Quote from: Sonia_123 on Today at 05:43:12 AM

Quote from: Jostern on April 24, 2025, 08:54:37 PM

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As a new investor, emergency fund shouldn't be seen as your priority in terms of backup funds, it comes last but discretionary fund, because it is from your discretionary fund that you start your investment without emergency fund, before you start having your emergency funds that will have to take you 3-6 month journey, because before coming into Bitcoin you have been taking care of you expenses, and so those extra expenses that you make outside your budget terms to be your reserves funds.

Gosh Sonia_123. Your attempt to clarify this seems to have had made it more confusing.

If we have already established various back up funds that might include both emergency funds and reserve funds, then likely we would spend from our reserve funds prior to spending from our emergency funds, and so then we may never end up spending from our emergency funds unless there were an actual emergency that we lost our income and/or our expenses increased beyond our income.

If we might minimally be attempt to to build and then to maintain our emergency funds to be at least 3 months of our expenses, then it could take us a year or longer to get our emergency funds up to that level, depending on how much we are able to take from our discretionary income to build up our emergency funds while also investing into bitcoin. The more discretionary income that we have, then the faster that we will be able to build up both our emergency funds and our bitcoin holdings.. and then yeah, sure we may well want to continue building up additional reserve funds even after we have established our emergency funds.. and surely reserve funds tend to have more flexibility in terms of how they might be used, whether it is to use them to invest or for consumption purposes... or if they might just serve as additional emergency funds beyond the 3 months minimum for emergency funds that tend to be recommended, especially once our bitcoin investment starts to get larger and we may well be wanting to protect ourselves from having to dip into our bitcoin investment at any time that is not of our complete choosing which also may be that we are striving to invest for 4-10 years or longer, and perhaps many young folks might realize that they are likely investing 15-20 years or longer, even though they might also hope for some good luck that might allow them to shorten their investment timeline and to reach their investment goals on a shorter time horizon.

Generally speaking most of the time expenses will be taken care of from regular income, and surely there might be some months in which the expenses are greater than the regular income, so in those circumstances there is no discretionary income during those periods... and so yeah, at that point, if those expenses cannot be deferred until the next month or until the next paycheck comes in, then money would be taken from the reserves first, and if the reserves run out, then only the emergency funds is left, and if the emergency fund is exhausted, then money would come from investments, and a person can decide which investments to spend from first, yet of course, if we are in a bitcoin thread we are likely trying to protect our bitcoin, yet sometimes people will spend from their bitcoin prior to spending from other assets since bitcoin might be the most liquid of the investments, and some investments might take some time to be able to liquidate.. and surely something like properties can take time to liquidate.. and there may be other restrictions in regards to how some other assets might be converted into cash.

Quote from: Sonia_123 on Today at 05:43:12 AM

Your discretionary funds is always shared into reserve and emergency funds, according to jjg in terms of emergency funds, that it is the last line of defense prior to having to dip into our bitcoin investment, and so usually we would not even want to dip into our emergency fund, which generally the emergency fund should be at least 3 months of expenses, and if a person has more likelihood for loss of income or increase in expenses, then he may need to keep more emergency funds.. He can also keep reserve funds too that would be more flexible than emergency funds

None of this is really incorrect, even though your description of discretionary funds being shared into reserve and emergency funds comes off as a bit confusing, since frequently emergency funds will not need to be touched once they are established unless they are dipped into, or perhaps if a person might determine that there might be some need to increase and/or decrease the size of the emergency funds. The reserve funds could take a lot of different directions in terms of the extent to which they might be being used to build up for specific kinds of potential purchases or if they might be being used. So, sure from month to month there could be spending from discretionary funds and also taking from reserve funds or even building up of reserve funds, so there could be combinations of use of both discretionary funds and reserve funds...so your description may well be largely correct about the interplay between discretionary income and reserve funds.

Quote from: Wind_FURY on Today at 08:16:34 AM

Quote from: JayJuanGee on Today at 02:41:29 AM

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Actually if we zoom out the S&P 500 Index, Gold, and Bitcoin to the maximum, they're all going up simply because of the continuous expansion of the total money supply. Bitcoin simply is more volatile, and obviously is getting market value from legacy markets. But the correlation is not "bullshit", nor is it "delusional".
¯\_(ツ)_/¯

That sounds like another so what? Hopefully, we can attempt to analyze our assets and to filter out the debasement of the dollar and figure out some ways of measuring real value rather than pegging our measurements to the dollar, even though of course, we also can use the dollar as a reference point. There likely are some years that the dollar is being debased in the 2-5% range and then other years that it is debased 6% to 15% or even greater, and other fiat currencies tend to debase worse than the dollar, even though from time to time some of the other fiat currencies might have years in which they are debasing less than the dollar... but again, so what? You want to continue to measure various assets in terms of the dollar so that you can make your fuzzy logic points that everything is correlated?

You seem to be either missing the plot or just wanting to argue your dumbass point about correlation for the mere sake of it. You think that you are making some kind of valid point?

How are you treating your investments? Are you allocating into the various other assets? and/or buying into the narrative that bitcoin is just like everything else? Hopefully, you have figured out ways that your investment portfolio is not failing/refusing to appreciate bitcoin's superiority.. and yeah, sure, maybe your dumbass is continuing to whine right now because you did not buy our most recent dip and you got distracted into other bullshit with your attempt to hedge for down in bitcoin that may well not end up happening... again.

Quote from: Wind_FURY on Today at 08:16:34 AM

Quote from: JayJuanGee on Today at 02:41:29 AM

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I'm simply making a claim that Bitcoin is VERY undervalued as a Store Of Value competitor against Gold.

I thought that you were making a different point (including trying to suggest that there might be some value in terms of holding gold), yet I don't feel any need to argue over posts that we have already made.

Quote from: Ishicryptic on Today at 01:18:30 PM

Quote from: JayJuanGee on Today at 02:41:29 AM

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Thanks for putting this confusing concepts between emergency funds and discretionary funds into perspective, the simple fact is that emergency funds is gotten from discretionary funds. When you remove money for fixed expenses like food and rent, the rest of your income are at your discretion to know how to spend it, it is from there that emergency funds can be taken out. This is why it is said that we remove funds from our discretionary funds for our DCA method of accumulating Bitcoin. It is from the discretionary funds that we can put money aside for savings and other short term financial goals.

A person that understands financial management coupled with Bitcoin knowledge will know how to make budget and know the percentage of money that they will take from their discretionary funds to buy Bitcoin that will be sustainable in their DCA strategy. It is good to make provisions for emergency funds and savings, not concentrating most of the discretionary funds on DCA. Without proper planing the investor will sell their Bitcoin prematurely because there is no adequate provisions for emergency expenses.

I think that many of us acknowledge that the dynamics of investing into bitcoin can change with the passage of time, and surely there may be some newbie bitcoiners who come to bitcoin with either an already existing investment history or they may already be good at cashflow management, and they may have already built up an emergency fund and/or various back up funds.

Surely, once an emergency fund and back up funds are established, then they do not necessarily need to keep coming out of discretionary income, so many of us frequently mention that we end up in a better place to start to invest even more aggressively into bitcoin from our discretionary income once our various back up funds have been established.