Quote from: JayJuanGee on August 24, 2025, 07:30:47 PM

Quote from: Joeboy on August 24, 2025, 05:17:39 PM

Quote from: JayJuanGee on August 24, 2025, 03:14:20 PM

[edited out]

Indeed, Good money management + backup savings = you won't be forced to sell your Bitcoin holdings during though times, and you can let it grow until you are ready to spend it in the future.

Honestly many persons are only focused on stacking up their Bitcoin holdings without really considering their daily cashflow.

Essentially many normie newbies tend to use their BTC as their emergency fund and they also do not recognize and appreciate the value of keeping a bunch of cash that seems to not be working for them.. Surely I am not opposed to the idea of growing the BTC faster than building the emergency funds, so long as the emergency funds are not inadequate to deal with likely shortfalls of income that are likely to come up from time to time... and so it can be difficult to figure out what might be all of the various kinds of emergency funds that a guy might have available, but it is also messed up if a guy does not attempt to figure out those kinds of matters so that he does not have to sell bitcoin at a time that is not of his own choosing and that he can also recognize and appreciate that it is not good to sell any bitcoin, even if the bitcoin is in profits, especially while the guy is in his fairly earlier of stages of building his bitcoin holdings..

and yeah, guys can get thrown off by their bitcoin being 2x, to 3x to 5x in profits and all of a sudden they are thinking that they are in heaven and that they are in a position to start to sell their bitcoin, even though they still might not have even invested 3-6 months of their income into bitcoin, so it is difficult for them to be concluding that they have even come close to reaching over accumulation status when their total holdings might not even constitute much more than a year or two of their income (at spot prices and not even accounting for its possibly lower 200-WMA values).. And, guys can also prematurely conclude that they can start to sell BTC too based on the BTC spot price being 2x to 3x or more higher than the 200-WMA, even though they may well be better off to continue accumulating or at least to HODL through such periods rather than prematurely depleting their BTC stash. Guys can get mislead into risky ways of trying to manage their bitcoin holdings... and it can be unclear how to help them to not get into some kind of a trading mindset...and they still have to figure out these matters for themselves in terms of all of their circumstances.. since sometimes guys will overly deplete their bitcoin based on some kind of a need that they perceive themselves as having, and they expect that they will replace their BTC, potentially at lower prices, yet maybe it ends up taking them 3 to 6 to 9 months or longer just to build their bitcoin back to the quantity of BTC that it had previously been, and even during that time, they could have had been building up their bitcoin more rather than backtracking to make up for their earlier selling of too much of their BTC. These are not easy situation, and guys can get lured into the wrong kinds of behaviors in regards to how to treat their BTC holdings.

Quote from: Joeboy on August 24, 2025, 05:17:39 PM

The truth is, if your income and expenses are not balanced, you will always find yourself in a situation whereby you will always have to touch your Bitcoin when you really don’t want to. Having an emergency fund or some extra savings outside your Bitcoin holding is very important coz it gives you peace of mind and patience in the long run ....

It can be surprising how much more empowered a guy will feel to have various back up funds, and surely a guy has to be careful not to overdo their back up funds also. I heard some guy talking about having several years worth of cash, and surely that can be an overreaction in the other direction, even though the larger that a guy builds up his BTC, then the more likelihood that his cash reserves are going to build up too.. which becomes more of a justification for diversifying some of the cash reserves so that they are not losing so much value, even if a guy might well want to keep them in some variation of cash or something that is more liquid and/or less volatile than bitcoin... so if some of the back up funds get to be more than 6 months of the value of expenses, then there may well be some reasonable inclination to keep such back up funds in other assets and/or currencies that still might be somewhat liquid yet not as likely to be volatile in the same direction as bitcoin.

Indeed, having an emergency fund is necessary but leaving too much of it in fiat currently is unwise, this is because inflation can cause the value of it to begin losing value overtime, thereby reducing your purchasing power. The best practice is to Keep just enough cash that can cover 5-6 months of your living expenses. Then any extra left can be put into other assets that protect value better. Assests like stablecoins, bonds, or even keep part of it in Bitcoin depending on how comfortable you may be. This way your investment is protected against inflation, and at the same time you are not staying without cash.......