Quote from: JayJuanGee on Today at 03:52:47 AM

Well many times we go back and forth in threads and we might not be clear about definitions, and surely there can be ways that guys can figure out how to be as aggressive as they can without overdoing it, yet if they develop systems in which they are categorizing their funds, then they might get some better handle on managing their own finances.

Managing finances becomes even more important for any of us who might have had decided to invest into something like bitcoin for 4-10 years or longer and we might have goals to try to accumulate as much bitcoin as we are able to accumulate, but we do not necessarily want to make mistakes of overdoing it.

So, yeah, sometimes we might not agree upon the terms - even if we might not disagree with some of the objectives.. even though surely every guy has to figure out his own objectives, since he is going to be responsible for figuring out how much to invest into bitcoin and how to manage his cashflows, and if he ends up screwing up and he says that he was following some suggestions from the internet, then no one is going to help him out if he ends up not figuring out his own balances, and hopefully when we are batting around ideas on threads like this, guys get better ideas in regards to how to manage their own situations better and even in their sharing of their ideas and experiences, they can frequently help other guys to figure out their own establishment of boundaries... whether bitcoin investment amounts or boundaries in terms of how much to put into their various back up funds.

Sometimes we will also give examples, and I frequently like to talk about $100 per week invested into bitcoin, yet surely in nigeria guys might have to adjust that down to $10 per week or maybe $30 to $50 per week, yet that might not even be very good for them, if they are not considering the rest of their finances and psychology, so guys have to adjust the numbers to their own circumstances, and surely if they are brand new, they may well have to start out a bit more conservatively while they are getting used to buying $20 worth of bitcoin every week.. which can feel like a lot of learning at first, but then after a while they may well start to get used to it and better understand the various terms and the reason that we might want to break down our back up funds into emergency funds and reserve funds and the idea of float can also be something that is helpful to discuss.

And, yeah, when we talk about cashflow management, and there can be guys who already are doing it, but they might not use the same terms. When we talk about the needs to have better cashflow management because of bitcoin, there may not be experiences investing into something so volatile, so they have to get used to it, and even going through the experience to figure out how they are going to manage their temptations to sell too much too soon or their temptations to stop accumulating BTC when the BTC price goes up, even though they are still in their earliest of stages of BTC accumulation.

Hi, thank you for the detailed response to my recent comment. So yeah, I can actually relate with most things you said here, especially in the area where you emphasize on categorizing our income and building structures around our cashflow. A lot of folks jump into other things without learning cashflow management. They think managing risk just means "not buying the top". But it spreadswide across just buying low, but setting outside a system that will cover for rainy days, volatility, bad luck, and even self sabotage. To be honest, our greatest nemesis isn't the market, it is our own decision. The decision we make around our investment will either make or endanger us.

I also like the way you use real word examples to express your point forward. You made mentioned of $10 or $30 for Nigerians, that is a comfortable amount but $30 is above 50% of the minimum wage here. Meaning, people who earn an income equal or slightly above the minimum wage can even invest with $5 weekly as long as they remain consistent over many cycles. They still will outperform people who try to time the market in terms of accumulation.

And again, not everyone is used to the normal terminologies in this discussion. For example discretionary income, emergency funds, reserves, f,loat etc. Well it doesn't matter, what really matters is if they are following a structured system that will make them accumulate and hold long term. And one more thing, folks needs to prirotize revisiting their own structured system yearly or every two years, and the reason is because their life might changed over those years, things have changed so flexibility is important then.