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.
Is emergency funds not different from the money we need to be servicing our daily household needs which includes those of children? It could be that you project your emergency funds to meant to serve different purposes but that shouldn't be the case but for unforeseen situations that arises. Our emergency funds should be strictly for emergency purposes while we delineate from our salary other funds for daily upkeeps. When our emergency funds serves many purposes it's no more emergency funds as it rightly should be. In knowing how to carve out their differences we can succeed in growing our bitcoin investments without tampering it prematurely.
for me I can say, emergency funds should ideally be reserved strictly for unexpected situations like medical issues, sudden job loss, or urgent repairs. When they start blending into everyday household spending, their core purpose begins to lose meaning.
That said, I think the challenge for many people, especially those with tight or irregular incomes is managing those clear boundaries in real life. Sometimes the lines blur, not out of poor planning, but because of pressing needs at home. It is not always easy to separate emergency savings from daily upkeep when the latter constantly stretches every naira or dollar......But you are right, that learning to clearly define what each fund is meant for helps us protect our long term goals, including Bitcoin investments. With some discipline and structure, even those working with small amounts can build that cushion while keeping their sats untouched for the future. It's all about developing those habits over time.