Quote from: As-Soon-As on Today at 09:01:55 AM

Quote from: JayJuanGee on March 15, 2025, 11:26:32 PM

Quote from: Moreno233 on March 15, 2025, 07:36:52 PM

Quote from: asarfiar on March 15, 2025, 02:08:17 PM

I have divided money to three levels for living in life My income is $ 5 per day, I have divided this $ 5 into three parts. For 2 dollars for a family, 1 dollar is to deal with a natural disaster and the rest of the $ 2 is investing in Bitcoin for a long time. It made me about $ 60 in Bitcoin per monthI am investing, and one thing is easy for me to divide the life cycle into three parts. I think if every investor can adopt such a procedure, then Bitcoin's market instability will not be under any human pressure.

Bitcoin is a patience test, so you can expect any good results here. Keep an eye on the market and continue the Bitcoin investment process in accordance with the above rules so that after a long time, you may be able to qualify for a high return.

Are you expecting any natural disaster? Well the right word to use is emergency funds and not natural disaster. Emergency fund means money you set aside from your investment money and basic needs money, to help in a situation whereby you need to do something with money but you did not plan for that thing. You might have a visitor with a short notice and who you have to buy some drinks for entertainment, this funds does not fall into your basic needs so the emergency funds can take care of that. Other cases can be when you have to change your spoilt car tire, something you did not budget for when you received your salary. There are many cases that we can describe as emergency in our daily lives but the idea is just things you did not plan for that happens.

For the family needs, are you sure $2 will be enough daily? That is too small amount in most countries and no matter how small your family is, $2 is looking too small for me. I will advice you work on your finances more so that you can improve your cashflow to be able to have enough money so that you can comfortably buy and hold Bitcoin.

I personally consider emergency funds to be something that you do not touch absent actual emergency. The reserve funds could be used for various non-emergency unexpected matters /expenses.. and also, if you run out of reserve funds, then the last resort that you have prior to tapping into your bitcoin would be your emergency funds.

That is why we should give the most importance to emergency funds, because if we want to sustain Bitcoin investment in the long term, our first step must be to take an emergency fund.

I think that the first step is getting started buying bitcoin. It is not a good idea to spend several months building up an emergency fund prior to investing into bitcoin.

Many folks may already have 2-6 weeks of back up cash, so they likely are able get started investing in bitcoin right away.

Sure there are some folks who have really messy finances that need to be fixed, yet it surely can be feasible to fix the various financial issues while investing into bitcoin, and so the main thing is just knowing if they have any discretionary income or not. As long as the amount coming in is greater than the expenses, then that is discretionary income.

Quote from: As-Soon-As on Today at 09:01:55 AM

The person or investor who does not have an emergency fund, the Bitcoin investment of that person is definitely at risk.

The person/investor who does not have any bitcoin does not have anything to protect. There is likely a preference to get some bitcoin and to build various aspects of cashflow management, including back up funds and an emergency fund while investing into bitcoin. And, yeah in the beginning of a bitcoin investment, there may be some needs to learn a lot of things and to get used to putting money into bitcoin with perhaps goals to keep investing into bitcoin for 4-10 year or longer.

Quote from: As-Soon-As on Today at 09:01:55 AM

Because he will be unable to deal with any situation, if that person has an emergency fund, then he will definitely be able to deal with any situation and always sustain his Bitcoin investment. Therefore, we should plan an emergency fund as soon as we start investing, which is the best way to invest in Bitcoin.

You are a bit ambiguous in what you are saying, yet there is no need to build the emergency fund prior to getting started, and one of the most important things in bitcoin is to get started, and to learn along the way and during the path of investing into bitcoin... whether we would be starting to invest into bitcoin with $10 to $100 per week or some other amount.

Quote from: SOKO-DEKE on Today at 11:21:48 AM

Quote from: JayJuanGee on March 15, 2025, 11:26:32 PM

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This makes me remember when I started my Bitcoin investment a few years back. I had nobody to educate me about having an emergency fund alongside my Bitcoin investment. Due to this lack of knowledge, any amount that came into my hands at that time, I would quickly invest in Bitcoin.

However, a situation arose where I urgently needed money to solve a problem. I looked for any means to get the money but found no other option than to sell some of my Bitcoin all because i don't have emergency funds. The crazy thing at that moment was that the Bitcoin market price was down, so I ended up selling some of my Bitcoin at a loss. It really pained me seriously.
From that moment, I started taking emergency funds very seriously. I made it a habit to not only top up my Bitcoin investment but also consistently add more money to my emergency fund. Since then, my Bitcoin investment has been going smoothly. So emergency funds is important and every inveator need it for smoothy invest plans.

The longer that we invest into bitcoin, then the more we should be able to develop a variety of strong cashflow management practices that includes making sure that we have emergency funds that are more fixed (not to be tapped into absent actual emergency) and then another category of funds (reserve funds) that can have some flexibility in terms of being tapped into. The concept of cash float money is that there might be money that we have in our accounts that are already dedicated for various expenses that are coming later in the month (or prior to our anticipated receipt of our next paycheck), so we should not be planning to spend from our float, unless the float amount ends up being greater than the expenses, so then once we know that the float amount exceeds the expenses (which should frequently be the case), then that money becomes availalbe to put in to our reserve amounts or to invest into bitcoin.

Once we build our emergency fund up to a period of 3 months-ish, we likely would not have to put more money into that emergency fund, except for changes in the cost of living or any changes in our ideas about how much we should have in that fund. Surely if we spend from our emergency fund, then we would need to replace that money right away, yet I imagine situations in which we never tap into our emergency fund for 20-30 years or more the emergency fund never gets tapped into since other reserve funds would be used first if there were any unexpected expenses, so it would end up being rare if we somehow ended up having to tap into our emergency funds.

So, once our emergency fund is established and deemed sufficient, we are not adding to it.. and we are liberated by having it.

Quote from: Tamaperdana on Today at 11:48:10 AM

Quote from: edy_58 on March 15, 2025, 08:34:23 AM

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I think this is quite clear, because if you think logically, how can someone who does not have discretionary income comfortably invest in bitcoin. Because the name of the investment will definitely be held in the long term, so it is certain that the money used must really use cold money. because if not, the first thing that might have an impact is that you will sell your bitcoin faster, which is caused by pressing needs. That is why investing in bitcoin is really required to use cold money or what is called discretionary income. Because it is useful for the smooth running of our investment in bitcoin. So if for example you don't have discretionary income, I think don't enter the realm of bitcoin investment yet. Because basically your money management, or your cash flow system is not yet qualified. So the first step you have to do is increase your sources of income so that you can have discretionary income to invest in bitcoin.

You are correct, that it is not possible to invest without discretionary income, and discretionary income can be increased by increasing income and/or by cutting expenses.

Sure it is possible to have some inconsistent income and expenses that cause periods in which discretionary income is not available, yet a person could still have cashflow management systems and back funds that continue to allow an ability to invest into bitcoin, yet as you mentioned Tamaperdana, guys need to be careful since they are going to need discretionary income in the future if they use money that is in back up funds and they actually currently do not have any discretionary income.

Quote from: IceLincoln on Today at 02:55:24 PM

Another thing is people wanting to take profits quicker than necessary, Why Discretionary money (money you can afford to lose) is advised is so you can leave your investments atleast 4-5years without having to worry about their money..

In order to have better chances of benefiting from possible compounding value effects, most people should be planning to invest into bitcoin for 10 years or longer. Sure there could be cases in which 4-10 years is sufficient based on age and/or health considerations, but most people should be aiming to invest into bitcoin for 10 years or longer.

Quote from: Tonimez on Today at 03:19:10 PM

Quote from: IceLincoln on Today at 02:55:24 PM

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One thing about bitcoin investment is the decision to start. Many people are who are not into bitcoin investment so far depends on some factors like having the knowledge of bitcoin existence and also knowing that anyone can actually invest in bitcoin. Many people don't need to learn the step by step approach in bitcoin investment before investing. There's no border line to how much you can invest.

Investing with $10 is not bad but also understand that many beginners prefer starting below that. You can't assume that everyone would have up to $10 since not even all who has it would be willing to invest it even when it's their discretionary income. When introducing a beginner, you won't go as high as suggesting a $10 dollar starting amount. Let him know anyone can invest with any amount little above $1 and watch him even investing high above that.

Humans need no push, even when you're pushing them to success. When he sees you are not impulsive, he can invest as much as possible while you ensure he doesn't go beyond his discretionary income.

Sure there are possibilities to invest in amounts lower than $10, but it does not seem practical to be talking about amounts lower than $10... but yeah, people have to figure out what they are able to do and to invest into bitcoin within their own parameters of how much discretionary income that they have. $10 already seems like quite a low amount, including considerations about how to transfer it and from where to hold it.