So many people get wrecked because they did not build that safety net first… It is like trying to swim without a life jacket, eventually, the waves get too rough. Having an emergency fund isn’t about being weak or scared, it is about protecting your future self and your long term goals. When you have that buffer,
Your comment seems to suggest that we need to build an emergency fund before we start investing. Waiting to build an emergency fund before starting investing is not the right decision.
As you said, it is like trying to swim without a life jacket, basically we put on a life jacket before we get into the water. But if we use this in the case of investing, it will not be right at all. If we wait to build an emergency fund before investing,
What you are suggesting is actually what seems to be swimming without a lifejacket because when you thought that you can confidently swim without getting tired you neglect the help of a lifejacket and if eventually you began swimming and the unforseen happened that you get tired you began recall back how you could have prevented it if there was a lifejacket so actually in Bitcoin the lifejacket is the emergency funds because they are your rescue at every given moment of challenges so actually building before investing is also a smart way because you shouldn't think that as a starter there is nothing to disrupt you. What if you start without emergency fund how would you manage everything?, will you run to your investment at every call?. Someone with an emergency fund is confident than someone without it because the person with the emergency funds has a place of shelter while you do not have.
If you do not have an emergency fund, both your investment and you will be at risk. The reason for this is that people do not know what to do when there is danger in their lives. And during a disaster, people's minds become like turbulent waves. Then they cannot understand what to do. For this, selling investments is a common thing, they do not hesitate to sell their homes. They just want to get rid of that disaster and get a solution. But if there is an emergency fund, no matter how big the disaster is, such as illness or losing their job, they will have an emergency fund in their mind. And they will try to solve it with that. If you do not have an emergency fund, you will have to reach out to your friends or relatives. If they immediately express their unwillingness to help you, it will be insulting.
So, along with investments, have an emergency fund. Prepare for your emergencies in advance. Never lose your investments. Try to increase your investment portfolio as much as possible. The investments you make will one day give you a golden smile.
And an emergency fund is like a trusted friend. If you suddenly fall into a well and you have that trusted friend with you. You have faith in him that he will pull you out of the well, even if it is with a rope. The same is true of an emergency fund. It will come in handy at that time when you are helpless. So, along with investing, having an emergency fund will be like a friend in danger for you.