What about someone that does not have a discretionary income yet the person knows how to manage his or her investment without all of that mentioned yet invest on it very well and become stable in the investment stronger and better than those that are financially stable buoyant . when it comes to source of income been consistent in ur investment can help you reach and figure out ur goal and sustainable desires in life ur important needs and achievement.
Investing without a discretionary income is quite a tough one. You don’t have to be financially stable before you can have a discretionary income , some folk are not that stable when come to finances but are still doing good , is all about planning. The advantage of using discretionary income is that you can hold for long without thinking of running to it whenever there is any situation that requires money . Because is money you can stay without using for long like a left over , and beside before having
your discretionary income your emergency funds have already been set aside .
Investing without discretionary income will affect your aim of being consistent because is not everytime you will have money to put in your investments. And you will be. Battling with some expenses because you are using the money you are suppose to use for those expenses to invest which may lead to early withdrawal of your investment. To be able to balance such you have to be good at planning to be able to provide a discretionary income no matter what like reducing expenditure, reducing your want and focusing more on your needs .
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.