Quote from: Tonimez on August 06, 2025, 06:36:48 AM

Quote from: JayJuanGee on August 05, 2025, 04:27:27 AM

[edited out]

I think the amount of backup funds and emergency funds a person aims at achieving also depends on some factors which could be personal or general. A married investor with a family of 6 would need more back up funds and emergency funds than another bitcoin investor with a family of 2, 3, 4 or even 5 and this needs completely varies from the requirements of a single bachelor who is investing in bitcoin. If this is closely practical, then there may not be a suitable measure as to the number of months to hold as backup funds and emergency funds. The cost of maintaining humans per head is hypothetically exponential as the figures increase which also broadens the factors affecting the usage of the reserve funds, the back up funds and emergency funds all takes a different pattern that may not be tracked adequately too. So I prefer a continuous accumulation of both back up funds and emergency funds alongside your bitcoin stash for at least 2 years based on your summation here, 3 to 4 months per head, for a family of 6 investor.

Holy shit, you are going to have fun staying poor if you believe that you need to hold 2 years of cash for expenses merely because you have a family of 6 persons in which you are responsible.

If you have a family of 6, then your expenses per month are already likely going to be higher than a single person, yet several of the costs are going to be shared, so with some costs you are not adding equal amounts for each extra person.

I will agree that you will likely have extra expenses and needs for greater emergency funds and reserve funds, yet it likely not going to be any where near the levels that you are calculating to change your minimal requirement for 3 months of emergency funds to 18 (6x) months of emergency funds.. that is completely ridiculous and out of touch with reality or logical.

In the end, each of us needs to choose how much to invest into bitcoin versus how much of various back up funds that we might keep based on our expenses and/or based on our expectations that we might experience shortages in our discretionary funds due to lessening of our income and/or increases in our expenses.

Quote from: Tonimez on August 06, 2025, 06:36:48 AM

Quote from: JayJuanGee on August 05, 2025, 04:27:27 AM

At some point some point down the road their back up funds may well reach $2,700, which is 3 months of their income, and they may choose to continue to grow it beyond three months, so then there would be emergency funds and reserves, and so maybe the emergency funds they try not to ever allow it to be tapped into.. but if they make a mistake and they run out of reserve funds to cover the mistake then they will have to tap into emergency funds, and sure they should give priority to refilling the emergency funds, but they can choose or not choose to build up their reserve funds too.. so then they could end up with 3 to 4 to 5 months worth of expenses, and if they have 5 months that is $4,500 which is a lot of cash for someone with such modest income, yet it may not be so much cash if they might have some specific reason that they have the extra cash... maybe they are saving up to buy a new cell phone that is going to cost $800? There can be various reasons that they might keep more than 4 months of back up funds.

Tapping into the emergency funds for investment sake at any point in time should not even be an option especially among the newbies who still lack proper knowledge of stress management and financial intelligence.

In the end, each of us can do whatever we like, even dumb shit. Sure, many times we suggest that the more new that we are, the more disciplined that we need to be in regards to both building up our bitcoin stash, but also we need to be more disciplined in terms of getting our back up funds to an adequate level. At the same time, a newbie could take 6 months to 2 years or even longer to get both his bitcoin stash and his back up funds to a reasonable place (such as 3 months of expenses or more in each), so sometimes in the process of building up the bitcoin stash and the emergency funds, there may be some tough choices and/or learning and/or even situations that might contribute towards needs to assess trade offs and choices about from which funds to spend first or which funds to build first.. so ongoing balances and getting used to not having as much cash to work with but trying to get both the bitcoin investment and the back up funds (cash) to a comfortable and ongoingly workable place that is tailored the person's 9 individual factors.

Quote from: Tonimez on August 06, 2025, 06:36:48 AM

Tapping into the emergency funds to refill it later ( soon as possible) after exhausting your reserve funds and back up funds is also more wield as no one knows when nature would hit and hence you've exhausted your reserve funds and back up funds for investment purposes, tapping into the emergency funds would be a final bite.

Surely there could be dangers in which a persons should be aware about when he taps into some of his funds, and he might have to consider his options and urgency of any of the ways that he might choose to spend money, and he might end up making mistakes by being too aggressive or on the other hand, he could make mistakes by being too conservative.

Quote from: Tonimez on August 06, 2025, 06:36:48 AM

So in this case, aggressive buys could wait until the next payday when you could channel your reserve funds and back up funds too just to safeguard your emergency funds for the safety of your bitcoin stash. This does not mean that emergency is going to happen immediately you tap into your emergency funds but just to be on the safe side.

Each person has to decide his level of aggressiveness for himself, and sure many times we recommend starting out more conservative and then work up his level of aggressiveness with both experience and/or with the making sure that back up funds are sufficient. So, yeah, if he makes some mistakes, he has to suffer the consequences of such mistakes, and sometimes newbies and/or poor people (folks who do not have very much discretionary income) might not know how to manage their cash very well so they have to go through some difficult decisions and hopefully for their own good not screwing up too badly in terms of how they strike their balances.

Quote from: Tonimez on August 06, 2025, 06:36:48 AM

However, this is not wholesomely identical as everyone has the right to choose what to do with their money. Bitcoin investment is a personal choice of which every gain and losses is also personal. So being practical and unassuming would go a long way to assist in keeping our bitcoin safe. This is for the long-term Investors anyway.

Sure. Some investors will not end up making sure that they are keeping their bitcoin safe and they might unrealistically end up using their bitcoin as their emergency funds due to lack of proper preparations and proper accounting and lack of proper balancing to make sure that they do not end up having to tap into their bitcoin at a time that is not completely of their own choosing.

Quote from: Princess Leah on August 06, 2025, 08:38:21 AM

Quote from: JayJuanGee on August 05, 2025, 03:46:13 AM

People can do what they like, yet I think it is problematic to be holding onto too much cash unless you know of some specific reason that you are going to need it.
if you know an emergency is coming then it is not an emergency, even though you might need to keep some cash on hand.

Also even more problematic for poor people to be holding 3-4 months of cash and have hardly any bitcoin, which is part of the reason that so frequently as a ball park suggestion I consider that building the emergency funds and the bitcoin until they both reach 3 months as a ballpark idea.. ..

and so there is a need to balance liquidity and volatility yet at the same time eaqch of us has to account for various circumstances in our lives related to our anticipated income and our anticipated expenses so that we have some decent ideas about how much discretionary funds we have on a regular basis and how much various back up funds that we need.. including accounting for how we hold them in terms of both liquidity and volatility.. and anyone holding more than 4 months in cash is likely losing value as fast as they can keep it up (especially if they do not have at least similar levels of bitcoin)... so they might not be keeping value if they are stacking cash rather than stacking bitcoin...

and yeah, each of us has to figure out those balances without overly preparing for emergencies that might not happen or to speculate that there is only one way to prepare for emergencies.. and really, sure none of us want to sell any bitcoin that is at a time that is not of our complete choosing, so we have to figure out the balances and the likelihood of various scenarios in which the expenses exceed the income for extended periods of time.

I believe that, as humans we're meant to understand that emergencies would definitely occur just that we can't predict when it might likely happen, I mean the exact time of occurrence so all we can do is to prepare towards it, that's why, asides Bitcoin investment the Emergency funds is very important, having it intact is meant to be everyone's way of life since emergencies are unforseen events that we know might happen, don't know when but should be prepared for it.

Instead of holding emergency funds in cash for about 3 to 4 months, I think it might be better to even hold it in a stable coin, I understand that one needs to be very prepared and sometimes it might even take longer before emergency situations occurs but then that doesn't mean we should allow our money lose it's value while trying to be prepared for the unforseen therefore it's still not bad if our emergency funds is held in bitcoin or a stable coin instead of holding it in cash for about 3 to 4 months.

You might be correct that some (or a lot) of the emergency fund might be kept in some way that is other than physical cash in our own currency, so it could be that we have 1.25 months of expenses in physical cash, 1.25 in some bank account, 1.25 in stable coin or dollars.. and/or some other balance in which soime of the funds are more accessible than others, and we should be attempting to account for how long it might take to get access to the money, how volatile it is and how secure it is within its given way of being held. I would not proclaim to know the exact answers for each person, yet if some people presume that they know everything and then they end up keeping their money in a way that is not secure or accessible, then they are the ones who are going to have to suffer (and pay the consequences) if they screw it up and if they reach a balance that is not very well thought through.

Quote from: bitzizzix on August 06, 2025, 09:10:43 AM

Before diving into Bitcoin, I always set aside some money for an emergency fund, and it's been incredibly helpful and effective when I really need it. We never know what the future holds, when we might run out of money, and having an emergency fund can help us overcome any financial challenges we face.
And after diving into Bitcoin, my long-standing emergency fund plays a crucial role in my investments. I immediately set aside money for my emergency fund after prioritizing Bitcoin purchases upon receiving my paycheck and also prioritizing my basic needs. I always do both simultaneously, but the percentage allocated to my emergency fund is smaller than it is to Bitcoin. Everyone has their own strategy for how long or how many months it takes to build an emergency fund, and for me personally, as long as I can achieve both without sacrificing other needs, I think that's much better. I also plan to use my emergency fund for my child's needs, as he will start school in about a year, and I can use my emergency fund for future needs and beyond as much as possible without having to use Bitcoin prematurely.

Even though you seem to be calling all your back up funds emergency funds, there are likely some of the funds that you are treating as reserves, since if you know the use of the likely use of the funds and you consider the funds to have flexibility in the ways that they can be used, it is most likely that those flexible back up funds are reserve funds rather than emergency funds, even though they can also be used for emergencies, if needed.