Quote from: Tungbulu on August 18, 2025, 09:55:17 PM

Quote from: JayJuanGee on August 18, 2025, 09:04:42 PM

Quote from: ruykeri on August 18, 2025, 01:05:59 PM

Quote from: Salahmu on August 18, 2025, 11:30:24 AM

Quote from: Popkon6 on August 18, 2025, 11:00:00 AM

Along with Bitcoin investment and immediately after forming an emergency fund, you have some more precautionary measures, if a person calculates and spends his daily expenses, then at the end of the month he will definitely save some money. And you can add this savings to Bitcoin investment by giving money and you can increase it even more by adding it to your current investment.

Sometimes someone doesn't need to do so many different daily tasks to increase there ongoing investment but instead they can use what they are getting from one to achieve what they intend because with determination it doesn't matter the amount provided that there would almost be a discretionary income for them after every measures of satisfying spending demands, because it will definitely be unhealthy when someone is going beyond the limits at which there strength could carry them in other to increase accumulation because if the person breakdown because of non resting it affects the consistency they were even maintaining on Bitcoin so actually the conclusion is that you can choose to increase your Bitcoin investment if there is an availability of more resources but don't over labor yourself for multiple job when you are already doing well with your current amount are putting in Bitcoin regularly.

Not everyone depends on one type of income. Some people earn only by physical labor, some people have online business, service sector or many other types of income. So if someone has physical and mental ability, then he can earn any other type of income if he wants. If he can increase the income path, it is definitely beneficial. For example, if someone's monthly income is $1000 and if he spends $700, then his discretionary income is $300. From here, if he wants, he will invest 200 per month in Bitcoin. Now if he creates a second source of income, if it is also $200 per month , then it will also remain as his discretionary income. And if he wants, he can invest the amount of his investment in Bitcoin, the previous $200 and the second income $200 together, to $400 in the DCA method. In this way, he will be able to achieve the over accumulation stage much faster than before. Apart from this, if he has only one source of income, then after losing his job, he may face major financial problems. If he does not get a new job very soon. So I think alternative income should be arranged.

You are correct that alternative income can give more resilience in regards to shortage of cashflow and also in terms of having more discretionary income to be able to invest in bitcoin. At the same time, there sometimes can be situations in which loss of income and/or increases in expenses come from inabilities to work, which is part of the reason that an emergency fund would cover some circumstances that an extra job (extra source of income) will not cover.

Of course one the powers of building an investment to a certain high standard, the investment might at some point serve as a source of income, yet we also want to be careful not to have to start drawing from our investment prior to their getting built up to a sufficiently high enough level... and so persons without sufficient cash backups will end up drawing upon some or all of their investments, which might be tolerable to a certain extent, even though none of us should be wanting to end up selling any of our bitcoin at a time that is not of our own choosing, yet if our bitcoin is our last source of funds, and we have exhausted all other funds, then at that point we no longer have a choice.. and sometimes keeping some reasonable sized back up funds will be enough to help us to avoid tapping into our bitcoin at a time that was not at our own convenience.

It's indeed very crucial for folks to have multiple layers of financial resilience, which should also include alternative sources of income and also a solid emergency fund. Having alternative sources of income the investor more flexibility as well as more discretionary income to accumulate more Bitcoin.
However, just as you've rightly pointed out, that unexpected factors like injury or I'll ess may potentially affect one's ability to carry out their work, and that automatically means no more income might be coming in as at this time, and this is exactly where the emergency fund kicks in and becomes a lifesaver. When one has a solid Backup fund, when tough times and unexpected events arises, they can kick in and come in handy as it can help cover those essential expenses, potentially reducing the risks and temptations of tapping into one's investment prematurely.

Before investors can rely on their investment for financial aid and as a source of income, it's important to first build the investment to a sufficient level. When folks tap into their investment prematurely, it becomes detrimental for the growth of their investment and the their ability to reach their financial goals, especially when it involves selling assets that's as volatile as Bitcoin in unfavourable times. But when there's an solid and reasonable amount kept in the emergency fund, the chances of force sales are drastically reduced or even eliminated, allowing folks to make more informed and strategic decisions about consistent accumulation and when is the right time to sell. When individuals maintain a balance between Emergency fund, alternative sources of income and their investment, they put themselves in a better position to effectively navigate financial challenges while working on achieving their long term financial goals.

Personally, I think that a common mistake that poor people make is that they get overly excited about investing in bitcoin and then they end up getting overly aggressive because they want to put as much of their money to work as possible, so they end up erroring on the side of getting side income and secondary income rather than maintaining a proper amount of back up funds. .and they think that their hustle and their ability to find new work is going to save them from any of their cashflow fluctuations and the various surprises that sometimes come about, and surely poor people do not tend to have a lot of resources, so when they fuck up they cannot go crying to mommy and/or daddy to bail them out like a richer person might have mommy/daddy as a resource, and also some other various kinds of back up funds that they don't even think about.. and poor people don't have those kinds of back up funds and/or systems in place, so they purposefully have to spend time, money and effort to make sure that they are maintaining a sufficient enough of a cash cushion so that they don't have to cash out of any of their bitcoin at a time that is not of their choosing.

Another thing that poor people do is that they might get themselves into a pickle or even use some or all of their bitcoin as their emergency fund, and they conclude that it is not a problem that they are using their bitcoin as an emergency fund, because the bitcoin is "in profits." Their bitcoin might be like 3x or more in profits and they are more than eager to cash out some of it, so they don't even have enough patients to keep on accumulating since their bitcoin might even be the most wealth that they could have ever imagined building up, so they are kind of shell shocked and not able to handle themselves in regards of really having a lot of wealth building up and being able to control themselves in terms of not spending it and making sure that they have adequate systems in place so that they don't need to touch it at all, even if their bitcoin is in profits and even if the value of their bitcoin is bouncing around in price and going up and down and they wrongly conclude that they can catch it at a peak and then buy back cheaper.. so they get too greedy for their own good.

Quote from: fullfitlarry on August 18, 2025, 09:58:48 PM

Quote from: JayJuanGee on August 18, 2025, 09:04:42 PM

[edited out]

Take for example in my case, I used to be a smoker, but in 2021, I quit, (thank God), and after that, I just said to myself, instead of the money that I could have bought with a pack or even a rim 10 packs of cigarette a week, then I could used that money and then add some to buy BTC every week to continue to invest. And that is a very effective method to me. I also loss jobs along the way, but me and my wife was really very stingy as far as expenses as we want to build at least 6 months emergency fund and so even if I don't have a job for a month, we survived. And when I found one, we just continue what we did best during that times and up to know, we didn't break it as it is very effective strategy.

For sure giving up bad habits can be good, and sometimes we don't even realize how much we are spending on things that might not really be necessary.

Regarding the "at least 6 months of emergency fund," you likely need to be careful to not overdo it, including part of the reason that we say 3 months is emergency fund and 3 months is reserve funds is because the reserve funds have more flexibility. yet still 6 months is a lot of extra cash that may well not be necessary, and yeah, sure if you suffer some serious accident, then having that much cash might be helpful, but many times, you are over doing it if you are keeping excessive amounts of cash - especially prior to building up your bitcoin investment, and surely if your bitcoin investment is 18 months to 2 years of your expenses, then in those kinds of cases you might be willing to keep more cash, but you also might find that the more wealth you build, you don't necessarily need to keep so much in cash, either.. and surely those are choices and each of us should be attempting to tailor our various back up funds and how we keep them and why we keep them in various forms based on both volatility and liquidity concerns as well as just some of our own comforts and access to certain kinds of investment products.

Quote from: fullfitlarry on August 18, 2025, 09:58:48 PM

Quote from: JayJuanGee on August 18, 2025, 09:04:42 PM

Of course one the powers of building an investment to a certain high standard, the investment might at some point serve as a source of income, yet we also want to be careful not to have to start drawing from our investment prior to their getting built up to a sufficiently high enough level... and so persons without sufficient cash backups will end up drawing upon some or all of their investments, which might be tolerable to a certain extent, even though none of us should be wanting to end up selling any of our bitcoin at a time that is not of our own choosing, yet if our bitcoin is our last source of funds, and we have exhausted all other funds, then at that point we no longer have a choice.. and sometimes keeping some reasonable sized back up funds will be enough to help us to avoid tapping into our bitcoin at a time that was not at our own convenience.

That's why it's really very important to really understand our finances, our liabilities and income and then see where we can shuffle and what needs to be prioritized and then save some for cash backup and then with our Bitcoin investments. Just be resilient, get some side hustle, and it can improved our cash flow and discretionary income for investing. Yes, there is also the psychology and strategic discipline that we have to learn as holder as it is critical as Bitcoin is volatile but it has the potential for long term growth. Being forced to sell in tough times can derail your plans. A cash buffer ensures you keep your choices open.

If you are ongoingly trying to learn as you go, then surely you will be in a better position to see how things are working out and perhaps even measuring certain times when you start to get more stressed out that might show that you are pushing limits in one direction or another and perhaps even pointing out to you that you might need to make some adjustments to what you are doing, so sometimes you might make mistakes, but they mistakes are not so large as to really undermine your bitcoin investment, but the mistake helps to inform you about a way that you can tweak your system and/or practices to put yourself into a more comfortable balance. On a personal level, I make some changes a couple of times a year, yet sometimes if the bitcoin price is moving a lot in one direction or another, I may well push myself to consider the extent that I might need to make some adjustments, and sometimes going through the process of making the adjustments, I will find myself in a more comfortable place and then helping me to realize that I am better prepared for either up or down bases on the adjustments that I made. It tends to be better to proactively make changes rather than having to react at a later point in which something might have gone too far and then there are needs to fix or attempt to rebound from a mistake.