The importance of Not spending

[tbct_mt2]

Source of income makes investing a breeze, if you don't have a job don't bother to invest in anything, if you just lost your job you need to pause your investing plan for the main time, go outside and solve the problem first by looking for another job.

This is why it's good to keep money aside as savings when you are investing, because anything can happen to your source of income, if you lost your job your savings can save your ass for a while depending on how must you have saved aside without the need to start spending your investment.

Investment can help you get either profit or loss and you even don't know when you will get profit or get loss. Therefore it is very important to be independent from your investment for your daily financial budget for using in regular spendings and also emergency spending when urgent need appears.

Using all money for investment and completely relying on it for spending, emergency and passive income is terrible as if the investment leads to loss, you will have very big trouble and feel much of headache with each of spending decision as it requires you selling your bitcoin with loss for money to use.

But one more thing to keep in mind is that we need to balance between emergency fund and investment fund. One mistake I often see in bitcoin investors is that even though they have an emergency fund, they take it lightly. They set aside a small amount for an emergency fund and use most of the rest for investments. In my opinion, this is a mistake that could force them to liquidate their investments if the emergency fund is not enough to address the urgent problem. There are many investors who have found themselves in a similar situation and were forced to sell their bitcoins involuntarily.

The importance of an emergency fund is no less than any budget fund in life, we should allocate a reasonable amount of money, IMO.

There are at least three funds: spending funds for very necessary bills that you must spend and can not avoid them; emergency fund for times of urgent need; and investment fund for your investment in bitcoin or in anything else.

It's bad if using all money for investment and hope that next month it will result in profit so that you can sell part of your bitcoin for regular bills; it's more terrible if an accident comes and you have to do it as the fund needs in emergency would be bigger than for regular bills. It will possibly cause you big loss if you have to sell your bitcoin with bad prices that are lower than your entry prices.

[Popkon6]

The most appropriate thing to do is to not spend your bitcoin investment at all until you are really ready to take out half or all of it. That way you won't be that affected if the market declines. Now because you need some bills to pay and the market has declined, you do not want to spend your bitcoin anymore but what other choice do you have when you have no more money at the moment?

It is really crucial to be able to hold bitcoin while also having money saved on the side so you won't have to touch your bitcoin investment. Regardless of whether the market is up or down.

To hold Bitcoin, one must adopt some steps and strategies, an investor should never buy aggressively in Bitcoin holding. If an investor invests all his money in Bitcoin and after a few days he has to touch it again, such a Bitcoin investment is only a failure. Therefore, to invest in Bitcoin, one must form an emergency fund because by using an emergency fund, it will be possible to sustain the Bitcoin investment for a long time and any danger can be faced. However, by adopting some more strategies, Bitcoin investment can be maintained for a long time and, if the DCA method can be followed both weekly and monthly, then of course, maintaining Bitcoin investment is very easy for that Bitcoin holder.
And besides following the DCA method, it is easy to keep it for a long time and the danger is less and regular deep purchases are made, resulting in health on the purchase price.

[TheUltraElite]

Limit spending to fiat money that you have. Most of us are getting a fiat based salary from which we can spend when we want. So use that for the costs and save the bitcoin.

Spending bitcoin to buy fiat should be done when the market is bullish and then buy it back at the lower price.

Outside the market, spending option for bitcoin is limited based on the country. So you are anyway saving bitcoin if you live in any such country.

[batang_bitcoin]

If you're out of money in the middle of your investing, you may stop for a while and search for a way to make money. You can't force yourself to keep investing in Bitcoin especially by borrowing money from others. You can sell your accumulation of Bitcoin at the high price so your money in your hands will increase. You can continue your investment in Bitcoin but you will not have the same Bitcoin amount as before because you already sold it. It is why calculating and allocating the money correctly is important. That will prevent you from being out of the money in a Bitcoin investment.

Yes, it's a pressure to that investor. He's also free to take some but don't take everything that you've worked hard for in saving those bitcoins. While there were folks that have decided to borrow money to keep themselves invested, we don't suggest that because it's not a good strategy at all. You're drowning yourself not just with the financial burden that you're trying to go through but also you're draining yourself emotionally. It's okay to stop and have some delays and it's better that you don't have any burden at all when you've got some bitcoin holdings.

[Gaza13]

When you have no more money then you think that you would just get money from your bitcoin holdings, this is where your investments gets in danger. When you have something to pay for and you already dedicated a part of your investment for that make sure that you will either take out the money immediately when the market is up otherwise the market might just decline and you might end up not being able to pay for whatever it is you have to especially if it is time sensitive.

The most appropriate thing to do is to not spend your bitcoin investment at all until you are really ready to take out half or all of it. That way you won't be that affected if the market declines. Now because you need some bills to pay and the market has declined, you do not want to spend your bitcoin anymore but what other choice do you have when you have no more money at the moment?

It is really crucial to be able to hold bitcoin while also having money saved on the side so you won't have to touch your bitcoin investment. Regardless of whether the market is up or down.

That's why it's crucial to understand the fundamentals of investing. Investing isn't a quick way to make money in the short term this is the foundation we must first understand. It also connects and interconnects your life as a whole. We never know what unexpected things will happen in life. This is why it's important not to invest all of our monthly income. Therefore, we must organize and allocate our income to various predetermined areas, whether it's an emergency fund or something else.

[EarnOnVictor]

When you have no more money then you think that you would just get money from your bitcoin holdings, this is where your investments gets in danger.

So what do you do in this situation? It's good that we have Bitcoin investment, and it will be better if the investment has yielded a substantial return by the time we need money. There's no other choice in some pressing needing time.

Perhaps you can tell me what to do if you need $1,200 for an urgent medical need. You've done all what's possible, which includes loan, with no success, and you have a $10,000 worth of Bitcoin lying somewhere. Won't you take from it (even if you would return it back)?

It's easier said than done when we are not faced with such situation. For me, we invest for a reason, and that is part of the purpose.

[Oshio-man]

You can have different wallets where you can store huge amount of bitcoin and small amount of bitcoin for future purpose, When there is an emergency that require funds you can sell small bitcoin without selling the huge amount of bitcoin you store in the wallet for long term because your plan is not to release all the bitcoin in a short period of time, reason I hit this points is for those who don't have other source of income to fuel their emergency, but if you are financial buoyant in the community, you can spend the funds you save in the bank to solve whatever you want to solve financially without touching your bitcoin and you will not regret for such risk.

[Inwestour]

When your bitcoin is the only option you have to pay your bills, when certain urgency comes your way, you are already exposing your portfolio to danger and you are likely not going to achieve your target, as you will keep turning to your bitcoin to sort out yourself.

 As a bitcoin investors that has an aim of holding till your desired numbers of years, you should have a cash reserve that you can always turn to when you're in need to sort out little things you didn't plan for. As your pay cheque comes either weekly or monthly, certain amount of your discretionary income should always go to your reserved funds and emergency funds, don't use all your discretionary income to buy bitcoin. This will help you not to be dependent on your bitcoin portfolio.

For me, it works a bit differently, before I started investing, I created a safety cushion meaning at first, I didn’t invest but focused on building up capital. When I had a reserve that I could use at any time, I started saving and accumulating capital for investments. Later, when I received my next salaries, I no longer thought about adding to my safety reserve because it was already formed. I only focused on saving and investing by buying Bitcoin. So, it can also be done this way. And I think this approach is even easier because you have reserves and can invest without worrying that something might happen tomorrow and you’ll urgently need money, and you would have to sell your Bitcoin.

[jcojci]

If you're out of money in the middle of your investing, you may stop for a while and search for a way to make money. You can't force yourself to keep investing in Bitcoin especially by borrowing money from others. You can sell your accumulation of Bitcoin at the high price so your money in your hands will increase. You can continue your investment in Bitcoin but you will not have the same Bitcoin amount as before because you already sold it. It is why calculating and allocating the money correctly is important. That will prevent you from being out of the money in a Bitcoin investment.

Yes, it's a pressure to that investor. He's also free to take some but don't take everything that you've worked hard for in saving those bitcoins. While there were folks that have decided to borrow money to keep themselves invested, we don't suggest that because it's not a good strategy at all. You're drowning yourself not just with the financial burden that you're trying to go through but also you're draining yourself emotionally. It's okay to stop and have some delays and it's better that you don't have any burden at all when you've got some bitcoin holdings.

So it is why we must allocate the money with right for our investment. We can not predict where the Bitcoin price will move but we can have the exact amount of money to invest in Bitcoin. You can allocate $1,000 or $10,000 for 4 years or more and split it monthly.

With the amount, you will not have to worry if you run out of money for the investment, because you can split the income for all of your needs. Your investment plan will not disrupt as that can run properly.

But we can not force people following our suggestion because that will depend on them. If they think that borrowing money is good to continue the investment, they can do that but they must think about the risks.

[fullfitlarry]

When you have no more money then you think that you would just get money from your bitcoin holdings, this is where your investments gets in danger. When you have something to pay for and you already dedicated a part of your investment for that make sure that you will either take out the money immediately when the market is up otherwise the market might just decline and you might end up not being able to pay for whatever it is you have to especially if it is time sensitive.

The most appropriate thing to do is to not spend your bitcoin investment at all until you are really ready to take out half or all of it. That way you won't be that affected if the market declines. Now because you need some bills to pay and the market has declined, you do not want to spend your bitcoin anymore but what other choice do you have when you have no more money at the moment?

It is really crucial to be able to hold bitcoin while also having money saved on the side so you won't have to touch your bitcoin investment. Regardless of whether the market is up or down.

In short, this is what we called HODLing in it's essense, just buy and then don't spend it for years or at least one full cycle. But it's not that easy to do this as there will be a lot of challenge that might come in that 4 years that you will have to do something and take some from your stash.

Also I think there has been a lot of discussion about Discretionary funds, money left-over after you have paid all your bills and then you have something left to survived before the next pay check. So instead you can break it in half and then put it into Bitcoin as a investment.

[Rustam Meraj]

It is fully right that you are being realistic when you say that investing in Bitcoin to pay off quick bills is very dangerous since market is so unstable. When you decide to pay bill using your crypto, you risk having to sell when price is low and thus making huge loss or failing to pay what is owed on time. Greatest point that you said is that we must keep your money apart we should use Bitcoin to grow over long term and have safety fund to meet our close by needs, so we are not forced to sell our investment when market is down.

[Rabata]

It is fully right that you are being realistic when you say that investing in Bitcoin to pay off quick bills is very dangerous since market is so unstable. When you decide to pay bill using your crypto, you risk having to sell when price is low and thus making huge loss or failing to pay what is owed on time. Greatest point that you said is that we must keep your money apart we should use Bitcoin to grow over long term and have safety fund to meet our close by needs, so we are not forced to sell our investment when market is down.

It is definitely better to have an alternative source of income to hold Bitcoin for the long term. Usually, when people cannot find any other way, they try to sell Bitcoin. There is no way to understand whether the price of Bitcoin is high or low at that time. It has also happened that after buying it at a high price, they have to sell it at a loss. Despite the effort, there is no longer any ability to hold Bitcoin. Those who want to hold Bitcoin should definitely invest considering their ability to hold it, otherwise they will lose even more.

[summonerrk]

When you have no more money then you think that you would just get money from your bitcoin holdings, this is where your investments gets in danger. When you have something to pay for and you already dedicated a part of your investment for that make sure that you will either take out the money immediately when the market is up otherwise the market might just decline and you might end up not being able to pay for whatever it is you have to especially if it is time sensitive.

The most appropriate thing to do is to not spend your bitcoin investment at all until you are really ready to take out half or all of it. That way you won't be that affected if the market declines. Now because you need some bills to pay and the market has declined, you do not want to spend your bitcoin anymore but what other choice do you have when you have no more money at the moment?

It is really crucial to be able to hold bitcoin while also having money saved on the side so you won't have to touch your bitcoin investment. Regardless of whether the market is up or down.

I prefer to save cash when I have extra money, then convert it to USDT and buy Bitcoin when the price is right. I partially invest using DCA, and I really like this approach.
Overall, I hate spending crypto when I accumulate it, but I need to make necessary purchases in life, like dental work and the like. So I want to say that you should always save, fix things, and take care of them, and avoid eating at extra stores, but rather invest. Every investment today is worth hundreds of dollars tomorrow.

[batang_bitcoin]

Yes, it's a pressure to that investor. He's also free to take some but don't take everything that you've worked hard for in saving those bitcoins. While there were folks that have decided to borrow money to keep themselves invested, we don't suggest that because it's not a good strategy at all. You're drowning yourself not just with the financial burden that you're trying to go through but also you're draining yourself emotionally. It's okay to stop and have some delays and it's better that you don't have any burden at all when you've got some bitcoin holdings.

So it is why we must allocate the money with right for our investment. We can not predict where the Bitcoin price will move but we can have the exact amount of money to invest in Bitcoin. You can allocate $1,000 or $10,000 for 4 years or more and split it monthly.

With the amount, you will not have to worry if you run out of money for the investment, because you can split the income for all of your needs. Your investment plan will not disrupt as that can run properly.

But we can not force people following our suggestion because that will depend on them. If they think that borrowing money is good to continue the investment, they can do that but they must think about the risks.

That's DCA that you're telling and that's a good strategy. And right, there's nothing to worry with if you're going to run out of money or not because you've been set with what you're about to do. You have to make sure that it's something you're going to do for the long time because that's what investments should be. Planned and well done for your own future and the safety that awaits you. As for borrowing, I discourage people in doing that, it's not a good strategy for investing especially in buying bitcoin. Use your own money.

[mustapha67]

Why keep it simple when it can be complicated?

Some people who see Bitcoin only as an investment may, like the OP, look for ways to "keep the wolf full and the goat whole", but if Bitcoin is a cryptocurrency, then there is nothing wrong with using it regardless of the price. It would be ideal to always have enough money so that you don't have to touch your investment, but life is unpredictable and sometimes things happen that force us to do what we wouldn't do otherwise.

I would conclude that you should sell when you need it, and buy whenever you have extra money.

I sincerely agree with you, Sir! Commercial wisdom is important is we have nothing to lose. I think you have just nailed it. "We keep it low when it can be complicated" This is a business potential.

It is important to hold on financial security, especially when it seems dangerous to spend, or invest. If it is obvious not not spend money on any investment, it necessary to understand the need for it, and lie low.

[AmoreJaz]

Why keep it simple when it can be complicated?

Some people who see Bitcoin only as an investment may, like the OP, look for ways to "keep the wolf full and the goat whole", but if Bitcoin is a cryptocurrency, then there is nothing wrong with using it regardless of the price. It would be ideal to always have enough money so that you don't have to touch your investment, but life is unpredictable and sometimes things happen that force us to do what we wouldn't do otherwise.

I would conclude that you should sell when you need it, and buy whenever you have extra money.

I sincerely agree with you, Sir! Commercial wisdom is important is we have nothing to lose. I think you have just nailed it. "We keep it low when it can be complicated" This is a business potential.

It is important to hold on financial security, especially when it seems dangerous to spend, or invest. If it is obvious not not spend money on any investment, it necessary to understand the need for it, and lie low.

 We need to have that kind of mindset in any investment we take. Because no one will take care of your assets but yourself. Anybody can give you an advice but it will be your own battle at the end of the day. So nothing different when it comes to bitcoin or other crypto. Still, it is an investment that comes with risk. And because of the volatility is still a very important factor in this market, you need to be conservative with your estimates so as not to liquidate your position.

[Kelvinid]

The importance of not spending your bitcoin is only true while you are still in the process of growing your investment, but apparently, you still need to sell your bitcoin and spend it in the end so you will gain its utmost benefit. As no one will benefit without spending it in the end.

However, it’s the best advice to invest in bitcoin using your hard-earned money that you aren’t suppose to use at the money so you can hold your investment without getting panic and pressured whenever btc price crash or take some correction, or worst stay in a low price for the longest time.

[Iamgoat]

Limit spending to fiat money that you have. Most of us are getting a fiat based salary from which we can spend when we want. So use that for the costs and save the bitcoin.

Spending bitcoin to buy fiat should be done when the market is bullish and then buy it back at the lower price.

Outside the market, spending option for bitcoin is limited based on the country. So you are anyway saving bitcoin if you live in any such country.

Spending your fiat on your daily expenses to cover your bills is very much better than you spending your bitcoin on your daily expenses because most of us are earning in fiat and it doesn't make any sense to me to convert your fiat to bitcoin to use it for your daily expenses instead of you converting your fiat to bitcoin for investment. It makes more sense to me if you convert your fiat to bitcoin for you to invest it into a long term investment than for you to just spend an appreciating asset when you can spend the depreciating one on your bills. If you want to convert your bitcoin to fiat I think you should do it during the bull run season then use it to reinvest into something which is going to bring additional value to you rather than using it on your daily expenses.

[Leahized]

Since someone already made mention of what came into my mind first, which is emergency funds, most of the rich people in Bitcoin never invested the money they will be using for there everyday life, they took out an amount that would allow them live their life without the need to temper with their investments, not just in bitcoin but all other investments too, if you really want to invest them you have to prepare all round by setting the necessary things so you don't crush your investment when you have problems to solve with money.

Yes you said it right. According to me those who invest for long term. They invest part of their savings, which they never use. In this way, even if you face any problem, you will never lose from the invested money. Although sometimes I think so but unfortunately the timing doesn't work out. Because when I get the money to do something, right after that all the money is spent on different activities. That's why we all should collect the right amount of funds for investment. So that it will never cost from there. Actually that's exactly what happened to me two days ago. I took some profit out of my holdings and currently taking a lot of losses with the market down 107k.

[lovesmayfamilis]

That's why investing in Bitcoin should always be carefully considered. If people have no passive income and their salaries barely cover their family's basic needs, what kind of investment can they even consider? If you've been skimping on food and health your entire life, you should find additional income to stop negatively impacting your health, and only then consider investing. I'm not a fan of the idea that we should hold on to Bitcoin despite all our adversity; we need to resolve our problems first, and only then, once we've recovered, invest in the future.