Days are getting tough, making money has never been easier this much but more completion in the space making it harder so anyone who wants to make more needs to stand out unless they decide to go illicit ways. 
Making money has never been easier? I would disagree with that. Making money last cycle was much easier. You could buy any ridiculous shitcoin and it pumped to the moon.Yeah, but we are not talking about shitcoins in this here thread. You heard about bitcoin?
Many of our expenses can be cut out if necessary but it's been part of lifestyle inflation and many fail to recognise so even when they make money more they are not saving as much as they supposed to be.
People that have a lot of unnecessary expenses are just financially illiterate people that tend to have also some mental problems. The problem today is that basic life is very expensive. Rent and the price of groceries has gone through the roof. The problem here is that you can not lower your grocery bills except by not eating. Buying very low quality food is a mistake and not a money saving strategy, because it will hurt you a lot more financially in the long run when it comes to medical costs. I mostly agree with you, yet there are ways to cut food costs by shopping around, and sometimes you could also buy in bulk with a neighbor or a relative and get better quality food at more reasonable prices. Looking around likely helps.
Whichever scenario you want to classify the situation that would make you want to sell your bitcoin assets before getting to a full circle, should be avoided but I understand there are circumstances that will push you to panic sell, you just mentioned health as a possibility for you to take such decisions but I think that is why we have an reserved funds which is primarily meant for this situation and if that isn’t enough for you to solve the problem at hand then you can approach your emergency funds, but I must say that whichever Situation that we find ourselves selling our Bitcoin should be the last thing coming to your thoughts, but it’s advisable to have more back up funds and that can help avoid dipping into our Bitcoin asset. This are just strategies that are analyzed here to help and hodl for a longer term, differentiation of needs are not really necessary, a need is just a need and an emergency is just an emergency Scenario.
If the emergency funds that you put aside is money that you would put into Bitcoin otherwise, then there is very little difference between the two options. I can agree with you that there might be circumstances in which it might not make any difference whether a person puts some marginal extra money into bitcoin or various back up funds such as an emergency fund, yet each of us should not throw up our hands and get sloppy in regards to preparing ourselves for a variety of circumstances including that we should want to avoid selling any bitcoin prior to a time that is completely of our own choosing, and our investment timeline should be 4-10 years or longer until we get into a status of overaccumulation, so if we fuck up our bitcoin investment because we failed/refused to keep sufficient and/or adequate back up funds, then we likely have contributed to our own failures to prosper with one of the best (if not the best) investment that is currently available to everyone and anyone with a discretionary income, even though we still have to manage our discretionary income in ways that help us to invest into bitcoin as aggressively as we are able to do it without over doing it, and if we have failed/refused to adequately establish various back up funds that contribute to our having to sell some or all of our bitcoin, then we are contributing to our own failure.
It only helps you avoid having to sell during a bad time, when your PnL is not good but that is it. Having $100 in an emergency fund or $100 in Bitcoin, there is no real difference if you have to spend that $100.
We are not necessarily talking about $100 since in the beginning if your income might be $900 to $2,400 per month with an average income around $1,400 per month, and your expenses might vary between $500 per month and $1,100 per month, and so on average you have $300 per month that would be your discretionary income, yet you probably would need to have to build up to having $3,300 for your emergency fund to cover 3 months of expenses, and maybe you build your bitcoin up at the same rate, so it might take you a year or more to have your bitcoin and your emergency funds built up to the same rate (or at least the amount that you invested into bitcoin might be the same as the amount of your emergency funds, even though your bitcoin might have grown or shrunk in value during the time of your investing).
Another seeming fault in your thinking is that you seem to be presuming that the amount that you put into your bitcoin will largely hold its value, which truly is not the case, and you might end up getting stuck into a situation of selling your BTC at a time that is not of your own choosing in terms of where the BTC price is at and also in terms of where you might be expecting the bitcoin price to go that includes perhaps considering your initial investment timeline and amount in which you might have goals to want to accumulate 10 years of your expenses at the 200-WMA valuation... in order to reach overaccumulation status.. .which also could take many years to arrive at such status, even if you do everything correctly, and you do not screw up your accumulation along the way due to poor/sloppy cashflow management practices.
With that said, still I would opt to have an emergency fund. It is better to have different funds for things and then never to dip in between. So make sure your emergency fund does actually cover emergencies, and is not just a small help.
Each of us is responsible to figure out how large we need our various back up funds to be including our emergency funds that should be built up to be at least 3 months of our expenses, yet if we are new to investing, we may well take some time to build our emergency fund up to our preferred amount, and we may well be gambling with our own bitcoin investment during the time that we are building up our emergency funds, so we have to figure out some reasonable balance, and sure maybe in the beginning our emergency fund is so small, such as 2-6 weeks of our expenses, and so then our bitcoin might also end up serving as our emergency fund too.. until we are able to get our emergency fund up to at least 3 months, and having our emergency fund up to 3 months does not stop us from having and maintaining other kinds of back up funds that go beyond the emergency funds, but our other back up funds would have more flexibility in terms of our choices to use them absent an emergency, yet our emergency funds would ONLY be for actual emergencies.
⭐ Merited by JayJuanGee (1)
Days are getting tough, making money has never been easier this much but more completion in the space making it harder so anyone who wants to make more needs to stand out unless they decide to go illicit ways.
Making money has never been easier? I would disagree with that. Making money last cycle was much easier. You could buy any ridiculous shitcoin and it pumped to the moon.Many of our expenses can be cut out if necessary but it's been part of lifestyle inflation and many fail to recognise so even when they make money more they are not saving as much as they supposed to be.
People that have a lot of unnecessary expenses are just financially illiterate people that tend to have also some mental problems. The problem today is that basic life is very expensive. Rent and the price of groceries has gone through the roof. The problem here is that you can not lower your grocery bills except by not eating. Buying very low quality food is a mistake and not a money saving strategy, because it will hurt you a lot more financially in the long run when it comes to medical costs. Whichever scenario you want to classify the situation that would make you want to sell your bitcoin assets before getting to a full circle, should be avoided but I understand there are circumstances that will push you to panic sell, you just mentioned health as a possibility for you to take such decisions but I think that is why we have an reserved funds which is primarily meant for this situation and if that isn’t enough for you to solve the problem at hand then you can approach your emergency funds, but I must say that whichever Situation that we find ourselves selling our Bitcoin should be the last thing coming to your thoughts, but it’s advisable to have more back up funds and that can help avoid dipping into our Bitcoin asset. This are just strategies that are analyzed here to help and hodl for a longer term, differentiation of needs are not really necessary, a need is just a need and an emergency is just an emergency Scenario.
If the emergency funds that you put aside is money that you would put into Bitcoin otherwise, then there is very little difference between the two options. It only helps you avoid having to sell during a bad time, when your PnL is not good but that is it. Having $100 in an emergency fund or $100 in Bitcoin, there is no real difference if you have to spend that $100. With that said, still I would opt to have an emergency fund. It is better to have different funds for things and then never to dip in between. So make sure your emergency fund does actually cover emergencies, and is not just a small help.