If you have discretionary income, then you should never wait for an emergency fund. As you said, the emergency fund is set aside before the discretionary income. If you have created an emergency fund without really investing, then this is the wrong approach. Because if you do not already have an emergency fund, then you can create an emergency fund along with investments. If you create an emergency fund along with investments, then you are not missing out on the opportunity to buy, you are not falling behind the goal of building your portfolio. If you wait to create an emergency fund without investing, then this will be a very wrong decision for your investment.
You may be confused, discretionary income is the amount of money that we do not need very much. For example, even if this amount of money is lost, we will not suffer much loss. The amount of money that is left after deducting all your expenses is the discretionary income. If you invest with discretionary income, you do not need this amount of money very much. Discretionary income is very good for long-term investment.
If a guy is building up his emergency fund, then he is taking that money from the discretionary fund. It is money that is after the expenses have already been determined and/or removed... so yeah, all back up funds, whether emergency funds or reserve funds are built from discretionary funds.
you are correct JJG and this your explanation is very simple and very clear, for easier understanding, because alot of guys have argued this particular matter where some said emergency fund and backup fund are built from someone main source of income and not from discretionary income which is not correct. If an investor is building up his or her emergency fund and backup fund the investor is taking the money from his or her discretionary and not from his or her main source of income, discretionary income is a leftover money after you must have settled your basic needs either for the week or for month, that's to say from your discretionary income invest in bitcoin, from discretionary income you build up your emergency fund and backup fund and not otherwise.
It's no longer news that a successful Bitcoin accumulation process hinges on your level of knowledge about Bitcoin investment and the strategy to which you should employ in investing. But majorly, your discretionary funds is the bedrock. Anyone who argued that Bitcoin accumulation is done or is best done using emergency funds or backup funds have argued wrongly, yea! It's a wrong argument because one must first meet essential needs before savings. Would you rather save and not pay rent, electricity bills, tuition fees and what have you? You must first survive before you save and invest. After taking care of all these bills when your main income comes, then the reserve now serves as discretionary funds, and it has always been the best to be used for Bitcoin accumulation, because in this situation, you invest in Bitcoin without pressure, without panic or trouble from weekly or monthly demands because you have settles all of that. And that's just the best. An investor now employs the DCA strategy in accumulation of Bitcoin and off he goes, on and on he keeps investing and creates a future for himself.
Emergency funds and backup funds comes from the discretionary. Although we know that the level or amount of discretionary funds you can have largely depends on the level of your income and responsibilities awaiting you too, because responsibilities differs. Growing your income level leads to a climb in your discretionary which positively affects your investment journey. It has always been the best to invest using the discretionary funds, this enables us invest in peace and carry out long term investment.