Quote from: Gost ms on Today at 06:13:52 AM

Quote from: bullbandit9 on June 09, 2025, 11:39:22 PM

Quote from: JayJuanGee on June 07, 2025, 12:39:31 AM

Sure, it may well be preferable to error on the side of having more emergency fund rather than not enough, and surely folks who do not have an emergency fund are likely ending up using their bitcoin as their emergency fund, which protecting the bitcoin investment should be part of the rationale to build and to maintain the emergency fund in the first place.

And, like I have mentioned in other posts, it could well take a guy a 1-3 years or more to merely establish an emergency fund and a bitcoin invested amount in which each adds up to 3 months, especially if we may well consider that a guy who is investing 10% into bitcoin and/or his emergency fund, it would take 10 years at such rate to invest 1 year's worth of income whether that is into bitcoin or the emergency fund or a combination of both.

Frequently I have argued that an emergency fund does not need to be more than 3 months, since the funds in an emergency fund are more strictly held for emergencies, yet if some folks want to build back funds beyond an emergency fund and to have more flexibility with the back up funds, then they could do that, even though if emergencies were to come in terms of increased expenses and/or decreases in income, then the back up funds would likely be tapped into and exhausted prior to tapping into the emergency funds and the emergency funds would be tapped into and exhausted prior to touching the bitcoin. And, yeah, it could take some decent amount of practice to figure out reasonable balances in regards to how to build up and to maintain various kinds of back up funds.

Great, now we understand each other and are pretty much on the same side.

I would like to say here that this also depends on your total capital and cash flows. There is nothing wrong with having an emergency fund in combination with a back fund. The general thing is that you can't possibly prepare for everything while being balanced with the rest of your finances, so it is not a problem that has an optimal solution. It is more of risk-balancing dance that is built on a good foundation of knowledge. I personally like having a one-off very large fund next to the emergency fund now that I can afford it. A 3 month emergency fund would not cover something like an extremely expensive surgery and it is not supposed to, don't get me wrong. Depending on where you live and what kind of insurance is available, you may not need this anyway. Further, one does need to be discouraged if their fund or current goals are small in this context. I actually liked my path towards building my funds, and you can gamify your journey. Each milestone was a very proud moment for me. $1000 fund complete? Rejoice and prepare for the next build.

Quote from: JayJuanGee on June 07, 2025, 12:39:31 AM

Choosing our position size is helpful in managing risk, and also considering that we are investing no more than we can afford to lose, so we are already appreciating that we could lose our money when we invest it into bitcoin.

Hopefully we figure out an appropriate balance in order to not invest too whimpily into bitcoin, since the guy who invested the last 10 years at $100 per week ended up doing way better than the guy who only invested $10 per week. In fact the guy investing $100 per week, ended up with a bitcoin portfolio size that would have had been 10x larger than the guy investing $10 per week.

I guess in general I would say that you shouldn't bite more than your finances or your emotions can manage. Cheesy

Emergency fund is money kept for personal or family needs and back fund is money kept for future in any personal or business sector. If you do not have proper financial management skills then you may spend all your money in emergency fund or back fund. So it is better to keep emergency fund and back fund separately.

Money for your family needs is not called an emergency funds because emergency funds is built up from your discretionary income and it should be at least three months of your income. Emergency funds is used as a back up to your bitcoin investment so that you don't sell your bitcoin investment to take care of real life emergencies when they come unexpectedly as you are accumulating and building your bitcoin portfolio.

Emergency funds is used for real emergencies like when you have lost your job, you use your emergency funds for survival while you are in a search for a new job so that you don't prey on your bitcoin investment. Another example is if a storm pull off your roof,, you use emergency funds to fix it back to avoid further damage.

Your monthly income is what you are to use to take care of your family needs and that's why when you have received your income, you take away funds for your monthly needs and expenses, the leftover is what you invest into bitcoin because that's your discretionary income.

Quote from: Barikui1 on Today at 08:38:23 AM

Quote from: Gost ms on Today at 06:13:52 AM

Emergency fund is money kept for personal or family needs

No, you are wrong here, emergency funds is the money kept aside that stands as the last layer of protection of your Bitcoin holdings, it's the money kept aside to use in sorting out any real life emergencies that may threatens your holdings.

Quote

and back fund is money kept for future in any personal or business sector.

while back up fund's is that spare money kept aside with the purpose of backing up your investment, like using it to invest aggressively during a dip or you can use it to for some other stuff that may have warrant you to dip into your emergency funds, but take note that your emergency funds is the last layer of protection of your Bitcoin investment, that's why it's very unwise to use it for anything else, except a real life emergency situation that threatens your bitcoin holdings.

Emergency funds, reserve funds and float are all back up funds. This is because emergency funds is the backup to your bitcoin investment and should be tampered with last after you have spent your float and reserve funds incase you lose your job. Reserve funds acts as a back up funds to your emergency funds and that's why you don't touch your emergency funds until a real life emergency plays out. Float is the backup to your reserve funds.