It makes no sense for any newbie to be holding excessive funds in dollars rather than investing into bitcoin, so why the fuck would they be holding 1-2 years worth of cash? It is already a struggle to get back up funds between 3-6 months, an there is no reason to build up back up funds prior to investing into bitcoin.
Maybe if a person has been investing for a whole cycle or more he might have had invested a year into bitcoin and have a year of back up funds, but even that sounds unrealistic and overly skewed in the back up funds direction.
You are right. It is mostly not possible for newbies investors to raise backup funds and we should be mindful of this reality. I had recommend having a backup fund for 1-2 years to execute aggressive buying in bearish sessions. Which was probably my wrong decision. But I should have to realized that keeping a portion of discretionary income is a struggle for new investors.
As investors become more experienced in investing, they need an emergency fund to run long term Bitcoin deposit. We should stick to the process of driving long-term accumulation while avoiding investment deviations.
You don't need to wait until you are experienced before setting up backup funds. Emergency fund and other variances of backup funds should be built same time you're engaging in buying bitcoin. You can not get experienced if you skip valid protocols, instead you would have various kinds of setbacks in your accumulation journey as a result of lack of backup funds and may likely liquidate your portfolio over and over again to attend to needs that are both emergencies and those that are not and this might lead to a failed investment activity.
In order to go long-term with a high chance on a successful bitcoin accumulation journey, with your periodic discretionary income, you should plan the amount you invest into bitcoin and use the rest to setup your backup funds (which includes your emergency fund and other variances of backup funds and floating cash) side by side with buying bitcoin. This practice would have you develop some good cashflow management practices and as you engage and purchase periodically, you tend to get the required experience, while ongoingly accumulating bitcoin with as much aggression a possible without overdoing it. Also with your already established backup funds, your investment is safe from being tampered since the backup funds provides that guarantee.
It is recommended that you build up at least 3 - 6 months worth of expenses as emergency fund and after that, you can put back the fund used in building it into buying bitcoin to increase your aggressiveness. Be sure to build back any backup fund variance you utilized so you would not have a financial leak that might threaten your bitcoin portfolio.