Of course, when we are in the earliest stages of building our bitcoin investment and perhaps also building up our emergency funds at the same time, it may well end up being the case that we end up tapping into our emergency funds for non-emergencies because we are still in the earliest of stages of building up such fund, and surely we are also running risks while we are building up our emergency funds, yet at the same time our bitcoin stash is likely not going to be much BIGGER than our emergency funds, at least going from the amount of value that we put into each of them.
Ideally, once we get the emergency fund up to at least three months of expenses, and perhaps our bitcoin investment is also getting to be at least that size too, then we may well strt to build up various other kinds of reserve funds, so by then we would tap into our other reserve funds prior to touching our emergency funds, and our emergency funds would be the last thing that we touch prior to having to dip into our bitcoin, so we already realize if our finances have gotten to such a stressed point that we are having to dip into our emergency funds, then we should realize that we are in a place that we don't want to be..
and that ideally, like you said Merit.s, we are not going to be touching our emergency funds at all absent an actual emergency and not merely our own inadequate cashflow management skills... but it can take a while to build our finances to such strength that we both have various kinds of back up funds beyond just our emergency fund, and we also are attempting to invest somewhat aggressively into bitcoin too, and perhaps our bitcoin investment is growing faster than our emergency funds and our back up funds, since once we get our various back up funds to certain levels, we may well not need to keep growing them and we likely are going to want to focus more on aggressively (perhaps?) building up our bitcoin investment.
I largely agree with you here, after reading how detailed your explanation is. That is why in the early stage of its either we have already build our emergency funds before starting the investment because there is risk on both side when the accumulation isnt big. When the emergency funds isnt strong, while still figuring out the monthly investment it will take time to have a solid emergency funds perhaps 3 months before things will start to maintain equilibrium.
Actually, it will be safer than we endure patience in building our emergency funds first then we can start focusing more aggressively or gradually through DCA on growing your Bitcoin position.
A financial fund is a portion of the monthly income that is set aside to deal with unexpected or emergency situations.
What are you referring to as financial fund? It's meant to be emergency funds.
This is the meaning of financial fund, always try to use the right word so newbies won't misunderstand the meaning of things.
A financial fund is essentially a pool of money collected from multiple investors and managed by professionals, with the goal of generating returns for those investors through investments in various assets