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.
You're right there. The thing is if you've a solid backup background, the risks of investing without a thought that you're risking will be drastically minimized because every short eor emergency needs is sure to be handled without stress. I fear to call such scenario a smart move for the investor but moment to take chances from those opportunities with the potential of encouraging your dreams.
Although we don't need to play too over smart and looses the version of probability because a slide unusual from the backup system has a burden potential against that goal we're thriving to acquire in the less risky approach where we were not bothered if bitcoin was volatile nor there was risks associated to bag all our eggs in one basket.
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..
I trust the right orientation is that we invest according to the values of our discretionary incomes and expands our values of even diversify when there has come increase of our incomes. The reality is that the more wealth we grow is the more expensive our budgets grows therefore we're expected to have more savings to solve those needs because we wouldn't have to put them all up to those behind our confidence.
Perhaps selling even a pinch of your asset isn't a good idea because you're otherwise deviating from your goal. If you must sell, let it be at the appropriate time you've set upon from the onset if not, there'll always be convinceable reasons to why you even have to sell all to solve your needs. I think we need apply some more disciplines and don't crave for expenses that's above our savings and not our future assets.
However, somedays are like that when we've to stumble with our finances especially when we don't earn much and have a dream that's beyond what our presents can afford in the long term. So therefore, I also agree that there could be need to sell at times at the needy but that mindset of repeatedly tempering your investment values just for emergency purposes is a void that can't help reach the goal. Instead, if if expenses has become too much to handle and also buying more to your portfolio, then stop buying and just hodl. You can use further provisions of your discretionary incomes to curb those expenses regarded that you're not buying more in the meantime until you sort your expenses and budgets.