Guys can do whatever they like, and so it could take a bit of time to build up an emergency fund that is at least 3 months of expenses, so while the emergency fund is being built up there can be shortages of cash in which the income does not cover all of the expenses, and if the emergency fund is the only money available (besides the bitcoin investment) then of course, the emergency funds would be spent from before spending from the bitcoin.
Ideally, a person ends up building back up funds beyond the emergency funds, which we tend to refer to as reserve funds, and reserve funds have more flexibility. Sure, reserve funds can be used for emergencies, but they also can be used for a variety of expected expenses and/or later investments.
I frequently like to consider that the emergency funds are the last source of funds that a guy has available before he has to tap into his bitcoin, and we are trying to avoid tapping into our bitcoin except for at a time that is completely of our own choosing, so if we had already built up our emergency funds (to 3 months of expenses) and then maybe we have another 2-6 weeks worth of expenses that are in various categories of reserve funds, once we run out of reserve funds, the we likely are going to realize that we are not in a good place because the next thing that we want (or need) is going to have to come from our emergency funds if we do not get paid before the time that we want or need it, so in that sense it could be problematic for us to be tapping into our emergency funds for non-emergencies, yet the judgement is ultimately in our hands regarding how to deal with matters in which we might not have any other funds besides our emergency funds and our bitcoin, and if we may or may not know how many days it is before we receive our next paycheck.. and whether it might be worth it to tap in to our emergency funds for some kind of a temporary expense, perhaps based on an expectation that our paycheck is going to be sufficiently large enough to cover the emergency fund amount that we had tapped into.
It's indeed very crucial for every investor to build a solid emergency fund as well as reserve funds in order to cover unexpected expenses and also to prevent them from tapping into their investment when it is yet to reach the desired goal. When investors have some kind of financial cushion, it provides them security and flexibility, as well as reducing financial stress. Another important thing is weighing the decision of using the emergency fund on non emergency expenses, taking note of certain factors like upcoming paychecks and possible impact on financial stability.
This approach is a great way for investors to maintain some level of control over their financial decisions and also enables them to make strategic decisions when it comes to their Bitcoin investment. Prioritizing Emergency funds and Reserve funds, investors can have clearer understanding on how to effectively tackle financial challenges whenever they come up and also keep their financial situation in check with their goals.