For example:
Let’s say you earn $2,500/month. After handling your rent, bills, transport, savings, groceries, and other basic expenses, you have around $500 left over. That $500 is your discretionary income. You can decide to invest it in Bitcoin according to your investment plan, buy books, enjoy a night out, it’s totally up to you.
Now, let’s say you also have $2,000 saved in a separate account strictly for emergencies, like medical bills, job loss, or unexpected expenses. That money is your emergency fund, and it should never be touched for Bitcoin investments or any other form of investment..
The moment you start mixing the two, you are maybe setting yourself up. You could hurt both your finances and your peace of mind..
That is why keeping these two funds separate is one of the smartest things you can do as a Bitcoin investor.
I would really love to hear what y’ll think about this, do you separate your funds like this? Have you ever made the mistake of using your emergency savings to invest in Bitcoin? Let us learn from each other. Drop your thoughts.
As much as possible on which you should be that separating the two but we do know that there are some life situations on which we cant be able to avoid on spending up into those said allocations specially if the emergency fund isnt enough and you've been searching up on possible ways or solutions on trying to cope it up. Just like for example with some problems when it comes to health on which it is just that possibly a very costly kind of expense depending on how complicated it is. No matter how wealthy you are but if you do have that continous medication then you would definitely be facing up some issues when it comes to finances on which this would be leading into spending into the amount that you could possibly had even if you do have those plans on not to spend it no matter what, but if you are already on a life-death situation then you wont be that caring on with that. Even myself will definitely be that doing as long I could save up myself or my loved ones because thats what money is all about on which it should be spend.
Yes, we might be able to missed out those opportunities on making money but nothing beats out if you do save up someone or be able to save up your family or yourself just because of those funds.
It doesnt matter whether is a dicretionary income or emergency funds on which it isnt just that too hard to distinguish in about the two things on which you can eventually be able to point out directly on how
you would be that taking up such approach on different scenarions. Using up your own common sense will be telling you about its importance and what matter the most thing on here is that you do able to save
up in between two things on which it will surely be having that benefits or could save up yourself on such situations.