But investing requires some basic intelligence like planning and everyone must know his numbers quite well to invest(disposal income and expenses) cause this is actually how we would know if we can afford to invest or not, if your income is too low and can't Carter properly for your needs whether it came inconsistently or consistently you are taking a risk by investing in bitcoin and it is gambling rather than investing cause surely you can build your emergency funds and your investment is not even safe so your most likely to sell later.
Your very right about this cause I've made mistakes before not paying much attention to my numbers and investing without having a good backbone like my floats, I normally used to just allocate some cash to my emergency funds, take out my budget for expenses, add up to my reserved and all the rest but one part I failed to pay very close attention to was my expense, I would put myself in such a condition that I know I wasn't living a normal life, I don't keep money to go out why because I want to invest my floats back into bitcoin on purpose not actually doing it as I was taught, just because u felt I needed to be aggressive and allocate much to buy bitcoin but the downside was I put myself at too much pressure and it even affected my mentality for a while but I'm all good now, since yesterday I've taken time to review many decisions and I feel I need to listen more than give suggestions.
What I've learnt from my own little mistake is simple, never put yourself on pressure when investing, it's not a good thing to invest in bitcoin when you k ow that your income is not enough for yourself cause if you do, it won't last and even if you decide yourself by holding on ; how long would you hold on, so it's better you do it to right way and ease yourself, the only reason I'm safe if cause I put a lot in build up my emergency funds and I'm still quite living with my parents so no much pressure I can't get help from them.
But I know its not very right to depend on your parents as your emergency funds cause they could also disappoint you, so I've learnt do with what i can, although I'm done with my plans on aggressive investing now I'm all in for a more stable and controlled investment.
These are things to learn.
it is good to be as aggressive as you are able to be without being overly aggressive, and if you go through the experience of setting these matters up, you should be able to learn how aggressive you are able to be, and like I mentioned so many times, you are only able to be aggressive when your finances and your psychology is in good order, and so your psychology is likely to be in better order when your finances are in good order.
Sir I think someone can have a good finance but out of poor management would still have a bad psychology towards beign aggressive, its not very easy to draw the line between when your aggressive and overly aggressive when investing in such terms, let's say I've got a monthly income of 300$ and I'm still living with my parents so I don't have much monthly expenses and I round it up to 100$, let's say I use 60$ budgeted for expenses and the left 40$ as a float in case of extra, now I have decided to invest 100$ into bitcoin on a weekly basis and yeah I have to send about 60$ into emergency funds and 40$ left to building reserves, but the issue now is thigns may never go as planned and I can't go dip my hands in my emergency funds if I find out my budget went over for the week, so in situations like this I find I hard to know if I'm beign overly aggressive or not cause this has been my budget planning for the month and it normally goes smoothly leaving me my floats back and some weeks it doesn't go as planned, so yeah I'm still quite in that struggle of figuring out what I'm doing wrong or right having a clean plan like this.
For sure, if you are able to measure the difference between your income and your expenses, then that amount would be your discretionary income, and surely if you are new to making those kinds of calculations, you might not have a good way to categorize your discretionary income properly, so you will make mistakes, and you should not be spending 100% of your discretionary income on bitcoin investing because if you end up making a mistake, then you are might end up going beyond your discretionary income. which surely would be categorized as overly aggressive, rather than merely being aggressive. When you are more organized and more experienced, then you will already know how aggressive you are able to be without crossing into being overly aggressive.
I guess figuring out the exacts numbers for each month or week concerning expenses is something that is bound to differ from time to time and I might well get it this month or week and the next week it doesn't work, so what I'm thinking right now would be to increase my budget for expenses and floats in such a way that I would have a 30% increase over the normal amount so that anyhow it might go I know that I am overly allocated to that side and if I have some left overs good then I can use them invest I to bitcoin.
IMO it's better to invest with peace and a sence of stability than to be unsure if you have done it right, so keeping extra amounts allocated to spending might do a lot of good and would help you not to be overly aggressive since you have well feed the only reason that would have counter that decision which is when you find yourself running out of cash to fix to spend on other stuffs.