[edited out]
Yeah I get your point JayJuanGee, and I agree we might just be talking about how we are each choosing to describe things. . But the angle I was coming from when I said savings should be separated from emergency funds is based more on the purpose and intention behind them.
You mentioned emergency funds, reserves, and float, and I think that is a solid one. But in my view, savings as I was referring to it is not just a backup or reserve, it is more like a targeted preparation for specific thing or goals outside of Bitcoin..
You are describing your view of what savings is as the same as reserves, or at least one of the possible functions of reserves. Reserves can be used as emergency funds or they can be used for any consumption good or for a future investment or even to have available to buy the dip. You can hold them how you like and change their purpose.
Emergency funds, on the other hand, are the last resource before running out of funds and the only thing after running out of Emergency funds is to tap into your bitcoin. Sure emergency funds can be used for anything too, yet it seems to me that if someone is down to ONLY having emergency funds, he should start to realize that he is getting into a pretty vulnerable place in which his bitcoin could end up getting tapped into.
You are right though, it is more about how someone chooses to structure and mentally categorize their funds. What matters is having those buffers in place so that Bitcoin does not get touched out of desperation. And that part you said about if someone is down to only emergency funds, they should realize they’re vulnerable…. that is so real. It is like, at that point, you’re basically out of options and might have to start undoing years of work if things get bad along the way.
What you are saying makes more sense, and none of those ideas are strange, even though surely there could be some situations in which you might have some specific item that you are saving for and you will end up getting that item rather than maintaining your emergency funds and sometimes even part of your bitcoin might end up coming into jeopardy... yet in the end, each of us still has to figure out how much various back up funds we have on hand and what purposes and priorities they might have, and surely if we do not have enough and nothing is left, then we may well end up spending some or all of our bitcoin at a time that is not completely of our own choosing, which was supposed to be what we were trying to avoid by making sure that we have enough back up funds in their various categories to cover our various current needs and to prepare for various changes that might unexpectedly come to our income and/or our expenses..
Yeah, the main goal is still to avoid being in that position where we have to touch our bitcoin out of desperation. That is where having some kinda layered backup helps, whether savings, reserves, or float... It is more about the intention and having some kind of structure, even if it is not perfect….
Really appreciate your thought and the way you broke this down…. It’s obvious you’ve been around the space long enough to speak from experience.. And I genuinely learn from the way you see things and pay attention to every one of us here, letting us have the best of an investor mindset…