work 30 or 40 years or more and they never make it to fuck you status. So, just making it to fuck you status would be a great thing..
Let's say that you are pretty young and you are in your early 20s, you could project out starting with $500 per month investing ($6k per year) and then perhaps seeing your income and the amount that you are able to invest go up through the years.... .. so you can project out an average rate of return and even attempt to figure out whether you are able to be consistent in your investing and even to be able to keep up with the cost of living increases.
Before I got into bitcoin, I figured that my first more than 20 years of investing, I had averaged about 5.5% increase per year in my investment portfolio size that was due to appreciation, so over course there were good years and bad years, but on average I was able to achieve 5.5% increase per year which was o.k.. and better than nothing and maybe even lucky that it seems to have gone up more than the cost of living... some people are not even able to achieve that level of return or even to be able to consistently invest for more than 20 years...
So maybe even if you project out $6k per year and then going up to $20k per year.. and with around a 6% return, that may or may not allow you to get to fuck you status, but it could increase your odds, if you are consistently investing and not making too many BIG mistakes.
The first 3-5 years that I was in bitcoin, the bitcoin portion of my investment was underperforming my historical returns; however, starting in late 2016 or 2017 or so, the BTC portion of my investment outrageously outperformed the remaining portions of my investment portfolio.. and I did not choose to diversify out of my BTC investment.. but to just continue to let my winner ride.. and sure in this last year, there has been downward performance, but BTC's performance is still at least 8x higher than the remaining portion of my investment portfolio... so that outperformance does increase the chances to get to fuck you status and even to potentially get there sooner than if I would have just kept going with my various traditional investment portfolio assets.
Sure, historical performance is no guarantee of future performance results, but it still seems that bitcoin remains amongst the better (if NOT the best) of investment asset options.
I am speaking somewhat from experience, and I have been building my investment portfolio for more than 30 years.. Of course, bitcoin was not available for all of that time, and I ONLY started to add bitcoin into my investment portfolio in late 2013
I didn't invest in bitcoin until years late. I'd like to ask your portfolio holdings if it isn't personal to share.
Of course, we look at bitcoin differently if we have already established some kind of an investment portfolio as compared if we are brand new to investing.
Prior to investing into bitcoin, I had mostly been investing into various kinds of index funds that would be a mixture of stocks and bonds, and then some property and business investments.
When I first got into bitcoin, I created a 6 month budget for myself, so by the middle of 2014, my six months was over, so I largely extended my investing into bitcoin and my budget for another 6 months, so by the time that the end of 2014 came, I was attempting to reassess what I should do, and at that point, I had largely reached around 10% of my total investment portfolio to have been into bitcoin, so I thought that I had largely met my goal.. however, if you look at the charts, you will see that bitcoin prices continued to go down and to stay down through almost all of 2015, so my ongoing buying of BTC during 2014 had caused my BTC allocation to go higher than my 10% preference, and I had gotten up to around 13.5% allocated into BTC by the end of 2015.
I reassessed various times and tried to figure out what to do, an largely I decided not to reallocate my BTC.. but just let it ride and to take various risk management (volatility) strategies within my BTC holdings by selling very small amounts on the way up and using that money to buy back.. so there can be some additional fees in there, too.
I feel that I had frequently attempted to employ decently strong strategies to invest 10% of my income or more no matter what, and sure when I look back I can see a lot of mistakes that I made, and I can even see that there were a lot of periods in which it seemed as if I was just spinning my wheels and not really making much progress... yet in some sense the amounts did continue to increase and even the amounts were able to out-pace inflation.. and if i compare what I did to some of my colleagues, there can be a decently large difference between someone who had a life of saving and trying to live within his her income rather than spending on consumer debt...
Investing 10% of your income isn't a bad strategy, you acted on what you thought was good to do. It's about experience & risk taking. When you're investing you enter learning & discovery phases in life. By out-pacing inflation in some increases your investments were wise.
Well maybe there were times in which I might have ONLY been making small amounts of money, so figuring out how to construct some kind of a savings plan, and so sometimes when my income went up at later points in my life, I did not feel that I needed to buy a bunch of stuff, so I could invest way more than 10%.. and maybe even getting up to periods in which I was investing 30% or more... but it was good to always have an ongoing practice of investing.. even though I believe that there were several times that I made mistakes in terms of taking some of the investment money and believe that I was investing into solid projects, when those investments were not very good... so for sure, over the years, mistakes can be made.. and even sometimes not very good management of where to put the money so that it could grow without too much risk.. .. but sometimes there would still be needs for some risk.
I would also not suggest to deprive ones self from living and even increasing consumption and even buying nice things as income goes up. There are ways to project the level of income going up, but there are also ways in which the income might end up going up higher than the conservative projections...
What's the reason for portfolio investment? A proportion of profits shouldn't be banked. Extra dividends can bring luxuries in increasing consumption honestly earned by investors. Life needs to be lived.
You can build up your investment portfolio and you can also live at the same time.. it is not an all or nothing proposition. You can have some money in banks and some money that earns interest and some money in property or businesses, index funds and now days we have bitcoin... so then each of us have questions regarding how large our investment portfolio already is and how much of that we might want to put into bitcoin, how much cash do we want to have available or floating. When I was younger, I did not need to have a very large float and I could project shorter periods of time forward, but it seems that as I grew older some of my finances and some of my financial instruments, business and family arrangements have caused me to have more complicated finances, so instead of projecting my cashflow out 6 months, I tend to project my cashflow out a couple of years, even though of course, the next 2-3 months are more urgent than later down the road, but if you do not project out ahead, you might not realize whether you might have a cashflow problem that might be coming up several months down the road...or even to figure out some of your potential cashflow issues a couple of years in advance can be helpful in determining how much of a cash cushion that you would like to keep on a regular basis and how much you want to keep in whatever emergency funds that you have so that you do not have to dip into your bitcoin investment at a time that is other than a time of your own complete choosing.
I dont think only big hands are investing in bitcoin, but also small investors like us are also investing in Bitcoin.
This is good for both.
The opportunity is for both the poor and the rich to use this year to prepare ahead of a great future, because the price of Bitcoin started reducing early this year to allow those that willing to move higher in income earning to continue buying and wait for the desire time to come before they can sell to earn big money. Both the big investors and small investors that invested in Bitcoin this season will have the access to win big income when bull takeover the market.
What needed to be understood is that there's no time one cannot get in for bitcoin investment as long as you have the good idea of what you're coming after with your bitcoin investment, some trade within a short period during dip or even when the price surges to realize their own interest base on choosing a particular trading strategy they understand best, some also invested for a long period and hold after they would have bought the dip, what is needed is for everyone to first define his or her aim and strategies to use and put in place and not that we begin to conclude that only the strong hands are buying, the bitcoin market is nit meant for the whales alone, everyone can participate as long as you're interested and have all it takes to set in.
You do not need to be rich in order to be "a strong hand."
Strong hands tend to have plans and they do not sell on the way down and they tend to buy on the way down rather than being scared, but they do not need to be rich in order to be "a strong hand."