Quote from: Alone055 on April 10, 2024, 04:57:18 PM

Quote from: pusaka on April 10, 2024, 04:39:14 PM

If in a 3 month period I save and the savings are not disturbed then I will allocate it to invest, and then I will continue my savings and so on.

Though I understand that everyone has their ways of doing such things, I don't understand how such savings can be useful in emergencies in case you happen to face some emergency after you have invested your savings and now you have nothing left. Let's suppose you save for 3 months, you invest that money into Bitcoin, and then you face an emergency, if Bitcoin goes down after your investment, you won't be able to withdraw your investment because you will be at a loss.

This is the reason why I believe one should have separate funds for each purpose. If you can afford to do that, you should have savings funds, emergency funds, and investment funds saved separately so that you don't use your savings even for emergencies or investments and they can be used sometime in the future when you might be more vulnerable.

Don't get me wrong, of course I will not allocate all my savings in those 3 months, I will only allocate 50% at most for investment allocation from the savings.
For example, if I manage to collect $100 in 3 months, then $50 will remain my savings. Let's say that in the next 3 months I save another $100, if we calculate from the first 3 months the amount is $150. Then I will again allocate 50% or $75 for investment.
This strategy not only increases our wallet portfolio, but also increases the amount of savings every month.
If we are consistent with this strategy then we can avoid problems, whether due to sudden needs or other things related to our economy.