Post
Topic
Board Speculation
Re: Discretionary Income vs Emergency Funds: Why It Matters for Bitcoin Investing
by
Muba20
on 21/08/2025, 17:25:54 UTC
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.
Indeed it is correct that everyone should clearly remember about a separate savings section as the emergency fund is like a financial safety net. Using an emergency fund for a child's needs doesn't seem like a complete healthy plan to me and this plan should be shut down immediately. In terminology it can be said that these things are basically part of your financial plan so it may be appropriate to use personal savings or other reserve savings to enter at that moment. In fact an emergency fund may not be created to cover such expenses, basically everyone tries to save that money to deal with unexpected and confusing financial pressures. It's true that if you don't want to use Bitcoin prematurely, so definitely need to find other options or alternatives but you probably shouldn't touch your emergency fund at all because these funds should be used properly based on risk tolerance and for unexpected moments.
Everyone is correct when they are saying that an expense related to a child's needs that maybe it is an extra $200 twice a year, and those kinds of expenses need to be prepared for and planned for in advance, and if you get to a place where the child's needs are needing to be paid, and all that you have is the emergency funds or the bitcoin, then you might have to make an uncomfortable choice, since you do not have any other funds from which to choose.. so you may well have had put yourself into such a situation in which you don't have enough money to pay for the child's expenses.  
Yes, the expenses related to a child's needs are basically covered under our regular expenses, which may be essential for them to continue their education. It is much better to consider other appropriate options before using a financial safety net, i.e. an emergency fund, for a child's needs or wants, such as personal savings or separate savings, or even other savings even if he reaches the end of his funds, he can then look to his family for help. But it should always be remembered that this fund may be lacking in the future for emergencies, so it should be used with caution but it might be part of a healthy plan not to use it for small school fees, that is for trivial tasks and should not plan to use the cash reserve kept for unexpected expenses in any way.
Emergency fund is use only for emergency needs. If we combine regular expenses with emergency fund, the purpose for which the emergency fund is formed will become worthless. If you lose your job or if you are the victim of an accident, then only that emergency fund should be used for that emergency moment. The expenditure that we spend on the use of clothes or food for the child is part of our regular expenses. But if that child were the victim of an accident, then only the emergency fund could be used. But the money from personal savings or income for daily life can be spent, the emergency fund should be used only for emergency purposes.