Quote from: Chiomaobi on Today at 10:34:21 AM

Quote from: adultcrypto on Today at 03:25:42 AM

Quote from: Chiomaobi on June 16, 2024, 10:01:28 PM

You are right I will love to add that Emergency funds should not be tampered with or used for your needs, and being replaced back. Emergency funds is always there as stand by at all the time and not to be spent only when a real emergency happens that needs to be taken care of immediately if not it will worsen the situation of things that will lead to more damage . For instance, if you lost your job, or the roof of your house was pulled of by storm. You can rely on your emergency funds for the mean time till you get another job, so that you don't sell your bitcoin to survive during when you don't have a job. Your income should be divided, whereby you have set aside for your needs.
If a real emergency happens, and you use the funds like the example, I gave above, when you get a new job, you can then replace/build back your emergency funds. This is why we should have a good size of emergency funds, so that whatever emergency that happens, it can sustain us. It is also good because that is what will also consider how aggressive we will be when accumulating bitcoin through DCA in a particular time.

Seems we have a little difference in our ways of viewing the emergency funds, and you are obviously viewing it from the negative aspect which involved threat to life. This is not what I understand the emergency funds is meant for. I see emergency fun unplanned events not covered in personal planning of expenditure. Emergency funds can include unplanned visit of a relative, support to a friend that is in desperate need of help, indeed it could come in different ways and not only when threat to life is involved. Loss of job which is in other words loss of the source of income is a different ball game because in such situation, the emergency funds may not be able to cover your needs such as rent, feeding, medical, etc and still allow you continue to DCA as you were doing when you had the job. So this will require a different plan all together until you secure another source of income.

I'm not viewing it from the negative aspect the reason I said what I said is because a lot of people don't know the main reason of having emergency, reserves and float funds.
From your examples am of opinion that emergency funds should not be used for those things you mentioned that is why we have reserved and/or float funds your reserved funds should be able to handle all those things. For me I can go for long without touching my emergency funds because of my reserved and/or float funds, emergency funds should not be used inappropriately if not it will affect your accumulation journey so it is advised to have your reserved and/or float funds in a good condition too.

When you have a good emergency, reserves and float funds it can help you when you lose your job, that is why it is always advised to have a good emergency funds make it strong when you make it strong it will carry you till you find another job even if you see a job that the pay is not as good as your former you can still manage it and with the support of your emergency funds you will be alright till you find a bitter job, so even if you don't continue your accumulation journey but it has prevented you from dipping into your Bitcoin investment and that is the main reason of having an emergency funds.

Emergency funds are sum of money set aside to cover unexpected expenses of financial emergencies or other unforseen circumstances. This funds are meant for emergencies not for discretionary spending or investment they are separated and can be accessible easily. Not invested in bitcoin or other volatile assets, but emergency ensures that you stay steady in your bitcoin investment journey uninterrupted when there are downturns or fluctuation. It all about being prepared for the unexpected without disrupting you bitcoin accumulation. We invest with our discretionary income and Reserved funds provides opportunity to increase our holdings and take advantage of perceived dip in the market while continuing accumulating without tampering with your emergencyfunds.