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Quote from: Gost ms on August 19, 2025, 04:13:14 AM

If you have discretionary income, then you should never wait for an emergency fund. As you said, the emergency fund is set aside before the discretionary income. If you have created an emergency fund without really investing, then this is the wrong approach. Because if you do not already have an emergency fund, then you can create an emergency fund along with investments. If you create an emergency fund along with investments, then you are not missing out on the opportunity to buy, you are not falling behind the goal of building your portfolio. If you wait to create an emergency fund without investing, then this will be a very wrong decision for your investment.

You may be confused, discretionary income is the amount of money that we do not need very much. For example, even if this amount of money is lost, we will not suffer much loss. The amount of money that is left after deducting all your expenses is the discretionary income. If you invest with discretionary income, you do not need this amount of money very much. Discretionary income is very good for long-term investment.

If a guy is building up his emergency fund, then he is taking that money from the discretionary fund. It is money that is after the expenses have already been determined and/or removed... so yeah, all back up funds, whether emergency funds or reserve funds are built from discretionary funds.

you are correct JJG and this your explanation is very simple and very clear, for easier understanding, because alot of guys have argued this particular matter where some said emergency fund and backup fund are built from someone main source of income and not from discretionary income which is not correct. If an investor is building up his or her emergency fund and backup fund the investor is taking the money from his or her discretionary and not from his or her main source of income, discretionary income is a leftover money after you must have settled your basic needs either for the week or for month, that's to say from your discretionary income invest in bitcoin, from discretionary income you build up your emergency fund and backup fund and not otherwise.

Discretionary funds can also come from anywhere, and because they can be used for a variety of purposes, you can choose what to do with them. This makes investing more flexible for people to explore, and all of these factors will give everyone enough financial security. Therefore, everyone needs to know where their investment sources and funds for sustenance come from, as both are crucial when following the investment plan in its entirety, because people need to realize that discretionary income is also a brilliant idea. Discretionary income not only helps you build emergency funds but also investing funds.

I think you're correct here discretionary income can come from any where it must not only come from your main source of income, that's why it's refer to as a leftover money after you must have settled your basic needs and expenses either for the week or for the month or money you won't be needing anything soon. So Any other money that didn't come from your main source of income can also be refer to as discretionary income If you're not making use of them anytime soon, let's say your friend dashed you some money or you won money in gambling and you decide to invest in bitcoin that's fine since you won't be needing the money anytime soon or you can also decide to allocate the money to your emergency fund or back up fund, so at that state that money can be refer to as discretionary income. I believe JJG will throw more light on this matter for more clarification, but I also believe that we both are on the right track.

you are absolutely correct that discretionary income can come from anywhere and this information of discretionary income coming from anywhere should have been what we would have known by now as investors because there are common things we as an investors should initiate within ourselves individually without waiting for source of income before investing, if I'm not mistaken there is a day i came across in buy the dip and hodl were many investors were deliberating about selling on what can afford to buy back if don't have a discretionary income that very moment and so many investors supported the ideas that as far as sell what you can afford to buy back just to invest in Bitcoin that it is not a bad idea, so from there i knew that a discretionary income can from were with waiting for source of income, so i really appreciate when you said sir JJG will definitely contribute more on this because he is more of a mentor to us.

I am not really sure what extra clarification that I should make, since we regularly talk about how we are attempting to only invest from our discretionary income (funds), yet sometimes it might be unclear how much we might be able to invest because our income and/or expenses might be irregular, so usually the more irregular our income and/or expense, then the more likely we are going to need to keep higher levels of back up funds, and so even if we might want to be as aggressive as we are able to be without overdoing it, then we are in more danger of overdoing it if we are either not clear about our income and/or expenses and/or if we do not have enough back up funds..

Sometimes if we are maintaining enough back up funds, then we still might be able to invest in bitcoin even when we do not know our exact future income and/or expenses, yet there comes a greater urgency to shore up our income and/or expenses the more that we deplete our back up funds, and then we might run risks of either no longer being able to invest in bitcoin through weekly buys or worse that we would deplete our back up funds and have no other places that we can tap into except for our bitcoin... which is not a good place to be and the longer that we are investing in bitcoin and building and strengthening our cashflow management systems/practices, the more likely we should be able to have developed several cushions so that we will not have to tap into any of our bitcoin until we have reached overaccumulation status.... . We may have a period of accumulating bitcoin, yet there may be a transitionary period where we are not really accumulating more bitcoin yet we are not selling any either.. so we could spend 1-4 years or more in a kind of transitionary phase before we might enter our stage of sustainably withdrawing bitcoin based on price-based withdrawals or based on time-based withdrawals.

Quote from: icebar on August 19, 2025, 05:16:06 PM

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Quote from: AYOBA on August 16, 2025, 07:39:40 PM

When it comes to investing in Bitcoin, it is not required for the individual to wait for a steady source of income because everything is a gradual process, which is why anyone interested in investing should begin with the smallest sums amount available at the moment. You can see from the small amount that they will grow beyond your expectations. The DCA, in particular, is the ideal approach to reach out and invest, especially in terms of long-term portfolio accumulation for a higher return on investment.

If you use the DCA method in Bitcoin, the most important thing is how consistent we are with it, even if the amount seems to be small today, it can grow into a big thing in the future. Many people believe that they must have a huge amount of money before they start, but the truth is that consistent with a small money can lead you to a strong place.

TBH, this is what a lot of people don’t get. Most times it is not about waiting till you have big capital before stepping in, it is the little steady buys that will end up surprising you years later..

It is not good to think of investing in Bitcoin after increasing the investment amount. The current price of Bitcoin and the price after a few years will not be at the same level. If the price of Bitcoin increases over time, then those who want to invest in Bitcoin late will not be able to increase the amount of Bitcoin even if their investment is high because the price of Bitcoin will continue to increase further at that time. The investor will definitely have to face losses. Moreover, when money is collected for a large investment, for some reason, it may not be invested in Bitcoin. An investor will be completely lost. Therefore, if you do not think much and regularly follow DCA by giving a prudent portion of your discretionary income and hold Bitcoin, it will definitely help the investor create large assets in the long run.

If right now I can get right around 885 satoshis for every dollar, then maybe in 5 or 10 years, I am only able to get round 80 satoshis per dollar. which largely means that the BTC price had gone up more than 10x in terms of dollars, yet people will likely have to buy their satoshis at whatever is the future price, and they still may anticipate that in the future (in the next 3-ish years), they might only be able to get 40 satoshis per dollar. There is always some speculation about future price as compared to present price and there are always chances that the price could go up or go down, yet I would imagine that based on bitcoin design dynamics that bitcoin prices are going to ongoingly be inclined towards going upwardly, even though for sure there will continue to be upward and downward BTC price moves, with an overall trend of ongoing upwards BTC price trends.

Quote from: Loyang on August 19, 2025, 05:20:30 PM

Quote from: JayJuanGee on August 19, 2025, 06:28:55 AM

Quote from: Gost ms on August 19, 2025, 04:13:14 AM

If you have discretionary income, then you should never wait for an emergency fund. As you said, the emergency fund is set aside before the discretionary income. If you have created an emergency fund without really investing, then this is the wrong approach. Because if you do not already have an emergency fund, then you can create an emergency fund along with investments. If you create an emergency fund along with investments, then you are not missing out on the opportunity to buy, you are not falling behind the goal of building your portfolio. If you wait to create an emergency fund without investing, then this will be a very wrong decision for your investment.

You may be confused, discretionary income is the amount of money that we do not need very much. For example, even if this amount of money is lost, we will not suffer much loss. The amount of money that is left after deducting all your expenses is the discretionary income. If you invest with discretionary income, you do not need this amount of money very much. Discretionary income is very good for long-term investment.

If a guy is building up his emergency fund, then he is taking that money from the discretionary fund. It is money that is after the expenses have already been determined and/or removed... so yeah, all back up funds, whether emergency funds or reserve funds are built from discretionary funds.

Sir, I got the right information from you. I was very confused about this issue. Because I have seen many people creating an emergency fund with their main income and many people creating an emergency fund with discretionary income. Whenever I tried to ask someone, everyone gave different advice, due to which I was very confused about this issue.

If a person creates an emergency fund with discretionary income, then it will be very good for them in creating an emergency fund. Because they will not have any kind of exclusion in creating an emergency fund. If a person invests with his main income, then sometimes there may be a financial crisis for family expenses or all the other expenses, due to which the continuity of creating an emergency fund may be lost. So whether it is our emergency fund or any other fund, it is better for us to create it with discretionary income.

If we end up spending our income prior to accounting for expenses, then when we have expenses that are due, we either have to spend from our back up funds or we have to spend from our bitcoin, and so we are trying to prevent situations in which we will have to spend from our bitcoin at a time that is not completely of our own choosing, and so we sometimes could make mistakes which provides greater justification to have various back up funds.

It also can take us a while to build up our bitcoin investment and our back up funds. I personally suggest to try to build them up together until the both get to be 3 months of your expenses, then after that you don't necessarily need to have emergency funds that are more than 3 months of your expenses, yet if you are in a situation where you are frequently tapping into your emergency funds, then you have to build them back up, which might hinder your progress in your being able to invest into bitcoin.

The longer that we are in bitcoin and also strengthening our cash flow practices, then it would seem the less likely that we are going to make as many mistakes, since hopefully we are learning how to make sure that we are not running out of funds or unnecessarily putting ourselves in stressful situations. Some people are challenged in managing their finances, so they are likely to have more difficulties and/or even to mess up their bitcoin investment... We usually are wanting to impose limitations on ourselves in order to help our own financial and/or psychological situation and likely to keep enough cash cushions that we are not putting ourselves into stress and/or emergency situations.

Sometimes we might have to purposefully look for opportunities and ways to increase our income and/or to cut our expenses, so that we will have more funds to invest in bitcoin and hopefully also allowing the creation of cushions so that we do not overdo our spending based on our income.