I agree with you, it’s not a must to have an emergency fund before starting an investment. That’s where many people get it wrong. They assume that because Bitcoin is always changing in price, they must first have an emergency fund before beginning their journey. But it doesn’t really work that way, what is more important is having discretionary income, so we can keep investing regularly. If we wait until everything is perfect, we may end up buying at an even higher price.
It’s not about starting perfectly, it’s about starting somewhere, from there we can gradually build an emergency fund while still accumulating Bitcoin. If we overthink the price and delay because we want backup funds first, we might miss opportunities. Nobody knows whether the price will dip or rise tomorrow, so the best method is to start with what we can and grow gradually as you’re investing.
The money we earn on a daily, weekly or monthly basis is stable income. The money that is left after meeting our basic or urgent needs such as food, clothing, housing, education, medical expenses from stable income is discretionary income. From this discretionary income, we build investments, emergency funds and savings. So discretionary income is part of stable income. If I want to invest, I have to have a stable income system from which I can earn money on a regular weekly or monthly basis. And with that, I will continue to invest to meet my urgent expenses. What you said is that it is not mandatory to have an emergency fund before starting investment. Also, you said that if we think too much about the price and delay by wanting a backup fund first, then we may miss the opportunity. Here I partially agree with you that if we delay with a backup, we may miss the opportunity. But should we start investing with absolutely zero fund? Maybe after starting investment, some urgent expenses may come where even if there is no emergency fund, someone may get discouraged. Therefore, it is advisable to keep at least two to four weeks of emergency expenses in cash without delay in making a full deposit. And gradually increase the amount of emergency deposit. This will keep the investment active, and emergency problems will be solved. Therefore, rather than having absolutely zero deposit, I think it will be safer to start investing with a minimum emergency deposit.