Quote from: Fuso.hp on Today at 04:27:21 PM

Quote from: Moreno233 on May 22, 2025, 09:30:19 PM

Quote from: ejikeme24 on May 22, 2025, 06:51:27 PM

Quote from: Futurexxx on May 21, 2025, 03:58:53 PM

Furthermore, as a Bitcoin investor, we should try to be stacking up our emergency funds the Same way we are buying weekly or monthly, so that our emergency funds will be big enough to carry what ever storm or financial crisis that may arise in the future.

You may be right when you talked about stacking up our emergency funds, I feel like an investor should be more interested in stacking up his/her discretionary fund so as to enable us buy in routine without seizing, because is very rare Before emergency issues can come up, why expenses comes everyday and is through our discretionary income that we can use to make those expenses which is why our discretionary funds need to be more larger than that of emergency funds but our emergency funds need to be available at anytime because emergency is unforeseen" no one knows when it will occur.

You are mistaken discretionary income for something else and I will trying to explain so that you don't run into problems. When you receive some cash such as net salary after all obligatory deductions, from this fund you are supposed to remove the money for your basic needs such as food, utility bills and others. After removing the funds for your basic needs, what is left is called discretionary income. It is from this discretionary income you decide what to set aside as emergency funds, what to invest in Bitcoin and what to set aside as reserve funds if you want to go that route. The emergency funds is not necessarily for investment in Bitcoin but can best be described as a protection for your investment because that is what you will use to attend to issues that may come up which you did not plan for in the beginning. It will prevent you from selling your Bitcoin over minor such issues that is why it is very necessary.

Investors create emergency funds so that they can maintain continuity in their investments. People can experience economic downturns at times and when a person experiences an economic downturn, they will naturally not be able to invest in Bitcoin continuously. But those who are very serious about their investments never want their investments to be irregular no matter how much economic hardship comes in their lives. That is why when they have a lot of money, they keep a part of that money aside and consider that part as an emergency fund. However, it may not be possible for everyone to create an emergency fund because not everyone's financial situation is the same or everyone's income is the same. Those who create an emergency fund and invest will undoubtedly be much ahead in reaching their goals, but those who cannot do so try to reach their goals.

You don't need lots of money to create and emergency fund and remember, it's built over a range of time, some people can even take up to a year to build out 3 months expenses worth of emergency funds and some can take more. A person who has $50 discretionary income can invest $30 periodically, use $7 for emergency fund and the rest to build out variances of backup funds and floating cash that he wants.

No matter how small your discretionary income is, you should always bring out a portion of it for Bitcoin investment, another portion for emergency fund and other backup funds. Consistently doing so would see your emergency fund accumulate to bigger amounts after a while and you still be expanding your portfolio with your consistent buys. Emergency fund is not an option in Bitcoin investment, it's a necessity.