Quote from: JayJuanGee on August 29, 2025, 12:59:36 AM

Quote from: justdimin on August 28, 2025, 05:41:53 PM

Quote from: cxtreenal on August 28, 2025, 01:45:17 PM

I agree with the two recommendations you made for long term Bitcoin investment sustainability. Another thing I would like to add is that when you implement your own strategy for long term management it will be consistent with your daily life and expenses how you organize your investments and grow your Bitcoin holdings. In the long term effort you will encounter many problems and sometimes you may get upset and feel pressured to withdraw your valuable holdings. What should be the amount of emergency fund, how many months it is safe for you and your investments, your income and discretionary funds these are important things to decide for yourself.

That is true, keeping your own strategy is more important than all of this. Most of the time people say have 6 months of salary in your bank account for emergency and that should be enough. I mean unless something HUGE Happens, then 6 month salary should be enough. In this case, that means, you should just save 10% to 25% of your salary, for a short period of time.

So, let's assume that you make 1000 dollars, that means 6000 dollars is enough to save, so if you keep lets say 150 dollars a month to save, then in 40 months you have enough. Now, that may "sound" a lot, but humans live around 70+ years, not all of us of course, but that is the average age, and giving up just 4 years of that, in return of having decades easier, I would say it's a good idea. After you reach that? You put all your savings into investment. That is the suggestion at least.

Each of us should attempt to use our discretion regarding what minimally to have and perhaps a range of what we might keep for back up funds.

I tend to suggest 3-6 months with 3 months being the emergency fund, which means that he second 3 months is somewhat optional depending on your circumstances. I also suggest it to be 3 months of expenses rather 3 months of income.

Of course, many folks might already be in the habit of keeping some back up funds that might be 2-6 weeks of their expenses, so when they come to bitcoin, it tends to be important to work on building a higher amount based on a higher importance not to tap into bitcoin at a time that is not of your own choosing.. so there is an extra effort to create a greater gap so that you don't have to tap into your bitcoin... another thing is that guys likely should be trying to get started investing into bitcoin as soon as possible and to start to build their bitcoin investment, so they can measure how much back up funds they have and perhaps make their initial investments into bitcoin at a similar rate as they are growing their back up funds, and this can be a bit of risky period since the back up funds will likely not even add up to 3 months of expenses in the earliest stages of building up the bitcoin investment.

If a guy has a lot of expenses like a business or a family or some other complications of irregular income, then he is likely going to need to have more back up funds as compared with someone who has fewer expenses and fewer complications in his income and/or expenses.

Many regular folks have difficulties saving/investing even 10% of their salary, and so we can imagine that 10% is only going to allow the putting away of 1 year's salary after 10 years, and so if guys are able to save/invest at greater rates, such as 25%, then they are able to put 1 years salary away in merely 4 years. So if a guy is starting from nothing or he does not have large amounts of discretionary income, then it is going to take longer to build his investment and his back up funds - including if he might end up tapping into his back up funds while he is building them up.. which sometimes end up happening when guys might be trying to take care of his expenses and trying to earn more money to increase his discretionary income, yet sometimes he might have shortages in income and increases in expenses.

If you measure backup funds by expenses instead of income, it really changes the calculation. Three months of expenses is already tough for most people, and the extra three months is more like a safety net for those with unpredictable situations.

The tricky part is when someone is just starting out. In the first stage, you are trying to stack Bitcoin and build that cushion at the same time. That is when most people slip, because one unexpected bill wipes out their savings and forces them to sell sats. Even a small buffer before going heavy into accumulation helps avoid that problem.

Looking at savings rates shows how big the gap can be. Saving ten percent means you need ten years just to put aside one year’s salary, while at twenty five percent you reach that point in only four years. That difference completely changes how quickly both reserves and Bitcoin can be built up.

Although for me I think a balanced approach early on works best. Grow the backup fund and stack at the same time, then once three months of expenses are covered, lean harder into Bitcoin. That way you do not end up in a position where a short term problem forces you to undo years of stacking.