Quote from: Lida93 on August 07, 2025, 08:01:42 PM

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.

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.

Sure, emergency funds is very clearly different from money for everyday spending and should not be mixed. How we handle our emergency funds really matters as it determines the success of our bitcoin journey. There's no smart way of spending your emergency funds because no one knows the exact time and emergency situation will arise. When such funds is not available, one is pushed into selling off the available bitcoin to save the situation. Bitcoin investment is not something you can handle carelessly because of it's safety and it's not like selling off your bitcoin stash during emergency funds is generally evil but the fact that you are not too sure of not running at loss during the emergency situation period makes it very irrelevant to not provide for your emergency funds that should not be tampered with.

Quote from: Cossyblack on Today at 11:48:12 AM

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

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.

I don't think is necessary to tamper with your emergency funds to cover your child expenses that's is about to start school . Since you're aware that your child needs will be coming up in a year time,then it is no longer an emergency situation. Emergency Situations are unplanned events or an unexpected occurrence. So likewise the Use of Emergency funds,it should be seen as a safe haven or safety nets where you can fall backs to when Real life Emergencies happens. However I think what you should be thinking of using to cover up your child future expenses is using your reserve and backup funds.i think your reserve and backup funds should be used to dealt with extra costs in regards to your child needs and not your Emergency funds.

Using your emergency funds to pay you child's school fees means there was an error during your financial planning and also represents poor financial management. Child's school fees is a basic responsibilities to anyone who has a child. Hence, making provision for their fees is not optional and this implies that as you receive your pay, you first set the money for their school fees aside before you can determine your discretionary income from where you also assign your emergency funds and investment funds (which you now invest in bitcoin). One mistake in the cashflow management system could collapse the entire system by setting your bitcoin stash up for premature sales. This is why when you decide your discretionary income and DCA allocation, it is advisable to create a backup funds and then the emergency funds.

The backup funds is there because your prediction about price of your basic responsibilities could change and you quickly fall back to your backup funds to compensate for the excesses and still not your emergency funds.

Your emergency funds is so special to the extent that it is best allowed in cash, fiats not even in any asset or exchange. Emergency situation has no time, it could come by the middle of the night and if you still want to sell one asset before attending to it, it may be too late. Every investor who has long-term holding in mind has to be very disciplined against any urge to spend the emergency funds. Some also play smart by investing the emergency funds in bitcoin which is also wrong. They intend it for aggressive buys therefore exposing their general bitcoin to premature sales.