To invest, you need a source of stable income. If you have a discretionary fund, you will not be able to continue your investment. Because if you do not have a stable income, how will you meet your daily needs and how will you maintain your investment.
The main source of income of a common man who works is his job, how can he get a discretionary fund or invest with the help of a discretionary fund. Discretionary fund is for those who are in government service such as the Prime Minister of the country, they can do whatever they want with this fund. But how can a common man get a discretionary fund. For this, a common man should invest by extracting discretionary income from his stable income through proper financial management. If there is no stable income, how can a person continue their investment continuously. To invest, a discretionary income is needed on which he can continue to buy continuously by adopting the DCA method. A stable income is very necessary for an investor.
We don’t need a stable income to invest in Bitcoin. But we do need a discretionary income. We all know how volatile Bitcoin is. To keep such volatile markets under control, we use the DCA method. And the most important part of this method is to achieve your goal by investing a certain amount after a certain period of time. So there is no specific time to start investing. Start investing as soon as possible. You need to invest an amount of Bitcoin that you can continue to invest in all situations.
Suppose you are a job holder, your monthly stable income is $1000, your household and other expenses are $800. Now, should you invest the entire $200? No, you should keep $100 in an emergency fund and $50 in a discretionary fund and invest the remaining $50 in Bitcoin. This way, if your job is at risk, your investment will not be lost. Rather, you can continue investing using your emergency fund and discretionary fund.
So we need more discretionary income or discretionary fund than stable income to run our investments.