Discretionary funds is an excess of your money after your basic expenses have been met, it’s from here you build your back up funds(reserve and emergency), it’s not just for investment alone but investing is a better use for/of it.
Emergency funds is not just limited to buffer your bitcoin investment alone, it serves a bigger purpose in your finance for all your investments and financial issues against uncertain and unexpected life challenges
That's it, misunderstanding these funds and or misquoting them can be very misleading as one prepares to start an investment journey or even to a newbie. In as much as it's discretionary, we should understand that it hold alot as determining our Bitcoin investment journey. Investors must know that building up emergency funds alongside as we journey through our investment process is very necessary because it's serves as a bedrock and a sustainer of our Bitcoin holdings. Imagine an investor without an emergency funds or a reserve funds, what becomes of his investments when pay slip seizes, or when bills increases or piles up, this simply means that portions of the investment will be taking away against the initial plan of holding for long.
I see it clearly that an investor can't have a successful or super cool investment journey without these two back up funds(emergency and reserve funds). We must carry out proper allocation of funds by ensuring to build up these funds alongside the accumulation process to ensure we don't suffer and panic to sell too often. The proper knowledge of these funds and it's proper application means a whole lot of live to our present and future investment
Sometimes I do wonder why some folks thinks or believe that emergency funds is essential only when they are investing in bitcoin. As long life is concern nobody can predict the future hence the need for emergency funds. Things may not not always go the way we plan and as such there is always need to set outside some funds to attend to unforseen contingency whenever it arise. So emergency funds is crucial for both investors and non investors.coming down to bitcoin investment, in other to be able to hold bitcoin for long term without stress ,there is always needs to set up some kind of backup funds which will aid in holding bitcoin until the anticipated timeline. I believe without emergency funds long term holding of bitcoin may not be possible.