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As a new investor, I have definitely learnt from this. I have always seen my investments as a way out during an emergency period or a way to sort out my emergency needs. Now I've learnt that an emergency fund is needed to take care of those emergencies. And my bitcoin investment should be totally separate from my emergency fund.
Everyone needs to be careful to not be using their investment as an emergency fund, which is way more important when you are a newer investor and building your investment, since you might end up never being able to build the size of your investment if you are having to dip into your investment from time to time and even at inopportune times, which is even more important to not be forced to dip into your investment when it is at an exceedingly low price, yet your failure to properly have various kinds of back up funds and/or emergency funds ends up causing you to never make any progress, including that you could have had been building your investment for 4-10 years or longer, and even starting to make progress getting through the more difficult times of building an investment (which is those beginning years), and then all of a sudden you end up with nothing or near nothing because you did not sufficiently establish funds to get you by during periods in which you could lose some of your income and/or suffer from some high and/or unexpected expenses.
You’re absolutely correct.
One’s investment should be completely independent from their Emergency and/or any other kind of backup funds because this is the only way one can be able to ensure the safety and longevity of their investments.
Those who use their investments as a safety net to weather financial storms stands the risk of hindering their investment’s long term financial growth and progress, which of course has can potentially lead to significant financial losses via selling at a relatively low price or even at a loss.
Investors (especially newbies) should always, at all time prioritize setting up first a solid emergency/back up funds before even venturing into investing, because the progress and growth of the investment depends on how solid your financial back ups are because most assuredly there will certainly be future emergencies and thus should be adequately prepared for if one wish to see his investment grow overtime.
Having and maintaining a separate Fund for your future emergencies fund not only ensures that protection of your investment’s progress and focus on long term sustainability, it also ensures that you can actually independently weather financial storms thereby maintaining your financial goals in the long run.
Our investment and back up funds are two different things and both serve their various purposes and thereby should be separated at all time.