To maintain investment consistency, I recommend a strategy that is very realistic for an investor to follow, such as if your discretionary income is 5% of your total income, then it can be considered very simple to allocate 4% of it to Bitcoin accumulation and the remaining 1% to an emergency fund. Therefore you can cycle for four years but even if it is not a decent holding for you, it will become a great habit to hold Bitcoin and will encourage you to cycle more.
I agree with you here, most people think they have to pour their entire discretionary funds into bitcoin investment, they forget that saving is a way to ensure that they don't get caught up in some kind of a financial crisis later in their investment journey, any smart investor should know to not invest with all their discretionary funds but to instead keep a certain percentage of it for a range of other purposes (emergency situation) this way they can relatively handle unexpected events that come up, sometimes our insurance aren't paid in time and we don't usually have the luxury of waiting for it, situations like this are remedied by our emergency or backup funds until insurance is cleared.
Investors need to understand that keeping some money aside from their discretionary funds is one way to safeguard their bitcoin investment.
Who will invest what percentage depends on the investor. If someone does not have an emergency fund, it is very important to create an emergency fund along with investing. If someone has an emergency fund, then he can invest the entire amount of his discretionary income if he wants. But he has to take care that the amount he is investing does not become necessary later. For example,
Because you are investing the entire amount of your discretionary income, but if you need some amount of money, you may have to sell your investment. So you have to take care of which one will be better for you.
That is why it is not safe to use all 100 percent of your discretionary fund, because you will have other expenses to fund before your next fund or income comes in or can you prevent unplanned consumption expenses from coming for the month.
From your discretionary funds, you will get your reserve fund and emergency fund and we all know that it is our emergency that is our last life line defense therefore Spending all once, puts your investment at risk, because in case of emergency high expenses that you cannot avoid for the week or you get relived of your job, or alternative business seems to be less productive, how will you cope, you will have nowhere to fall back on than selling from your Bitcoin investment which will definitely affect you and your investment that is why you cannot spend the money meant for your personal expenses to buy Bitcoin .
Therefore it is adviceable not to spend all your discretionary income once in other to have a successful Bitcoin investment journey to reach your accumulation stage of a long-term investment of 2-3 cycles or more.