IMO funding your emergency fund should come first. We should only invest once we have saved enough money for emergencies to cover future expenses for at least six months or a year. If you lose your job or the price of bitcoin goes down after you have invested, you won't have anything left with you. However, there might be adjustments to plans along the way. if you see any opportunity that you are certain will give you enough money if you invest in it, then it is worth taking the risk.
There is absolutely nothing wrong with what you say because if someone already has mature enough intentions and planning for long-term investment, of course the funding must also be mature enough. As you said, someone must have an emergency fund which must be prioritized as the main point before funds that will be used in their own investments for the long term. Because it is also very possible for an investor who invests in Bitcoin not to withdraw the funds that have been invested when market conditions become bad or when the price of Bitcoin itself experiences a correction like now.
So I think that's right, because that's what should be provided first before someone immediately takes investment steps with a simple plan, but not with sufficient consideration. I often liken it to a long journey with the preparation of two provisions that must be separated first before they are actually used in different places. So in this case the emergency fund is the main provision and investment funds are the second provision so that an investor can carry out his investment with enough discipline in something.
How much of emergency funds do you think will be first reached before then planning on beginning one's investment budget. This could be from your own perceptive but I see it as being a waste of time, where as I know how much of Bitcoin I must have loaded in my portfolio.
@teamsherry on his opinion decides to load his emergency funds for a six month space, do you know how much dips, call it a significant entry price that one should have DCA during that time.
One thing we should know, even in the process of saving that emergency funds, we still have to face certain problems which means we also have to alter the loading up of the emergency process, like still taken money from their to solve some life challenges.
I believe money from your cost of living has covered a lot of expenses and for the emergency fund is just there to cover up little more expenses, so why not convenient doing both.
When you think that building your emergency funds is a waste of time, then you have already started failing in your bitcoin journey. It is good to have our emergency funds as our priority, because that is what will give us the confident to invest aggressively, if the emergency funds size is large. For a start, you can have 3-6 months emergency funds on ground, so that when you start DCAing, you know that you have already put everything in place that will prevent you from selling your bitcoin. This is why even though our emergency funds is there, we should also consider building it along side with our investment, so that a time will come when you have seen how large your emergency funds is, you can stop and focus more on DCAing or lmit the amount that you are putting on your emergency funds and increase your DCA amount.
It is good that your bitcoin investment and emergency funds are equal at some point, before you can decide to invest aggressively when you know that there wouldn't be any unforseen scenerio that will play out, that will be able to exhaust all your emergency funds at once, because sometimes, the emergencies might not play out. When investing alway prepare for the worst, so that it wouldn't be a problem when the worst happens.
Emergencies are expenses that you don't plan for, you might lose your job, or like JJG said, the roof of your house might pull off, and these are important things that must be taken care of to avoid it from escalating to more expenses. Also health challenges and sickness can come up anytime. Monthly expenses are those needs that are very important to us and they must be taken care of through our budget. It is good that an investor should be able to balance both his emergency funds and his bitcoin investment portfolio in other to be on the safer side. However, everyone has the choice of amount that can serve as his emergency funds based on his own situation.