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.. [
b]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[/b], 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. Your very right about this, lack of having enough resource can be a major issue for poor people so they have to be more careful, cause a big mistake can really mess them up and very few persons would have the will to stand up from such situations, from your explanation I think it's best a person without enough resources should focus more on having one asset built up and keeping at least an emergency funds that is 3 months of his expense to ensure he never dips his hands in his holdings.
In think there is actually a clear margin between the resources each person have and how wimpy or careless they can be, for a rich person that has many other well built investment, having to keep all or most value in assets or investments wont even be much of a problem to them and at times taking loans from banks in such situations with any of their asset is a far safe option for them or they could easily liquidate any of their lesser asset for such purposes, but for a poor person that has no much investment, he has far lesser
Options to pick from and must stick to having emergency funds in cash, he needs to have cash around cause he has to have more risk consciousness than the rich guy who has more resources and options than him.
Having cash around isn't such a bad idea as long as it would keep us rich and protect our bitcoin investment( this is due to the fact that our bitcoin portfolio would be doing well if we keep if for longer ),
Sometimes we might get too greedy because we want all of our money to be working, and in something like bitcoin, it may well not be really very necessary - even though of course, there are no guarantees - but the essence is to want to stay invested, and if you end up getting very great returns on your bitcoin, then it might not matter that you had 3 months to 9 months of your expenses continually available in cash and not working for you for 15-20 years or more.
There is something that is empowering about having the extra cash just being available, even though it is likely not only failing to earn interest but it is also likely half of its earlier value after 6-10 years.. and maybe also you are constantly having to add to your emergency fund because the first 5 years, you had kept $1k per month (so between $3k to $6k in your various emergency funds, reserves and float), but the next 5 years, you were no longer feeling comfortable with that amount, so you started to feel that you had to put $2k per month.. so $6k to $12k in the second 5 years.
Getting too greedy could well be the end of everything and this applies to both rich and poor, at times having the safety of a cushion is a good insurance for us, poor people mostly have tendencies to be more impatient and want to allocate all their cash to bitcoin and forget that each sides has its purpose, while the emergency funds might not be generating any extra cash or is just sitting around its good we build it up.
Yeah as our portfolio grows we tend to feel less comfortable with the amount we used to have in our emergency funds, so we have to also account for making sure that it is big enough to still be a cushion if thigns go wrong, from your explanation it seems that as we tend to get richer and more balanced it's good to increase our emergency funds.