Re: Discretionary Income vs Emergency Funds: Why It Matters for Bitcoin Investing

I still disagree, people who can control their finances, do not need emergency fund as extra buffer zone. If you know what you are doing, then you should be able to save what you do not need. "Emergency" is just not calculating it very well. I believe we do not need another fund, just put it on bitcoin and if you ever need it then if it's under, then it should be in USDT, if it's over then you are profiting.

There is no need for it, so a good investor won't make a loss and you wouldn't need anything else. I understand people may not agree with me, I have seen them not agree with me, and it has been pages, but I just do not see the benefit of it. The only claim so far has been "what if something unexpected happens", well that is what investment is for.

Are you married and have children, and are you the breadwinner of the family who needs to take care of your parents or siblings?

I'm guessing you live alone and have nothing to worry about, or you still get financial support from your parents. Because I believe that any adult who has a family and children, even has to take care of old parents. They will always have a financial plan and an emergency fund will always be their top priority, not investing or trading. Because they know that the world is tough and bad things can happen at any time, and having an emergency fund is important. Only people who are single and have never experienced those challenges think that an emergency fund is unnecessary.

The need for emergency fund can be for any level of people, married or unmarried. If I tell you my reality, I am still single and still fighting with poverty. I have to balance my income and expenses with my older parents and other family members. In the meantime, I am deposit Bitcoin but I know that at any time my older parents may get sick and they may need urgent medical treatment. I am doing my family responsibilities properly and depositing Bitcoin through discretionary fund. Although I am in the initial stage investing Bitcoin, I am continuing Bitcoin by keeping a backup fund. This backup fund is for my parents emergency medical treatment and also regularly Bitcoin accumulation

You should be very careful in taking care of your family responsibility and also managing your bitcoin investment because an emergency funds is not to accumulate bitcoin but to be a backup funds to your bitcoin investment so that, you don't sell your bitcoin investment before time when you are face with real life emergency.

Your discretionary income should be used for your regular weekly/monthly DCA accumulation. This is the reason why you must build up your emergency funds of at least three months of your monthly and stop. So that, you can channel that money into building your reserve funds and when that's set up, you are free to start investing into bitcoin with a large portion of your discretionary income.