Quote from: Tonimez on June 18, 2025, 07:10:49 AM

Quote from: BADERO on April 03, 2025, 12:57:05 PM

Quote from: JayJuanGee on April 01, 2025, 09:21:10 PM

Quote from: Joy- maker on April 01, 2025, 03:04:49 PM

I really find all this your advice very helpful and I have learnt alot from what you just said here, because there was a point I was buying bitcoin aggressively going beyond my financial capacity because of a DIP that occur and my friends where buying bitcoin aggressively so I decided to follow which almost made me to invest all I had in bitcoin, but thanks for your advice that everyone should stick to their fanancial capacity and not to over do.

So, as you know, I am not against the idea of investing as aggressively as you can, even though you have to also account for your own boundaries, and if you are not sure if the money is available or is going to be needed in the future for expenses, it is likely better to error on the side of keeping your money available until your expenses are confirmed rather than investing it and then realizing that you made a mistake.. and sure we all make mistakes, which is another reason to build and maintain various kinds of back up funds.

Even the best investment opportunities mean nothing without proper financial safety nets, i can confirm that cuz I did the same thing last year, I bought a significant amount when Bitcoin was around $55K but due to bad money management, I had an emergency and was forced to sell and yet, I had the chance to buy at such a low price that in 10 years, I could’ve had a huge amount of capital. You are absolutely right money management is one of the most crucial things. You have to know how to save and be prepared for anything

It is possible you never had a stable source of income which could allow you plan your finances. I suppose you had made a lump-sum and introduced such into buy bitcoin while thinking such money would come sooner but got disappointed. The best approach to bitcoin investment starts with owning a stable source of income which allows you make provision for emergency funds and back up funds which would cushion your investment.

More so, if you have a stable source of income, it is easier for you to break into bitcoin investment no matter how little you start. Always make sure you don't invest above your financial capacity and resist the push to over introduce lump-sum during dips. The best way to restart bitcoin accumulation is by starting, at least you have learned your lesson.

Many of us recognize that we do not need a steady income to either get started or to sustain our bitcoin investment, even though surely it can help to have more discretionary income rather than less and rather than uncertainties.

The bare minimum to be able to invest in bitcoin is to have discretionary income, even if the income is not steady or strong.

Another thing that many of the longer time bitcoin investors likely realize is that if we put investing systems into place and we are ongoingly focusing on accumulating bitcoin regularly through buying persistently and consistently and perhaps even aggressively, we may well recognize more and more opportunities to invest lump sum and/or to divert value from other places in order to allocate such value into bitcoin.

One of the advantages of establishing priorities towards bitcoin is that we may well become less wasteful with extra money that we might be able to earn or to gather from other places, including that we may well even identify various ways that we might be able to cut several of our expenses, and to use the extra money for investing into bitcoin.

It surely can take a long time to get through our earliest of BTC accumulation stages and to start to get to a point in our bitcoin accumulation journey in which we might start to recognize that we might want to move away from accumulating bitcoin and perhaps at some later point we might well consider that we are able to sustainably draw income off of our bitcoin, since it had gotten to a large enough size that we had concluded that we have enough bitcoin or more than enough bitcoin for our own purposes of either living off our bitcoin our using our bitcoin as a way to supplement other income sources that we have.

Quote from: Tonimez on June 18, 2025, 07:10:49 AM

Quote from: JayJuanGee on April 03, 2025, 03:57:34 PM

Hopefully, you have a plan to get back on the bitcoin bandwagon, especially since it takes a long time to build up a bitcoin investment, and if you currently have no bitcoin, then for your own good, you better figure out ways to start accumulating bitcoin, and to get the rest of your cashflow management systems in order, even if you are ONLY able to buy $10 per week.

If you don't have an emergency fund and other back up funds, I would suggest building those kinds of back up systems at the same time that you are building up your bitcoin investment, so they might grow at a similar rate. Don't be gambling with bitcoin or fucking around with overdoing matters. It is better to stay in your bitcoin investment rather than to get forced out at time that is not your own choosing due to your bad cashflow management, and it is better to stay conservative and stay in the game for 10 years or more rather than getting in and out and not planning for the long term.

Sure, it could be that you already have some backup funds, such as 2-6 weeks of your expenses in cash, and for example, if you were to have and income around $30k per year, which is around $2,500 per month, and let's say that you have around $1,800 to $2k worth of expenses each month. So maybe your savings could already be around $2k, and if you were to have around $100 per week of discretionary income that you were willing to put into bitcoin, you could put $75 in bitcoin each week and $25 into your emergency fund.. and in 30 weeks, you would end up having had put around $2,250 into bitcoin and around $2,750 in your emergency fund ($2k that you originally had and an additional $750 from new amounts of $25 per week in this hypothetical).

For sure, your numbers may well be different because your income and expenses are likely different from the ones that I describe above, yet you should be able to adjust the numbers to your own situation.

Sure, you have discretion regarding how to grow each of your funds, and likely bitcoin prices are going to continue to change during this time, and it could take you more than a year to build up your bitcoin holdings and your emergency funds to be equal to 3 months of your expenses, and sure bitcoin prices might have changed up or down during that time too... and even if you have 3 months of expenses in emergency funds, you may well want to have other back up funds so that you don't have to touch your emergency funds absent an actual emergency, so you might still be building up back up funds and even using them from time to time.

Once you have built up your various back up funds and you have strong cashflow management systems in place, then you could focus more exclusively on investing into bitcoin, and sure if you make mistakes from time to time, you have back up funds to fall back on and if some larger emergency comes, then you have emergency funds... yet I personally believe that we should try to engage in behaviors and to make preparations so that we never have to dip into our emergency funds except rare and temporary occasions and if our cashflow dries up we have figure out ways to get additional cashflow before having to dip into our emergency funds, when possible.

And if we have modest finances, it could take us couple of cycles before we might modify our system of accumulating bitcoin in such a way that we are not necessarily accumulating bitcoin every week, persistently, consistently, regularly, ongoingly and perhaps even aggressively. There might be some point where our bitcoin stash size is starting to inform us that we might be able to let off our bitcoin accumulation or perhaps to just buy on dips or some other modifications that are based on our stash size. I tend to consider that it is likely that we need to go through BTC accumulation first, which could take a cycle or more, an then we might have a period of maintenance that might be less focused on BTC accumulation, and then finally we get to a state of being able to withdraw from our BTC... which is a product of time and a product of stash size.. and we have to figure out how much of a stash size that we need for our ability to sustainably withdraw from it and even perhaps completely live off our bitcoin stash or to have our BTC stash supplement other forms of income that we have.

The attitude of an investor goes a long way to determine how successful the investor could be. You cannot expect to have your bitcoin stash intact without having a cushion in the form of your emergency funds and back up funds. So cashflow management starts with envisaging possible dangers and also unknown uncertainties which could hinder you holding periods. I think the first thing every bitcoin investor should learn is cashflow management. Design your income and expenses. Set up your emergency funds and back up funds. Don't let greed take over your sense of precarious nature of eventualities.

Part of the dilemma frequently can be (perhaps more so with poor people) is that there is a desire to try to make sure that all of their dollars are "working," and so the money in back up funds (including emergency funds) may seem as if it is not "working" sufficiently enough.. .and so that dilemma of wanting to put money to work will then contribute towards not having money on the side to help to protect themselves from emergencies that might never end up happening.

It may well be a goal to try to create situations in which a guy never has to use his emergency funds.. so then the money is just sitting there. which does not seem smart, even though it is smart and gives a lot of security and/or confidence to person to be able to invest more aggressively based on having the financial cushion that gives greater psychological comfort.

Quote from: Tonimez on June 18, 2025, 07:10:49 AM

You can have a long-term goal for your investments which could be terminated by a single financial mistake.

You are correct that a guy could spend 10 years or more building up his bitcoin investment, and then at some point he ends up having to dip into his investment due to his inadequate maintenance of an emergency fund, and then he might end up getting set back for years based on his sloppiness and his putting his investment at greater risks by gambling with his money.

Quote from: Tonimez on June 18, 2025, 07:10:49 AM

It's when you have accumulated bitcoin successfully to a stage of overall accumulation that you can consider slowing down or considering the withdrawal systems.

Yep. .it makes more sense to make sure that a guy is withdrawing from extra bitcoin rather than if he were to still be accumulating and he is withdrawing prior to having had reached overaccumulation status.