Of course, no one should invest with non-discretionary income since that would be gambling rather than investing, and yeah, discretionary income can be increased by increasing income and/or decreasing expenses.
Yeah it would seem more like gambling if one goes beyond discretionary income but some times I do have this feeling if we are only buying bitcoin with an amount can afford to loss them doesn't that make it a gambling because we are afraid we might losses them? lossing can be in many ways but the most fear in this instance is the fear of lossing it to crash or hacks/attacks. I prefer to invest into bitcoin with an amount that I can afford but not the chunks from my discretionary income, if we keep it being only a little of what we can afford to loss to me it's now a gamble which bitcoin is not.
Going beyond using our discretional income to accumulate bitcoin might gives us difficulties in maintaining and sustaining our bitcoin investment for the long term. As potential investors in Bitcoin,We cannot use cash meant for our personal needs to invest in Bitcoin,it is important we sort out basic needs first from our available funds and whatever is left should be used to buy Bitcoin periodically. Using our discretional income keeps us consistent in accumulating Bitcoin not minding the risks. Sometimes an investor might decide to go aggressive in accumulating Bitcoin but should be doing so within his financial capability and shouldn't go beyond what he can afford to do way because he wants to be aggressive in building his portfolio.
I largely agree to most of what you said here because a Bitcoin investor should only be thinking of investing in Bitcoin true his discretionary income, any money used to invest in Bitcoin outside his discretionary income spell trouble for the longevity of his Bitcoin holdings.
If an individual feels like investing aggressively in Bitcoin, it should only be done from his reserve funds not from the money meant to take care of his basic needs or his emergency funds.
It's not compulsory that you should invest aggressively only from your reserve funds, a bitcoin investor can invest aggressively directly from his discretionary income, the most important thing is that you don't over do it. This is one of the reasons why if you have started your bitcoin investment, you need to look for a way to increase your income by looking for a second means of income or going for a higher degree for promotion at work.
When you have increased your income, you have also increase your financial strength which will allow you invest aggressively with DCA. I prefer investing aggressively with my regular DCA than waiting for the dip to buy cheaper aggressively with my reserve funds. However,
your level of aggressiveness depends on the size of your discretionary income. This is why a rich guy has a strong financial strength to invest aggressively than someone who isn't rich.
Your emergency funds is to take care of real life problems and if you invest with your basic needs or your emergency funds, you are gambling
I agree with everything you said Ruttoshi, except level of aggressiveness is how much we choose to invest from our discretionary income, and not how much discretionary income that we have.
Sure a rich person can afford to invest more, but he is not necessarily being more aggressive merely because he is investing more.
Let's say that a poor person has a discretionary income of right around $20 per week and he invests $15 per week into bitcoin, so he is investing 75% of his discretionary income into bitcoin. That is pretty aggressive.
Let's say that a rich person has a weekly discretionary income of around $2k per week, and he invests $120 into bitcoin (which would be 6% of his discretionary income).. which is pretty whimpy, and even arguably way more whimpy than the poor person, even though he is investing right around 8x more than the poor person.
You're absolutely correct. An investor's aggressiveness in Bitcoin accumulation isn't really about the absolute amount invested like most people would think. Honestly i also used to think that aggressiveness was about how large one's weekly allocations to Bitcoin accumulation was, but along the line i got to realize that it was actually how much percentage or proportion that one decides to spend or invest from their discretionary income. The higher the percentage, the higher the aggressiveness, because every individual's discretionary income is never the same, just the same way incomes vary, that's exactly how their discretionary incomes also vary and this perspective emphasizes more on the importance of identifying one's financial circumstances as well as risk tolerance level before making any investment decisions on how aggressive they should be with their accumulation, and not copying someone else's pace simply because you feel it's working out pretty well for him.
The take away point of this illustration is that, investors before choosing their level of aggressiveness should remember that.
1. Investment aggressiveness is about the percentage (%)of one's discretionary income allocated to buying BTC and not really about the absolute amount ($) spent in buying. A higher percentage allocation from one's discretionary income indicates a more aggressive accumulation and a low percentage shows less aggressiveness.
2. An investor's investment choices should be based on his overall financial circumstances, such as their income level, expenses and others. A rich investor may invest a smaller percentage (%) of their discretionary income, while still investing a larger amount ($) than a poor man but this doesn't mean he's more aggressive than the poor man.
3. Every investor has their various individual comfort levels when it comes to risk tolerance. And it's important to understand yours as this would help to choose a better investment strategy.
When talking about Bitcoin investment, this obviously means that regardless of one's financial status, both rich and poor investors should first critically examine, identify and consider their financial circumstances, risk tolerance and also their investment goals before making any investment decisions. This is the only way to adopt a strategy that aligns well with your financial situation and goals.