There is absolutely nothing wrong in treating 50% of our income as our salary while the other half is for investment, but this idea can fully be effective if the 50% is enough to cover the expenses for the month. If the income is huge then the idea will work effectively but if the investor barely invests 5% in his Bitcoin, then it shouldn't be an option for him. It will take so much willpower with low income to live off 50% but people can do it anyway. But hey, who says financial freedom will be easy? It's a gradual process. If living off 50% will be the secret weapon where discipline must be applied, then it is worth it. It's like having a secret high-yielding investment account that grows exponentially through the other 50% for 8 to 10 years.
It is not a wrong idea to keep 50% of our income for our family expenses and the remaining 50% for investments. But currently the bad economic situation is affecting the people of different countries around the world. As a result of which the standard of living of the people has increased along with the demand and increase in their family consumption. Nowadays people have to spend most of what they earn due to high inflation.
One of our goals while investing in Bitcoin is to hold it for a long period of time be it 5 years, 8 years or 10 years. As we continue to invest for this long period, we must pledge not to sell any investments during this period. If a person invests 50% of his monthly income even if he sells the investment for his family financial needs, it may not be profitable at all.
If a person is able to earn a lot and money then this method may work for him. Of course, there is no fucking way that anyone could invest 50% of his income if all of that money is not discretionary income. So you seem to be battling over the fact that a lot of people do not have much discretionary income. Of course, if there is discretionary income, then such person could invest 100% of the discretionary income into bitcoin or whatever else. If a person wants to invest 50% of his income into bitcoin, then of course, that would have to come from discretionary income to even qualify as investing rather than gambling, so no one is proclaiming that we are gambling or trading rather than investing. Concededly, not very many people would be able to shave off 50% of his income to invest into bitcoin, so any person striving to go down that path has to make sure that he is using discretionary income, otherwise he is not investing, he is gambling.. or perhaps trading rather than investing.
I have been investing through DCA for a long time and vowed to allocate 50% of my earned salary to Bitcoin but haven't been able to do it yet, In the country where I live, the prices of everyday goods are high and the cost of living is high. As a result, even if I want to, I cannot invest with that amount of money, thinking that I do not have to sell the investment for my financial needs.
Good job. It sounds like you are doing as much as you can in terms of your focusing on trying to invest into bitcoin with whatever income that you have without overdoing it...so of course, you main solutions to increase your investment into bitcoin is either to increase your income or to decrease your expenses, and surely it is understandable that people might max out how much they are able to achieve either or both of those.
It is not a wrong idea to keep 50% of our income for our family expenses and the remaining 50% for investments. But currently the bad economic situation is affecting the people of different countries around the world. As a result of which the standard of living of the people has increased along with the demand and increase in their family consumption. Nowadays people have to spend most of what they earn due to high inflation.
Managing investments with 50% of salary will be the most difficult task and can be risky. Whether your income is low or high, your expenses will be determined based on your income.
Huh? Your expenses are not determined by your income. Your expenses are determined by the places you choose to live and the kinds of things you choose to buy. Of course some expenses are more necessary than others, and surely some expenses might even be related to being able to work whether it is transportation or eating well enough and sleeping well enough in order to be able to perform work duties.
The demand of a person earning $200 a month and the demand of a person earning $2000 will not be the same. As your income increases, so will your expenses.
Even though there may be some truth to what you are saying, it is not necessarily true. A person could still choose to maintain his same standard of living, even if his income goes up. Yeah, sure, there might be some necessary increases in expenses that are somewhat job related, but not necessarily being the case.. so automatically linking expenses to income is logically faulty and nearly incoherent.
You may think that if a person earning $200 can meet demand with $150 then I will earn $2000 and meet demand with $150 then you are wrong. If your income is $2000, your demand will also increase to $1500.
You are employing pretty shitty logic.
So I think investing with 50% of income is one of the most difficult decisions for both low income and high income individuals. Many times such a decision may force you to sell your investment at a loss.
As I already mentioned, you can ONLY invest 50% of your income into bitcoin if you are taking that money completely from discretionary income, otherwise you would be either engaging in trading or gambling rather than investing.
........It will be very quick for you to rich the fuck your status if 50% of your income can be invested in bitcoin for a long time, the rich are the ones that are capable or doing this easily.
It seems a bit defeatist to presume too much capabilities that the rich have. Frequently the rich will be lacking in motivation to recognize opportunities to invest into something like bitcoin, so surely the rich have advantages, but they still have to recognize bitcoin and then they still have to organize themselves in such a way that prioritizes investing into bitcoin.. so I wouldn't presume that rich people are able to get those kinds of points, and surely one of the reasons that bitcoin is going to continue to transfer wealth from the status quo rich to the status quo not so rich is because the not so rich are in a better position to recognize and appreciate bitcoin as an opportunity that is available to them in many ways that they do not have opportunities to lift themselves out of poverty through traditional investment systems.
In other words, there are going to continue to be a lot of poor people who pass up similarly situated persons and even people who are much more well to do than them because they recognized and appreciated bitcoin first and they also took action rather than sitting on their hands and/or waiting around for their situation to automatically improve. Bitcoin is likely to reward the one who consistently, persistently and ongoingly accumulates bitcoin (and learns about bitcoin) rather than seeking ways to get ahead within status quo systems. Sure there still may be needs for currently status quo poor to seek jobs and income through status quo systems, yet if they are figuring out ways to maximize their investments into bitcoin, even if they might be able to invest a lot, they are still quite likely to be empowered by their action and their focus.
Similarly, if a person's monthly income is $500, then he can invest 50 percent. (In today's age every family has wasteful expenses, they spend money on things they don't need) If a family can completely stop those wasteful expenses and be aware of their monthly income and expenses, a person earning $500 a month can easily spend 50% of their income. That is, $250 can support his family. And the remaining 50% can be used for investment.
It is not fair to suggest that investing 50% is easy for everyone, even though I agree with you that there likely are areas of spending that are wasteful, yet it still might not be easy to become 100% efficient and there sometimes might be some needs for spending on some things that seem to be waste in order to keep everyone in the family happy...and yeah, it becomes more complicated to figure out discretionary income the more family members a person needs to support... and sometimes a person wants to preserve a relationship, so for instance, a spouse might consider that some expense is needed and have different perceptions in regards to which expenses can be cut, and sometimes relationships could be damaged greatly if there are unnecessary battles over how money is spent.
A $2000 earner and a $300 earner don't have the same monthly expenses, but they both have wasted spending, and in that wasted spending they lose a lot of money that could have kept their family going for another week. In today's era, the minimum income of an employee is $300, and 50% of his income is $150. In our country, a family can easily survive for a month with $150. However, he must be sustainable to invest 50%, through proper budgeting and conscious spending.
I doubt that it is logical to suggest that people with such low incomes of $300 per month are going to be able to invest 50% into bitcoin in a sustainable way, yet surely, I agree that there might be ways to achieve something close to 50% given a lot of commitment to such process, yet in some circumstances, there might be needs to try to increase income rather than to spend too much time on cutting expenses when the income situation is do low like that.
Also I have some difficulties imagining that a person who were to invest $150 per month for 10 years, which would be around $18k after 10 years, I have some difficulties imagining that person would be reaching fuck you status with that level of investment.. .. while at the same time, I appreciate your spirit in terms of trying to do as much as you can in regards to investing into bitcoin with whatever income level that you have.
I believe a person earning $300 can easily save 50% of his income i.e. $150 with a little effort, and if he starts investing regularly in DCA at that rate then in next 8 to 10 years i.e. next 2 to 3 cycle of Bitcoin After he will definitely be able to go to a much bigger stage.
You might be correct. The guy surely has to be able to survive through that whole time, and it also could become true that his bitcoin investment may well have had gone up in value during that time, too.
........ lets not forget that the higher you earn the higyer your expenses, ..........
I agreed with all of the points of your post, but this one is really dumb (and incorrect)... as I already attempted to address in my earlier response.
before someone must have own a huge portfolio it would take a long interval of time
I think you are getting this part wrong after saying some good points in the beginning of your comments. The size of an investor portfolio fully depends on how much that has been invested so far. An investor can decide to invest $10,000 every month through DCA and for 6 and 1/2 months he will own one BTC in his portfolio. Thus he achieved his goal in a short period because he is financially capable. While another investor who is not financially strong can slowly invest a $100 every month and it will take him 2 to 3 years or even more to have one BTC.
I will speculate that a person who starts investing into bitcoin now at $100 per month will never ever ever achieve a whole bitcoin, and he might not ever achieve 0.25 BTC.
A person who invests $100 per week might also never achieve a whole bitcoin if he is starting now. A person investing $100 per week is investing $5,200 per year and $52k in 10 years, such person might not even achieve a whole bitcoin after investing $100 per week for 20 years.
Surely in the past $100 per week could help a person to accumulate a lot of bitcoin, yet these days, I doubt that 1 BTC will be achieved with that kind of a budget, so there will likely be needs to think in more realistic terms. In terms of how much BTC might be achieved and/or perhaps considering how income might be increased and/or expenses cut in order to increase the amount purchased...
There is no need to fret about unrealistic goals, because surely even if a person has a very tight budget, those people who are able to invest into bitcoin are likely going to be advantaged over those who are not able to invest into bitcoin.
What am saying in essence is that our financially level determines the level of BTC we have in our portfolio but when it comes to gains and profits the longer we keep our investments the higher the returns we will get. For instance, if the first investor with one BTC decides to keep his investment for 4 years interval without buying more then he sells it off he might not have the same returns of investment to the second investor that kept accumulating for a decade and more. The longer we hold our coin the better we expect good profits in the future. But consistency is a key in accumulating and holding.
I agree with you on these points, which truly seems to emphasize that many of us are likely going to be better off by trying to be consistent and potentially even aggressive within our own means rather than just sitting back and not really putting time, energy and value into out bitcoin investment.. .. and even with everything that we do, we also should recognize and appreciate that we are not guaranteed to be profitable, so we do the best that we can based on our resources and the information that we have, which truly should include investing into bitcoin too... at least that seems to be the better course of action, even though each person is responsible to figure out whether he is going to invest into bitcoin and if so his own level of commitment to such investment.
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It’s true that Newbies in the space are often very eager to dive into building their Bitcoin portfolio and some of them often prioritize front loading using any of the strategies mentioned; in some cases, a few even attempt to combine the strategies when they feel the situations calls for it. However, it’s always very important to realize that investors who has a stable income source that produces a steady inflow of case often possess more flexibility in their accumulation approach.
While also on the other hand, those investors who often have limited discretionary income often encounter more difficulties in their accumulation journey. This is because they need to prioritize maintaining financial stability by only investing just a small portion of their disposable income, except of course they’ve made provisions for a solid financial back up, like the emergency funds and reserve funds, then it can be a safer to be a little bit aggressive in their Bitcoin accumulation.
The reason for this cautious approach is because one can never be too careful and no matter how straight and carefully thought out your budgets are, they’re are not completely immune to variability as certain changes can occur at anytime and if one isn’t prepared, it could cause a severe disruption in one’s financial plans and budgets, Hence the advantages of making availability for a safety net before closing to be aggressive in one’s Bitcoin accumulation process.
Your approach and analysis teaches and shows just how important it is to at all time put into consideration one’s financial position and circumstances and using it to come up with a more suitable accumulation strategy, rather than adopting someone else’s approach and strategies simply because you see it’s effective, without first considering whether or not you share the same financial circumstances with the person.
For sure, anyone investing and trying to be aggressive is free to do so, yet there still is a likely need to error on the side of being a little bit conservative while getting used to their building of their bitcoin investment, since if they end up making any mistakes no one is going to bail them out. They are responsible for any mistakes that they might end up making, even if they wrongly interpret what someone on the internet said to them or if they did not exercise their own judgement since sometimes what they hear on the internet is not correct for their own situation (as you mentioned).. and some people (including myself) sometimes make mistakes in what we say and we might not even make our statements in very clear ways.