⭐ Merited by JayJuanGee (1)
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Sometimes non-urgent matters can send you a warning that you better be careful about how much you put into bitcoin, because sometimes things happen... and for example, you might have been using a computer and phone as your main communication devices, and they are used for work and for pleasure. You might even have a back up computer that can serve some purposes, but your back up computer is inadequate for your main purposes, and if your computer breaks down or gets stolen, then maybe you have back up files, but you still need your computer in order to do the work, so all of a sudden you have an expense that was a bit outside of your expectations, but if you don't replace the computer, you are going to be less efficient in your work and you might even lose income based on your lower efficiency. So you may well end up having to dip into both your back up funds and your emergency funds, and you find that the replacement of the computer taught you a lesson about how much back up funds that you needed to have available, and surely you will be lucky if you are able to replace your emergency funds and back up funds within a few months and before another emergency happens, since you might imagine that when you deploy money from your emergency funds and back up funds, that money is no longer available and has to be replaced to merely get you back to the point that you were prior to your computer breaking down. You also might realize that you have aspects of your data back up system that are inadequate, so maybe you have to buy another back up disk or some other extra expense that came to your attention ONLY after you had gone through the broken computer situation.
Like you mentioned, some expenses might be deferrable like maybe you need to get the computer right away, within a few days, but the back up disk (system) can wait for several weeks, even though you consider it as a needed upgrade, you have a currently working system in place, even though you came to realize that your current system is not adequate.
If we take the example of a laptop that could be stolen or could break, I understand that some people don't want to put aside money first until they have the amount saved to buy a new one just in case because this might take them a lot of time. I have been in the situation when I had to decide to either buy bitcoin or wait once again and feel bad about it. I took the risk at times and I admit it didn't always play out very well. This was especially the case when bitcoin was brand new and the volatility was a roller coaster and far more significant than now because it felt like a missed opportunity several times a month. Maybe an insurance on a laptop can make sense as it would allow to split funds into buying bitcoin and being insured against the worst case scenario.
This example could initiate that people thoroughly think through their worst case potential. Do they need a car? Can they compensate for a broken car with public transport? What about the washing machine, is there a saloon around the corner? Insure the laptop, how long would it take to get a new device or a temporary substitute? What about a sudden incident that has me to go to the dentist and receive a considerable invoice? Am I eligible for a loan for my next tuition fee just in case?
It depends on the age as well. Getting over insurance and loans at a higher age at too high cost makes less sense than it does for a young guy who can get cheaper insurance because of being younger and being able to pay back student loans at cheaper rates. I know that loans aren't often times the best solution, but sometimes they maybe. If someone were to first save all tuition fees and then invest into bitcoin, I think we can agree that this could be the beginning of the end of those investment plans given how high tuition fees can be. I don't want to discuss whether an academic degree makes sense or not, that is for another discussion.
I am just trying to say that if someone goes through the worst case scenarios thoroughly, many solutions can be developed beforehand that then allow someone to still take part in bitcoin as an investor. But it takes some time and effort and foresight and honesty to get a proper picture of one's own worst case profile and then some creativity to develop solutions beforehand.