The reason why people tell you “only invest what you can afford to lose”..

The status of the market currently has helped me come to the realization that investing what you can afford to lose isn’t just to prevent you from losing everything but also to prevent you from ending up in a psychological hole.

Don’t get me wrong, i’m confident that we’ll see green days again but if you invest money that you can’t afford to lose you’re much quicker inclined to cut your losses because the consequences are far more severe.

I had all my life savings invested and spread over a couple different assets and i noticed that i’ve been really irritable and just in a bad mood overall because summer holiday is coming up and i know i’m going to have to sell a portion of my investments to pay for my trip. This is money that i can’t afford to lose and it’s been affecting me really badly. I’ve noticed so i sold some crypto and put aside my vacation money and i feel SO much better even if i probably could’ve gotten more fiat if i waited a little longer.

The feeling of security of having something to fall back on is far superior to making profit in my opinion.

The whole point of making money is making life easier and making you happier, but don’t forget to live your life in the meantime.

Don’t forget that this is an investment, investments take time. 🙂