It is true that sometimes challenges can surpass what is in our emergency and that is why we should make our emergency funds to be strong and big just as our portfolio. I believe a wise investor will device a means when something of this nature happens and they will handle it in such a way that it won't really show or affect there portfolio. But the truth is sometimes this kind of scenario doesn't happen just like that I mean it is always rare and before situation like this would happen a good investor ought to have set up things because as you are investing as an investor you are also calculating how to handle or approach a situation if something went wrong.
I don't agree with you. If we focus more on how to make the emergency fund to be more than the investment it means you underate the outcome of an investment. One thing you need to know is that you can't solve all your problems even if you have all the money in this life. Emergency fund is very vital for every investors and you can't really tell when you will be in a problem that requires quick solution. Take your investment very serious and also have some money for emergency, atleast it can help one to have some relief when money is need to settle some challenge.
Good point Y3shot. There will always be emergencies and problems that will require urgent attention and money is the only thing that helps to provide solutions to the problems but that shouldn't make you to prioritize your savings on emergencies more than you do with your investment because you don't spend to make profit you only invest to make profit now or in the future. If money for your investment should take 70% of your total income your emergency funds should not take up to 20% because you are not working to solve problems when though you will always encounter problems a long the line.
While I might agree with you on what you’re saying concerning prioritising investment over creating emergency funds, I disagree with your allocation of percentage for your income. It is advised to invest from your discretionary income and that’s also where you get your emergency funds from.
Instead of saying “If money for your investment should take 70% of your
total income your emergency funds should not take up to 20%”…., You should
SayShare it in this Manner if investment money takes 70% of your
discretionary money while emergency funds takes 20% and the rest 10% in reserves. If you take 70% of your total income into investment, how are you going to take care of your essential needs and services you’ll end up using your investment to survive thereby killing that investment journey.