Technically you should not be using emergency funds to buy dips.. but you can use reserve funds. Yeah of course people call these things different things, but the idea of emergency funds is to have money to live and to pay for your expense if an actual emergency takes place or if you lose your income for some reason, you have a little bit of breathing space.
Reserve funds would be extra money, so you should never dip into your emergency funds for anything other than needing to live because you ran out of other money.
I think this has been discussed some months back. Money that is kept for an emergency is not to invest in bitcoin and if anyone wants to invest in Bitcoin then extra funds Shou be made available if only the person is really ready to invest. There are some banking apps that one can use to lock funds by weekly, monthly and yearly. The person can choose the plan he wants and I normally select two plans to lock my funds in weekly and monthly because I don't know when the dip would come and if it comes, and fall under the weekly plan then I would use it to buy the dip and I will wait for the monthly plan again and once it unlocked I would use the money to buy the dip again. So with that you don't have to spend your emergency funds again.
Now if you buy the dip with the emergency money and something happens within the week and you don't have extra money to solve the emergency need, you have to make a sale of the bitcoin investment you initiated in the week to solve the emergency and if the dip is below the purchase price of bitcoin then you are at the losing side of the investment because you did plan well for the investment. Always keep the emergency funds down the emergency purpose and not to buy the dip.
Emergency funds are not a part of your cashflow. You seem to be talking about some kind of a float. Emergency funds are something that you build up and then you likely never will have to touch.. ever.. they are usually something .like 3-6 months of your expenses, so if you lose your job or you get hit by a bus, but you are still living, you might have some expenses but unable to work for 3-6 months, but if you are managing your money well, you may well have other funds such as reserves and a float that you would use prior to even dipping into your emergency funds.
Let me use the
example that I used from the other thread:
If you have an income that is around $1.6k to $3.8k per month, and most of the time you receive around $2,400, and you have expenses that are usually $1,800 to $2,200 per month, and most of the time the expenses are $2,000, then that is around $400 in disposable income, but surely it varies, so minimally you should likely be holding around $6,600 in cash to cover 3 months of your expenses.
yes you might have other money that is extra cash float or that you are holding in reserves for other purposes, maybe for buying on the dip or just for using when your income might be low. You could spend 20-30 years or more never touching your emergency fund because if you have fluctuations in your cashflow, you would tap into your reserves and your float first, so hopefully you never get into a situation that you even need to touch your emergency fund.. because if you do, then shit is really hitting the fan at that point... and your situation has become more dire.. .. so in some sense if you are using your float and your reserves you can continue to buy BTC every week since buying BTC may well be a priority for anyone who is trying to build their stash... but whether they are able to build their BTC $50 per week or $100 per week or some other amount is going to vary on other ways that they are managing their cash, since it is good to be aggressive, but it is not good to put yourself into a situation that you don't have any money and you have to dip into your emergency fund.
another thing is that people who don't invest, might not even be in the practice of maintaining an emergency fund. ..and that might be part of the reason that they are poor and don't invest...because they are not managing their money well.. and so if someone is brand new to bitcoin and they do not have an emergency fund, they may well have to invest smaller amounts into BTC wheil they are building their emergency fund, and once the emergency fund gets up to 6 months then they can be more aggressive in their BTC investing.
Another mistake that poor people make is to use their investment (BTC in this case) as their emergency fund.. and yeah, they are going to have fun staying poor, because you should not have to dip into your BTC ever, except upon a time that you have already chosen based on criteria that you had already set.. whether that is 1-2 cycles down the road or reaching some level or whatever that criteria might be.
The problem with some people is they don't know the meaning or how emergency funds used. They sometimes think about that this is extra funds to use for their investment that's why it leaves something bad impression and leave some wrong statement regarding unto this topic. If they could able to spend some time to know how proper budgeting on everything they do from their earnings for sure everything will be separated well. They could able to separate their budget for food,travel,bills,emergency funds and for investment. If there's some funds left came from somewhere else especially if we have multiple source of income then we can use to add it up on our investment and that's how we can actually maximize our investment without worrying on anything else out there.
Emergency funds should not meant to be spent on anything not needed especially on risky situation since it could save our asses if there's something wrong will happen to us in future. And much better for people to forget about that funds and only take it when you really need that money to survive.