An emergency fund should be considered essential by anyone considering long-term Bitcoin investment and not wanting to disrupt their Bitcoin balance every time they need cash. However, I recommend everyone have a steady job with a regular income stream so they can manage it carefully, including allocating a portion of their income to an emergency fund and using the rest as capital to buy Bitcoin.
To invest or create an emergency fund, we need a source of discretionary income.
If you do it with your fixed income source, it may not be very sustainable. For example,
*Discretionary income is the amount of money left over from your fixed income after deducting all expenses. It is better to invest with discretionary income because you do not need this amount of money very much. The money that is left after meeting all your expenses is discretionary money. If you invest with discretionary income, it becomes much easier for you to maintain it in the long term.
If you do not have an emergency fund, you can create it along with your investments. You can keep some money aside for an emergency fund from the amount of money you wanted to invest from your discretionary income. If you do not have an emergency fund, you can do emergency fund and investment at the same time.
If you invest with fixed income, you may not be able to maintain your investments in the long term. For example, if you need the money, you will have to sell your holdings. So you should invest with discretionary income.
By fixed income we mean a predetermined and regular source of income. For example, a monthly salary from a job, or the money we earn at regular intervals. Most people have a fixed income. They save and invest based on a fixed income. Fixed income is positive for investing, this is not a problem. However, there may be some reasons why a fixed income is not sustainable, such as: The money earned from the fixed income is not left after spending. That is, not having money left after spending is the main obstacle in the way of investment. In my opinion, the real challenge is the income-expenditure ratio. If someone earns $1000 from a fixed income every month and he can keep $200 left after meeting all his expenses, emergency fund, needs. Then this $200 can be his investment capital. But if he spends the entire amount of his income, then he will have no money left to invest. On the other hand, if someone earns twice as much money and spends it all, he will have nothing. The saying that 'fixed income' is not sustainable is only logical when someone does not manage his money properly. In my opinion, the sustainability of an investment depends on financial discipline and the individual's perspective, not on the type of income. So, regardless of the type of income, if there is no proper financial habits, then the investment is not sustainable. With proper discipline and planning, long-term investments can be built even from limited or fixed income.