Quote from: Salahmu on Today at 08:55:21 AM

Quote from: JayJuanGee on Today at 12:28:19 AM

You can still end up overinvesting and getting your self into the same kind of lack of an emergency fund, even with DCA.

DCA does not completely reduce the problem of overinvesting, but surely it can manage the overinvestment temptations that cause people (maybe moreso newbies, but it can happen to anyone who is overly investing and not sufficiently preparing emergency funds and projecting out cashflows for a sufficient amount of time in advance)..

I get the point now, even with the use of DCA strategy without the plan for emergency funds investment could go very bad were as you could be lack of funds when emergency needs will arise and as such you will be left with no option but to sell from your investment, perhaps I overemphasize DCA on one direction which is to solve the problem of overinvesting and risk management for accumulating a bit by bit forgetting the need for emergency funds which is very important and essential which will help and spice up DCA strategy knowing fully well that as your accumulating using DCA method your also adjusting to your emergency funds.

The essence of DCA is to eliminate the tendency of investing under duress such as forfeiting your basic needs so you can buy bitcoin. This might not be the best approaching as it can drain you psychologically and even deny you peace of mind. The reason for accumulating wealth is for the peace and comfort it brings, this means that any method you are adopting that does not give you this peace can never be regarded as DCA. Howbeit, we can make acceptable sacrifices to be able to secure the future but we should be able to have some limits.

When you hear DCA, the first thing that should come to your mind is buying Bitcoin in a way it will not affect your urgent needs. Like JJG have said, DCA can help you manage the problem of overinvesting because it does not require buying at bulk

Quote from: JayJuanGee on Today at 12:28:19 AM

Your frequently going through a need to cash out of some assets that you do not want to is likely a sign that you are overinvested in those assets and/or your emergency fund is not large enough.. and sure, you likely already know that... but you might be spending a bit too much time trying to make sure that your value is "working" and then you end up overdoing it and not having enough of the "nonworking" asset/currency that you need to pay your expenses.

I have been in this situation before, where I was frequently selling my Bitcoin to meet basic needs. Until today, I never realized it was poor planning that got me into that situation. There was never emergency funds in place because I just bought the Bitcoin when I had huge amount of money thinking I will save it for the future.

Quote from: bitLeap on Today at 11:52:15 AM

That may be a very good goal for the future, but it shouldn't burden us in the present, as we still have to live our lives and figure out how to keep our investments from getting distracted by other things due to a lack of measured planning.

To be honest, some people are too busy planning for the future that they actually forget to live now. It is very important we plan for today as well as the future so that we do not use the money we saved to threat sicknesses caused by negligence of today's needs of our body and health. Applying DCA is one sure way of investing while also taking care of present needs.