Quote from: Derekfunds on August 20, 2025, 05:10:53 PM

Quote from: SuperBitMan on August 20, 2025, 01:12:47 PM

Quote from: JayJuanGee on August 20, 2025, 01:29:14 AM

Quote from: Loyang on August 19, 2025, 05:20:30 PM

Quote from: JayJuanGee on August 19, 2025, 06:28:55 AM

Quote from: Gost ms on August 19, 2025, 04:13:14 AM

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.

Sir, I got the right information from you. I was very confused about this issue. Because I have seen many people creating an emergency fund with their main income and many people creating an emergency fund with discretionary income. Whenever I tried to ask someone, everyone gave different advice, due to which I was very confused about this issue.

If a person creates an emergency fund with discretionary income, then it will be very good for them in creating an emergency fund. Because they will not have any kind of exclusion in creating an emergency fund. If a person invests with his main income, then sometimes there may be a financial crisis for family expenses or all the other expenses, due to which the continuity of creating an emergency fund may be lost. So whether it is our emergency fund or any other fund, it is better for us to create it with discretionary income.

If we end up spending our income prior to accounting for expenses, then when we have expenses that are due, we either have to spend from our back up funds or we have to spend from our bitcoin, and so we are trying to prevent situations in which we will have to spend from our bitcoin at a time that is not completely of our own choosing, and so we sometimes could make mistakes which provides greater justification to have various back up funds.

You are correct JJG, the right thing to do is to always account for your expenses for that week or month and it should be based if you receive salary weekly or monthly and it should be within that space that you receive salary, sometimes you may get paid and immediately you start spending and you may even forget the most essential things needed so it is advised that before the due date that you will receive your salary you write down the things you need to spend the money on and how much will be lift from your salary as your discretionary income, any other emergency expenses that comes later you can use your reserve funds to settle it and that is why it is very important to have your backup funds which are your emergency, reserve and float funds and how strong they are determine how fast you will be in your accumulation journey because they help prevent you from dipping hands into your Bitcoin investment and also help you use your discretionary income for accumulation because when you have solved all your expenses for that week or month and emergency expenses that comes up can be solved or settled with any of your backup funds instead of using your discretionary income.

This is actually a good way to get your discretionary funds before month or week end that someone will receive salary or wages that is if their payment is constant and doesn't vary because of it does vary you can not be able to determine how much to allocate to some certain needs or want but on the other hand doing this because one can easily forget their needs doesn't make any sense because I wonder what will make someone forget his needs unless the person doesn't know what scale of preference is all about. A wise investor will never forget his needs whenever money comes in because he knows what will be the consequences or the damage it can cause or create of they forgot.

I think you are right. Just as you've said, I think a wise investor would so much want to prioritise his or her needs and allocate funds accordingly to avoid financial difficulties. I must say it's very essential for us to strike a balance between savings, investing and meeting essential needs and expenses. Also, understanding one's scale of preference and prioritising essential needs is crucial for effective financial management.