Absolutely i agree with you, Saving and investing little by little is really the key it's not about how much you start with, but the consistency over time that makes the difference. It’s seen how so many people overlook setting aside even a small portion of their income, especially when extra money comes in. Life can throw unexpected challenges at anyone, so having that financial cushion really helps ease the pressure. I think the mindset around money needs to shift from just earning to also growing and protecting it for the future.
Perhaps there is more to investing than just saving, it’s very important to note that unforeseen circumstances can come at anytime of one’s life which is a major reason by Emergency funds is quite not really over stated nor exaggerated but repeatedly mentioned in our daily discourses in this thread as it’s the one of the pillars of investment which holds an individual to hold his or her assets without tempering them or having any need to sell a portion or all of his or her investments when the unforeseen situation arises.
Yeah sure. Any bitcoin investor who is a member of this forum and had the privilege of being in this thread and still finds it difficult to keep an emergency funds is either not taking the investment seriously or he is playing around and gambling bitcoin while claiming to be a bitcoin investor. The importance of emergency funds in keeping a successful bitcoin stash over a long period of time is worth it's emphasis. Being a bitcoin investor without providing for emergency funds is like building on a shaky ground, it can collapse anyday and you loose all your stash when life strikes. To have a successful bitcoin investment unto the long-term, two basic things are very important for the investors; Investing with only your discretionary income and Having an Emergency funds. Any one who's disciplined to follow this strictly, would have greater chances of holding his bitcoin stash for a very long period of time.
Hence, while making an investment using DCA it’s always advised to have at least an emergency funds that is able to cover up for guys 4 to 6 months, hence with such an emergency funds it’s likely that one will be able to consistently stay in the course and perhaps achieve a longer term of investment which can be 2 to 3 cycles accumulating until one reaches the over accumulation stage which guys might want to stop accumulation.
It is important that Beginners should also understand that this does not mean that you have to wait until you have gathered enough funds for your emergency funds that could cover up to 6 months before making their first investment into bitcoin. You can accumulate bitcoin and emergency funds simultaneously by sharing your discretionary income into these two important areas. If you are consistent with the exercise, a time would come when you have a large emergency funds and may then decide to slow the pace of increasing your Emergency funds and focus more on increasing your bitcoin stash.
Secondly, I don't think we can be able to determine the amount of money that would be enough for emergency purposes in 6 months since there's no margin to what can befall anyone. This is why we can't risk playing around bitcoin without putting effort too in making provision for emergency situations. Any amount of money you think could stay 6 months can be engulfed by a single emergency situation in less than 1 month and so also, same amount of emergency funds which you planned for 6 months can last 1 year without any emergency situation that may warrant using them up. We only try to play safe and prepare for the unknown, but guessing how long a given amount of emergency funds should last would be so risky and may put an investor in a very financial stress that may affect his bitcoin stash.