Quote from: Sim_card on Today at 08:49:30 AM

Quote from: JayJuanGee on September 15, 2023, 06:01:51 PM

[edited out]

JJG, I know that you are an old G bitcoin holder with so much experience and different strategy on how to accumulate bitcoin. I also agree to what you said on how someone that isn't having a steady cash inflow can use his average cash inflow for the year to plan on how much he will use on DCAing or to always have an amount that will be left based on always planning and keeping funds for worst scenario than average case scenario. I wouldn't like to such happen in my own bitcoin journey accumulation, the reason is that I have just started my bitcoin journey and I haven't accumulate a significant amount which I can be proud of.

I don't think that anyone should feel bad about taking a long time to build up a significant stash of BTC or even any kind of investment that they make, and I had already mentioned that many people are likely going to take longer than 10 years to merely get up to having had accumulated 1 year's salary (even if you save/invest 10% of your income per year).

Accordingly, the earliest of years likely feel like you are not getting anywhere and they can be stressful, especially if you might feel that you are struggling to make sure that you invest enough and while at the same time not overdoing it and fucking things up so that you end up losing everything that you invested. A lot of people fuck up so much that they end up gambling rather than investing, and with gambling, there might be a lot of luck until one day the market moves against you, and you are fucked (having to start over from the beginning is not a good place to be if you had been spending 3-8 years building up your investment portfolio and then if you take too many chances, then you end up losing your principle which tends to be quite difficult to build back.

Even older (or longer term) investors sometimes will feel that their investment portfolio is not moving, but if they ar not fucking up too much, they can look back at their history and they can see that their networth and their portfolio is growing with the passage of time (hopefully that is the case).

Quote from: Sim_card on Today at 08:49:30 AM

Not having regular cash inflow will be a big challenge to me because it will slow the amount of bitcoin I will accumulate,

You should not rush beyond your capabilities, so if you are having trouble investing between $10 to $100 per week, then maybe you either have to figure out ways to increase your cashflow or to decrease your expenses.. and at the same time, of course continue to have a decently good sized emergency cushion so that you can have a large amount of confidence that you will never need to use your bitcoin for emergencies (in other words your bitcoin should not be part of what you believe to be your emergency fund.. because you should ONLY be selling your BTC at a time that is completely at your own choosing. not because you are forced into such position.. and perhaps forced into such position due to inadequate/insufficient planning).

Quote from: Sim_card on Today at 08:49:30 AM

and I am not even sure of accumulate, unlike the regular cash inflow pattern. This is because you might prepare and plan very well on this, but along the line, it might come to play that your worst scenario expectation came out to be more than what you have planned for, because there are unforeseen challenges that will come to play during this period, which you didn't plan for that must be included because of it is an emergency.

I am surely not saying that any of this is easy because worse case scenarios can go lower than expected and they can also go longer than expected.. so once you are in the shitty situation, you might have to do things that you did not want to do or expect to do, but it still seems to be a lack of preparation in terms of preparing for worse case scenarios and even preparing a little beyond worse case scenarios.. and even more experienced investors (or persons who have built up greater levels of emergency funds and wealth) will sometimes get caught off guard by having their assets invested into things that they should not have had.

And, yeah for normie plebs, the situation could be even worse because normie plebs might well already NOT have hardly any financial (or psychological cushion), and hopefully learning how to invest helps you in order to figure out how much preparations you need to make... and there might be some people who never are recover from disasters that happen to them, and they may well be stuck being poor and impoverished forever.. so part of any attempt is to be able to get to a position that you are able to invest, and if your personal finances are so bad that you are so far under water that you do not have any discretionary income, then you have to take care of those emergencies first.. and get to a point in which you actually have discretionary income that you are able to invest.. and perhaps build up your emergency funds at the same time.

Quote from: Sim_card on Today at 08:49:30 AM

I will use myself as a case study, I plan on how much I spend weekly and let me say if I budgeted $200, I will end up spending up $250 and sometimes $300, but because I have a steady cash inflow I don't feel it. I could remember when I have not gotten job that was frequently paying me, I find it difficult to manage the one that I have worked to use till when another funds comes in, because of this unforeseen circumstances that do occur. I am happy JJG, that you said if you did not make a proper calculation so that your worst case scenario funds should be higher, one might end up falling back to sell his bitcoin due to lack of proper preparation. I am not good at managing a certain amount of funds for some time before another funds comes in because, nobody knows what will happen next, this is why I feel that regular income will help in DCAing better for me. Although, everyone has their own strategy of DCA base on the way they get their income.

Surely there is some discretion in terms of whether you should use up the whole $200 to $300 during the weeks that it comes in, especially if you might have several weeks in which it does not come in, and maybe you can kind of anticipate how often your jobs are going to be steady and how often you are going to need to float upon your past wages.

I don't know the exact answer, but there does seem to be some potential value towards spreading out your amounts rather than investing them right away when the come in, so that you always have some amount available that you could spend on bitcoin buys.

So it could be possible that you set up $50 to $100 per week no matter what, and if your income for some of those weeks end up being higher, you put that into your reserve funds.. so that you are able to go a certain amount of time with out having any extra funds, and if you feel that you should have your reserve fund prepared for 10 weeks of having to draw from it, then maybe you have to let it build up to $1,000 before you go beyond the $50 to $100 per week allotment... so then if your reserve fund ends up staying above $1k for a long time, then maybe you are then able to increase your weekly to $150 or some other higher amount. Of course, these are discretionary matters in terms of whether you believe that you are served very well from just spending it right away or trying to be a bit more strategic about your bitcoin purchases (which may or may not be a valuable use of your time).

Quote from: Kodec5 on Today at 03:50:00 PM

To be real about this, using part of emergency fund is not even advisable... You not guaranteed on the expenses of any emergency to happen at any point in time
Funds meant for emergency should be kept completely different, same goes to funds for Dcaing

Yep. We have to be careful when we are dipping into funds that have already been set aside for other purposes, and so there may or may not be strict guidelines on these kinds of discretionary matters, but if we end up depleting too many funds without really appreciating what they were meant for and we have assigned shitty probabilities in regards to things that could happen, we may well end up recking ourselves if we go too far with some of these dipping into funds matters.

I personally tend to think that none of these matters are absolutes, but there may be thresholds over which guys (and gal) end up crossing that really don't come off as being either prudent or reasonable, and then they end up getting themselves into a pickle because they left their emergency fund with $300 and a truly foreseeable $1k expense ends up coming up (which negative outcomes ends up showing them that they were engaging in too much gambling, and maybe it had been working out for them in the past, but this time, they got bit in the ass) and they may put themselves into a pickle that could take them 6 months to a year to recover, when they would not have had been damaged at all if they had kept their emergency fund up to a sufficient size/amount.