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.
Investing with your emergency funds is a very bad decision because it doesn't show good investment sign since you can need money to take care of some urgent needs you will result into selling at loss which is not a good idea of a good investor so instead of having to tamper your reserved emergency funds to increase your investment money it is better you use the money kept aside for your investment by so doing you won't have any reason to run to sell your bitcoin to take care of any emergency. A good investor ought to have a comprehensive list of the amount that is meant for emergency, home maintenance and other family related expenses then a separate compulsory savings for investment purposes are to be made too to help the investor to make easy decisions when he what to buy more bitcoin to add to his portfolio. A good investor should separate his spending from his savings money so that he won't use what is meant for investment for luxury and fun.
In addition to how we could maximize our prospects towards taking opportunity for an investment in case of an emergency, if needs arises, those that have been into the practice of multiple investment and those that fall under the category of diversifying funds for an increasing investment opportunities to earn from a multiple source of income, they can enjoy this as well, since they don't have to result into any form of an emergency, whereby they make harsh decision towards selling even as at when they should have been holding, but when we have an alternative investment which we can fall back on, then this will cause us to always be ahead of others who are selling their own assets for this same purpose while we have an alternative means to fall back on, instead of selling also along with them.
The summary on this is for us to have the understanding to why we must not have all our investment on a single asset, the needs for diversifying our investment asset, in other to reach a maximum productivity, in case of emergency situation, we may not result on selling our holdings, instead we can solicit from other profitable investments we had on other assets, this is why we should always have an alternative to support us, from there we could also derive our miscellaneous expenses for the upkeep of anything we do and our portfolio remained unaffected by any chance.
Emergency funds are not meant to be invested. It is solely left in cash. Unforseen circumstances may come anytime, it doesn't announce when or time. Midnight emergency may not allow your diversified assets to be sold or given away before you can attend to it. Investing your emergency funds in bitcoin is also too risky due to bitcoin volatility. You may invest this moment and in the next moment you have the need to make use of it, check your bitcoin wallet and the market is already crazy. Would you allow your emergency situation to overcome you while waiting for a more stable market?? You are forced to sell at loss, which probably would no longer solve your problems.
Discipline your self against playing smart with emergency funds, it's life first always! The pain of watching helplessly while things go out of hand wouldn't let any right thinking investors consider using their emergency funds for investment no matter how smart and juicy it may look.