About a week ago Tungbulu invited me to participate in this thread, and I don't mind, even though I understand that some local's might prefer to keep threads to locals so that the topics might remain accessible and even communicated in local language, which I don't necessarily understand very well.
First of all, I'm very pleased that you've managed to honor my invite and carved out some time from your busy schedule to visit this thread. The truth is, I never really thought you'd actually honor the invite, but seeing your contributions here on the thread just increased the respect I have for you sir. Thanks once again for the honor.
DETERMINING YOUR FINANCIAL PRIORITIES
1. Emergency Fund: An emergency fund like we already know should be at least 3 to 6 months of our living expenses and this is what we should aim for.
I frequently like to suggest that our aim for emergency funds should be at least 3 months of expenses.. and to try to show that with the emergency funds there should hardly be any flexibility, yet of course, if a person does not have any other funds besides emergency funds and his bitcoin investment, then the emergency funds should be spent prior to spending from the bitcoin.
I've just picked out your point about having back up funds beyond the 3 months minimum allowing for more flexibility, and I can say that it has been well noted. The truth is that I never really thought about it that way and thinking about it just now gives it even more sense. I believe it can be considered as a great way of gauging the severity of a situation when those funds are depleted, as well as only emergency funds remain.
TIPS FOR BUILDING AN EMERGENCY FUND
1. Automate your savings: sometimes having to manually save money can be very tiring, you might even forget sometimes and before you know it, you've used the money for something else, so automating your savings can be a pretty helpful tip to ensure you stay religious with your savings.
I personally don't like the idea of automating savings and/or investing into bitcoin and I tend to consider that to be a more whimpy approach to investing, even though there could be some automation as a kind of supplemental practice, so maybe the guy that I had described earlier, he knows that no matter what he wants to invest $70 per week into bitcoin for a period of 14 weeks, and then perhaps for another 71 weeks he would invest around $35 per week into bitcoin and then thereafter to revert to $70 per week... and so there could be reasons to supplement the weekly invstments to the extent that the cashflows change.
I guess your approach do have its own advantages too, and perhaps gives me more reason to agree with your approach. Manual investing do not only enable investors to stay actively engaged and adapt to changes in their cash flow, it also allows them the opportunity to manually adjust their investments when necessary, based on their financial situations and goals.
Manual investing also gives one the chance to consciously make decisions about the amount one chooses to invest each week, which is a great way to stay within one's limits while still maintaining some level of aggressiveness in your accumulation strategy. I believe the best time that this strategy could be more beneficial is during the early stages of Bitcoin accumulation, since it can really help one develop a deeper understanding of the marker and also your own personal risk tolerance level.