First:  You misquoted me since you did not quote the proper location from which you took my quote.. which you should have had linked this one.


Second:  I am not going into detail about psychology, yet if we are trying to determine the difference between discretionary funds and "the amount that you can afford to lose," then there surely seems to be a bit of subjectivity and psychology involved when any of us are constructing those kinds of limits for ourselves.  We likely will get ourselves into big trouble if we become too aggressive in one direction or another, so there frequently seems to be quite a bit of balancing that any of us ends up doing, and many times even folks with a lot of similar objective factors will end up balancing out their actions differently based on subjective considerations and/or comfort levels.


If we get paid every week then sure maybe we can take chances that nothing is going to come up during that time that contributes to our needing to have some extra discretionary income available, and surely the extent to which we have emergency funds (and especially reserve funds available) then we can surely have that extrra money that could end up being used, especially if there are relatively short timelines between pay periods... and yeah, frequently, i had mentioned that the reserve funds tend to have quite a bit of flexibility to be able to absorb various kinds of unexpected expenses, and also we have had discussion of float funds which tend to be the kinds of funds that might not be classified since it is being held because of sometimes difficulties to know all of the basic expenses, yet it seems that once the basic expenses are taken care of, then that extra money that might have had been available would have had automatically converted into discretionary funds and or into reserve funds if had not been spent, but then if there is a desire to use 100% of discretionary funds on bitcoin investing as soon as they become available, then surely there is a bit of priority and purpose there that is not necessarily completely unreasonable since the devil is likely in the details regarding what other funds are available.  Is the emergency fund already completely established and if there are also reserve funds available, then we may well be just telling ourself a bit of a fiction by proclaiming that we are investing 100% of our discretionary funds/income into bitcoin as soon as it comes available.


It seems that no matter what we need to be attempting to prepare ourselves financially and psychologically for BTC price movements in either direction, and surely if we are fairly early in our bitcoin accumulation, then there likely could be quite a bit of focus on merely accumulating through buying no matter what the BTC price, and so that stage of our bitcoin journey could last a whole cycle (of 4 years) or more, and so maybe we might have approached our bitcoin investment in order to not care if the bitcoin price goes up, down or sideways, yet at the same time, there can be a lot of reasons to temper back our investment into bitcoin so that we are using our discretionary funds (income) for reasons other than just solely focusing on bitcoin accumulation.. but hey, in the end, these are personal choices, and surely harder to proclaim any kind of error in our ways, unless we end up accidentally overdoing it, and operating at 100% just seems prone to errors... and surely guys can play around with how much of a cushion that they feel that they need, and/or if they believe that their level of aggressiveness is ultimately working out for them..

I recall that when I started accumulating bitcoin starting in late 2013, I had set a budget up for myself regarding how much I was going to put into bitcoin for the upcoming 26 weeks, so largely I was attempting to stay on that budgeting schedule that I had set, which I had considered to be somewhat aggressive.. but still there was some premeditation, and even a guy who premeditatingly decides to invest 100% of his discretionary income into bitcoin for the next 2 months or 4 months or 6 months, he may well have had thought through his plan, and he might even have some expectation that he is going to review his carrying out of his plan from time to time to try to measure the extent to which it is working out for him or alternatively if he might be feeling some level of unnecessary stress by engaging in that high level aggressive bitcoin accumulation when if he reflects on the matter, he may well come to realize that even a 80% or 90% might still sufficiently serve his bitcoin accumulation purpose while at the same time giving himself a bit of flexibility to potentially enjoy other discretionary kinds of things in life (expenses) that might come up from time to time....and maybe even allow him to feel better to temper his level of aggressiveness, even just a relatively moderate amount.

Of course the guys who have $100 or more of discretionary income every week, are going to have more flexibility in terms of how they can employ their money as compared with guys who might ONLY have $10 or less of discretionary income each week, and so sometimes the guys with lower levels of discretionary income might rightfully come to the conclusion that they need to stay more focused on bitcoin as compared with their peers who might have more discretionary income at their disposal.  And, they are not incorrect in coming to those kinds of conclusions about the likely need for them to be more focused and even more organized in their finances and focused in their thinking (psychology), yet there still can be ways to redirect focus and aggressiveness and/or perhaps figuring out ways to increase their discretionary income rather than potentially putting themselves into uncomfortable positions due to their seemingly maniacal focus on bitcoin accumulation that may well be ongoingly  bordering upon overdoing it. which causes it to seem more like gambling rather than investing.


You seem to be correct that sometimes we might believe that we are doing the right thing, and then we take actions that we believe are sufficiently correct in light of the information that we then know, but then later down the road, we come to realize that we over did it, and then we end up getting emotional about something that we could have had avoided (or at least minimized that kind of a later experienced emotional impact).
 

In the end, each of us chooses our levels, and surely most of us likely can see potential problematic aspects of aiming to invest (or even investing) 100% of our discretionary income into bitcoin, the exact level still does end up being a personal choice, and people can do whatever they like, even seemingly problematic things, but if they at least recognize the trade offs, then they might still end up coming to some kind of a balance that is similar to what other bitcoin investing aggressive guys are doing, even if they might just be labelling the categories of money differently... which sometimes might help if we are attempting to work with some hypotheticals so we might be able to specifically point out some of the trade offs if a guy might engage in one kind of conduct as compared with another kind of conduct, and even when we get into detailed hypotheticals, we still might not be able to capture various aspects of reality that involve ongoingly changing circumstances and even various kinds of factors that some guys might have to deal with as compared with other guys having different factors that might deal with their family life or their job or their personal health and/or other various kinds of income versus expense matters that they are dealing with.  And so surely there are some guys who have relatively straight forwards income versus expenses and other guys who have a lot of complications in their income versus expenses, so guys should be creating their systems to attempt to account for those kinds of matters and for sure a guy who has way more complicated (perhaps erratic?) income versus expenses, then he likely is going to be way better served to keep larger quantities of back up funds on hand as compared with guys who might have fairly straight-forward (perhaps simple and regular?) income and expenses.


Of course in the early stages of building up both a bitcoin investment and cashflow management systems (that include emergency funds and hopefully later reserve funds too), there are going to be various risks that the bitcoin might be vulnerable because they might be serving also as a kind of emergency fund if there are no other funds available and an emergency actually ends up happening, so however we choose to approach our building of our bitcoin investment and our emergency funds, we are likely striving to strike some kind of a reasonable balance that makes sense to us and the kinds of challenges that any of us might have in regards to our income and/or expenses that constitute the extent to which our discretionary funds might be regular/consistent/large or whatever they might happen to be, and if we are not used to investing, we may well need to learn various ways to invest and to build cashflow management systems that account for our learning how to improve our situation by building now for the future, and realizing that at the same time, we are not guaranteed to put ourself into a better place, even if we are trying to accomplish our investing into bitcoin and our building up and maintaining our cashflow management systems to the best of our abilities.


I doubt that people know everything, even about themselves, when they start to invest into bitcoin, and sure there are some folks with more investing experience and more cashflow management systems than others, but I would not presume that everyone is "in-touch" with their own circumstances, even though they are in the best position to know their own circumstances as compared with the extent to which someone else would know their circumstances.

I would consider it safer to presume that bitcoin investing and/or cashflow management is a learning process in which guys likely will learn more about themselves along the way, and the ones who are open to learning rather than thinking that they know everything are likely going to be better off than the ones who think that they already know everything that they need to know.

I will grant that many times people (normies) will have the ability to know or to learn various skills to both invest into bitcoin and to build up their cashflow management systems, but they also likely need to figure out their abilities and what they need to learn and how to make tweaks to what they know or don't know along the way.


These are not needed to get started investing in bitcoin.  Sure we build our various skills, including cashflow management skills, but we don't need to have all of our exact plans in advance, especially when it comes to bitcoin, one of the most important things is to likely get started as soon as possible and work out the details as you go.. The main thing you need to get started is to figure out if you have an extra $10 or not.. if you have an extra $10, you can get started.


I find your description to be confusing.

I think that expenses are basic expenses and discretionary expenses.

Of course if we have income, then we likely would take care of our basic expenses first, and so then whatever is left is discretionary income.

So then with our discretionary income we can consume or invest (savings might be considered as a kind of investment - even though maybe our back up funds would fit in such category and so any amounts we are keeping in cash might not earn any yield or interest).