Quote from: Bluedrem on Today at 02:37:05 AM

Quote from: JayJuanGee on Today at 02:16:08 AM

Quote from: Bluedrem on Today at 01:34:04 AM

Quote from: Joy- maker on June 14, 2025, 09:57:54 PM

Quote from: Bluedrem on June 14, 2025, 08:53:57 AM

Understanding this, if someone wants to invest their emergency fund with risk, then I said that they should invest some part of it instead of investing the whole amount.

it not advising to invest even half of your emergency fund in bitcoin, because if you do you are investing wrongly. Emergency fund should only be use for emergencies unforeseen circumstances, and not to be invested in bitcoin.
if you invest your emergency fund in bitcoin it will endanger your bitcoin investment which will lead to selling off your bitcoin investment at early stage of accumulation, so the right way to invest in bitcoin is by investing only your discretionary income, I mean your leftover money after you must have settled your needs and expenses either for the week or for the month.

Can you deny that when your emergency fund is unused for a long time, you are not encouraged to invest in that fund?

I have seen many people who have been unused for a long time, they store their emergency fund in grains or other things with the intention of selling it later for some profit. They then think that if they keep their emergency fund in fiat, then the value of their fund will decrease due to inflation, rather than investing it with it. When they need money urgently, they can collect money from relatives or someone to meet the emergency need and later sell the invested fund to pay off the accumulated debt.
This is happening to all people except those who have a lot of money.

Ongoingly normies get themselves into trouble when they try to be smarter and keeping their emergency funds in forms that are other than cash. Sure, they may well consider themselves to be smarter than everyone else, but if they end up NOT being sufficiently liquid due to various unforeseen circumstances, then they might find themselves with no actual emergency funds that are liquid and they are then faced to sell some or all of their bitcoin, since bitcoin might be the ONLY liquid thing that they are actually holding. So there goes their being smarter than everyone else with their thoughts that they "need" their capital to be "working."

Dear JayJuanGee
How do those who have no previous savings collect emergency funds? Of course, they have to work hard first and deposit a certain amount and reliable amount in the emergency fund as soon as possible, every week, month or year.

You have to attempt to use your best judgment. If you have absolutely no savings, then surely you are starting from zero, yet we know that to invest into bitcoin at all you have to have some reasonable ability to assess and conclude that you have discretionary income, and by definition, discretionary income is money that is left over after you have accounted for all of your expenses. If you are trying to invest into bitcoin from money that you need for expenses, then you do not have discretionary income and so you should not be investing into bitcoin.. because you would merely be taking chances with money that you actually need to cover expenses.

For practical purposes, I frequently like to presume that even the poorest of people will tend to try to have some kind of a cash cushion to try to cover 2-6 weeks of their living expenses in case their income really were to dry up.. so in some sense, if a guy does not even have 2 weeks of living expenses that are saved up, then he may well not even have enough discretionary income to be able to justify investing into bitcoin.

So, there is a need to establish that you have discretionary income to even justify investing into bitcoin at all, and so even though people can do whatever they like, I don't recommend investing into bitcoin if you do not have discretionary income or if you are not sure... If you are not sure, then it is better not not invest into bitcoin with money that you may well need for expenses.

Once you figure out that you have discretionary income and you decide that you want to invest into bitcoin, then frequently I suffest that at minimum, you should be striving to protect your bitcoin investment by simultaneously building your emergency funds and your investment into bitcoin at the same rate until you get up to 3 months of expenses and the equivalent of three months of your expenses invested into bitcoin.. and sure the bitcoin side of the matter may well go up and down in value more than the part that you are keeping in fiat... so if you ONLY have $10 per week of discretionary income that you are able to invest into bitcoin, you may well have to invest half of that $5 into your emergency fund and $5 into bitcoin.

You have to figure out some reasonable way of balancing out these matters, and there could be some flexibility even if the matter is also simultaneously stressful.

Let's say that you have considered that your monthly expenses are right around $300, so to build up your emergency funds for 3 months that would be $900 invested into the emergency funds and $900 invested into bitcoin, yet if you are ONLY investing $5 per week into each, then it could take 180 weeks for you to have had invested $900 into each.. which surely is right around 3.5 years... so surely it could take a long time to build up both your emergency funds and your bitcoin especially if you are ONLY putting $5 per week into each.

surely there could be times in which you come accross more money, and you might come to bitcoin and you already have around $300 of emergency funds but you have no bitcoin, so you might choose to put $8 per week into bitcoin and $2 per week into your emergency fund, or maybe you decide to put $10 per week into your bitcoin for 30weeks until it reaches $300 invested, and then after those first 30 weeks you then decide to put $5 into each until the emergency funds reach $900 and then at that point, you may well invest $10 into bitcoin and you no longer need to keep adding to your emergency funds. None of us can tell you exactly how to do it, yet if you fuck things up, you are the one who suffers the consequences, so you have to figure out some kind of a balance that you consider to be reasonably prudent and perhaps even reasonably aggressive in regards to investing into bitcoin at the same time.

Quote from: Bluedrem on Today at 02:37:05 AM

Now it turns out that his emergency fund has been accumulated within six months. That is, he can deposit the money he needs as an emergency fund within 6 months.

Sure you could be describing situations that are possible, yet it does not seem too likely, since merely investing 50% of your income into your emergency funds maye well get you 3 months of expenses covered.. but then aren't you suppose to be building your bitcoin investment at the same time, so then if you are putting 50% of your income into your emergency funds and 50% of your income into bitcoin then do you have any money left? Of course, sure we can recognize and appreciate that income is going to be higher than expenses. .. so you have to figure out your formulas and whether they are possible and/or reasonable to achieve.

Quote from: Bluedrem on Today at 02:37:05 AM

After his urgent bill was deposited, it turned out that the price of Bitcoin has decreased or the possibility of profit in Bitcoin in the future is immense.
And then he needs to buy Bitcoin but he has no more money, what will he do?

There is a certain amount of an assumption that whatever is being invested is coming from income, so why the hell is he going to just run out of money after 6 months, unless he loses his income and/or loses his job.

Of course, if he unexpectedly loses his income or job, then he just has to deal with the situation and hopefully strive to find new income sources or new work, yet if he expects that he is going to lose his job in 6 months, he might not be in a position to invest into bitcoin unless he has some kind of confidence that he is goint to be able seek and/or achieve similar levels of income.

There are surely uncertainties in life, yet guys still have to attempt to be practical in terms of working within the parameters of the information that they know or they reasonably suspect in order to decide how much discretionary income that they have and/or if they have expectations of future income or not.

Quote from: Bluedrem on Today at 02:37:05 AM

Then can he not take such a risk of investing his emergency fund?

Emergency fund is not for investing, and even though guys can do whatever they like, they are going to be just putting themselves into bad situations if they are being reckless with their funds and investing with their emergency funds, especially if they have not figured out and/or establish their upcoming income, so if they have no expectations of future income, then it seems that there emergency funds are supposed to be being used to support themselves until such time as they are able to assure and/or secure future income.

Quote from: Bluedrem on Today at 02:37:05 AM

Since he can replenish his emergency fund within six months and he has an ongoing income stream.

You seem to be talking out of both sides of your mouth. Perhaps you need to provide some actual numbers to describe the situation that you are describing so that I (and others) can get some kind of a better picture regarding the situations that you are describing that seems to have questionable and/or contradictory circumstances.

Quote from: Gost ms on Today at 03:25:53 AM

Quote from: Bluedrem on Today at 02:37:05 AM

[edited out]

We can never say when the price of Bitcoin will go down or increase in the future, because we can never tell the future. It is never right to delay investment to create an emergency fund.

There are many times that guys will need to just ongoingly invest into bitcoin every week to the best of their abilities for one whole cycle or maybe even two whole cycles before he might modify his investment approach... and even if he might be simultaneously building his emergency funds and his bitcoin investment until his emergency funds reaches at least 3 months of his expenses, he might not really be in a position to really consider if he has enough bitcoin to start to modify his investing approach until maybe he has built up a decent bitcoin stash.. so sure each of us has to figure out when we might start to slow down in our ongoing investment into bitcoin, yet it is not unusual for a guy investing 10% or less of his income into something like bitcoin, it may well take him 8-10 years or more before he might start that he is able to start slowing down in his bitcoin accumulation rate and/or strategies.