Before diving into Bitcoin, I always set aside some money for an emergency fund, and it's been incredibly helpful and effective when I really need it. We never know what the future holds, when we might run out of money, and having an emergency fund can help us overcome any financial challenges we face.
And after diving into Bitcoin, my long-standing emergency fund plays a crucial role in my investments. I immediately set aside money for my emergency fund after prioritizing Bitcoin purchases upon receiving my paycheck and also prioritizing my basic needs. I always do both simultaneously, but the percentage allocated to my emergency fund is smaller than it is to Bitcoin. Everyone has their own strategy for how long or how many months it takes to build an emergency fund, and for me personally, as long as I can achieve both without sacrificing other needs, I think that's much better. I also plan to use my emergency fund for my child's needs, as he will start school in about a year, and I can use my emergency fund for future needs and beyond as much as possible without having to use Bitcoin prematurely.
Hmm… I feel like there is a bit of a contradiction here... You first mentioned how before diving into Bitcoin, you always set aside some money for an emergency fund, and that it is been incredibly helpful for financial challenges we can not predict, which honestly makes a lot of sense… But then later, you are also talking about using that same emergency fund for your child’s school expenses...
Now, school expenses are not exactly an unexpected emergency, they are more of a planned expense you can anticipate months in advance.. So if you start dipping into the emergency fund for planned costs like school expenses, then you might not have it when a real financial challenge comes knocking…. I am not saying your plan is bad sha, but maybe it would be better to keep the emergency fund strictly for true emergencies, and have a separate future needs fund for things like school expenses and all…