Quote from: JayJuanGee on September 23, 2025, 09:19:35 PM

Quote from: Cryptokuus on September 23, 2025, 08:20:04 PM

Quote from: Gost ms on September 23, 2025, 07:54:01 AM

.If a person keeps 50% of his income as discretionary income, then it will never be a right decision

This really depends on the person expenses,if the person has a low expenses I don't think if it is wrong to keep 50% of one income as discretionary income. If a person that has low expenses after attending to all his needs may have more than 50 % of his income remaining and this is the person discretionary income. To say that is not a right decision doesn't sound proper since what determine one discretionary income is the person expenses.

Presumptively if one is reasonably establishing his basic expenses, then there is no discretion in regards to what is discretionary income, since whatever income is left over after basic expenses is discretionary income.

Sure some folks mis-assign some of their expenses as basic, when those expenses are in fact discretionary.... and I am not even proclaiming that the line is clear in regards to which expenses are basic and which expenses are discretionary... yet the idea is that if the expenses are basic, then we might not have much of a choice, such as our rent our our car payments or our utilities or our transportation costs, even though we might know certain ways that we could save money, even within our basic expenses.. ye t some of the basic expenses would take more time to cut than others, and some of the basic expenses are actually better not to cut so that we can improve our health and well-being, since it might be better that we live in a comfortable and safe place that is close to where we work, rather than living in a place that might be much less expensive, but maybe not safe or close to our work or even comfortable in terms of size and/or other modern features that might help us to be more productive. We can buy quality food that does not cost much or low quality food, and sure there are various combinations in regards to the kind of food that we are able to buy , and we can attempt to plan around our food selection choices.

So yeah, we know that discretionary income can be increased by increasing income and/or cutting expenses, and once we establish our discretionary income we can do whatever we like with such discretionary income.. that is why it is called discretionary income, yet the three categories in which we can do whatever we like fit into 1) consume, 2) save and/or 3) invest.

The percentage of cost per expenses and/or what is left over (discretionary income) might be a little bit beyond our control in great ways, and it might take some time to figure out ways to increase it, in the event we wanted to be able to put more aside for investing into bitcoin or maybe to make sure that our back up funds are sufficiently large in order to give us a cash cushion in case we make mistakes or in case our expenses as compared with our income.

I am responding to these posts in the first place, since it seems that some members seem to misunderstand the order of choices, since we do not just choose our discretionary income, even though we choose the kind of work that we do and the kinds of things that we buy, yet some of those income and expense matters are not very flexible, so we should still be thinking about choices within discretionary income once it is established each month (or each pay period) rather than presuming that we choose the discretionary income first, which is a wrong way of thinking about discretionary income.. or even discretionary funds that we might have available to us.

Discretionary income is a flow of income coming to us after our expenses, and discretionary funds can be money taken from any place or just money that we have available that is available for us to do whatever we like in terms of consume, save or invest, since it does not need to be used to cover basic living expenses.

You’re correct, and I’m glad you did breakdown this to my understanding, mostly I have been struggling with my expenses and how to manage my expenses have been a hugely difficult stressful and challenging situation, it’s very important for an investor that have that mindset of buying and accumulating bitcoin for a very long term should be able to identify his basic needs, because basic needs are something that we can’t do without, now let me consider that I have to pay for my expenses of basic needs which paying for my rents is a basic expense and probably I have to pay a certain amount of money for that in a monthly basis, and even if I have to pay yearly I will have to save some money little by little for it, and also I will have to pay for my food, because for sure I will have to eat to have energy to survive and hustle for more money, and considering if I have a family I will also have to put them into consideration of groceries and food stuffs available, and also paying for utilities and also paying for gas, which falls into the category of my transportation and very important my phone bills and internet, which are all essential and basic needs.

However I think after figuring out our basic essential needs I think we can now fully comprehend and understand how much we are supposed to be left with our discretionary income, well sometimes it’s mostly possible that we would end up not having enough discretionary income because of the amount of basic needs that we have available, and we can also try to figure out our financial situation and apply some financial management, more like if we have some expenses that we think that isn’t necessarily necessary then we can decide to adjust with them,
And also try to apply some strategies of how to create some different cashflow or probably increase our cashflow but working on other little details, it is true that we wouldn’t be able to choose the amount of discretionary income that we would have available, because of the amount of our expenses which we can’t probably avoid paying for them, because I think there are things that we can afford to avoid and there are also things that we wouldn’t neglect, so since discretionary income are just income left over after paying for our basic expenses then we can always decide to invest or whatever we fill comfortable that is why we can always try investing in bitcoin with our discretion income.