Topic: Buy the DIP, and HODL! - page 245. (Read 136095 times)

It's possible in my country to have total expenses a month as or lower than $20. Though my country don't use dollar but the equivalent of $20 can sustain an individual as expense for a month
Well I guess our economy can be attributed to it.

Sure I agree this doesn't make sense
The higher the income the higher the expenditure Ceteris paribus. Expenses making just 20% of your income is quite rare to see unless maybe the person is a miser.

What's the essence of increasing minimum wage when the expenses borne by the employers especially private institution would be transferred to their goods or services
It's like a circle if nothing is done to correct it.
Not supporting the government but I don't think increasing salary is The solution to our problem currently.

Yup you're right, at first glance it doesn't make much sense to have that much left over, is that like saying that a person only needs a drink to keep them alive? No, that's too small to be the amount of expenses for everyone alive. Quite the opposite is true, which is the fact that sometimes people have expenses that are much larger than what they earn each month.

Regardless of how much they make each month, whether it's $100 or more or whatever, I honestly don't believe that they only have 20% of their expenses for the entire month. Furthermore, I think allocating an amount that's too large like 80% or more is definitely an allocation that would make me feel very tense and probably a lot of anxiety, because I'll never lose sight of the fact that investing is always a risky activity anyway, and I think it's unlikely that someone would be able to justify their decision if their allocation is that large. Another thing for me and I think the best approach to accumulation is to allocate 20% to bitcoin, keep 20% as an emergency fund for things that might happen unexpectedly, and the remaining 60% to make ends meet.

$20 per month is obviously a random value
Sure it wasn't  realistic....
I was just only following the previous example so not making a twist i did use same values just for the exp.
But to be Frank we still have some workers over here earning below $100 monthly which is why our government sucks

Presumptively, unless someone specifies which kind of dollars that they are using, we are going to presume that they are talking about USD US dollars, if they are referring to dollars.. so I doubt that saying dollars is ambiguous... and surely if they are referring to some other kind of dollar, then they should clarify their reference and maybe even suggest why they might need to refer to such different currency, if it is not clear from the contents of their post.


So fucking what that whatever dictionary you read has some further explanations, and are you even contesting that the most basic idea of discretionary income and the way that we are talking about discretionary income in this thread has to do with figuring out the difference between your income and your expenses?

I am suggesting that you need to be way more specific, and I am even providing you with fairly straight-forward guidelines regarding how to clarify your points, and then you come up with some mumbo jumbo technical dictionary explanation that does not even mention the idea of the difference between income and expenses as being the main idea that I am trying to get you to focus upon. .but for some reason you don't believe it?  What I am saying does not make sense to you?  Do you disagree or you just want to continue to spout out vague ideas without getting into the basic starting point concepts of comparing income to expenses in order to arrive at discretionary income?


Maybe you are staring to get it?  I feel like I am repeating myself, but at least you are mentioning expenses in terms of your consideration, yet you still seem to believe that expenses are some kind of variable that is all over the place, when they usually can be established in terms of some of the expenses are fixed and other expenses are discretionary.. Some expenses can be deferred and others have to be paid right away, and surely there is variance in terms of fixed and discretionary expenses, because sometimes fixed expenses can also be deferred and frequently there will be costs involved with deferring fixed expenses., but anyhow, the punchline, as I already attempted to proclaim, several times, is to start by figuring out your income minus your expenses in order to figure out your discretionary income.. and also as I already mentioned, you may or may not already have various systems of emergency funds, reserves and cash floats that you are in the habit of maintaining, and to the extent that they might be inadequate, then they are going to be built up from your discretionary income.. which means that it is after you have already figured out your expenses and to the extent that sometimes some of the expenses can be cut and/or deferred too, which could end up affecting how well you can build up any reserve funds that you have or how much you might be wanting (or able to) invest into bitcoin, whether we are calculating monthly or weekly or some other ways of categorizing timelines to measure your discretionary income..  another term for discretionary income is disposable income.. .which largely refers to the same concept but sometimes people will talk about disposable income to refer to extra income that they have after they have accounted for their expenses.


why are you guys coming up with such dumb examples in which guys have an income of $100, and they are able to invest 80% into bitcoin because their monthly expenses are ONLY $20.  It hardly makes any sense.


These points kind of make sense, even though your numbers do not seem very realistic in terms of monthly expenses for anyone being ONLY 20% of their income, unless the person is in a more rich category.. so for example a person might be living in a place in which his expenses are only a few hundred a month, and his salary is $1k to $2k per month, but yeah, maybe you guys need to describe how you are coming up with examples of ONLY having expenses of $20 per month and how that might be realistic and also how the same guy might have an income of between $60 to $100 per month?  Sure there could be some situations of informal economy and maybe you live on a farm and you raise your own food or you trade your food for someone else's food and maybe you perform labor in order to live in your house, and you don't have to pay electricity because it is free or it does not exist... but still the numbers see strange, even though surely I know some folks do have real low incomes.. yet are we even being realistic?

But maybe what he means is that his current monthly salary is not enough to do the DCA method so he says wait for the normal time for his payday, usually so the basic salary is just right for his needs so we assume this is normal because we never know other people's income.

If what he says is more of a lumpsum purchase let alone going to buy bitcoin using 20% lump sum money whatever the method is go ahead if you believe in bitcoin investment do what you can to buy bitcoin as a future asset.

$50 monthly salary will not be enough to make ends meet especially when they already have a family and children then it will not be enough to do DCA but I don't know if in other countries $50 is enough for one month, for me it's better to find other sources of income then these funds can be accumulated for DCA every time you get for example once a month.

I don't quit understand the point you are trying to make because it seems you don't understand much about the use of DCA because from your Statment you seem to presume DCA strategy is only a method that requires huge amount of money before utilizing it because I wonder why you would only use DCA strategy only when your salary is normalized, however I want to inform you that the use of DCA strategy doesn't only involves an investor that has a huge capital but also someone who doesn't have much funds because their is no discrimination in terms of DCA usage.

Perhaps even if you are earning $50 in a monthly basis you can still be consistent on either weekly or monthly accumulation of Bitcoin, for instance since your total monthly funds is $50 you can strategize your accumulation plans to monthly basis using $10 because going above that can easily affect your investment but however if on the process your salary increases or having more other source of income you can then bring it down to a weekly accumulation.

That is just the simple truth, that's why we keep on discussing that one should not over invest because if you over invest where you find it deficult it will still require cutting down, the best is to start small when you accelerate to certain financial standard where you have seen that increasing your accumulation won't worry one can increase because over investing makes you too worried if good  reserve is not there to sustain your daily responsibilities.

If you are having financial difficulties in the process of accumulating bitcoin with the DCA strategy, there is a need for you to reduce your DCA accumulation amount so that you can adjust your expenses to the new funds you are receiving at the end of each month. It is only if you stick with your old DCA accumulation amount that you will want to give up on accumulating bitcoin because you will be using most of your money to accumulate bitcoin. The money you will have left will not be enough to take care of living expenses, and you will get tired of accumulating bitcoin because you are struggling to meet your living expenses. Secondly, what will also make you give up on your investment is when you stop accumulating bitcoin. Imagine accumulating bitcoin worth $50, and in the process of accumulation, you start having a financial problem and decide to stop accumulating bitcoin. You will wake up one morning and sell your bitcoin investment because you aren't accumulating bitcoin again, and the amount of money you invested in bitcoin before you stopped accumulating it is small. Reducing your bitcoin accumulation amount will not make you give up on your bitcoin accumulation plan, but it will help you to accumulate bitcoin and also solve your living expenses easily.

Basically the reason why it’s best to adjust is because we want the best for our bitcoin investment, the reason why I mentioned investment is because if an investor refuse to adjust for awhile when facing challenges the investor might end up finishing their emergency funds which is not advisable and when there’s no room for adjustment I believe the investor will go for his reserve and other funds which make their accumulation go smoothly and will end up withdrawing his bitcoin investment so quickly because there’s no sufficient money to balance their needs. I’m just creating an example so at this point the investor will be tag as a greedy investor who loss at end. Sometimes I reason generally, people chase after big things and end up losing it so quickly, why not adjust for awhile till when there’s a better source of income cause I’m sure adjusting using a different amount can still build a good portfolio if only the investor continues without missing the date set for accumulating. Secondly if we adjust due to challenges, we can still increase after everything and sometimes we end up earning higher and increase far beyond previous amount. What I understood by buying aggressive and I practice is it takes gradual process not just going all into at once, I will definitely increase my accumulation amount as time goes on at my comfortable zone cause there’s no law that state dca strategy must go with a fixed amount rather you can increase anytime you have the amount.

Yes you make valid point that having multiple sources of income make it easier to invest regularly means day by day or week by week or even month by month and increase your investment. Investing in Bitcoin using regular deposit strategy (DCA) is great way to grow your money and keep it safe. It is good idea to think about this investment for long term and always try  to keep adding money into it. It is also good that you should have some extra money to keep it separate in case of emergency so you will not withdraw from your investment when market go down or you are in loss.

Yes, all what you said is right. There is every need to be able to detect when and how to strategies our accumulating process to be as much comfortable without resulting to not living comfortable after investing. Cutting off our DCA amount is not a bad idea, in as much the need arises. It is suppoossingly something of vice versa, if the salary declines there is a need to cut the accumulation amount and if there is an increase aswell it is better to also increase the accumulating amount.

@Roseline492 don't you think a person earning a salary of $100 monthly mean while investing $20 weekly is very much aggressive, I know it is just for an instance but at most examples like this should be more realistic. Out of that $100, a good investor is entitled to keep his emergency/reserve funds and also carry out his DCA approach yet live very conveniently.

Just as @JayjuanGee will usually say that you can only invest disposable and discretional income such that if you don't have your life expenses or needs covered up, then you may end up gambling with your investment by attenting to sell too soon or early, it is best you have your personal life needs and emergency funds sufficiently covered up, and by definition, you needed to have either income or side amount of savings that is greater than your expenses in order to be able to invest and if you do no have such access then you are gambling than investing.That is true as it is your discretional and disposable income after taken care of your personal needs and provisional emergency which are most important before investmenting in Bitcoin that gives you a good mindset of investing only the money that you are not going to make use of which will help in building a good psychology towards your investment in terms of investmenting not more than what you can afford to lose because you were able to satisfy your personal needs comfortably before considering Bitcoin investment and that will enable you have a good peace of mind needed to make an informed decisions that will accompany you in your accumulation process or journey.



There is no guarantee as to that regards and it is good we build our psychology in that manner of considering both positive and negative outcomes of our investment, every business comes with it shares of gain and loss hence, building your psychology in terms of positive and negative outcomes of your investment and if possibly consider a worst case scenerio which may or may not happen. However, it is a good thing for the love and commitment majority of us have as regards to the potential Bitcoin holds but yet there is no guarantee or certainty of having the double of the value of our investment in btc in the future, but we might still need  to have or consider what we believe to have possibilities as it gives us that mindset to focus more on what can be achieved rather than thinking about limitations.

Yes you are right that if we have multiple sources of income it can be easier to manage our DCA and increase the investment at a higher rate in stages. BTC deposit strategy following DCA strategy is comparatively very easy and regular and buying habit can give very high profit later and definitely safe fund for you. You consider it your fund and it is a very good decision to hold BTC. But you have to take care of this fund and to keep it running regularly and uninterruptedly, investment experts recommend following certain methods. You must have some cash that you can use or spend during emergencies without interfering with your investment funds. Because you may not get back your original margin if the investment fund is withdrawn midway for emergency needs, so it is important to keep an emergency fund of 3-6 months to reach your desired goal and continue investing for a long time. Everyone wants to hold for a long time to protect their investments.

t's okay to adjust your investment strategy as your circumstances change. The goal is to prioritize your well-being while still building a secure financial future. Meanwhile it may sound easy for old investors while new investors find it very challenging, and they do not the right approach during such situation. If an investor new or old is using dca as his investment strategy then it is quite simple here, since dca involves investing a particular percentage, what we should do is to calculate the right percentage based on the new income rate so that there will be still balance in the investment and other necessary things.

Also, at this point if the investor was buying aggressively or was diversifying into other assets he needs to stop for some time, the criteria should be finding a way to come back up with enough money which means it is good he channel the money into other business or something that would give him more money so that he would go back to the way things were or more.

Your suggestion is actually not a bad idea, but to be frank, it will be fair for an individual to split it and invest what he actually can afford to do without, I don't know what our separate monthly expenses might be, but we knows ourselves better than anyone else, so it would be best we invest what we can do away without or I will say it like, we should only be investing what we can afford, as long as their is consistency in our DCA accumulating strategy then it's ok.

To me, it's not a big deal to reduce the size of your monthly or weekly investment money, if their is a sudden declined of your monthly or weekly income, so it's very much logical that in other to keep up to the continuity of your investment, you just have to reduce it, because slow progress is still a progress, as long as you don't stop.

Yea, nobody will disagree with you that the investor having $1500 as his monthly income and invested $1200 into bitcoin is over investing. You should know that you are to invest into bitcoin based on your discretionary income, and for anyone that wants to get into bitcoin having an income of $1500 monthly, he does not have to invest $300 weekly, but he can invest that $300 monthly, which is 20% of your income either once or dividing it into 4 parts which will be $75 or he can divide it into two parts which is $150 and DCA biweekly, it all depends on the one that will be more convenient for him. He can start saving $500 for his emergency funds, and $700 for all his monthly needs and expenses.

If he has built up his emergency funds up to 3 months at least, he can then divert the $500 to build up a reserve funds, and after that float, while he continues with his regular $300 monthly. There is a level that he will reach in which he has built his emergency funds, reserve funds and float to, that he will feel he can divert some part of that $500, maybe $200 to buy bitcoin aggressively during a particular period of time in order for him to accumulate more bitcoin within a short period of time.

This is why one must know how he wants to start investing and how much he can use to invest based on his discretionary income that will not affect his bitcoin accumulation journey to decline but rather incline. I will go with what JJG said that instead of waiting to build your emergency and reserve funds first, it is better that you build it along the line while investing in bitcoin, because it is possible and will of more advantage to you.

A good pattern and I believe your source of income is not only salary, there is another and so it will be very easy to continue to make purchases continuously.

I use DCA if indeed my salary results have shown normal conditions and the most I prioritize Buy BTC if my performance benefits are paid so that I also consider it as fresh funds that I can use up to 20% of the total. The important thing is that I have started with real calculations.

I believe the doubling of the value of my investment in BTC in the future is not mere nonsense and will become a reality in the future.

I believe it.

This shouldn't  be very hard actually.... all you need is increasing the time interval still you find a way to get back to your $100 and if you actually read carefully I didn't totally go against the reduction  but I wasn't totally in support with it .
Let's break it down
I am a worker, I get a monthly  salary of 100 bucks.... my DCA $20 weekly  fir total $80 monthly taking the remaining 20 bucks for expenses
Now I got a slice on my monthly pay of 40 bucks  and  I now earn $60 monthly..
How can I do this by not reducing  my DCA value... I shifted my DCA to 2weeks interval $20  making $40  a month with same $20 left for my expenses.... instead of reducing and getting comfortable  with a new DCA  of $10/week  

Although  at the end we should come to a total of $40 but  anything less won't give us a $40  however, when I'm finally back to $100 it might be a little bit hard to switch back to $20/week as I'm pretty much used to investing $10/week

From the dictionary Discretionary income is the amount of an individual's income that is left for spending, investing, or saving after paying taxes and paying for personal necessities, such as food, shelter, and clothing. Discretionary income includes money spent on luxury items, vacations, and nonessential goods and services.

I agree with you I should have written the discretionary income in the example I gave in other to make it more understanding to people.
If after setting aside money for your expenses for that month and you have already established your emergency, reserves and float funds like you said I think you can use your Discretionary income to invest on Bitcoin and I think that way you are not over investing.

You are getting it all wrong because reducing your accumulation amounts if you are having some financial challenges can never lead you into giving up an investment because if the the source of income is low and the needs are a little bit high cutting down a bit of your accumulation will actually allow you to balance, however on the contrary your narrative on or rather your mindset could lead you into trouble on your investment if you are not able to Identify when the need to adjust your accumulation amounts arises, however if I may ask for instance your normal weekly accumulation is $20 while your monthly salary is $100 but on the process your salary drops to $60 on a monthly basis and your needs has increase would you reduce your accumulation amounts to either $5 or $10 weekly? Or would you continue with your normal $20 weekly?, because for me at this points $20 weekly is actually being aggressive and could get you into trouble.