That is the point of the problem, sometimes we are not unwilling to allocate our income every monht in a large percentage amount, but with the economic situation that still has to divide on other things that ultimately make us as minimal as possible to allocate it. That is not something wrong either, because there should be no compulsion that makes us ignore other needs, because if we do that it is something that is not wise either.
The most important thing when we do this is consistency, for me it doesn't matter when the percentage is more flexible, especially when our financial situation is up and down.
30% is a fairly large allocation because for me it is a very aggressive step in investing. However, as JJG said, those who do not have large expenses for their living are certainly a better choice to save themselves in their investment plans. Well, if they are able to survive by allocating 30% for up to 3 years, of course the achievements in BTC ownership will be quite large.
Apart from that, all the dependencies and unexpected expenses in life can also affect the level of allocation in investing each month. However, every plan has to be thought out properly beforehand to prevent chaos in their investment journey. Well, in my opinion, most of them are probably only able to allocate 10% to 15% of their income to invest.
I think that part of the calculation should be that if someone is able to save/invest 33% of his/her income on an ongoing basis then after 3 years, that savings/investment would have amounted to approximately 1 year's salary.. yet still another question remains whether the investment/savings is performing sufficiently well in light of the cost of living changes, and surely with bitcoin we have a decent amount of confidence that it will perform quite well relative to other places in which money/value could be stored.. but at the same time, it still could take several more years to get to something approaching fuck you status.. which is where you could afford to quit your job. .and that would be to get to the point in which your investment is stablely 20 to 30 times the size of your annual income and/or expense needs.
Getting to higher amounts does seem to provide more options, but surely only if we continue to figure out ways to make sure that we are responsible in the ways that we are growing, preserving, and then perhaps later spending from our investment portfolio whether that is strickly BTC or if it might evolve into the inclusion of other assets over the years in terms of ways to give us a sufficient level of confidence in regards to when we do start to feel that we can either draw upon the funds for expenses or other ways of maintaining the wealth and making it functional in terms of our own needs once such wealth is achieved..
That is the point of the problem, sometimes we are not unwilling to allocate our income every monht in a large percentage amount, but with the economic situation that still has to divide on other things that ultimately make us as minimal as possible to allocate it. That is not something wrong either, because there should be no compulsion that makes us ignore other needs, because if we do that it is something that is not wise either.
The most important thing when we do this is consistency, for me it doesn't matter when the percentage is more flexible, especially when our financial situation is up and down.
30% is a fairly large allocation because for me it is a very aggressive step in investing.
I disagree with you. 30% is a good amount to start investing in Bitcoin. Its not large at all its accurately a good start in investing and should not be considered as aggressive investing. For instance elf you earn 100$ a month and you use 50% for upkeep and sorting of that month expenses. 20% can be kept for savings or emergency fund and you can invest the 30%. If the economic situation is favorable there persons who would prefer to invest up to 40%. But i would not advice this bold step to family owners because need for other things may arise within the month that could take up some money. Bitcoins price is on the range of $34k it will take a long time to get 1 Bitcoin if you invest less than 30% when your earnings is low. But if you make good money like a $1000 a month even investing 10% a month can give you a good amount of Bitcoin at the end of the year. One thing for sure is that within this period of accumulation the price of Bitcoin might go increase or dip and it will affect the amount of Bitcoin you can buy with that 30%.
You are making some pretty BIG assumptions Winterfrost. Yeah, sure maybe more people should be able to invest, but they just are not doing it.. and surely they are not even close to 30% so assuming that 30% is reasonable or easy seems to be quite out of touch with what people are actually doing.. which is likely hardly anything, and the more investing savvy are more likely in the 10% arena. Sure there are outliers who invest higher, but we should not be presuming that outliers are normal.. when normal people don't do that even though maybe they should.. but then we get into mixing the what is with the what should be, which seems to be part of what you are doing in your little Winterfrost fantasy.
[edited out]
Well it is indeed quite large, but I think it is good enough to invest 30% in bitcoin because other expenses and needs have been covered by the remaining 70%, I think this is very reasonable, especially if they make both, the wife and husband are still working of course it will fulfill all of them including in the reserve fund plan.
Therefore by increasing the allocation so that bitcoin ownership is greater over the next 5 years and that is my plan for the future how to keep allocating to bitcoin, of course I myself do not think of investment there are other things that need to be considered when there is a sudden urge then the reserve fund must have been prepared in advance.
Plans strategies must be thought of far away, I have found the conclusion, as for unexpected needs there are funds that are ready for use, in this case we must be able to manage monthly financial funds and minimize excessive lifestyles.
I would think that if someone spends 4-10 years investing 30% of his/her income into bitcoin, then they likely would not need to have as much of an emergency fund after getting several years into the investment because the investment can start to serve as the emergency fund...
When anyone is a beginner to investing, they have to make sure that they have an emergency fund, but as a person becomes more and more assets and wealth, they are going to have more and more resources in which to draw upon to address any emergency that might come.. and surely I am not suggesting being sloppy with any kind of financial management, but the fact of the matter is that rich people do not tend to easily get shaken out of their investments, especially if they have spread themselves out a bit (which is diversifying and not necessarily into shitcoin) as their investment portfolio grows...so if a person has been able to invest 6 years at 33% then that person would have 2 years worth of salary and perhaps even 3 years worth of expenses (since they live off of only 70% of their salary) saved up just from the amount put in, and if the investment or parts of it do fairly well, then there could be some bonuses in there, even though we cannot necessarily presume investments will end up outperforming other places that we could have had put our money (including out performing how cost of living goes up), which can frequently be reasons for having financial and psychological cushions in order to better prepare ourselves for a variety of scenarios.
I am talking from experience, there was a time that I decided to invest above my regular 10% DCA and I increase it to 20%, for the first three weeks, I was fine but later, I observe that the cash left after buying bitcoin for the week, is not always enough for me to use to take care of other needs and there must be an emergency that will occurs and I will have to take care of it. I got angry on the 6th week towards myself because, the cash on me couldn't take care of my family needs and other emergency. I got broke three days after I got paid because the moment I get paid, I just buy bitcoin instantly with the budgeted amount. This made me to think of selling some fraction from my bitcoi. But because I know where I went wrong and immediately, I asked my colleague at work to lend me some money to take care of major responsibility for that month. The moment I get paid, immefiately I went back to my normal 10% budget, and I was able to clear my sebt and could still balance other expenses. Since then I have never come up with the thought of goin above 10% with my present income. It is better to use 10% because this will not have effect on your income when you use it for DCA. Remember, slow and steady win the race.
Surely the amount is not going to necessarily be 10% for everyone, but your point still stands about not necessarily realizing the ramifications of your over doing it until some time that you might end up suffering a pretty BIG loss and then maybe not even realizing where you went wrong exactly... so yeah, sometimes there can be advantages to either being extra conservative or just moving up slowly rather than making changes too quickly and then getting yourself into a pickle (financially and/or psychologically) that you had not expected to get into.
