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Accordingly, if there is any discretionary income and a decision to invest in bitcoin, I am suggesting to build the emergency funds and the bitcoin investment at the same time, and yeah, if you are the person who only has 2-4 weeks worth of back up funds at the time that you invest into bitcoin, then maybe you can figure out some kind of a formula to build both of those, and so for example, first get the bitcoin investment amount up to 2 weeks of your expenses, and then try to simultaneously build both.. and don't let your emergency fund drop absent an actual emergency (such as loss of cashflow or illness or something like that), and if you do have to use any of it to build it back up to get it back up at least to the size of your bitcoin investment, and sure maybe by the time you build both your bitcoin investment and your emergency fund up to 3 months then you might start to be able to build your bitcoin at a pace that is faster than your emergency fund (or other funds that you might be needing to build such as your reserves and your float). And your float might be something that kind of develops naturally as a kind of monthly cash-cushion, and I am not even saying that it will take less than 6-12 months or maybe more just to get your emergency funds up to 3 months including building your bitcoin to a similar size and thereafter hopefully your bitcoin investment continues to grow based on a variety of circumstances, including your ongoing ability to be able to keep your discretionary income up by increasing your income and decreasing your expenses or whatever you deem to be within your abilities to accomplish.
That's true.
It's very unlikely to put one's eggs in one basket, having huge portfolio without a solid emergency/backup funds could be likened to putting one's egg in one basket.
While building one's investments, One needs to have a safe net just in case things go south, we can't see the future so we can't predict when or how an emergency would erupte, so the least we can do is prepare for it solidly, in order to also protect our investments, because emergencies are usually the ultimate disruptors of one's investments or financial goals.
And yes, if one eventually discovers that his emergency funds is small and could only cover a few weeks worth of his expenses, it'll be a smart move to grow both your emergency funds and your portfolio simultaneously in order to solidify the back up fund more.
And if it's really not an actual Emergency like paying for a hospital bill or loss of job, the emergency funds should be completely off limit and shouldn't be touched, no matter what.
Simultaneously building both one's investments and backup funds would certainly reduce one's aggressiveness and slow down the accumulation process, but it's all good, once the emergency fund can cover at least 3 to 4 months expenses, then you can begin building your Bitcoin portfolio more aggressively.
Even though it might take longer to build up and get one's portfolio and backup funds to where you want them, the key remains consistence and relentlessness, sort for means to increase your income flow, try as much as possible to reduce your living expenses and then apply patience. And that's a smart way to invest and build a good bitcoin investment.
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Yes.. this part all makes sense... and so yeah, it may be more difficult for guys who ONLY have $10 to $100 per week of discretionary income that are able to use for these purposes, and surely the more you can make or the more you can cut back your expenses without jeopardizing your physical or mental health, then surely those can also be helpful in making progress in terms of building your bitcoin investment while at the same time buttressing your financial situation.
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That's a great point! In some cases, having to build one's Bitcoin portfolio and an emergency fund at the same time may be hard to balance especially for those who have little discretionary income. Though, they may work towards improving both areas by enhancing their income and at the same time cutting down expenses. It is crucial to allocate an appropriate amount of assets to the purchase of bitcoins while at the same time retaining some portions which would be allocated to your emergency fund, at the same time also making sure the individual’s mental or physical health is not compromised in the process. This eventually means that even small efforts such as setting aside part of the weekly earnings towards both goals will show progress with time. Patience, commitment and consistency still remains the major guideline here.
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Well if we consider that it may take folks 30-40 years or longer to invest and/or to get to fuck you status in traditional investments, and many times they are still not even able to get their finances to anything close to fuck you status, if you are able to increase your chances of reaching fuck you status in a much shorter period of time, maybe 15-20 years or some other reasonably shorter period of time, then you have made progress in terms of getting involved in bitcoin as compared to other investment options that might be available to you, and also the fact that you might actually be able to make it to fuck you status might be a great achievement, even if it still ends up taking you 30-230 years rather than some shorter period of time that would have had been preferable if it would have had been achievable.
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It is, however, very true that most conventional investments may require several years, if not generations, to start paying off, and even then, one cannot be sure of being financially free. Bitcoin is a better option as the investment tool has a higher potential return and significantly faster growth. However, one must be careful and have the right expectations when investing in bitcoins and while it is possible to become financially independent in the shorter time frame of 15 to 20 years, who wouldn’t want that. It may take a longer time even longer than the traditional investment avenues, but the probability of success is better. Yes it is all about moving forward, waiting, and remaining focused on whatever your financial goals are.