I like to think about the non-steady income in a couple of parts.
The first part is just figuring out what is your worst-case scenarios, what are your best case scenarios and what is your average... So then with that information you can try to project ahead, and most likely mostly using some combination of the worst-case scenarios and the average in order to figure out how much money you need to keep in your emergency fund in order to cover those situations in which the worst-case scenarios ended up playing out rather than the average case scenarios.
So, even though not necessarily likely worst-case scenarios could end up playing out for 6-12 months or more, and so the emergency cash fund should be able to cover the gap between what you need to live and what kind of income is coming in. Hopefully, you are already spending (your monthly expenses) ......
Thank you for adding further clarification to this; I consider this information very helpful and I know other people do too. A lot of people in this forum might actually fall into this category of unsteady cashflow and this information will be very helpful for those who will be able to digest and implement it.
From your explanation, it is obvious that a simple averaging of upper and lower limits might not be as efficient as keeping in mind the worst-case situation. As student, it is easy getting $10 per week for low income country oike mine but sometimes it gets as high as $50. For a student in this situation that want to start investing in Bitcoin, a DCA of $10 per week will be more feasible
Hi there
hope y'll doing very well today i was just going through here and i read these discussion you guys having with each other i found it interesting so i thought i must share my experience as well. A couple of months ago i was just waiting for the BTC dip like well as i expected BTC will go for 20,000 it wouldn't reach there. we all know the aspect that we can't time the market anytime we can just make some prediction according to the previous history analysis so that's what i do....well when BTC price came to 25700 i bought some amount of BTC according to the savings i had but i didn't invest my all amount at once then i still expected btc go more down and literally it happened after that very next week BTC price came more down i was about i guess 24800 and i did more investment and seriously i found DCA as very good technique it make my whole portfolio in profite and i still waiting btc to go more down like i think it can still go to the around 23 to half of 24 thousand what you guys say about that must share you opinion with me it will add up to my knowledge and information as well Many Thanks.
Kind regards
snowpega
DCA with emergency fund to me sound more convincing and easy to do more than setting aside a percentage from your total income on weekly basis, since emergency funds can also be referred to as leftover money which will be more profitable when saved in an assets that are easily converted to cash like
BTC, and from what both of you guys already mentioned, it quite clear that emergence will be the best since in both worst cast scenario and best case scenario if you have a well planned DCA approach you will still end in a good position, since at that point you are not depending on your income to make your investment but rather you are buying Bitcoin from your emergence savings.
But the only side to watch out in all of this is, you must be smart enough not to exust all your emergency saving on buying the dip and in most cases you must at least leave a small portion of the savings behind so that when you have a real life emergency, you will have the funds to sort them out.
That way, the pressure won't be on you bitcoin holding at once and that can allow you to bear market conditions for some time based on long term Bitcoin approach.