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Quote from: JayJuanGee on May 14, 2024, 06:45:08 PM

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Another thing for me and I think the best approach to accumulation is to allocate 20% to bitcoin, keep 20% as an emergency fund for things that might happen unexpectedly, and the remaining 60% to make ends meet.

Even those kinds of numbers of being able to have 40% discretionary income come off as a bit unrealistic in terms of typical situations that people find themselves in, and you might even be using the term emergency fund wrong, since you seem to be referring to having an extra amount of money as a kind of float in the month to cover unexpected other expenses that might come up. An emergency fund is generally something that is built up and would likely be a minimum of 3 months, and it should hardly ever be touched since the guy should have other funds that are available so that he never has to touch his emergency fund absent an actual emergency.. and so the size and the maintenance of the emergency fund becomes ever more important with any kind of volatile investment such as bitcoin, since we likely should be investing into bitcoin for the long term of 4-10 years or longer, so we don't want to be getting ourselves into any kind of situation in which we have to touch any of our bitcoin during that period for any reason, except our complete own choosing.. and based on various aspects of our investment thesis playing out or BTC levels accumulating to sufficiently high levels that we are moving away from accumulation and into other kinds of stages (practices).

Yes, maybe what I said above is not quite right my friend, but in the end there is no purpose that is not recommended from what I said earlier, because what is called an emergency fund is always an important preparation that must be prepared by everyone, especially investors who are involved in investments which are not always about profit, and maybe I will make everything clearer about the purpose of the emergency fund that I said earlier, namely so that our accumulation is maintained in the long run according to the planning that we have, which is to keep our DCA allocation uninterrupted. This is because honestly, it is not uncommon for me to see investors (especially beginners) who end up experiencing a lot of delays in allocations that should be done with full consistency when they use DCA.

With what you said I think it is still a good idea, and maybe I will make this simpler which is to save 20% of the total income you have every month so that when you feel that you are not enough with the amount of 60% funds for needs because there is something that happens in an emergency such as experiencing illness or any event that requires you to spend some money then you can use the emergency fund without having to interfere with the 20% budget for your bitcoin accumulation which indirectly maintains the consistency of your DCA, but you can also change the percentage if your expenses are more than 60%.

I think that your post would be much more clear if you start out by figuring out what is the discretionary income and work from there. Sure, no problem that we can consider gross percentage numbers that we want to aim to invest into bitcoin in regards to our take home pay, but we still should figure out the expenses first in order to figure out how much we are going to invest into bitcoin from there.

And, yeah, the emergency fund, reserves and float would also come from the discretionary income, to the extent that any of them might need to be built or perhaps largely already established and having some fluctuation.

Frequently it becomes quite abstracted to speak generally about the things you want to do, without describing that within more concrete examples, and surely I already mentioned many times that normal people have difficulties sustaining 10% investments and savings, and yeah, that is not to say that others might not be able to save/invest more than that, even up to 40% (and yeah emergency funds gets built from that too), but when spouting out such seemingly high numbers, it probably makes way more sense to be explaining why, as some general person that we should be giving examples that are not representative of the struggles of most people, whether rich or poor, which is to really sustainably engage in a process that involves investing/saving more than 10% of their income... and if so, how do they get to those numbers .. and are the sustainable in order to constitute investing rather than gambling.

You're absolutely right JJG, It's important to start by understanding our discretionary income and working from there. By figuring out our expenses first, we can get a clear picture of how much we can comfortably invest in bitcoin. Once we have a solid understanding of our expenses, we can then determine the percentage we want to allocate towards bitcoin from our earnings or take home pay. About the emergency fund, reserves and float will also come from discretionary income. They can all be built from our discretionary income, ensuring that we have a safety net in case of any unexpected events or fluctuations. It's true that many people find it challenging to sustain investments and savings at a high percentage like 10%. It's important to consider individual circumstances and financial situations when setting investment goals. Sustainable investing involves finding a balance that works for you, whether it's 10%, 20% or even 40% of your income. It's about making the right decisions and understanding the reasons behind those numbers.