Post
Topic
Board Speculation
Re: Buy the DIP, and HODL!
by
Troytech
on 22/03/2024, 03:36:38 UTC
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.
Well the main thing is if your income varies an if your expenses vary so that then would determine how much income that you have to work with and so then you prioritize where to put each of them, and you can ONLY buy bitcoin if you know that you have money that is extra that you are not  going to need, so if you are simultaneously building up all categories then that does not really make sense, because your emergency fund and your investment into bitcoin could be built simultaneously, and so if you have 3 - 6 months in your emergency fund, then you are at more liberties to build the rest.  Once your emergency fund is established, you should not need to dip into it, and if you do, then the emergency fund is likely going to be prioritized to be built back first... and yeah there is a pretty fucking BIG difference between an emergency fund that is for 3 months versus an emergency fund that is for 6 months and in your example that is $300 versus $600, and so sometimes it can take a while for guys to build up their emergency fund, and you have to decide how much you need in that fund.. which is generally in anticipation of dried up income or some unexpected increase in expenses, but once the emergency fund is established, then you should not be dipping into it, and you likely should not be having emergencies for years and years at a time without having to dip into it.. it is a financial cushioin that shoud be available for true emergencies and so you would have other funds that you would use for the regular variations in your income and your expenses.. and so once the emergency fund is established, then should have a lot more liberties with maintaining the other categories whether that is investing into bitcoin and/or holding some back for buying on dips (in something like a reserve fund)...

 No one can really tell you how to do these things or how much to allocate to each category, but it seems to me that your emergency fund is way more important as you continue to build the size of your BTC holdings so that you are trying to prevent that you ever have to touch your BTC holdings, and part of the reason that you never have to touch your BTC holdings is because you never have to touch your emergency funds and part of the reason that you never have to touch your emergency funds is because you are good at managing your reserves and your float.  So there are priorities and there are reasons for keeping several of the financial cushions, but only you can establish the reasons for actually dipping into funds that might be there for certain reasons. and priorities that you establish, perhaps in terms of wanting to be able to build a BTC stash that you never have to touch, except for at a time that is of your  own convenience and that is usually thought of as 4-10 years or longer, but if you are still living with your parents, then your timeline might well be 20-30 years before you will need to start to dip into your BTC... and yeah that is all up to you, but I think that it takes a real long time to build up a long term investment, and if you are merely investing $10-$50 per week, it is going to take you real long time to make really meaningful progress. .and sure maybe your fuck you status is less than 1 BTC in 20 or 30 years, which surely might well be reasonably achievable with persistent and ongoing BTC buying, even if the amounts are seeming to be relatively low.

From what you have explained here I understand that we can only buy bitcoin with the money that we are not going to need and not going to need in the next 4-10 years or as long as we are supposed to be in accumulating bitcoin cause we don't want a situation where buy we out ourselves under financial pressure cause we strain our expenses or other stuff just to invest in bitcoin without having proper preventive measures to ensure we are not going to dip our hands back in that invested bitcoin.

And building my emergency which should be up to 3 months or 6 months which should be enough to cater for any emergency and I should not use them for any reason other than real emergencies.