Quote from: JayJuanGee on June 17, 2024, 08:36:58 PM

Quote from: Bravut on June 17, 2024, 12:07:25 PM

But before a newbie start accumulating it is always advisable to have built an emergency funds at least 3-6 months.

I really doubt that it is necessary to build up an emergency fund of 3-6 months prior to investing into bitcoin... People woudl never invest into bitcoin if they have to build up their emergency fund in advance..

Sure maybe the emergency funds and the bitcoin investment could be built up at the same time.. at least until a person gets to around 3 months of an emergency fund.

I speculate that an overwhelming number of folks who do not have investments, they still might well have a practice of having 2-4 weeks of floating cash that they might not call their emergency fund, but is serving as an emergency fund, so if a person is starting from a point in which s/he already has some floating extra money that is already available, then there likely is a need to just consciously build that amount while also beginning to invest into bitcoin, and yeah, sure the investment into bitcoin may well have to be whimpy and/or conservative in the beginning while building up the emergency fund to at least 3 months and then once the emergency fund is 3 months or more, then there well come more liberty in terms of becoming a bit more aggressive in his/her bitcoin investment (DCAing or otherwise accumulating BTC).

You really explained everything very well, for me I'm still building up my emergency funds and also accumulating Bitcoin using the DCA strategy and is not stressing me because I'm not aggressive in my accumulation for now. However before I started this Bitcoin investment journey i had savings which I didn't refer as emergency funds and the savings was a good one so when I started the Bitcoin investment and I started participating in discussion in the forum and reading through a lot of post I saw the need of having an emergency, reserves and float funds. So all I did was divide my savings and put it in separate account meant for each one being emergency, reserves and float funds. But I discovered I needed to make my emergency reserve and float funds strong so no kind of emergency can affect my Bitcoin investment that's why I'm still building on them so I can make them very strong since we can tell what might before us in future and I believe the stronger you make your emergency, reserves and float funds look, the more you protect your Bitcoin investment.
I have a target and as soon as I meet that target I will stop building my emergency, reserve and float funds and then I will become a little aggressive in my Bitcoin accumulation in other to accumulate enough Bitcoin.

Quote from: Jewan420 on June 17, 2024, 03:34:32 PM

Quote from: adultcrypto on June 17, 2024, 03:25:42 AM

[edited out]

If you use the emergency fund to address the issues you mentioned, you may face losses. All these things you can spend from the reserve fund. Emergency fund should be used only when you/someone in your family is in doubt or you are in danger of losing everything. Especially emergency funds will be most needed in the medical field. The things you mentioned, helping a friend in danger, sudden arrival of a relative, buying essentials are not things that should be spent from the emergency fund. You can spend on all these things from reserve fund or floating fund, I think that would be best. After you spend from the emergency fund on any of these things, if you suddenly meet with an accident, the emergency fund can become a crisis. As a result, you will have no choice but to spend from your investment. Thus, you can harm your investment by spending unnecessarily from the emergency fund. So you don't spend from the emergency fund unless someone's life is in doubt.

I would imagine that there are various levels of emergency, so yeah eaqch of us may well characterize our level of responsibilities in regards to other folks in different ways.. and the mere fact that a friend might be about to die may well not be our own emergency,,.,, so no one can say whether certain events trigger the spending from certain funds versus from other funds, so maybe I would consider the emergencies of others to come from my reserves if I were to ahve any reserves. .but not necessarily from my own emergency fund, so my own emergency fund may well ONLY involve my own personal situation or perhaps any family members about whom I am responsible (or believe myself to be responsible).

I am not going to negate that each of us will consider the classification of our responsibilities differently, and also the urgencies that might be involved in terms of replacing our funds if they might be used, and if we deplete certain funds at some point we might have to stop buying bitcoin until such point that we replenish certain funds... so there could be priorities that are given in regards to buying $10 per week worth of BTC no matter what until maybe the reserves go down to a certain level in which the buying of BTC has to stop, but there could also be circumstances in which there is a range that maybe up to $100 worth of BTC per week get bought so long as the reserves stay above a certain amount, but then at some point the purchasing of BTC might have to stop when the cash cushion drops below a certain level.. and then the next thing is to be avoiding the selling of BTC, so maybe some of the reserves get used first, and the reserves may mostly be in cash, but there could be higher levels of reserves that are in other forums, so we might have certain priorities in terms of from where we spend first and as the different levels of reserves and/or float is depleted, then we might start to come close to using our reserves, and as the situation persists if we cut our expenses and/or try to increase our income and perhaps some of those sources of extra funds dry up too as we deplete them with the passage of time. and then we are faced with fewer and fewer extra funds with perhaps our bitcoin being the last source of funds after we have depleted our emergency funds...

so part of the point is that there tend to be priorities in terms of how funds are spent and at which point funds can still be spent or replaced, but if an emergency goes on for longer and longer the sense of urgency of the situation can increase, but there could be some point in which all the sources of funds are depleted.. maybe in a situation in which a person is injured and/or sick and cannot work or maybe can only work a small amount, and maybe recovery is hoped for and return to work is hoped for, but does not end up happening as is hoped, even if efforts are made,.. so the longer the emergency situation persists the more that extra funds are depleted and the more likely that extra funds, such as bitcoin might end up being spent too.. so we surely do not want to get to that kind of an outcome, so sometimes we are going to have a variety of level of funds that can be used prior to needing to dip into our bitcoin, and some of our funds might be also considered as working capital, and we still will consider priorities in terms of which to spend first and what circumstances, and each of us are not necessarily going to come to the same conclusions regarding priorities in terms of which funds are spent first or how to manage the cutting of expenses (necessities versus wants and at which points the differing levels of emergency are reached that triggers differing spending or cuts of spending.
[/quote]
From what you have said is very important for us to always pray we don't meet any issue or problem our emergency funds can't handle, when reading all you have written I started thinking about those who sold there Bitcoin so early maybe this kind of situation was what they meant and they exhausted all there emergency, reserves and float funds and still the problem was solved and they had no option than to sell of there Bitcoin investment at an early stage, at this point we won't blame them for doing so.

What my dad always those was to borrow and borrow in the means of emergency when he savings are exhausted, he never sells his investment or property he always says is better he borrow and pay back than for him to sell of his investment or property he always has this philosophy that problem will surely come and go. Well I don't know if this his own way is the right way to go about big emergency issues that has exhausted our emergency funds.
What if we can't pay back we will still dip hands into our investment to pay the debt.
So a lot of people uses this strategy and it works for them especially when you are still working and facing that issue, my dad is a civil servant and the government pays him at the end of the month so it's easy for him to borrow and sort out his big emergency issues that has exhausted his savings and later pay his debt.
I think if someone loses his job and is been faced with big emergency issues that has exhausted his emergency, reserves and float funds borrowing will be a wrong step since he has no other means to pay back.
In all I pray we don't meet issues or problem that is bigger than our emergency, reserves and float funds.