⭐ Merited by JayJuanGee (1)
This could only be the way I can describe it in my own understanding
I have reasons to disagree with the details and information provided by the diagram, maybe you're the one making the mistake after all.
To explain the diagram you brought up, you're saying that,
1. From your overall income, you get your discretionary income( which I agree with you)
2. From the discretionary income, you get the funds to settle your family expenses, save for future emergencies and also reserve funds.
3. And from your reserved funds, you can buy some Bitcoin.
So it's either I'm retarded as fuck and can't transcribe an obvious diagram, or you're the one who's not really getting this concept. Alright, I'll try making a diagram myself to further visualise my point, and if my idea is wrong then I'd be more than happy to take corrections because I'm always open to ideas and self development.
Am a bit confused in this discretionary income aspect, at first what is discretionary income. This is the amount of money you have left after covering your essential expenses, such as food, rent, utilities etc.
Let me break it down more ;
•Monthly income = $3000
• Expenses = $1500
•Discretionary income = $1500 ( the left over after taken care of your essential expenses) , and also this is where your emergency funds (also get it from bonuses ) and reserve funds are gotten from .
Then after setting your emergency and reserved funds , the remaining percentage will go to your investment. The percentage of you sharing it boils down to you I guess , you can choose 20% to emergency funds, 15% Reserved funds and 25% to your investment.
So this is the way I understand, if you have any opinion to add to this you can do so we are all learning frome each other.