Quote from: JayJuanGee on Today at 12:23:22 AM

Quote from: teamsherry on April 04, 2024, 03:29:35 PM

Quote from: JayJuanGee on April 04, 2024, 02:23:12 AM

[edited out]

But at in a case where we feel we have too much of cash around in our emergency and reserves, would it be wise to put some into bitcoin when, let's say I'm having over a year of emergency funds and I feel I have too much of cash kept lieung around could I put at least 10% of that into bitcoin or keep or working for, like diversifying into some other asset ?

It seems that the more poor you are (and the fewer the investments that you have), the more important it is to both establish an emergency fund and also to maintain that emergency fund in cash rather than in any other assets.. especially the first at least 3 months of your living expenses. The thing with richer folks is that they may well have several options, and sure there are a certain amount of rich folks who are not very liquid (meaning that they are not keeping very much of their wealth in cash), but richer folks are still more likely to have options between which asset to sell, so in that regard, they can choose what they believe to be the asset that they value the least, but they also might get stuck with having to sell an asset that is the most liquid to deal with their emergency.. and so I am not going to presume that rich people don't end up fucking up BIG time, but they do tend to have more resources available, and so a person who is not as rich will tend to have to be way more careful not to end up either recking himself or overly ending up; having to dip into their investment because of their failures to properly have enough reserves, and a lot of poor people never end up making hardly any progress in their getting themselves out of holes because they either fail to keep enough emergency funds and reserves (because they are getting too greedy trying to make sure all their capital is "working," and another major kind of mistake that they make will be to either not let their winners ride or to be dipping into their investment way too soon and not letting their investments compound... and surely either of those kinds of BIG mistakes can be made better through better use of emergency funds, and also maintaining and managing reserves and cashfloats.

Jay you are right on your definition of emergency funds management between the rich and the poor because we all know that a poor man is always anxious of his investments and due to the fact that they don't have much to take care of their daily needs, most of them don't choose long term investment because they cannot be patient enough to allow their investments to grow to a certain level due to fear and no regular source of income to always fund their investments and since they don't have much money coming in, having an emergency funds becomes necessary as that is what is only going to keep a poor investor who is determined to make long term investment because if they want to have chances of getting out of poverty then certain risk and decisions must be taken for there to be a positive change in them.

Though the rich are reckless about their investments due to the fact that they owned a lot of assets therefore they feel that anytime their investments is not having a head way they can easily sell an asset and awaken their investments but some other rich people who knows the usefulness of owing an asset doesn't become so reckless to the extent of selling them back because an asset that is sold may not be able to be recovered again except maybe you sold it and ventured into an investment that will yield fruit within the short interval so as to replace the sold asset and still have some good amount of money with you.

Whether rich or poor whomsoever wants to meet up with their investments goals need to have this emergency funds so as not to bridge your investment along the line when your it is not yet ripe. Things we don't plan in life are meant to occur but having an alternative to settle some daily requirements and unforeseen circumstances in the future is necessary.