Put 3 times your stable income in the emergency fund and reserve fund.
Do you really know what you are saying? had it been you said 3/4 of your discretionary income it could have sounded better than saying x3 of your stable income. Let me make it clear to you because i can see that you think emergency and reserved funds should be a fixed amount but if that's what you are trying to spell then you are wrong because it's from your discretionary income that you will scrap out emergency and reserved funds which means that each time you DCA, you will have to cut out some money and add it up to your existing emergency and reserved funds. They are not fixed as they vary based on how much you can be able to make available
after your DCA amount have been taken care of, any amount that is left can stand for emergency needs and as reserve funds.I would say that after our basic needs money has been allocated, the next inline should be our emergency funds before the DCA money and the rest of it like the reserve funds and float cash, where it only becomes problematic is when you decide to wait until you have an emergency funds prior to getting started but on the occasion of already starting accumulating Bitcoin, in the scale of preference for me I would prefer allocating to my emergency funds first before considering my DCA amount based on the available discretionary income.
Many guys have already suggested that if a guys is a low coiner or no coiner, then there is no reason to even have an emergency fund prior to having some BTC, yet I personally like the idea of building emergency funds and bitcoin stash size at a similar rate... until the emergency fund gets up to at least 3 months of expenses.
Surely many guys might start out investing into bitcoin , and they already have some cash back up funds that might be 2 weeks to 6 weeks of their expenses, so many guys are already accustomed to living with some good cashflow management practices that maintain some cash cushion in regards to their being able to cover expenses between times that they receive income...so if a person is earning $400 per month and he tends to have $250 in expenses each month, then he might have $125 to $350 in extra cash, so he already has the start of an emergency fund, even though his goal may well be to build up his emergency fund to be at least $750, he also could start buying bitcoin right away since he has no bitcoin yet he already has some semblance of an emergency fund in place, and perhaps he could dedicate 75% of his discretionary income to bitcoin and 25% to his emergency fund.. ..and in the case of this guy, he has about $150 per month of discretionary income, so he could dedicated $112 to bitcoin and $38 toward building up his emergency fund.
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What if you already have an untouched emergency funds that you have stacked up in the previous months, do you still go ahead to allocate more funds to the unspent emergency funds? Personally, I would say no, when I already have unspent emergency funds that was saved from the previous month wages, I would then allocate more fund to buy more Bitcoin, the money that would have been kept as emergency fund for that month would then go into my DCA money because there's no need to add more emergency funds when I already have enough there.
Generally speaking, when a person builds up an emergency fund to something like 3 months, there is no need to continue to add to it, unless the person is wanting to increase the emergency fund to a higher amount based on their own circumstances, such as if they have some known issues with uncertainties regarding income and/or expenses.
Of course, once strong cashflow management that includes the maintenance of an emergency funds are in place and even the having of various back up funds, then more aggressiveness can be employed in regards to bitcoin investing.
Tho, some people can have endless emergency depending on how they are living their life or they know how much they intended to keep as emergency fund, that's why they might keep allocating for it every month even if the ones of the previous month are yet to be spent.
Surely, people sometimes will contribute to their own emergencies based on their having poor cashflow management or lack of emergency and/or back up funds. Investing into something as volatile as bitcoin likely justifies having stronger cashflow management practices as compared with someone who might not be trying to protect any kind of an investment, such as bitcoin when we are wanting to lessen the likelihood that we are going to end up having to sell any or all of our bitcoin at a time that is not of our complete choosing. If we have poor cashflow management, then we are more likely using our bitcoin as emergency funds and going to end up putting ourselves in a position of having to sell our bitcoin at a time that is not completely of our own choosing.
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In other to be a successful investor in Bitcoin, you need to have additional source of income not only your discretionary income can make you a successful investor because if there is an inflation in the economy without the increment of your discretionary income how will you cope with the little left.
Some people already have enough discretionary income, so there is no need to increase it more.
Sure if you already have income and expenses, then if you add a new source of income then you are increasing your discretionary income, yet it might not be a good use of your time and/or energies to get another job if you already have income that is high enough to cover your expenses and also provides for your ability to invest in bitcoin.
You can only be successful in your investment and increasing your portfolio if you have your emergency fund and reserve fund which makes it easier and comfortably to accumulate even when using the DCA strategy, you still need to have a reserve and emergency fund tobe a successful investor , when you have these two back-up funds there is no way you will use the money meant for your upkeep to purchase Bitcoin because they are always there as a support for you at anytime you are in need of funds.
You likely are speaking the truth, but you are using a lot of absolutes that guys might find annoying to be hearing that you have to do x, y or z, and you should realize that guys can have a variety of situations that apply to their situation.. and even where they are at in their bitcoin investment journey whether they are a beginner investor or if they might have been investing for a couple of cycles or more and also whether they have other investments, and even considerations of whether their income comes from working or from other investments or some combination... Some guys might invest while they are also engaging in activities to try to improve their future income, such as taking classes or attempting to get into internship programs or various other ways that guys might balance out their bitcoin investment to their particular circumstances.