Always use your extra cash for investments

People are starting to wake up to the reality that just leaving cash in the bank isn't a great idea since it loses value over time. Many are eager to put their money into businesses that actually have a history of providing decent returns. But here's the catch: not everyone gets how to manage their finances, especially those making less money. Before diving into any investment, especially the ones that take a while to pay off, it's really important to understand financial management first. When you're budgeting, you've got your essential expenses like food, rent, and basic utilities. Then there are other costs that aren't essentials but still important, and that's where your judgment comes in for allocation. Any money you set aside from your income that isn't for basics is considered discretionary funds. If you're planning on investing in things like Bitcoin, gold, stocks, or real estate that won't give you quick profits, you just gotta have some discretionary funds. For instance, if someone's income only covers their essential expenses, they probably shouldn't think about investing right now. There's a good chance they might have to sell off their investments early to meet their basic needs. So, if you're looking at long-term investments but lack discretionary funds, consider this: reduce your essential expenses if it's possible, look for a better-paying job, pick up a side gig, learn skills that can help you earn more, do whatever it takes to make sure your income surpasses your basic living costs.

It's no brainer if someone want to invest when their monthly salary are only enough for surviving. If they want to fight against inflation and they don't have discretionary funds, what they can do is convert their local fiat to stable coin, then sell it whenever they need local fiat to buy something. They might able to save some, although this isn't investment, but more like a trading because they need to sell their stable coin every time which is time consuming.

All these by one person? Body isn't a machine, this will cause burnout bro. This actually a working for money strategy, not money working for you moves. The whole goal is to be financially free and stable, creating a system that prints money while you sleeping, while you aren't available. Your work is sitting indoor thinking how to expand more of the system to different locations.

You can't just wake up one morning and start sitting at home when yiu haven't created any system that prints money for you. This is easily said than done because if you are not from a rich family who inherited your wealth, you have to strive everyday to make sure that you overcome poverty. It's possible for you to cut down unnecessary expenses and also get a second means of income to boost up your total monthly income so that, you can have a discretionary income which you can invest with and hodli for long term.

It is a serious mistake to invest outside the discretionary income which is the money left after you have deducted the your expenses for basic needs such as food, utilities, etc. Investing money meant for basic needs into Bitcoin will breed characters like fear, pain, general unrest easy and liquidation to solve basic needs which are things you must settle against all odds. To be able to invest and hold, you should not also invest your entire discretionary income but part of it and then use part of it to safe somewhere as emergency fund that will cover unforeseen circumstances that may arise while you are invested already.

We already have the same topic[1] but mainly for bitcoin investing. If others are interested in reading that thread, they're free to visit it. [1] Reasons to use only Discretionary Income for Bitcoin investment. If someone who's used to their lifestyle and can't cutdown the expenses. You've already mentioned the main requirement of how to do it, and that's to add more income and do more side hustles. Increase the income or profit that you'll get from various sources.

Our people once said that there is no food for a lazy man, so those that feel that they can sit at home and be expecting money to come from unknown source is actually making a big mistake. I discovered that most people is yet to realize that the days of manner is no longer existing, nowadays if you want to get your daily bread you must work hard. Is only those that already have businesses/ investment in different locations that is supposed to wake in the morning and just fold thier hands, for those that are struggling to meet up thier expenses definitely they need to work hard to enable them make enough money so that after all thier expenses they will still have enough leftover that they can use to do whatever thing they Wish to do with it.

That is one of the many mistakes that new investors does. They think that after investing to these assets, the profit shall come immediately. But they have to understand that it doesn't go like that. Like planting, that's what investing is. We're going to harvest the profits in due time but it's a slow growth that they have to enjoy. The process itself of waiting and being patient is exhausting if you're going to use the only money that you have. But if you're going to invest with your discretionary fund, you'll be fine while waiting patiently for its growth.

I myself do not understand how they say these things because how can our human body take so much pressure? We just keep talking while talking but it is never possible to complete the tasks we say in this way. For this, before giving advice or saying anything to someone, one should think about it. I do not know how he said these words. Is it really possible for a human body to do so many tasks at once? There may be a strategy to work for money but I could not understand how such excessive work is possible for a person. We need money a lot in life but I can do as much as I can earn by working hard, it is not possible to say more than this.

It's actually possible. I have a friend who going to college (learn new skill), then he working to pay his tuition fees (make money) and he lives frugal (cut down expense). That's why people say only for people who really want to change their life, those kind people really work hard for better future. It's still quite easy though, becoming a businessman is way more harder than that.

It doesn't make sense to me to cut down on basic expenses to invest. Rather, I would suggest focusing on unnecessary expenses and eliminating them from your spending list. You might be able to save some extra money. But still, this money may not be suitable for investment if you don't have any discretionary money. In this case, you should look for a high-paying job or try to increase your income source by acquiring high skills. You can even focus on alternative sources of income or try to reduce your expenses and increase your income through production. You need unnecessary money for investment, if you try to make necessary money unnecessary, then its results will not bring positive results at all in the long run. No matter what kind of investment you make, it will not be able to give significant profits in the short term. Rather, you need to be long-term and wait for the value of the asset to increase significantly. Investments like Bitcoin, gold, stocks, and real estate will be able to give you high returns in the long term, but in the short term you will have to trade which is very risky.

Investment is not what we can do without having consideration for the plan we have toward it, because this one of the reasons why some have failed in their bitcoin investment, aside from knowing on what to do, we also have to take time to know how to go about making an investment in a profitable manner, starting from the fund to use and the necessary strategies we must employ to have a better experience in it.

When we invest, the risk is together with it. We're not sure if it's going to be profitable but we will have better chances if we know where and what we are investing. The advantage of knowing where we're putting our money as we invest is there and that's why it's best for us to check on what strategy should work for us. If trading is for you, you trade what you can afford to lose and the same goes with investing or by simply holding the crypto that we have.

The majority of the so-called investors are merely redistributing desperation. To the degree that an individual with no discretionary buffer invests in Bitcoin or stocks, it is hope repackaged as finance. And hope fails quick when it is time to pay the rent. This is why most of them are sold off prematurely not because the asset is bad but because life forced the sale The idea of discretionary funds is nearly a utopian in the economies with the stagnation of wages and increase of costs. You cannot instruct a person to invest on surplus when the surplus is a deception. The issue lies in this: are we really educating people on financial discipline, or are we making people forget a systemic inequality by informing them that they need to work harder and reduce things that are already bare minimum? Your argument on side jobs and higher paying jobs may work on paper, but in reality it just repeats what billionaires tell people who already have two jobs. How can a society create conditions where having one is not the privilege of the top 20%? Until then, we will keep pretending everyone has the same starting line while scolding them for not running fast enough

Since we are in a bitcoin forum, let's focus on crypto investments in general. Well, i agree with you that any kind of investment requires a minimum of knowledge. On this basis, i see demo trading accounts are one of the few best solutions to learn about crypto investments and cryptocurrencies in general for newbies. No one could teach you how to invest in virtual assets better than practical tasks, and since it's an important mission, it's better not to practice with real money until full general understanding of how things work in this field.

I agree with you though, for us to have a good discretion fund, we need to increase our source of income by learning skill and doing side hustle but cutting down expenses is what I find difficult. Already economic inflation is panting down on people and everything is becoming expensive so no matter how you cut expenses down it may never give a reasonable amount of discretion. Not that cutting down expenses is not good but it can only work in some cases and not all cases. The point is that there are some expenses that can be cut and there are some that can't be cut no matter the situation. So it can only expenses can only be cut if the situation permit. But however in most cases you need to work hard to increase your source of income to increase your discretion.

To build better financial strength when we're not yet at a sufficient level, it's best to choose one of the options mentioned. This aims to focus on managing it effectively. There's a term for living a more frugal life, where we focus more on implementing investments more consistently. If our expenses are low, we can increase our investment portion. Earning more money may make it much easier for us to start investing, and we can find other sources of income from work based on our skills. There's no need to feel embarrassed about holding back in order to achieve financial well-being, as successful people who started small typically don't prioritize luxury when spending their money on living expenses. When we're building financial strength, there are many things we need to hold back on or avoid buying, realizing that buying unproductive items won't provide financial benefits.

Long story short, "Invest money you can afford to lose"... It's like the first and basic rule of investing, and gambling. "Safe investments" are not so profitable in the short run, and investing some small amounts of money will not bring "meaningful profit" in the long run. So most people like risky investments, and when it's risky, there's always a chance of losing funds. Eh, some things are so easy to say, but when it comes to making it real, there can be a lot of obstacles... I guess we are all fighting the best way we know how. We fall & rise constantly... there's always something new to learn.

Having financial management before venturing into investments is very paramount, but it requires some knowledge. In times of financial growth, many individuals, particularly those lower earners who just jump into investments without proper knowledge on financial planning and financial growth,.  However, there are some necessary expenses we don't need to joke about, such as house rent, food and your utilities, which there should be huge budgets for. Once all these basic needs are being sorted out from your income, then there will be a tendency for successfully partaking in long-term investments. Actually, when you really want to build up your discretionary funds, someone has to go away with some unnecessary spending and focus on how to build or how to create ways of huge financial income and more profits and venture your profits into Bitcoin investment, so financial knowledge is the goal for successful investment.

Yes, what you've outlined is indeed the reality for those seeking to invest in low-income communities. Financial realities often require us to be proactive and think hard about how to cover all of this, both from our own lives and other desires. There really is no other way to cover it all than to find additional income from anywhere. Therefore, the importance of our skills can guide us in finding additional income without them, we will be defeated by circumstances.