Quote from: Jewan420 on Today at 05:26:26 PM

Quote from: JayJuanGee on Today at 04:09:16 PM

then he would be able to invest into bitcoin more aggressively from thereafter with his future income or any income he has coming in... of course, the discretionary portion of the income (the part that is beyond what is needed for his expenses).

Usually I use such strategy as an investment method. I don't know how everyone else views this approach. But I always plan something new and try to implement it. I always try to keep reserve fund stronger than investment fund, you can say reserve fund is more important to me than investment fund. The reason I can say is that I am giving more security to my investment by giving more importance to reserve fund.

I think that initially, you need to think in terms of at least having some ability to cover your living expenses for a short period of time if you have loss of income and/or increases in your expenses. A brand new investor may or may not have had a practice of keeping any kind of cash cushion, yet having the cash cushion becomes more important when investing in a volatile asset, such as bitcoin, since the volatility of bitcoin would likely justify that you would not want to be using it as your emergency and/or back up funds until perhaps it is quite well in profits.. or at least the concept of not using any of your BTC at a time that is not completely of your own choosing, and surely it seems that with some discipline guys should be excluding themselves from using any of their BTC for 4-10 years or longer after any time/amount that they invest into bitcoin.

Surely back up funds have various categories, including emergency funds, reserve funds and float, and so emergency funds seems to be a category that does not have a lot of discretion, at least for someone who might be trying to retain a certain level of preparedness for downfalls of cash and/or increases in expenses that he might have. The more likely the unsteady income/expenses, then the larger amount of emergency funds will be required. Reserve funds can still be used in emergencies, yet reserve funds could end up having a variety of purposes that they might be held, so there surely could be a certain level of empowerment in terms of having those kinds of funds available, yet the general idea is that reserve funds would tend to not be working funds and would likely end up suffering from ongoing debasement since being held in fiat, so there is no real high level of logic to want to keep a lot of funds in reserve funds rather than building an investment in bitcoin, except surely there can be some perceived negativity when guys might be concluding that any investment in bitcoin requires a 4-10year or longer lockup, so then there is more short term empowerment with reserve funds, even though the reserve funds are losing value.

So even if there is no real correct answer, I would still consider that there would be importance and priority in regards to wanting to build up the bitcoin stash in order to get to a point of having time in the market, since the money in reserve funds might be preparing you for down in BTC prices, it is not preparing you for UP... which is a quite common phenomena of having a lot of folks who are not really very prepared for UP.. which is part of the rationale behind our currently ongoing wealth redistribution from no coiners to coiners, and the ONLY way to be on the receiving end of our ongoing wealth redistribution is to be in bitcoin rather than being in fiat or whatever other asset you might be into besides bitcoin.

Quote from: Jewan420 on Today at 05:26:26 PM

I usually divide my income by 3 to the amount left over after meeting the needs. I keep 1 part of 3 to investment fund and remaining 2 part to reserve fund. I am aggressive in investing while keeping the reserve fund in 2 again with 1 part reserved for emergency fund and the remaining 1 part bitcoin dip. That is, if I invest $100 a month in normal times (not including my investment amount for safety), I invest more than that when bitcoin dips. This amount is determined on my reserve fund. It is almost impossible to predict when Bitcoin will take a dive. So when Bitcoin takes a dive I watch my reserve fund and keep the money in the emergency fund and divide the remaining money by 5 and invest it with DCA. That is, my monthly DCA is $100, if I have $1,000 in the sinking fund, then $500 in emergency funds and $500 in aggressive investment. So 500 divided by 5 is $100. So for the next 5 months at the time of dip, I DCA $100+$100=$200. In this way, 1 out of 3 is investment and 2 is reserve fund. But one thing is to be noted, the money deposited for the emergency fund at the time of sinking is not added to the reserve fund again. That is, the first time when we divide the reserve fund into 2 parts and save 1 part for the emergency moment, later we form the reserve fund again. For example, in the first year the reserve fund is $1,000 to $500 for emergencies and $500 for being aggressive. Next year, keep the same reserve fund, $1000 to $500 for emergencies, $500 to be aggressive in investing. That means after 2 years the emergency fund will be $1000 and I used $1000 to be aggressive in investing. Such an approach may not be acceptable to many, but personally I have had success with this strategy so far.

Usually your emergency fund is built up and should never be touched, except for an actual emergency, and so if you otherwise have strong cashflow management, you should rarely, if ever, have any actual emergency since you have already prepared to use various other funds before even touching your emergency funds. So if your income is $1.7k to $3.2k per month with an average of $2,400 and your expenses are $1,500 to $2,200 per month with an average of $1,800, then you could predict your expenses based on your worse case scenario and attempt to have $6,600 in your emergency fund.. Once you build up your emergency fund then you are not fucking around with it any more unless your expenses might go up or down and then you conclude that you should change the size of it based on changes in your monthly expenses. Also, if you know in advance that there are certain months that you make more than others or you are expecting that you are going to have to change jobs in 6 months, then with that kind of notice, you already know that you are going to have potential disruptions to your income, so if you lose your income it is not an emergency because you already knew it was coming. Sure there are things that are known and things that are unknown, so you try to attempt to prepare for both, which is part of the rationale for the emergency funds.

Yeah sure reserve funds can be ear marked for buying BTC on dips, but they also can be ear marked to save for: 1) buying a new car or motorcycle, 2) taking your spouse on a vacation, 3) saving to buy a bicycle (or some other gift for a kid), 3) updating your computer and/or your phone, 4) repair to your kitchen sink and/or plumbing 5) and/or some various other reasons, and so you know that the money has various different priorities in terms of timeline and/or quantities which are really ONLY going to be known by you...and people are not going to come to the same conclusions regarding how to go about saving for certain kinds of purchases that you might make and if you might choose to spend certain of that potentially discretionary money within the same month or you might have timelines for different expenses that are for certain months in the future that might even be several months down the road, but if you had promised your spo