Your example brings out various tensions Merit.s.. and guys could be in a real struggle to figure out how much they might be able to invest into bitcoin.

Let's say that a late 20s guy has an income that is right around $500 to $2,000 per month, but most of the time it is around $1k, and his expenses are usually between $600 and $850, yet most of the time around $750.  So really we can say that this guy has a discretionary income that tends to be 25% of his income, yet at the same time, he has irregularities in both his income and his expenses that he already learned that he needs to prepare in advance for such irregularities. He already has gotten into the habit of keeping some extra cash, since he knows that some months he might have situations in which he brings in less income than his expenses, so he knows that it is preferable to have 2-6 weeks worth of expenses on hand.. which as I already mentioned, his largest expenses tend to be $850 for the month.

When he hears about bitcoin, he realizes that he needs to get into it as soon as possible and to develop some kind of an investment plan, yet he does not really have any other investments.  He decides that his goal is going to be to take about 50% of his discretionary income to invest into bitcoin, which would be right around 12.5% of his regular income, but he also feels that he is going to have to build his emergency funds up to 3 months before he can really start to become more aggressive in his bitcoin investment.  Let's say that he currently has $800 extra cash on hand, so he decides to start to put most of his discretionary income (which he calculates to be $50 per week) into bitcoin for the first 4 months or so until the amount that he invested into bitcoin would equal $800 and then after that he would try to put into his emergency funds and his bitcoin investment at the same rate... And, he is going to look for opportunities to increase his discretionary income by increasing his income and/or by cutting some of his expenses... so after 4 months (perhaps), he is starting to put $30 per week into bitcoin and $30 per week into his emergency funds.  Once his emergency funds is up to $2,550 ($850 x 3), then he is planning to invest $60 per week into bitcoin, and he is hoping to figure out ways to increase his discretionary income so that maybe after a year or two, he might be able to work up to investing $100 per week into bitcoin.

The guy has a pretty tight budget and he is being quite aggressive in his bitcoin investment, and maybe if he does not want to be so aggressive, he might continue to invest $30 per week into bitcoin and to slowly reassess and consider if he might need to buffer up his reserve funds and/or other ways he is spending.  He might also know that he has some expenses, such as his need to buy a new cell phone or maybe a motorcycle and these will help him in his being able to produce more income and to be more efficient.. so he might want to prioritize certain kinds of expenses that might increase his income or increase his well being so that he can earn more income..

If this particular guy had started out with only $200 in his cash funds (emergency funds), he might have had been better off to build his cash funds and his bitcoin investment at the same time, so instead of starting out by investing $50 per week into bitcoin, he might have had put $30 into bitcoin and $20 into his cashfunds, and yeah, it could take him quite a while to get his cash reserves built up to $2,550 or so, which is 3 months of his worst case expenses... and maybe he decides that $2k in his emergency funds is enough, and he considers anything higher than $2k that is in hs cash funds to be reserve funds (and have flexibility in using them). And, guys can make these kinds of determinations how to treat their funds, and come to realize that their back up funds is helping them to insulate their bitcoin from their life so that they do not have to tap into their bitcoin at a time that is not completely of their own choosing, and he may well want to aim at getting a whole year's of his income into bitcoin, which at the rate that he is investing between $30 to $60 per week, it is going to take him a long time to reach $12k invested into bitcoin... and even if he could get his investment into bitcoin up to $100 per week, it would take him slightly more than 2 years to build his amount invested into bitcoin to equal a whole year's income... and if his income goes up then he might need to consider that, as well... not easy choices, even though guys who are able to increase their income are likely feeling like they have more options as compared with guys who are stuck with little to no discretionary income.  This guy should feel good about having $250 per month of discretionary income, even though surely there also could be ways that guys are able to increase their discretionary income, but they might have to spend money in order to be able to do that (such as getting training and experience in other kinds of jobs that pay better incomes).


It is not a good idea to be holding more than 6 months in cash, and even 6 months in cash might be too much.  Poor people would never invest if they are even building up more than 6 months in cash since they will have to keep adding to the cash because the cash will be losing value faster than you can add to it.


Each of us likely realize that we can ONLY do so much at a time and within our limits and frequently we might feel that we are not making progress.

There are likely even guys here who have been stacking bitcoin for  several years, and who might feel that their progress is slow, yet part of the challenge is to keep stacking even during times that the BTC price is going up... and each person has to figure out how to deal with how to keep stacking and dilemmas regarding the extent to which they might hold some cash in reserves for buying on dips... dips that may or may not end up happening.


Several of the ideas of your thread look good.. I will plan to look at it more closely at some point in the near future...  


It tends to be best to attempt to adjust your BTC buying strategy to your income situation, so you could say that you will aim to invest 10% to 20% of your income into bitcoin, yet that might be too vague, so then when you get into the details, you have a certain amount of discretionary income each month, which is the amount of left over money after you have accounted for your expenses, and so within that discretionary income, you could tell yourself (in the beginning) that you are going to invest at least half of it into bitcoin, yet the discretionary income is likely to vary, since some times your income will be higher or lower and other times your expenses might be higher or lower, and in the beginning years, you may well have to make sure that you have  some reasonable level of back up funds (emergency funds and reserve funds) to protect your bitcoin investment, and so maybe in the very beginning, you might already have 2-6 weeks of back up funds on hand, and so the amount of extra money that you have is already serving as a kind of emergency fund.  You could also tell yourself that you will reassess your approach from time to time, and in the very beginning, you start out a bit more conservative as you are getting used to following your own system that you are creating and trying to figure out if there are areas in which you are making mistakes or where you could improve what you are doing... and as you practice more and more and more, you likely will become more confident in terms of  how aggressive you are able to be without overdoing it, so you might even increase your bitcoin investment or find ways to increase your income and to cut some parts of your expenses.

It is o.k. to think about these matters in a variety of ways, yet as you build your own systems, you might realize that it is good to keep a certain amount of money as a cushion all of the time, and surely if your income/expenses are more reliable and simple, then you might not need to keep as much of a cushion as compared with if you have a lot of irregularities in income and/or expenses then you may need to purposefully keep more of a cash cushion.   I know when I was younger I used to project my income expenses out 3-6 months, but then as I got older and some of my finances became more complicated, I frequently would have to project my cashflows out 12 to 24 months, and surely the months that are closer are more important to have the specifics correct, and the months that are further out can be a bit loose, but as they get closer, they have to be more specific, and surely the month that we are currently in and/or the upcoming month are the most important of months to make sure that we have enough money and enough of a cushion so our planning of the months in advance can sometimes show us several months in advance the extent to which we might have potential short-falls of cash in the future. .and if we see that we have a potential short fall of cash 4-5 months into the future, we may well be advantaged to make adjustments in our current earnings and/or spending in order to attempt to account for that future short-fall in cash so that it becomes a non-issue and we may well end up addressing it during current times rather than just leaving it and not addressing it in advance.. so then when we get to that point 4-5 months into the future, we may well end up not feeling any stress because we addressed the matter early..


These are all good points as well.

Each of us likely realize that we can ONLY do so much at a time and within our limits and frequently we might feel that we are not making progress.

There are likely even guys here who have been stacking bitcoin for  several years, and who might feel that their progress is slow, yet part of the challenge is to keep stacking even during times that the BTC price is going up... and each person has to figure out how to deal with how to keep stacking and dilemmas regarding the extent to which they might hold some cash in reserves for buying on dips... dips that may or may not end up happening.


Several of the ideas of your thread look good.. I will plan to look at it more closely at some point in the near future... 


It tends to be best to attempt to adjust your BTC buying strategy to your income situation, so you could say that you will aim to invest 10% to 20% of your income into bitcoin, yet that might be too vague, so then when you get into the details, you have a certain amount of discretionary income each month, which is the amount of left over money after you have accounted for your expenses, and so within that discretionary income, you could tell yourself (in the beginning) that you are going to invest at least half of it into bitcoin, yet the discretionary income is likely to vary, since some times your income will be higher or lower and other times your expenses might be higher or lower, and in the beginning years, you may well have to make sure that you have  some reasonable level of back up funds (emergency funds and reserve funds) to protect your bitcoin investment, and so maybe in the very beginning, you might already have 2-6 weeks of back up funds on hand, and so the amount of extra money that you have is already serving as a kind of emergency fund.  You could also tell yourself that you will reassess your approach from time to time, and in the very beginning, you start out a bit more conservative as you are getting used to following your own system that you are creating and trying to figure out if there are areas in which you are making mistakes or where you could improve what you are doing... and as you practice more and more and more, you likely will become more confident in terms of  how aggressive you are able to be without overdoing it, so you might even increase your bitcoin investment or find ways to increase your income and to cut some parts of your expenses.

It is o.k. to think about these matters in a variety of ways, yet as you build your own systems, you might realize that it is good to keep a certain amount of money as a cushion all of the time, and surely if your income/expenses are more reliable and simple, then you might not need to keep as much of a cushion as compared with if you have a lot of irregularities in income and/or expenses then you may need to purposefully keep more of a cash cushion.    I know when I was younger I used to project my income expenses out 3-6 months, but then as I got older and some of my finances became more complicated, I frequently would have to project my cashflows out 12 to 24 months, and surely the months that are closer are more important to have the specifics correct, and the months that are further out can be a bit loose, but as they get closer, they have to be more specific, and surely the month that we are currently in and/or the upcoming month are the most important of months to make sure that we have enough money and enough of a cushion so our planning of the months in advance can sometimes show us several months in advance the extent to which we might have potential short-falls of cash in the future. .and if we see that we have a potential short fall of cash 4-5 months into the future, we may well be advantaged to make adjustments in our current earnings and/or spending in order to attempt to account for that future short-fall in cash so that it becomes a non-issue and we may well end up addressing it during current times rather than just leaving it and not addressing it in advance.. so then when we get to that point 4-5 months into the future, we may well end up not feeling any stress because we addressed the matter early..


These are all good points as well.

It tends to be best to attempt to adjust your BTC buying strategy to your income situation, so you could say that you will aim to invest 10% to 20% of your income into bitcoin, yet that might be too vague, so then when you get into the details, you have a certain amount of discretionary income each month, which is the amount of left over money after you have accounted for your expenses, and so within that discretionary income, you could tell yourself (in the beginning) that you are going to invest at least half of it into bitcoin, yet the discretionary income is likely to vary, since some times your income will be higher or lower and other times your expenses might be higher or lower, and in the beginning years, you may well have to make sure that you have  some reasonable level of back up funds (emergency funds and reserve funds) to protect your bitcoin investment, and so maybe in the very beginning, you might already have 2-6 weeks of back up funds on hand, and so the amount of extra money that you have is already serving as a kind of emergency fund.  You could also tell yourself that you will reassess your approach from time to time, and in the very beginning, you start out a bit more conservative as you are getting used to following your own system that you are creating and trying to figure out if there are areas in which you are making mistakes or where you could improve what you are doing... and as you practice more and more and more, you likely will become more confident in terms of  how aggressive you are able to be without overdoing it, so you might even increase your bitcoin investment or find ways to increase your income and to cut some parts of your expenses.

It is o.k. to think about these matters in a variety of ways, yet as you build your own systems, you might realize that it is good to keep a certain amount of money as a cushion all of the time, and surely if your income/expenses are more reliable and simple, then you might not need to keep as much of a cushion as compared with if you have a lot of irregularities in income and/or expenses then you may need to purposefully keep more of a cash cushion.   I know when I was younger I used to project my income expenses out 3-6 months, but then as I got older and some of my finances became more complicated, I frequently would have to project my cashflows out 12 to 24 months, and surely the months that are closer are more important to have the specifics correct, and the months that are further out can be a bit loose, but as they get closer, they have to be more specific, and surely the month that we are currently in and/or the upcoming month are the most important of months to make sure that we have enough money and enough of a cushion so our planning of the months in advance can sometimes show us several months in advance the extent to which we might have potential short-falls of cash in the future. .and if we see that we have a potential short fall of cash 4-5 months into the future, we may well be advantaged to make adjustments in our current earnings and/or spending in order to attempt to account for that future short-fall in cash so that it becomes a non-issue and we may well end up addressing it during current times rather than just leaving it and not addressing it in advance.. so then when we get to that point 4-5 months into the future, we may well end up not feeling any stress because we addressed the matter early..


These are all good points as well.