Post
Topic
Board Nigeria (Naija)
Re: Balancing Financial security and Bitcoin Accumulation
by
Tungbulu
on 23/07/2025, 06:46:30 UTC
5. Emergency Fund First. Always. I know we’ve been hearing this a lot here on this forum, in fact it was when I joined this forum I started taking my emergency fund more serious.. Bcus it’s one of the most powerful steps. Maybe built at least 1–3 months of your basic expenses in cash or stable value.
When you are building up the amount that you invested in bitcoin to be at least 3 months of your expenses, then during those times, you may well be in position in which it is preferable to build up the emergency fund and the bitcoin holdings at around the same pace, yet once your bitcoin reaches more than 3 months or more that you have put in of your expenses (it might have had grown through bitcoin appreciation too), then you are likely going to be putting your bitcoin at risk if you are letting your emergency fund have less than 3 months - including 1 month of your expenses seems really risky, even though surely guys are free to judge their own situation and to figure out their risk levels.  So many poor people get themselves into trouble because they fail/refuse to build anything close to a sufficient back up funds system, and then their bitcoin end up serving as their back up funds, which ends up leading to their having to sell some or all of their bitcoin at a time that was not of their own choosing, even when they could have had engaged in reasonable levels of back up funds that would have had saved them from such situation, so they end up having fun staying poor... and perhaps never being able to get back to the bitcoin position that they could have had or should have had with the establishment, keeping and maintaining of a bit more preventative precautionary measures in place, and adequate back up funds is one of them and not overdoing and/or shitcoining and/or trading (gambling) with their bitcoin is another those good practice measures that are likely even more important for poor people.
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Poor people might have ONLY a very narrow path of opportunities to get out of poverty, and if they spend several years building up something like a bitcoin portfolio, and then they end up screwing up their investment because of their own slopiness they might not be able to recover again... so there could be some poor persons who had spent one or two cycles building up his bitcoin holdings and he does not have much if any of an emergency fund, but then an emergency comes and his whole bitcoin is wiped out because his bitcoin was serving as his emergency fund. .and maybe if the BTC price is down at the same time as the emergency, he might never be able to recover from what he ended up losing.  Sometimes also just a bit of cash can get someone over the rough periods and to prevent a bad situation from becoming even worse because the onhand cash was able to cover the expenses until the person got back on course and started earning an income and/or maybe resolved some expenses.
Yeah, the path out of poverty for a lot of poor people is often pretty narrow, especially when that path is through Bitcoin investment and they happened to have screwed it up by using their investment to cover for emergencies, it can indeed be pretty hard to recover from the fall. This is indeed a very tough spot because should an emergency hits during the time that the BTC price is down, this could potentially lead to liquidating all their investment.

It's important, not just for poor people but every investors to have a strict rule about never touching their investment to cover for emergencies but rather, they should prioritize having a separate fund for future emergencies is a more solid strategy for investors in building up their Bitcoin portfolio, because this way, their Bitcoin will have all the chance to grow overtime which is initially meant to be part of the long term plans, and not having to to be pulled into short term financial disasters.

Having a separate cash somewhere can make a lot of difference in getting through rough periods without having to necessarily screw up their investment. those cash can potentially cover for those emergencies until the investor gets back on track and that way, the investment is completely safe and shielded. It also forces discipline in maintaining some kinda buffer for emergencies, which may potentially prevent subsequent problems from occurring down the line