Quote from: AVE5 on Today at 09:00:10 AM

Quote from: JayJuanGee on July 22, 2025, 01:58:03 AM

Quote from: Apocollapse on July 21, 2025, 05:27:29 PM

If I looking back at myself when the first time I buy Bitcoin, there was no emergency funds, I use my discretionary income to invest in Bitcoin.

The good thing it went well and I don't have to stress myself if the market were down.

Not want to say the new generations should follow my way too, of course, I, as someone who've in this industry for 4 years know if emergency funds was important especially you born from poor parents or have no one who can back up your financial when something bad happen.

Sometimes we get lucky, even if we unwittingly take chances in ways that we had not realized.

Don't you think that really blows hot like you don't own a savings and all you just do is invest all of your discretionary income into uncertainty bitcoin market and not bothered about emergency needs knowing that bitcoin profitablity isn't coming soon neither are you even bothered to sell in the short term? well, some people are really lucky to make ease on the pressure of chasing their dreams. Especially that of finances knowing how challenging it's as an independent person.
I'm sure you made it successful due to leveraging on backup.
However, I believe nomatter how rich we're going to be in life, as wise as thought, as long as we are independent, there's always going to be need to be calculative with our discretionary incomes even while investing, it's important to always consider emergency funds as backup approach because when there's no one to lean on at your needy when your investment hasn't matured for harvest, then you'll have no choice than to panic and disrupts your investment goals. Even when we've got those solid backups, we'll still need that backup savings because those external backup could fail somedays. Life is inevitable and change is constant to humans and nature.

I think that part of my point was that if we have good systems and practices in place, every once in a while we might be able to take extra chances and even do some things that are not very smart, yet our strong systems will protect us as long as we are reasonable in the kinds of chances that we are taking, and we are not engaged in such risky behaviors on a regular and repeated basis.

I think that many times if guys are in their earliest of stages of building up their various back up funds, they are going to likely be engaging in various risky behaviors from time to time, since they don't have enough back up funds to cover a wide variety of scenarios.. yet the more and more that they build their wealth, and even their bitcoin holdings, they have more and more cushion to cover a larger variety of scenarios including that they could end up in situations where they might have to sell 5% to 10% of their bitcoin holdings, yet if they have built up their various investments so well, then they would not even be majorly damaged even if they end up having to sell some portion of their bitcoin holdings.

Yet, if a guy is in his early stages of building up, he might not be able to afford such losses and if he ends up getting set back a lot, he might never be able to make up for his losses... and he also might never be able to get to fuck you status or maybe instead of getting to fuck you status in 15 years, he ends up not being able to get there until 25 years, and so he would have had a much better life to have had gotten to fuck you status earlier, but once he made certain mistakes, he ended up overly depleting his various investment stashes (including his bitcoin) and never completely being able to recover, but once he experiences certain levels of damage, he still has to pick up the pieces of whatever he has and he has to work from what he has rather than working from where he could have had been.. even though some folks will become psychologically damaged from some of their large losses in life..and some people will be better at picking up and salvaging the pieces from where-ever they are at as compared with others who might end up giving up..

Quote from: Sim_card on Today at 04:20:49 PM

Quote from: Tonimez on Today at 12:32:45 PM

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.

Your emergency funds should be set up first before any other back up funds because your emergency funds is bigger than whatever amount that you intend to use as your reserve funds or float. This is because your emergency funds will be at least three months of your income and fo this reason, you are to put it as your priority after your bitcoin investment. It can take your more than one year or two to set up your emergency funds since your are building it simultaneously with your bitcoin investment.

Your reserve funds can come after you have built your bitcoin investment because the funds that you are using to build your emergency funds is whet you will channel into building your reserve funds. Emergency funds is to backup your bitcoin investment so that you don't sell it when an unforeseen circumstance play out.

I think that within the first year or two that a person is building up his various back up funds, he might have some overlap in the terms or even his usage of the funds, and surely there should be a priority to build up emergency funds first, but if a guy does not have any other money besides his emergency funds and his expenses happen to be more than his income, then he has no choice but to use the emergency funds. Otherwise he would have to tap into his bitcoin since he does not have any other money.

Sure the guy is in a better position from having had built up the emergency funds, and maybe he had been investing in bitcoin for a year at 10% of his income, so his emergency funds and the amount that he put into bitcoin might ONLY be right around 1-2 months each of his expenses), so it is not as if he was doing anything wrong, it just takes a while to stack away money if the whole of the discretionary funds is ONLY 10% of his income.. and it is not even like he is poor because there are some folks who are not able to invest 10% of their income.. so he is doing what he can do, and if there is a shortage of income to cover his expenses, his only choice at that point in time is to tap into his emergency funds or to tap into his bitcoin... ..

Maybe in this scenario of a cash shortfall, the expense is 1-2 weeks of his expenses (which would be around 1/3 of the size of his current emergency fund stash) and it is going to set him back to tap into the emergency funds, but he does not have any other money..so maybe it does not even matter what the expenses are for except to know that he cannot defer paying for it.... and he better hope that the upcoming months he is able to either increase his income and/or decrease his expenses, and sure it can be difficult to talk about these matters in the abstract and sure we could make some more exact examples since sometimes there are abilities to quibble within the examples to say that the guy has abilities to increase his income or cut his expenses or to do other things, but at the same time, if the guy gets himself into a pickle in which his expenses are greater than his income, then even if it might not seem like an emergency and it seems that he could have had avoided it, he still ends up finding himself in such a situation which is more likely to happen in the first couple of years that he is building his various back up funds...and the early stages of his getting used to investing in bitcoin (maybe he had not had any prior experience investing, either).

Quote from: Findingnemo on Today at 09:27:14 PM

Quote from: JayJuanGee on August 07, 2025, 06:42:31 PM

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.

Like you said, it is the dumbest idea, and one who does that must have no clue about "what is inflation?"

I would recommend 3-6 months of cash as maximum and anything beyond is just wasting the potential money making opportunity and one who doesn't want to take any risks can go with the gold that is most likely not going to fall no matter what and if they want something that's from government then bonds can be an option even though these all are no where near with the returns offered by bitcoin but just in case they want to be safe and no risk at all. But like the classic saying, 'No risk No reward' so good luck them stay stuck where they are currently.

And one thing I noticed with most users here or in general not to make use of the health insurance and that is likely going to be most emergency we can stumble on all of a sudden that can be tackled with right insurance package depends on our needs and life insurance in case of unfortunate events so the family can survive from the money for a while and think about their next plan in our absense.

Summary: Don't keep as cash that you will need for no more than 3 months, buy the health insurance, prepare the retirement plan as early as possible and start investing based on our risk tolerance.

Ultimately, there is likely no exact clear answer, yet guys have to figure out ways to strike a balance to cover a variety of scenarios, and the more likely some scenarios to happen, then the more that either funds have to be set aside or some other kind of provisional plans should be taken (such as your suggestion for insurance for various kinds of scenarios). There also can be some scenarios that we are not going to be completely prepared for, yet those scenarios might also have relatively low chances of happening, so we have to figure out how to reach our balances with various base case scenarios, but then also further extreme scenarios may well also be sufficiently and/or adequately covered.

The more that we build our bitcoin up, maybe even if we get to a stage in which our bitcoin is 1-2 years of our expenses, we might realize that some of our worse case scenarios, our bitcoin is serving as part of our emergency fund, yet if we still have goals to build our bitcoin investment so that it is 10-15 years or more of our expenses, we figure out some balance in which we are in the practice of holding at least 3 months of emergency funds, yet we may also develop several other kinds of funds that might even be held in other assets, including that it may well be the case that we have built up credit so that if we really have a shortfall of cash, we can borrow 2-3 months of our expenses.. and that could be an extension of our back up funds that goes beyond the 3 months that we might have in more liquid form such as various forms of cash.