Post
Topic
Board Speculation
Merits 4 from 2 users
Re: Buy the DIP, and HODL!
by
Fuso.hp
on 27/01/2024, 05:45:58 UTC
⭐ Merited by Litzki1990 (3) ,JayJuanGee (1)
It depends on individuals, If someone invest 30% of his salary on bitcoin, I think no matter the emergency involved the remaining 70% will be enough for any situation that may arise
What if the person is underemployed? You started your statement well that it depends on individual and by that individual I want to believe you are referring to individual needs, his income and other factors such as his confidence in Bitcoin. We must acknowledge the peculiarity of wealth distribution, which have some people living in surplus and others barely able to feed. So their investment decision will be determined by their circumstances. The percentage should not be a factor here before some persons will draw conclusion that a particular percentage is what should be invested in Bitcoin. It depends entirely on the situation of the individual.

It is in the planning that the amount to be invested into be Bitcoin will be calculated. The planning is a critical stage because it covers the most important aspect of the investment process, enabling the investor to follow the best course of action.


Maybe some investors think of investing in such a way that if they invest a fraction of the amount of money they have, the investment portion will be deducted from their total amount of money. Investing is a bit risky but investing is done with hope and expectation. I have investment means I have hope, seeing that I have investment I can expect to get something good in the future but the one who has no investment has no such hope. Like I worked at a place and I owe some money from there. I have hope that I will get money from that place but another person who has not done any work has no such expectation. Investing is not so hard to see, investing is very easy if you think about it. Before investing we look at the investment very hard and get worried about the investment due to which we cannot make proper decision about the investment. Investing should be seen as a normal activity. We need to be as safe in investing as we are in saving so we can invest properly.


I agree with you that an investor with a very comfortable DCA should remain consistent. The investor should enjoy his investment and the investment should never be a pressure for that investor. As long as the investor enjoys the investment he can continue to invest well but since the investor feels investment pressure he will not have full focus on the investment. I think investing will be stressful for the investor when the investor tries to invest more money than he can afford. This should be given importance to the investor so that he does not take too much pressure but invests according to his comfort and if he enjoys his investment then he can implement his long term plan with his investment.
Whatever work we do, if we enjoy it, we will be able to do it with great joy, no matter how difficult the task. If a cricketer is asked to become a doctor then he will not be able to become a doctor and if a surgeon is asked to become a cricketer then he will never be able to become a cricketer. If we were not interested in investing, we would not have invested or decided to invest. Since we have interest in investment, we have to enjoy this investment. To invest in such a way that it feels like investing is an art to us and we are a master of this art. Never take too much pressure, if necessary I will do less than I can, but still have interest in the investment.

DCA method has made our investment so easy that now we can invest any amount at any time. Since we have this simple strategy we only need to focus on retention and increase our investment amount with time opportunity only then we will gradually reach our target.  The road to success is somewhat difficult but those who can cross that difficult road can achieve success. Just as we have to climb the ladder step by step but we can't climb from the bottom to the top, so investments have to be done consistently and regularly before we can reach the top of success.


I would think that 3 months of an emergency fund would be about the bare minimum to have if you are going to start to act boldly.. and even with ONLY 3 months of an emergency fund, you gotta be careful about ever dipping into such emergency fund except for strict emergencies.

If you have 6 months of an emergency fund and you know that you are never going to let your emergency fund dip below 3 months unless you are int he midst of a true emergency, then you can be a lot more bold because you might even float one of the months so that you are mostly between 4-6 months in your emergency fund.

I guess my point, is to be careful if you are starting to get a lot of BTC investment and if you are starting to use more adventurous times of investing, including getting  a 30% advance of your pay for 3 months or any of those kinds of things, even though it might work out, you seem to be playing with fire if you only have 3 months emergency and you also get a 3 month advance for 30% of your income... it may well end up working out, but it does not seem like a good balance especially if you might be in a position that you don't want to end up getting forced into selling any of your BTC at some inconvenient time, for example when it might be dipping extensively.
I think the 3-month emergency fund is enough as long as we can maintain our cash flow so that your expenses and other sudden needs can be covered from the main cash flow, but when things are out of control in a tight sense then use the emergency fund as long as it can save you.

If the emergency fund is sufficient for 6 months then it is enough for them to be free in targeting aggressive investment levels and even if the emergency fund drops but it is still at the minimum limit, when the cash flow has stabilized, it may be possible to refill it again slowly so that the emergency fund returns all to hold for 6 months.

With those who use challenging investments, I think it needs to be felt because it will adjust in the future how the balance is more sensible including 30% of their total salary, I can only do it when the emergency fund is safe, say 6 months in the bag, then the level of aggression towards BTC must be done if it is not appropriate, the percentage will be lowered, if I am still able to continue because this depends on managing expenses and the percentage determined, the cash flow will be easy to manage.
Emergency fund means to use that fund in times of need. We have three months of funds but we will continue to invest these three months if we invest regularly for three months then this fund will remain intact for the next three months. These funds will be spent when we fail to make regular investments and when we do not have money to make regular investments. When we don't have money with us but we are forced to invest money from that fund. I created a three month emergency fund and out of these three months I was able to invest regularly for two months and one month I could not manage the money for investment but one month's money needed to be withdrawn from my fund. If one month's money is taken from the fund, two months' money is left over and next month of course I can manage the money and try to add back to the fund the amount of money spent from the fund. After spending money from outside the fund, if we add one month's money to the fund again, the fund is enriched again. If we use the fund in this way then the fund will never run out of money and we have to use the fund in this way.