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.
You are right that emergency funds are not suitable for all financial situations. So we need to understand which of our problems is more urgent and which is less urgent, so that we can manage our funds properly. However, as a common man, what I understand is that instead of creating so many funds at once, it is better to have a reserve fund and an emergency fund. If someone wants, they can save some money as a savings. If you create different types of funds, you will see that a large part of your discretionary income is going towards creating this funding, and the money invested in Bitcoin will be less. If anyone need money to run his daily life, he will use it from his income. Apart from this, if he need a large amount of money for some sudden need, then he will use the reserve fund. And if his income stops completely for a few days or months, then his reserve fund will run out. And if he has any other source of cash flow, if that runs out also. he will use the emergency fund as a last resort.