Re: Discretionary Income vs Emergency Funds: Why It Matters for Bitcoin Investing
Your reply had me thinking fr, I won’t lie. I like how you broke it down.
This part cracked me up a bit. But yeah, I get you 100%. When you’ve built your emergency fund to a certain level, your mindset around it starts to evolve too.
This is real-life logic. Sometimes it’s not about just surviving, it’s about balancing your life and staying sane during the tough moments. And if your plan includes a small DCA during that time, and you’ve accounted for it, then it’s valid. I see where you’re coming from completely.
All in all, I rate your takes. I’m glad you enjoyed reading it…
I think a lot of people know the difference deep down, but in the moment, emotions take over. It’s why these conversations matter just to remind ourselves of the bigger picture and stay grounded.
Appreciate you sharing your view.
I disagree on the emergency funds piece but also agree too. Ahhh a conundrum what do I mean lol. It comes down to the maturity of your emergency fund.
This part cracked me up a bit. But yeah, I get you 100%. When you’ve built your emergency fund to a certain level, your mindset around it starts to evolve too. I agree 100% with you based on early maturity of your emergency fund covering your life expenses for 3months(minimum) It should just cover your basic needs for that time period. It shouldn’t be used for bitcoin investments.
Yeah that is key. At the early stage, the fund is strictly for safety, no story. You can not be playing around with it when you have covered barely 3 months. That solid base has to be untouched.Where I disagree, again relates back to maturity. Over time you may increase your emergency fund for example extending it to 6,9,12,18 months of $ saved, at some points in the future. When you have maturity in your emergency fund you can start to figure out basic to comparative living $ needs. It happens naturally and you might account for other expenses above basic living coverage. So I absolutely disagree that you can’t use your emergency fund for buying bitcoin( like dca amount) in sense that if you account for it as something over basic living coverage and have that maturity in your funds. Personally I only started to think about extra over basic living things once my emergency fund reached 6 months.
Hmm, true though, would say once your coverage extends beyond the basics, let’s say you’ve got 9 months or even a year gathered up, then you can start planning with the extra. I won’t say it’s reckless, if it intentional and already secured your base.As an example say you have 18 month coverage in your funds. Now you got a decision to make if say you lost your job. Do you do basic living for 24months or comparative living for 18months(with a btc dca).
Great write up by the way thanks for sharing, I enjoyed reading it!
Great write up by the way thanks for sharing, I enjoyed reading it!
This is real-life logic. Sometimes it’s not about just surviving, it’s about balancing your life and staying sane during the tough moments. And if your plan includes a small DCA during that time, and you’ve accounted for it, then it’s valid. I see where you’re coming from completely.
All in all, I rate your takes. I’m glad you enjoyed reading it…
I totally agree with you on this, Emergency funds are meant not to be touched but rather they are meant to foot the bills of unforseen circumstances. But for discretionary income one can decide on what to use it for, either for savings or what a view.but then most investors don't understand this principles and get it twisted so your point clearly state one save what remains out of paying their responsibility bills.
Exactly man. I think what really stands out is the discipline, not many people can resist the urge to dip into their emergency funds when the market starts flashing buy.I think a lot of people know the difference deep down, but in the moment, emotions take over. It’s why these conversations matter just to remind ourselves of the bigger picture and stay grounded.
Appreciate you sharing your view.