Post
Topic
Board Economics
Re: Always invest from your discretionary funds
by
LogitechMouse
on 27/09/2025, 04:19:52 UTC
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If you want to be investing in Bitcoin, gold, stock or real estate that you will not get profit immediately you need to have a discretionary fund. Example is if anybody's total income equals to their basic or necessary expenses they should forget about investment. There is most likelihood that they will sell their assets prematurely to take care of their basic needs which are essential.

If you want to invest in a long term profitable asset and you don't have a discretionary fund you can do the following. Cutdown on your basic expenses if you can, get a better paying job, get a side hustle, learn profitable skills, do what you can to earn more than your basic expenses.
This is just adding some common sense and you will realize that you only invest "SPARE MONEY" and not money that's intended into more important things like your monthly expenses or bills whatsoever.

The final part though is somewhat important especially for those newbies out there that really want to invest into whatever asset they want to invest with. If they can't find another side hustle for whatever reason it is, the best thing that they can do is to cut expenses. Learning one skill that pays higher than your current one is the most efficient thing to do. On the flip side, it's very easy to say for us who have spare money to invest, but there are some out there that for whatever reason it is, can't do it. It's either there aren't enough job opportunities around, or they don't have spare time to use to find another side hustle.

To cut the story short, "Invest what you can afford to lose." One of the most famous investing quotes that we are hearing, but unfortunately, not all investors are following it.