Ninjastic
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Board Speculation
Re: Buy Buy Buy or Sell Sell Sell?
by
Derekfunds
on 21/04/2025, 09:09:35 UTC
Quote from: Jostern on April 20, 2025, 10:09:47 PM
Quote from: michellee on April 20, 2025, 09:23:23 AM
Quote from: Sticky Bomb on April 20, 2025, 02:40:58 AM
Quote from: Doan9269 on April 19, 2025, 03:13:35 PM
We can also consider that investing with an emergency fund may come in a quick demand in seizing for an opportunity to invest,
Emergency funds are to be strictly kept for emergencies. It is best to maintain this discipline and not tamper with it unless we are faced with real emergencies since we do not know when the emergencies shows up and wouldn't want to be taken unawares and risk tampering our portfolio in order to solve them.
Emergency fund should not be use for anything except for an emergency and in urgent situation. If you mix the fund with the investing, you will loss your investment because you will use your investment to cover your emergency. That will make your investment amount reduce while you will difficult to accumulate more and more. We could be in an urgent situation anytime because no one can know the time. We don't have to tamper that fund because that fund is only for emergency funds and not for other things.

It is why we must have discipline and strictly to allocate the fund in the right place. If we are in the urgent situation, we can use that fund and cover it without disturb the other money in their places. We don't have to borrow other people money because we can handle our emergency need without a problem.
Investing in Bitcoin with an emergency funds is a huge mistake of investment and a bad idea. Emergency funds are basically kept for emergency purposes and needs, If we definitely use emergency funds to invest and we probably have a situation where we need to sort out emergency needs, We would have no choice but to use our Bitcoin investments and that will affect us accumulating our Bitcoin holdings. It’s also important we should have reserved funds and floating funds. It’s better to use Reserved funds to invest in bitcoin than use our Emergency funds. It is better to be disciplined in managing our emergency funds instead of using it to invest in Bitcoin. Effectively managing our Portfolio is important and having a good strategy in managing our assets is very crucial in our journey to accumulate for long term.

Over time I have come to realize that one of the reason why some people invest with there emergency funds is because they don't separate there income into various funds which is already an error in investment. An investor who don't separate his or her income into various funds will be investing varbally and so when challenges arises they won't know what to do other than to sell there investment. I doubt if there are investors that will sperate his or her funds and still went ahead to use the emergency funds to invest no, that will be abnormal because before an investor was able to know how to separate and keep funds it means the investor actually knows what he or she is doing.