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Quote from: SuperBitMan on April 28, 2025, 07:26:21 AM

There are some people who use all there salary for the week to invest on Bitcoin hoping get money from somewhere maybe they have a side hustle where they are expecting money from that same week, it very is wrong to use all your salary for the week to invest in Bitcoin because you are hoping to get another money from your side hustle what if something happened and that your side hustle failed for that week and you don't receive any money

Before an investor will think of investing with his whole salary for the week it means that he has a reliable and trusted source of getting money, perhaps an investor can not possible use all his salary for the week to invest in bitcoin when he's not sure about the other source. And it will be so unwise of any investor that will engage himself into such act when he's not yet sure about the other source.

Quote from: SuperBitMan on April 28, 2025, 07:26:21 AM

this was what made me dip hands into my Bitcoin investment and it thought me a lesson so when you get your salary for the week use only your Discretionary income from that salary to accumulate Bitcoin and then when the side hustle money comes you can decide to invest all.

The reason why you end up dipping your hand into your bitcoin investment is because you weren't sure about the other source, so anyone that choose to invest with his whole salary for the week need to ensure that the source in which the other money is coming from is very reliable, and not from side hustle because sometimes those side hustle may not work as expected, Which is why we don't need to depend on that.

It is not adviceable to hope for fund when investing, it is a wrong idea,also using all your monthly income for investment and start hoping for funds which you are not sure of implies that you have low cash flow, but you can still investment but not using all your monthly income and that is why it is advice able to use the DCA strategy which will help you invest gradually for a long-term without any problem since you are interested in investing in Bitcoin as a no/low coiner, that is why we have being taught in this forum on how to manage our resources for a successful Bitcoin investment journey using your DCA strategy and others according to JJG

Largely in this thread, we have been talking about three kinds of back up funds.

1) emergency funds - try to build them up to 3 months of your expenses (income) and only use for actual emergencies such as loss of income and/or increased expenses

2) reserve funds - can be used for any kinds of extra expenses or saving up for items, including buying btc dips, if wanted

3) float funds - from month to month may keep extra funds (cash) in accounts when the exact expenses might not be known. Once expenses are determined then the floats may be converted into reserve funds, which thus come available for spending if so chosen.

am not going to negate that each of us will consider the classification of our responsibilities differently, and also the urgencies that might be involved in terms of replacing our funds if they might be used, and if we deplete certain funds at some point we might have to stop buying bitcoin until such point that we replenish certain funds... so there could be priorities that are given in regards to buying $10 per week worth of BTC no matter what until maybe the reserves go down to a certain level in which the buying of BTC has to stop, but there could also be circumstances in which there is a range that maybe up to $100 worth of BTC per week get bought so long as the reserves stay above a certain amount, but then at some point the purchasing of BTC might have to stop when the cash cushion drops below a certain level.. and then the next thing is to be avoiding the selling of BTC, so maybe some of the reserves get used first, and the reserves may mostly be in cash, but there could be higher levels of reserves that are in other forums, so we might have certain priorities in terms of from where we spend first and as the different levels of reserves and/or float is depleted, then we might start to come close to using our reserves, and as the situation persists if we cut our expenses and/or try to increase our income and perhaps some of those sources of extra funds dry up too as we deplete them with the passage of time. and then we are faced with fewer and fewer extra funds with perhaps our bitcoin being the last source of funds after we have depleted our emergency funds...

so part of the point is that there tend to be priorities in terms of how funds are spent and at which point funds can still be spent or replaced, but if an emergency goes on for longer and longer the sense of urgency of the situation can increase, but there could be some point in which all the sources of funds are depleted.. maybe in a situation in which a person is injured and/or sick and cannot work or maybe can only work a small amount, and maybe recovery is hoped for and return to work is hoped for, but does not end up happening as is hoped, even if efforts are made,.. so the longer the emergency situation persists the more that extra funds are depleted and the more likely that extra funds, such as bitcoin might end up being spent too..
so we surely do not want to get to that kind of an outcome, so

sometimes we are going to have a variety of level of funds that can be used prior to needing to dip into our bitcoin, and some of our funds might be also considered as working capital, and we still will consider priorities in terms of which to spend first and what circumstances, and each of us are not necessarily going to come to the same conclusions regarding priorities in terms of which funds are spent first or how to manage the cutting of expenses (necessities versus wants and at which points the differing levels of emergency are reached that triggers differing spending or cuts of spending.

You have elucidated your point obviously and I would commend you on that. But I also stand to say that the level of reserved funds you described here are almost impracticable to many investors and/or Newbies. A salary earner knows when he would see his salary and already knows the amount. This allows home to almost rotate their circle of expenditure and also place it hierarchically.

Emergency funds are all-important and a must have. Keeping enough reserve funds could save your life anyday. Before you invest, you save your reserves and you also need to save up fiats, cash at hand also.

I think you’re getting it wrong for saying that you need a emergency funds before you can start investing in Bitcoin, that statement is quite misleading. As long you have an income and you’re able to take care of your needs and expenses and pay your bills, if at the end of taking care of your expenses you have a discretionary funds you can start up your bitcoin investment using the DCA method to build up your portfolio , and you can build up your emergency fund and reserve funds gradually with in the months of starting your investments, we all know that emergency funds and reserve funds are important to sustain your portfolio. You don’t have to waste time and opportunity to invest by saving up reserve funds before investing. It’s advisable you invest as soon as you have discretionary funds to invest and accumulate more.