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.
Indeed, when it comes to investing in Bitcoin, the importance of having a discretionary income can never be overemphasized. And you’re absolutely right, one can potentially increase their discretionary income either by increasing their income or reducing/decreasing their expenses. When one has a financial cushion, it provides one the freedom to be able to invest while also taking calculated risks, which can be seen as a pretty great way of growing one’s wealth and finances overtime.
When one’s income and expenses are inconsistent, it becomes very difficult and challenging to invest consistently, but when there’s a very solid cash flow management system as well as Emergency and other backup funds in place, it becomes pretty easy to be able to mitigate these fluctuations as well as other unplanned situations that may likely arise in the future or potentially disrupt one’s ability to consistently invest and manage their investments, even when there’s an irregularity in your income.
Just as you mentioned, it’s very important to be very very cautious about investing with one’s backup funds during the absence or scarcity of the discretionary income as this could potentially cause a financial strain on the investor. Yes, when an investor normalizes periodically dipping into their backup funds (especially the emergency funds) in the absence of a steady income stream may result to serious financial inconsistencies and strain in the long run, and that’s why it’s crucial to strike a balance between maintaining a very solid financial foundation today and investing for tomorrow.
Yes, it’s not that easy to find this balance, as it requires discipline, patience and carefully planning your finances. But it’s possible to create a solid foundation for Bitcoin investment and also achieving our long term financial goals by prioritizing discretionary income, effectively paying maximum attention in cash flow management and also maintaining a solid backup fund.