For example, you have the money to buy aggressively, but you may not be able to invest with it due to some problems. For example, you are not able to transact due to some problems or errors in the bank where you have deposited the money. You know that after some time or within 2 or 3 days, your bank account will be fixed or you will be able to transact again. But you have to be confirmed that you will get the money after some time. In that case, you can invest for some time with emergency funds.
I would never support buying aggressively because the wise and rich investors don't engage in that due to a lot of mistakes that can be seen buying too much at a short period of time. It is good when we distance our investment strategy and buy at an interval. This is the same DCA strategy that Micro Strategy is using to accumulate thousands of Bitcoin without getting choked up at a certain price. There are so many profits to be made when buying at different intervals, giving a breathing space to buy at different prices.
I would suggest that MSTR/Saylor is buying aggressively and perhaps overaggressively, yet they have their own ways of handling their debt to asset ratios.
MSTR is not a good example in terms of what individuals should do or how individuals should measure their aggressiveness.
I think that it is good to be aggressive as we are able to be, but that does not mean overdoing it.. .and it also means that any such person attempting to be aggressive is likely going to be buying regularly, persistently, consistently and ongoingly, and hopefully not employing his aggressiveness until after he has his cashflow management in place and perhaps the establishment of both emergency funds and also reserve funds... .. but yeah, each person has to figure out how to buy bitcoin as aggressively as he is able to do without overdoing it.. and surely, if one is not sure about if he is being overly aggressive, then maybe he has to pull back a bit, since it is not good to overdo it, and we might not even know that we are overdoing it until it is too late.. ..
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This is a commendable fund management plan. Having several funds in place with different liquidity levels is a great idea. The emergency funds should be more ready, available and accessible than every other backup funds, while the reserve funds can be a little more less liquid ( but still accessible) than the emergency funds.
It is also very essential to understand the liquidity of each of these backup funds, as this helps one to be able to effectively navigate certain challenges and also make good progress towards achieving your financial goals without feeling overwhelmed. Some of the backup funds could kept for very special purposes, just like major purchases or even for long term investments. When you know and realize the potential withdrawal obstacles of these funds, it helps you plan effectively and also to avoid falling under certain financial stress.
A balanced approach when it comes to funds management involves effectively allocating resources. This could be achieved by maintaining an emergency fund that’s easily accessible, having a very clear plans for your reserve fund and also allocating to longer term investments.
Each of us likely have different kinds of ways of storing our money and some of the money can be moved around for one purpose or another, and still we can make sure that we do not go below certain amounts of money that is in reserved without an actual emergency, so even if some kinds of funds are more liquid and other funds are less liquid, they might in combination serve as the various kinds of back up funds that cover both reserve funds and emergency funds, yet the emergency funds should never go below 3 months of reserves absent an actual emergency or maybe you made some kind of a mistake that is also able to be fixed within a short period of time if the emergency funds ends up being tapped into inadvertently, .. and then at the same time, hopefully learning from any mistakes that we might have made in managing the funds and/or how rapidly we might be able to replace the emergency funds if they were ONLY partially tapped into.
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Okay thank you so much for your encouragement and knowledge , with these as a beginner I will focus more on buy buy buy rather than the selling part to enable me invest more rather than selling and be at lost.
But what if I decide to use my emergency fund to invest in Bitcoin ?what if the market is favorable and I decide to use my emergency fund to get more? Just as u said, it stresses the need to buy and continue to buy and hold for long .
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You can do whatever you like, but you are gambling rather than investing when you are tapping into emergency funds to buy bitcoin, especially since buying bitcoin is not an emergency, and surely many of us said that if you are already new to bitcoin then probably you should be buying regularly and working on systems to manage your cash rather than trying to figure out what is or what is not a dip. But yeah, you can do what you like, even dumb shit.. .and find out how it goes when you spend all your money buying bitcoin on the dip and it keeps dipping or you are faced with some actual emergency, then you won't look as smart as you thought that you were since you seem to not be able to know the difference between investing and gambling.
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The category
poor people with good income is the worst because they are wasting an amazing life opportunity. You can waste a fraction of it and learn from it and I think that is what most people are going through, making mistakes in the right moments is sometimes the best that can happen to you. But I know that in bitcoin many people wasted a once in a lifetime chance for the many in a lifetime things, just because they didn't have them before or are part of the
poor people with good income group.
Sure, there are some poor people with good income who will be able to learn and to use their good income to invest rather than consume, yet the ones that learn and get themselves out of poverty are not necessarily the normal outcome, since surely it could be possible that poverty teaches a poor person with income to figure out ways to get out of such situation, yet surely poor people can get lured into getting nice things and to not spend enough time learning stronger forms of cashflow management and including finding a good investment, such as bitcoin.
In various threads on the form, members have frequently discussed at various points that both poor people and rich people can develop good or bad cashflow management skills and practices. They are not difficult to learn or to employ, even though many folks will not try employ good practices which also help them in learning how to get better in their cashflow management practice with their experiences.
Many of us likely realize also that there are even cases in which poor people are able to surpass rich people in their level of wealth and/or their level of success or at least directionally poor people might sometimes be gaining in their wealth while rich people are losing in their level of wealth based upon their cashflow management practices, their investments and/or their efforts to learn from their experiences.
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To make more emphasis on your respective points and inputs here, i will suggest that if we are investing using an emergency fund, then that fund does not necessarily have to be in fiat, we can as well develop a means of creating a non custodial wallet and have our emergency funds kept on such, because the use of banks could be challenging to an extent that when they placed an embargo on an account, it may not be able to perform any transaction until they are done or settled with why they are doing so.
Fair enough that we might keep various kinds of funds in various ways, yet we also have to keep in mind about how liquid various kind of funds might be, and sure there are some funds that may well be less reliable than others, and whether we need funds right away, or we can wait a few days or if we might be able to wait a month, it can be different, and surely we may well have to keep a certain amounts of funds in actual cash that might help to hold over if we might be waiting for funds to clear or to arrive in our account or to be accessible.
Poor people run more risks than rich people when it comes to maintaining emergency funds since rich people likely have more access to a variety of resources, so it might be more difficult for them to screw things up... and the same thing is true with new investors versus older investors who have been investing for a while. New investors need to put various systems in place and to maintain them and also to practice with them to make sure that they understand how long it might take to get access to certain kind of funds, especially if they don't have much of their funds in physical cash..
We can also consider that investing with an emergency fund may come in a quick demand in seizing for an opportunity to invest, just as we do have it form market shocks when it plummet after reacting on a particular cause and we feels its best appropriate that we fall back on our emergency fund in other to take advantage of the opportunity and invest, which i think its another way we can maximize our profit proficiency using another strategy (emergency fund) other than DCA we are used to.
If we have various kinds of funds, even if we might call some of them emergency funds and other reserve funds and other float funds, it may well not matter so much from which one we are drawing from when we decide to buy on the dip, except it would be gambling rather than investing if we are overly depleting our back up funds in order to buy bitcoin, since buying bitcoin is not an emergency. There surely would be judgement calls in regards to how much funds might be taken from one or another sources and if those are the last of sources or if there might be some other sources that are available, but they just take a week or two to process, so in the mean time we end up using some funds that are available within a day or two and then wait for the other funds to arrive to replace the ones that we used.
Hopefully you sufficiently know the difference between investing and gambling, yet surely some guys mix up the ideas and also the practices in which they might say that they are investing but they end employing gambling practices with the way they handle some of their funds.