Quote from: Princess Leah on July 31, 2024, 07:38:58 PM

Quote from: sotelorene on July 31, 2024, 07:48:42 AM

You are absolutely correct emergency fund is very necessary before going into any investment in case there's a challenge but then again, sometimes it's not really necessary to keep emergency fund before doing any investment and if I may ask how much will one keep as an emergency fund? Cause sometimes even the emergency fund don't use to be enough to solve problem(s) since we all know this why waiting to keep... Before venturing into Bitcoin investment and I want to let you know that there are people who didn't keep emergency fund but they are really doing well in their investment so we shouldn't sound like this is a criteria one ought to meet before going into investment though it's good but lack of it shouldn't be a barrier because the truth is we can't actually keep everything ready.

An emergency fund is like a back plan, it shows that one is fully prepared for a worst case scenario, every business person or investor needs an emergency funds that would act as a life support in a case where the business or investment goes wrong due to certain circumstances, for instance a case where someone invest on a pump and dump asset, the person won't go back to square one, cause such person would fall back to the emergency funds and try to fix things up, all the person has to do is get information on the right assets to invest on.

From my own reasoning, I don't see anything wrong in setting aside an emergency fund before making an investment, it's like preparing ahead, taking note of possible unfortunate circumstances and setting aside plans to tackle it when it occurs, and I think the amount required to set aside as an emergency fund shouldn't be generally specified, it could be spare money or money derived from a side hustle.

The amount one set aside might not be enough to solve future problems, but would go alone way atleast solve some part of it, if not half of the problem. Well not everyone see it as compulsory to plan ahead, but then we shouldn't deny some prove that emergency funds have also rescued some people who's investment went wrong and they had backup money to fall back to.

Surely you seem to have some of the right ideas Princess Leah, yet your ways of presenting your ideas come off as garbled up and even having some internal contradictions.

In regards to an emergency fund, it seems that any financially responsible and secure person would try to set up his/her cashflow management situation in such a way that the emergency funds never needs to be touched absent some kind of a real emergency rather than having to fix up matters after overly taking risks.

So ultimately back up funds would likely have various categories of funding, so that there might be some back up funds that might be used for fixing matters after taking too many risks, and those would likely be classified as reserve funds rather than emergency funds. It is problematic to even be thinking in ways that you might be creating your own emergencies or that you would consider putting yourself in situations to create your own emergencies would be any kind of an acceptable practice except for some folks do like to live on the edge, yet I doubt that is a great way to think about investing rather than gambling - even though we sometimes come across examples of rich folks who had lived like that, even tough it does not seem like a way to really set yourself up for success rather than just being some kind of a grifter who gets lucky from time to time.. Of course there are a decent number of folks who want to live like that and always gambling and hoping for the best, which an overwhelming majority of them end up having fun staying poor and working in dead end jobs until they die or while they are still in their 70s taking whatever work that they can get.

If you attempt to balance out matters and you already have figured out that you actually have a disposable income, most likely you can start investing in bitcoin right away and build your emergency funds, back up funds and even fix up your finances (while getting out of debt) simultaneously. Of course, how much of a shitty situation you have gotten yourself into prior to coming to the realization that you need to get your finances in order (and a realization that you need to invest into bitcoin) might end up affecting the extent to which it is feasible and/or reasonable for you to be able to simultaneously invest into bitcoin while fixing up other aspects of your finances and assuring that you have emergency funds and/or reserve funds and/or that other aspects of your finances and psychology is in sufficient order and salvageability in order to start investing into bitcoin right away, even if you have to start out with a relatively low amount such as $10 per week until you otherwise get your shit together and then maybe after several months you might be able to increase your BTC investment amounts to $20-$50 per week and maybe later to $100 or more per week... depending on how well you get your cashflow matters in order, income and/or expenses and/or debt..