Quote from: Frankolala on Today at 06:24:53 PM

Quote from: yixichloro2xx on Today at 12:32:09 PM

Even if someone cannot create all three layers at once, building them gradually still creates stability. A small cash flow buffer comes first, then a reserve fund, and finally an emergency fund for last resort situations. This progression means that most day to day or even midevel emergencies can be resolved without ever needing to touch the emergency fund.

You should know that when you're investing in bitcoin, first thing comes first which is your discretionary income. When you have your discretionary income available, you can start your bitcoin investment. Your bitcoin investment comes first, followed by your emergency funds as your next priority because that is your backup to your bitcoin investment so that you don't sell it when you are hit with real life emergency.

Reserve funds shouldn't be set up first before emergency funds because that's a misplaced priority. The reason why I said so is because it takes up to one year or more to build an emergency funds of at least three months of your monthly income which means it's the largest portion of all other funds that is prepared down to prevent you from touching your bitcoin investment and it is very crucial to have it.

Your reserve funds can dry up and it would not affect your bitcoin investment provided that your emergency funds is on ground. But if you don't have emergency funds on ground when you're hit with real life emergency, you will use your bitcoin portfolio as your emergency funds. Reserve funds is used to take care of minor issues that if not attended to wouldn't cause any damage to your bitcoin investment.

Perhaps the order really depends on how someone balances security with momentum in stacking Bitcoin. If you say Bitcoin investment comes first, it makes sense only when discretionary income is truly available and separated from life expenses. But without any buffer at all, even a small unexpected need can derail the plan and force a sell, which is why some people prefer to build layers step by step.

Emergency funds are no doubt essential, but because they usually take longer to accumulate, starting with a smaller reserve or cash flow buffer gives immediate breathing space while working toward that larger target. For example, having a few hundred set aside for minor issues prevents constant dipping into discretionary income and lets the emergency fund grow steadily in the background.

In the long run, both structures aim at the same outcome, protecting Bitcoin from being touched. Whether someone prioritizes the emergency fund first or builds reserve and emergency together, the key is that discretionary income continues flowing into Bitcoin without interruption. What matters most is consistency in hodling, and the exact order of setting up funds can be adjusted to personal circumstances.