Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Tmoonz
on 18/05/2024, 04:45:16 UTC
⭐ Merited by JayJuanGee (1)
[edited out]
On the other hand, a fixed monthly income is of course included in the initial planning to set aside our ability to invest, such as 10% or 5%, for us to invest in bitcoin. If everything can be managed as well as possible, of course the investment we make in Bitcoin will not interfere at all with our expenses or our daily needs.

Even though I understand that you are saying that your bitcoin investment comes from your discretionary income, so it is extra income that you are putting into bitcoin with the hope to be able to both defer gratification and to hopefully improve your life at some future time.

Nonetheless, whether someone invests $10 per week, $100 per week, $1,000 per week or some other amount into bitcoin, the amount that is invested does have potentials to take away from current consumption, depending upon how aggressive the person is in light of his discretionary income.. if he is really wimpy and he is investing only 1-5% or his discretionary income then he is less likely to feel the effects of missing that income that he could have used for current consumption rather than potentially profiting later.  And, of course, if he is investing somewhere close to 100% of his discretionary income, he might be sacrificing driving a nicer car or maybe living in a less luxurious house or maybe going out to eat less (or perhaps not at all), so there could be some current sacrifices and reductions in quality of life based on investing into bitcoin, even though the investment into bitcoin would not be taking away from the basic expenses, yet the investor still chooses what he considers to be basic expenses or not.


I really find this explanation meaningful and informative and i also believe alot will also learn from it because it is very clear and understandable. Am investor decide how much of his aggressiveness towards his investment in terms of how much of his discretional or disposable income he is allocating to his investment by considering what will be his basic expenses ,  it further explained how our discretional income can be increased by considering a certain level of comfort by optioning for things that should really be considered to be a basic needs which will varies individually but however, attenting to increase our discretional income by reducing our expenses in such way that it will not effect negative impact on our living is another way of showing how much aggressive one can be be in his investment or probably increase his float and reserve funds which are also important in our investment journey.