Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
$crypto$
on 27/01/2024, 04:52:23 UTC
⭐ Merited by JayJuanGee (1)
I would think that 3 months of an emergency fund would be about the bare minimum to have if you are going to start to act boldly.. and even with ONLY 3 months of an emergency fund, you gotta be careful about ever dipping into such emergency fund except for strict emergencies.

If you have 6 months of an emergency fund and you know that you are never going to let your emergency fund dip below 3 months unless you are int he midst of a true emergency, then you can be a lot more bold because you might even float one of the months so that you are mostly between 4-6 months in your emergency fund.

I guess my point, is to be careful if you are starting to get a lot of BTC investment and if you are starting to use more adventurous times of investing, including getting  a 30% advance of your pay for 3 months or any of those kinds of things, even though it might work out, you seem to be playing with fire if you only have 3 months emergency and you also get a 3 month advance for 30% of your income... it may well end up working out, but it does not seem like a good balance especially if you might be in a position that you don't want to end up getting forced into selling any of your BTC at some inconvenient time, for example when it might be dipping extensively.
I think the 3-month emergency fund is enough as long as we can maintain our cash flow so that your expenses and other sudden needs can be covered from the main cash flow, but when things are out of control in a tight sense then use the emergency fund as long as it can save you.

If the emergency fund is sufficient for 6 months then it is enough for them to be free in targeting aggressive investment levels and even if the emergency fund drops but it is still at the minimum limit, when the cash flow has stabilized, it may be possible to refill it again slowly so that the emergency fund returns all to hold for 6 months.

With those who use challenging investments, I think it needs to be felt because it will adjust in the future how the balance is more sensible including 30% of their total salary, I can only do it when the emergency fund is safe, say 6 months in the bag, then the level of aggression towards BTC must be done if it is not appropriate, the percentage will be lowered, if I am still able to continue because this depends on managing expenses and the percentage determined, the cash flow will be easy to manage.