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Investors (especially newbies) should always, at all time prioritize setting up first a solid emergency/back up funds before even venturing into investing, because the progress and growth of the investment depends on how solid your financial back ups are because most assuredly there will certainly be future emergencies and thus should be adequately prepared for if one wish to see his investment grow overtime.
I agree with the entirety of your post Tungbulu,
yet I largely avoid recommending anything that will delay anyone from getting started in bitcoin, including if they might not have any emergency fund and even if they might already be in a situation of bad cashflow management.
I also agree that it’s not absolutely appropriate to recommend anything that may likely delay (or even slow) a person’s involvement in Bitcoin accumulation but then again, since Bitcoin is more of a long term investment which should at all time be approached with a long term mindset, it is of utmost importance and necessity to always be adequately prepared and ready for the long term journey and what’s to come because without appropriate preparation and back up, one may surely encounter some problems that may appear to overwhelm them.
For those that are relatively new to Bitcoin, the best advice I believe to give to such a guy would be to first of all set up a solid emergency funds, which should be at least 3 to 4 months of their living expenses, which this recommendation or advice may in somewhat way delay them from immediately getting involve or stated in Bitcoin investment, I believe it is for the better, because due to their lack of experience, should they start investing immediately and maybe simultaneously building up their backup funds
, it may become overwhelming for them at some point in the future, and an emergency could also arise to claim their investments before the backup funds even becomes solid enough to weather financial emergencies.
I believe that one of the most basic starting requirements for anyone to invest into bitcoin is to make sure that they have a discretionary income, and so if they have a ball park idea of their having a discretionary income (even if they are not sure about all of the details), then they have enough to get started investing into bitcoin, even if they might ONLY be able to determine that they have $10 available... and so yeah, there may be some devil in the details regarding how bad of a situation that any particular person might be in, so I am not going to presume any tragedy situation, yet I will presume that anyone starting to invest into bitcoin will likely already have something like 2-4 weeks of a cashfloat, so if they start to invest into bitcoin then they can build up their BTC investment size and their emergency funds at about the same rate to be at 3 months of their income/expenses, and so it could take a hell of a long time just to build up their investment into bitcoin and their emergency funds to be at that status of 3 months each.
I agree with you.
Having a discretionary income remains one of the basic principles and of course the fundamental requirement for anyone that wants to invest in Bitcoin (especially for those adopting the DCA strategy) the importance of have a financial cushion before starting an investment can never be overemphasized.
Yes, starting to accumulate in the smallest way possible is way better than not starting at all, and for those who can build up their Bitcoin Portfolio and their Emergency Funds simultaneously, it’s also a very wonderful and a prudent approach. Although this approach takes much longer time than when you’ve already had your Emergency and backup funds in place and sometimes it may seem overwhelming but patience and consistency remains your major driving tool, because there’s no point in being in a rush since the journey is more a long term one.
That is why it is always adviceable to invest an amount in bitcoin that will not affect our ability to cover up our expenses and also to be spending money that we will not be needing for 4-10yrs or longer.with the dca strategy newbies dont have to wait to build there emergency fund before they start there bitcoin accumulation journey, also they can start with low amount like $100 or even as low as $10 dollar and this money should be from there discretionary /disposable income and at the same time while building there emergency fund, so saying that newbie should wait for 2-3 months before they start there accumulation is something i don't agree with.