Quote from: Proty on September 10, 2025, 11:20:18 PM

Quote from: Bigjoe33 on September 10, 2025, 10:08:41 PM

Quote from: IceLincoln on September 10, 2025, 06:15:38 PM

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.

The need for an emergency fund is a natural thing. In the case of Bitcoin investment, we discussion about this fund more because it is a very important thing for long term investment management. Most new Bitcoin investors may go through the possibility of selling their valuable investments in an emergency, so the need for this fund is very high. The most worrying thing is that when the price of Bitcoin is falling or going through a recession, you may have an emergency situation and if you want to sell at that time you may suffer a huge loss. If I do not consider the loss then if an unexpected event occurs before the target amount of Bitcoin we are accumulating is met there may be a high possibility of financial loss or the possibility of not getting the expected profit. Therefore, it is very important to accumulation Bitcoin in the long term and create an emergency fund to protect the investment until the holding reaches (4-10 Year target) the specific goal.