Quote from: Barikui1 on Today at 06:44:09 AM

Quote from: Loyang on Today at 03:17:34 AM

If you always rely on emergency fund then it will never be the right decision. Because emergency fund is the last resource to protect your holdings. If your emergency fund is the first and last resource then it will never be the right decision. It is never right to take money from emergency fund for small financial crisis.

You can divide your funds into 3 levels. Such as cash, reserve fund, emergency fund. If you build your funds in this way then it will be much better for you. For example you can take money from cash to deal with small financial crisis, you can take money from reserve fund to deal with big financial crisis and finally if you do not have any money then you can take money from your emergency fund.

You cannot build 3 things at the same time. So first you have to build an emergency fund and after that you have to build it gradually. But if you delay investing to create this fund, it will never be the right decision. You will have to create the funds along with the investment.

The truth is that knowledge is power, when most Investors hear about emergency funds they think that it's a money kept aside to address any financial needs while investing, not knowing that emergency funds is that fund that stands as the last layer of protection of your Bitcoin investment, so it can only be tempered with when face with real life emergencies that threatens your Bitcoin holdings.
This is why having a reserve funds in place is highly recommended because it's through there, you address some small financial but crucial need instead of dipping hands into your emergency funds when it's not an emergency situation, so having an emergency and reserve funds in place is the best combination that keeps your Bitcoin investment afloat to withstand any storm that comes it way during your accumulation and holding journey.

So, keeping a reserve fund along with an emergency fund is very important. Incidentally determining the amount of emergency funds, as well as the amount of reserve funds depends on the financial management of the investor. There are some types of emergency needs considering those types if there is a less important need then it would be better to use the reserve fund to meet that need. In the meantime it would be wise to consider the amount of your main emergency fund, such as three months or six months, according to your financial management. Having an emergency fund to cover three months of expenses can prevent wasting money because events are unexpected and uncertain. Sometimes it may be that the size of the reserve fund can be greater than the size of the emergency fund by adjusting your income financially, thereby making more purchases while keeping the value. The most interesting thing is to continue to buy in accordance with your financial situation and buy aggressively when the price falls.