Quote from: ejikeme24 on June 30, 2025, 10:32:25 PM

Quote from: Platinumys on June 29, 2025, 06:47:52 PM

Emergency fund is not mandatory for investment, if the investor does not give it much importance, there is no problem, but I think the investor should give importance to his continuous investment. The more serious an investor is about his investment and the more consistent he is, the stronger his investment will be. Basically, emergency fund is a very secondary issue for an investor. Those who have sufficient financial solvency and are very serious about their investment usually form emergency fund. The advantage of emergency fund is that if the investor fails to invest consistently, then that investor can use his emergency fund and when his financial condition returns to normal, he can replenish his fund with money. However, emergency fund is not mandatory for everyone.

You seems to be missing the whole concept here, maybe when you start your own accumulating journey you can choose not to set up your emergency fund Instead of including others, since you think is not mandatory, i can only agree with you if you said that emergency fund is optional when getting started. But once you reach two weeks of accumulation then you have to start looking for a way to set up an emergency fund, your emergency fund is what will guide you until you reach your investment goal in case you have forgotten, because if you don't set up emergency fund along the line there's every possibility that you will temper your bitcoin investment some day. And this will happen unexpectedly, so I will advice you don't mislead yourself here.

Many times, I have made the claim that normal people, even before investing into bitcoin, likely get into a habit of retaining a certain amount of cash on hand between pay checks and to serve the purpose of filling cashflow shortages between checks since no one likely wants to get into a situation in which they don't have any money at all, but then surely some folks live on the edge, too.. and they pay their most basic expenses first and then whatever they have remaining is for any of their wants or other unexpected expenses which maybe that money ends up running out close to the time that the next pay comes and perhaps other times, they have some certain amount of money that is remaining.. so I tend to argue that many people are not going to want to operate too close to the edge and they don't want to run out.. even though maybe some folks might allow their cash cushion to get down to the equivalent of 1-2 days of expenses, and others may want that their cash cushion does not go below 2 to 6 weeks and so there will be a decent amount of variation in regards to how low a person tends to allow their cash cushion to approach zero prior to their next pay period.

Another thing is that they can likely never be 100% sure that they are going to get paid in their next pay period, or the amount of pay might end up being smaller than expectations. So there are various ways that cash shortages can happen and there are various standard ways that people attempt to prepare for cash shortages, including their having some tolerances for their cash shortage.

One of the reasons that emergency funds and/or back up funds becomes important with an investment like bitcoin is based on the volatility of bitcoin, and surely some folks are so focused on the extent to which their bitcoin is profitable or not, so they might not even think about if they manage their cashflow badly, then they may well end up spending their bitcoin and even having their bitcoin serving as their emergency funds, so these folks may consider that it is not a BIG deal if their bitcoin ends up serving as their emergency funds, so long as their bitcoin are "in profits" at the time that they have to sell more of their bitcoin at a time that is not completely at their own choosing and also at a time that they could have had chosen if they had been keeping an emergency fund, but if they don't have any emergency funds (or they have scant emergency funds), then the ONLY thing that they have left is their bitcoin, and sure they might speculate that it is not such a bad thing to sells some bitcoin as long as the bitcoin is in profits.

So sure, we can concede that it is better to sell bitcoin while they are in profits rather than to sell them while they are not in profits.. but at the same time, if a guy truly came to bitcoin with an intention of investing for 4-10 years or longer and surely the guy might be thinking that realistically they are likely to be accumulating bitcoin 15-20 years or longer, but the guy has enough uncertainty and flexibility that he realizes that the timeline for his accumulating of bitcoin might well come to an end sooner than his original timeline so long as he continues to stay accumulating and continues to make progress in his bitcoin investment.. but then at the same time, failing/refusing to maintain any kind of adequate and/or meaningful back up funds, including but not limited to emergency funds (since it might not be as important what they are called as long as such funds are available when needed), then the guy puts himself in a position of not having options in terms of when or if to sell his bitcoin.. so he ends up getting dictated to about his options based on his failure/refusal to have systems in place to preserve his options rather than ending up falling into a situation in which the only thing that he has is bitcoin and so then his bitcoin are serving as his emergency funds because he was too smart to keep an emergency fund... or he was too desperate and/or greedy to make sure that he was staying invested in bitcoin (and not keeping cash on the side (ie emergency funds/backup funds), but that failure to keep funds (cash or cash equivalents) ends up being stupid and he should have kept at least kept some funds in cash (emergency funds) so that he could have had chosen whether or how much of his bitcoin to sell, if any rather than being forced (even if the bitcoin are in profits, it may well not be a good idea to be selling any of them at a time that is not completely at the guys own choosing rather than at a time that a guy put himself into due to his lack of preparation and/or his thoughts that he is smarter than everyone else and he can outsmart the system).

Quote from: Kelward on Today at 09:05:51 AM

Quote from: AirtelBuzz on Today at 03:57:09 AM

Quote from: Slimzeee on June 30, 2025, 11:18:31 AM

To be honest, the whole idea of emergency funds being pressed on people’s necks sounds a bit off to me.
First of all, we’re always told to only invest what we can afford to lose something that won’t break your back if it disappears.
Then, regardless of any aid or help you might get, you’re still expected to have some financial capability to handle your regular struggles without throwing all your money into crypto.
But does it really have to be called “emergency funds”?

Hey @Slimzeee think flexibly and with experience, this seems like a strange sentence because how can people plan to struggle and invest without an emergency fund? When it comes to investing, it's said to invest as much as you can but it doesn't mean you should stop spending money on your emergency fund. In light of your opinion it is correct to say that if you don't have a backup fund or emergency fund, your back will simply break in uncomfortable situations. Moreover @Slimzeee if you really prioritized Bitcoin investments so much, you wouldn't have to use this phrase to find a way to prevent future problems with your holdings. I still know that in life, an emergency fund is not an optional thing but is considered a necessity, whether to protect the family or to protect investments.

Plan some time to literally close your eyes, if someone does not receive free healthcare in their country and does not even have a backup fund at that time, what would be the process? My curious mind says there are a few things that you should spend money on in this context take an example it can be mentioned that necessary expenses, investments, savings, and emergency funds must be adhered to.

If you are on DCA strategy to continuously accumulate for the long term that means that you must consider emergency funds so that you won't be tempted to sell your Bitcoin prematurely. There is need to plan for unforseen expenses because nobody knows tomorrow, health issues can happen, unexpected bills or loss of acomodation due to natural or man made disasters. If you don't have emergency funds at hand things can get out of hand that is why it's importance cannot be overemphasized. People undertakes many types of insurance because of unforseen events and the premium they pay is part of emergency fund.

If you're going into Bitcoin investment you need to first have a budget for your income before knowing whether you're qualified to start. For those that have started they need budget to know whether they're continuing or taking a break. Starting DCA is simple but sustaining it is where the challange lies for low income earners, there's no gain in buying today and being in dire need of money in a couple of days then selling it.

To get started in bitcoin investing in bitcoin, all that is needed is discretionary funds. Sure it might be helpful to have a budget to figure out future ways to keep buying bitcoin.. but it is not necessary to have all those matters sorted out in order to get started investing into bitcoin, and yeah, you are correct, if a person fucks up and spends from money that he needs for expenses a short time later or even in less than 4 years, then he is not investing, but instead either trading or gambling.

Quote from: Kelward on Today at 09:05:51 AM

Income earners should have a sound and feasible financial management plan that includes basic expenses, discretionary funds from where emergency and DCA funds comes out from.

You somewhat correct with the above statement, even though you 1) seem to be presuming a need for financial management to merely get started investing in bitcoin and 2) you said it in a confusing way... .. Sure emergency funds and DCA do come out of discretionary funds.. and discretionary funds are what is left once the expenses are accounted for.. so then once the discretionary funds are figured out, then that shows how much money is available for investing into bitcoin, how much to put into backup funds, such as emergency funds and how much might be used for other optional consumption.