I don't know how left over funds after one has made all his expenses for the time being which is discretionary income and fund thats been kept for emergency or any unexpected stuff which is reserved funds will be the same,
Discretionary income, emergency fund and reserve fund are 3 different things but you are getting it complicated you still tag emergency fund and reserve fund as thesame thing i think they are two different things, emergency fund has it purpose when it comes to Bitcoin investment reserve fund also serve on a different purpose. Emergency fund is there to care of real emergencies when they happened to prevent you from selling soon when the unexpected occur, while the reserve fund is there to accumulate Bitcoin expecially when there is a decline in price one can use his reserve fund to accumulate more Bitcoin so stop seeing emergency fund and reserve fund to the same.
It is necessary to be aware of these issues, all types of funds should not be mixed together, rather each fund has a different purpose, and all those funds should be used according to that purpose, if any fund is used outside the purpose, it can only create problems. For example, emergency funds are created only to deal with unexpected financial situations so that your Bitcoin investment is protected in the long term, on the other hand,
reserve funds are kept to take advantage of the opportunity to buy DIPs if Bitcoin drops slightly due to volatility, but in this case, if you mix up the purposes of these funds, and later buy Bitcoin DIPs with emergency funds, then how will you handle that unexpected situation if your financial unexpected situation comes to the fore? So you must be aware of these issues, and each fund should be used according to their purpose, then it is possible to keep the investment safe in the long term.
I think you have very little idea about fund management. In fact, neither emergency fund nor reserve fund is formed to buy Bitcoin whatever its DIP or not. And those who follow the DCA method and buy Bitcoin for a long term with discretionary income do not worry about the fluctuation of Bitcoin price. They only buy Bitcoin regularly. Bitcoin is for long-term investment and it is important to form a emergency fund and reserve fund because many types of financial problems can arise in daily life. If those financial problems cannot be solved, then it will not be possible to invest for a long time. Then it will be seen that Bitcoin may have to be sold to solve the financial problems. As a result, he will not get the profit that he would have gained after long-term investing.
Now it is important to know when and how to use the reserve fund and emergency funds. Suppose a person is investing regularly and suddenly he faces a financial problem. Then he will first try to solve the problem with the money he has in his hand, if that is not possible, then he will take money from the reserve fund and solve that financial problem. Now, if the financial problem is very big, like a medical treatment that requires a lot of money, then if he cannot solve it with the money from the reserve fund, then he will take money from the emergency fund and after his problem is solved, he will bring the reserve fund and the emergency fund back to their previous position by depositing the money there.Not only this, it was found that suddenly the person's income source stopped, the job was lost, then if he cannot find a job very quickly, then after his reserve fund runs out, he will be forced to take money from the emergency fund to meet his daily living expenses. If it happens that he is unable to arrange a new income for many months and his emergency fund is also exhausted, then he will sell Bitcoin as a last resort.
Another important thing to keep in mind is that emergency funds and reserve funds should never be used to buy Bitcoin whether price drop or not. Always buy Bitcoin with discretionary income.