Quote from: Chiomaobi on June 15, 2024, 11:10:43 PM

Quote from: JayJuanGee on June 15, 2024, 07:02:32 PM

Quote from: Jewan420 on June 15, 2024, 11:22:11 AM

Quote from: Justinapeter on June 14, 2024, 08:34:19 PM

[edited out]

This is your misconception. Emergency funds should never be invested in any investment.

The only way emergency funds should be used in terms of investment is if they happen to be excessive, and surely some folks might be labeling all of their extra funds as emergency funds, and part of their emergency funds might be reserves and/or float but they are labeling such as emergency funds.

So yeah there can be questions regarding how much emergency funds a person needs to build up.. and if someone is brand new to investing and brand new to consciously paying attention to building and maintaining an emergency fund, then the emergency fund might start out relatively small.. maybe just by coincidence normal people might keep a kind of float of 2-4 weeks of their expenses worth of extra cash that is kind of considered to be used for any any extra expenses that might come about.. but then once they start to invest into something like bitcoin, they realize that they are likely going to need to keep larger amounts, such as 3-6 months worth of emergency fund, but they are not necessarily going to get their emergency fund up to that size immediately, so they end up building up their bitcoin investment and their emergency fund at the same time.. and surely once they get their emergency fund up to a certain size (such as a minimum of 3 months), then they might begin to feel that they have more abilities to be aggressive in their BTC accumulations (adding to their BTC holdings) or even to use some of the excess (greater than 3 months amounts) for the purposes of investing into bitcoin or other kinds of purposes.. but yeah, if they are barely floating on keeping ONLY 3 months as emergency funds that are not touched for any reason except actual emergencies, they may well find that they are not keeping enough emergency funds since sometimes various expenses can come at the same time and quickly eat into such relatively lower level amounts of financial cushion... .so yeah in the end, there becomes more and more need to keep some funds in cash that never get touched because otherwise the depletion of such extra cash ends up putting the person closer and closer to having to dip into his bitcoin investment that might be at a time that is not at his own choosing.

You are right, keeping ONLY 3 months as emergency fund will eventually lead you to deep your hands into your Bitcoin investment, so as a long time investor in Bitcoin it it advised to always keep a very big emergency funds in other not to run dry as time goes on.

The mere fact that someone is keeping other kinds of funds that go beyond their 3 months of emergency funds does not necessarily mean that they would be calling the other kinds of funds the same thing.. so the emergency funds may well be something that is never touched outside of having an actual emergency, but there can be floating funds and reserves and/or various kinds of investments that are serving as reserves so that emergency funds never need to be touched and therefore the bitcoin investment might be amongst the last of any of the investments that would be touched.. depending on how any such person might structure his various kinds os extra cash.. some cash is very liquid and easy to get at and maybe other cash might take several days or even a week or two (or even a month or two) to get to in the event that the extra cash, cash equivalents or even other kinds of funds might be needed so that either emergency funds are not touched and more so that bitcoin investment would not be touched except at a time that is of complete choosing.

In other words there could be a lot more flexibility in other kinds of funds and whether emergency funds add up to ONLY 3 months of income/expenses or maybe they add up to 6 months of income/expenses, and so how much money that actually fits in that "emergency funds" category may well depend upon other kinds of funds that are available and also the size of the bitcoin investment... if the bitocin instment is fairly new and the bitcoin investment is less than 6 months worth of income/expenses, then maybe there is not as much importance in regards to the size of other kinds of cash cushion funds, but maybe as the bitcoin investment grows and grows, there may well be some needs and/or preferences to guard against any kind of need to draw upon it while it is still growing. and maybe still quite shy of reaching its target size whether that might be 10x income/expenses (in newer kinds of ways of assessing bitcoin value) or perhaps 20x to 30x income/expenses, which may well be more traditional ways of assessing value (though I personally consider that bitcoin value assessments do not necessarily need to be as high as traditional investment assessments in order to potentially still be able to outperform traditional investments in terms of achieving sustainable withdrawal rates).

Quote from: Chiomaobi on June 15, 2024, 11:10:43 PM

For me since am using the DCA method of accumulation when I get my salary I invest a particular percent to my Bitcoin then I remove a particular percent also for my emergency, reserve and float fund then I keep the rest for myself in running my day to day activities and settle some bills, I do this each time I take my salary and it has been working for me and making my Bitcoin accumulation journey so easy.

Personally, I think that it is way better to figure out your expenses first prior to figuring out how much you have left for investing, yet of course, if you have a decent amount of discretionary income, you may end up arriving at similar results - even though for me it seems the better practice is to take care of your expenses prior to authorizing yourself to invest parts of your income that you are considering to be discretionary income... but hey whatever, do what you like and if what you are doing is working for you then so be it, but it seems more vulnerable for a mistake if you don't make sure your expenses are locked up prior to authorizing your investment amounts for the week/month or whatever might be your investment time periods.

Quote from: Chiomaobi on June 15, 2024, 11:10:43 PM

So is better to make sure your emergency funds are more than enough so you won't find your self dipping into your Bitcoin investment there by destroying your investment.

Once you establish your emergency fund, then there not necessarily be any reason to think about it on a weekly and/or monthly basis since it will just be funds that are there and available that you hopefully will never need to touch.

Quote from: Chiomaobi on June 15, 2024, 11:10:43 PM

I don't think I will ever stop funding my emergency, reserve and float funds anytime soon reasoning being that I don't know what kind of emergency that maybe coming in future so I need to make sure my kept funds can handle any kind of issues without me dipping into my investment.

Even though I consider emergency funds to be something that is built up and then never really touched, reserves and floats might bounce around a lot more, and so for example you could have floats and reserves serving as errors in your expense calculations of some of those funds might be dedicated towards specific kinds of things like buying on the dip or saving for a vacation or maintaining a going out to eat/entertainment fund, saving up for a new car/motorcycle/bicycle.. or whatever. and some of the funds might have some specific tag, or a timeline that it will be available and sometimes some of the reserve funds and float might get retagged or moved around to be used for something other than what it had originally been tagged/set aside for.

Quote from: Chiomaobi on June 15, 2024, 11:10:43 PM

Any one that those not have a strong emergency, reserves and float funds is in danger of selling of his entire investment one day.

that is true. The stronger our various extra cash funds, then the more likely we can afford to be more aggressive in our bitcoin investments, but we still might need to be careful if we end up dipping into reserves and/or float in order to buy more BTC, then we might end up having none of those extra funds except our emergency, so if an emergency ends up coming when we have exhausted our various other funds, we might find ourselves in a position in which we might have had ended up overdoing it because we depleted various categories of funds that we had in place and working for us, even if some of them funds were not necessarily earning any income, yield or interest, they were still serving a purpose to keep us from having to even touch our emergency fund which may well be our last cushion prior to having to dip into our bitcoin investment.

Quote from: Chiomaobi on June 15, 2024, 11:10:43 PM

Quote from: JayJuanGee on June 15, 2024, 07:02:32 PM

Quote from: Jewan420 on June 15, 2024, 11:22:11 AM

If you earn bitcoins directly, you can save with bitcoins in an emergency fund. Very few people can earn bitcoins. If you don't earn bitcoins, if you do earn money, investing in an emergency fund or reserve fund to save bitcoins is a stupid thing to do.

I think that it is very weird to be failing refusing to consider reserves in terms of fiat, unless there are some folks who truly are able to spend all of their expenses in bitcoin.. or if maybe they have so much bitcoin that they are willing to just take the chances of keeping all of their value in bitcoin (presuming they earn in bitcoin), and so these seem to be less common kinds of circumstances, and there is a certain level of healthiness to considering holding and/or converting value into fiat.. since even if some expenses might be payable in bitcoin, they are likely calculated in terms of fiat.. so it does not even seem very realistic that we are considering some of the exceptional cases in which some few folks might completely earn in bitcoin and are able to spend in bitcoin and they just let bitcoin's volatility go where it goes, especially if they are already getting all of their income in bitcoin..

is better your reserves funds are kept on Fiat since is general accepted so as not to complicate things,

it becomes dangerous if your reserves are not in fiat; however part of the justification for diversification of assets is that when your BTC, and reserves have grown so much, sometimes there may be desires to keep some of that amount in something other than bitcoin and cash (and or cash equivalents), so there can become some desires to get into some other kinds of assets so that some of your reserves might be working for you, but they are not exactly in cash and they might not be easily available, maybe taking a bit of time to get to, but they might be something that is dipped into prior to dipping into bitcoin, especially if the person is still accumulating bitcoin or not quite in the stage to start to be drawing upon his bitcoin (which could be maintenance stage or maybe it is a form of accumulation stage that is not quite as aggressive as it had been in the earliest of years of accumulating BTC, such as maybe in the first 4-6 years or so).

Quote from: Chiomaobi on June 15, 2024, 11:10:43 PM

from my little experience I think keeping your reserves in Bitcoin may complicate things for you Bitcoin is an investment platform. However like you said expect one is getting his or her salary in Bitcoin or especially if they are already getting all of their income in bitcoin.

There could be circumstances in which a person may have overly accumulated bitcoin and/or is receiving income in bitcoin such as providing goods, services or even engaged in mining in which a lot of income comes in bitcoin... yet I personally consider those situations to be be more exceptions rather than more common categories of folks who largely need to be considering ways to accumulate bitcoin and/or at the same time to make sure that s/he has a certain amount that s/he keeps in fiat in order to pay weekly/monthly expenses.