Quote from: Hewlet on July 07, 2025, 08:49:38 AM

Quote from: Finebone on July 06, 2025, 09:24:10 PM

Quote from: JayJuanGee on July 05, 2025, 10:25:59 PM

When we are referring to an amount of money that a person "can afford to lose," there is a psychological component.

Of course, a person could invest up to 100% of their discretionary income into bitcoin, yet if they make mistakes and they have no money left, then they might accidentally use money that they need for their expenses, so there can be dangers in using 100% of your discretionary income for investing in bitcoin.

If you can tolerate all that negative BTC price pressure, then sure maybe you have invested no more than you can afford to lose, but you are going to end up being financially and psychologically challenged if the BTC price moves against you... so you actually need to find some balance in which you are both financially and psychologically comfortable, which is also part of the reason that many people are not going to invest 100% of their discretionary income, and maybe they will find some way to be aggressive without over doing it, but maybe invest around 50% or 60% of their discretionary income into bitcoin.. so then they have the remainder of their discretionary income as a kinds of cushion.

one thing that proper planning and budgeting does for you is that it allows you take notice of not just what you want as your left over after you have carried out your expenses, it helps you also take notice of what you are spending your money on and how much is going into any of those things under consideration.

take for instance the data subscription we do every month, if you do not do proper budgeting but rather does daily or weekly plans, you might end up spending way more than necessary which will go on to affect other aspect of your finance and in the process eat into your emergency funds if you are trying to use it to cover for your subscription bills when the need arise.

once i have allocated my 30% for my investment, i just try to use the remaining 70% in a manner that regardless of what happens, i must adapt to what's left as though that is the only thing that i am earning. just that mentality that this is the only thing you are earning will force you to make all your plans to suit what you have left so needs does not easily eat into whatever you have both as your allocation for your expenses or your budget for your investment and emergency funds.

Even if your income is high in investment, it is better not to focus too much on expenses. You are investing 30% of your income. If you spend the remaining 70% on unique things, then where is your emergency fund? Emergency fund or backup fund is as important as the eyeballs of a blind person. If you spend 70% of your income without an emergency fund, what is the guarantee that you will not have to sell your investment later due to any danger? Focus on investing as much as you can. And make an emergency fund and invest. Proper planning and budgeting will help you increase your income and also increase your interest in your investment. Never be irregular during investment because after a certain period of time, all your dreams will be fulfilled through the investment you make. Along with investment, try to increase your income and refrain from spending excessively. Because excessive spending reduces patience and reduces the interest in investing. Because investment gives profit after a long time, which becomes difficult for people who spend excessively.