i have practicing having emergency fund with my investment and outside my Bitcoin journey i have been make sure that my emergency fund is always available to cover when the needs arisess, i really appreciate some of the forum topics because they really help me to build up the better me today.
Setting aside emergency funds when you are investing in bitcoin is not for you to use to solve your basic needs because if you do that, you are taking a wrong step in your bitcoin investment, and you will find it difficult to hold your bitcoin investment for 4-10 years. If you want to solve your basic needs, you will use your weekly or monthly income to solve your basic needs, while you will use your emergency funds only when an unexpected problem you didn't plan for arises.
While that's true. It's also worth noting that not all unexpected expenses are actual emergencies, that's why it's also advisable to have other backup funds asides the emergency fund, just like the reserve fund and also the float fund, this could also be used to cover some unexpected expenses which are not actually an emergency, so that the emergency fund will always be reserved until when an actual emergency occurs.
Emergency is emergency bro when challenges you never expected hits you it's called an emergency maybe the unexpected expenses you are talking about is for example maybe you dey go buy food stuff for market and you no expect to give out money to people you just budgeted money for food stuff only and some one or an old friend now ask you for money and you gave out I believe that's the kind of unexpected expenses you are talking about.
I don't think that's the type emergency we are talking about real emergency could be burial in Nigeria you already know that people spend whole lots of money when it comes to burial this is just an example of the kind of emergency fund we are talking about not road side expected expenses.
So the expected emergency you are referring to is not the real emergency when it comes to bitcoin investment.
I think you raise some good points Umulala-alala, since the management of cashflows can overlap into various categories of funds and surely I think about emergency funds as the last funds that you have left prior to having to dip into your bitcoin, and sure bitcoin could serve as emergency funds, yet hopefully many of us are learning that it is not a good practice to use bitcoin as an emergency fund, so part of the reason to be so anal about making sure that we have emergency funds and various other kinds of back up funds is so that if there end up being various situations in which the expenses exceed the income, then we have options in regards to which funds to use first and the fewer funds we have the fewer options that we have, so part of the reason that we label emergency funds in such a way does not exactly have to do with how or if they can be used, but is to signal a kind of level of problematic place that a person might be if the only funds that he has left happens to be emergency funds and/or bitcoin.
If he ONLY has those two kinds of funds to choose from (bitcoin and emergency funds), he may well recognize that he would likely feel that he is not in a very strong and/or comfortable place in regards to what options he has available (and perhaps he might have had contributed towards putting himself into such a place by not engaging in better cashflow management balances).. and surely the longer and longer that we are in bitcoin, the more that we should feel that we have a variety of options, and even if we continue to build our bitcoin (and our cashflow management systems/practices) and even if we have not gotten to our target bitcoin accumulation place, the longer and longer we are in bitcoin, the more that we have a variety of options that result in our being able to survive (and perhaps even thrive) through a variety of circumstances that others consider to have had been negative, yet we are able to have options and even financial and/or psychological cushions in our going through such negative financial and negative psychological circumstances.
Your approach highlights the importance of having financial planning for emergency purposes and cash flow management system in place, because having multiple options that will provide money, can be use to sort out various financial challenges and this method can support one in their journey of accumulating Bitcoin for long-term goals and can also provide peace of mind.
In addition to this, if they continue in investing or holding Bitcoin, they are likey to find a financial framework that allows them to be able to navigate through unexpected challenges without compromising their long-term financial goals.
But in all, if they don't have patience and discipline, they won't be to achieve their success easily.