Quote from: Showlove01 on September 15, 2025, 10:47:49 AM

Quote from: Grace333 on September 14, 2025, 10:53:53 PM

Quote from: icebar on September 13, 2025, 08:06:31 PM

Quote from: Female King on September 13, 2025, 04:42:33 AM

In some cases where you have exhausted your discretionary income for bitcoin investment it's not bad if an investor uses little of his emergency fund to purchase bitcoin and still make a replacement back to your emergency fund when things are alright but emergency fund shouldn't serve the purpose of discretionary income using your emergency in a one time purchase of bitcoin doesn't give you a bad method to invest in bitcoin.

It may not always be convenient for an investor to use the emergency fund to buy Bitcoin and then try to make it up again later. When an investor repeatedly uses the money from this fund, he may fail to provide the money from that fund at any time. So, it is better to keep the money from the emergency fund without using it. Yes, in some cases, if there is need. For example, if the price of Bitcoin has suddenly dropped so much, then the emergency fund can be used if there is an opportunity to buy at that time. However, it must be remembered to replenish the money to the emergency fund as soon as possible. If it takes a long time to provide the money from the fund, then it is better not to use that money.

I totally get what you’re saying. The main idea of an emergency fund is that it is supposed to be untouched, because life is unpredictable and you never really know when a real situation will hit. If someone keeps dipping into it just because they see an opportunity in Bitcoin, then at the end of the day when an actual emergency comes up, there’s nothing to fall back on.
And in most cases, they may even be forced to sell off their Bitcoin at a bad price just to fix the problem the fund was originally meant for, which kind of defeats the whole purpose.

But one thing is that in life we can not really determine or know what challenge will be more severe when we haven't come across or encounter them all though there are challenges or issues we can actually call less because they won't cause us much. So the question is what challenge do you think is severe that an investor should use their emergency funds to settle because what I will call severe may not be severe to you because of your capacity I mean your profile, your status. But in all I think it is just better we grow a good emergency funds so that even though we used some on issue we feel they are pressing we can still have some percentage that can be used for other challenges that will come up.

Of course, we have repeated that back up funds tend to fall into two categories, which are Emergency funds and reserve funds. Emergency funds are largely the same as reserve funds except that we have decided to personally place limitations on them so that we do not spend them until we have no choice, so largely if we are tapping into our emergency funds then we have gotten to a pretty desperate status. Reserve funds have more flexibility in terms of why they might be used.. they can be used to consume, to invest or even extra emergency type funds that stop us from having to tap into our actual emergency funds.

I imagine that when we are early in our building up of our back up funds, our emergency portion is not very large, but we want to build up our back up funds larger and larger so that the emergency portion is perhaps around 3 months of our expenses, and of course, as we are first building them up we will figure out some balances, even while we are hopefully building up our bitcoin investment at the same time. We might even choose to build up our bitcoin investment at a faster rate, yet at the same time, we have to realize that if we do not have enough back up funds we could end up having to tap into our bitcoin at at time that is not of our choosing and we likely are not going to want that to happen... so we figure out how to balance our back up funds and to strengthen various aspects of our cashflow management systems to both protect our bitcoin investment but also to make it likely that we are not putting ourselves into such a status that we have spent all of our various back up funds, and we ONLY have emergency funds that are left.

So, many times we might have shortages of income and/or additional expenses while at the same time, not having to dip into our emergency funds because we have other ways of covering our expenses, and so hopefully, we never let ourselves fall into a state in which we are worried that we don't have enough funds to cover our expenses, even if there might be times that they go up and our income might not be enough to cover them and/or our income might go down too, from time to time...

Quote from: icebar on September 15, 2025, 09:16:26 PM

Quote from: Tmoonz on September 15, 2025, 08:04:36 PM

If I am expecting money trust I will wait for as long as I can to get this money before investing in Bitcoin perhaps it wasn't a matter of life and death so i will never try borrowing to invest in Bitcoin for any reason.

I definitely appreciate your idea. Because if you are not in debt, you can be calm mentally. But those who take loans have to go through mental stress. I personally do not like taking loans if there is no need for it. However, not all investors have the same financial situation, and not all have the same mentality. If an investor is such that he is investing in Bitcoin for the long term, especially doing DCA, but suddenly for some reason Bitcoin falls drastically and at that time if he borrows money for the purpose of investing a little more with risk, it may be a good decision. However, in this case, he must understand whether he will be able to repay that money or not. If he has a different source of income, then it is not bad to take advantage of a good opportunity by borrowing money. However, this strategy does not apply to everyone. A common advice for everyone is that if the investor has a long-term DCA and can make aggressive investments with some of his discretionary income, then it is definitely acceptable. The opportunity to buy from the dip in Bitcoin will not always come, so it should be used appropriately.

There are various ways to consider a loan, and surely any loan will have terms that cause it to cost money, and surely if the loan has favorable terms in regards to length of time and/or fees, then it could be worth while to enter. A loan can be used as a way to frontload an investment into bitcoin with income that has not yet come in. You should be able to pay off the loan no matter if bitcoin performs well or not during the term of the loan.

If bitcoin performs poorly then you might realize that the loan did not work to your advantage, and you would have had done better to just invest with your normal income and you would not have had to have had paid the fees.

If bitcoin performs well during the term of the loan, then of course, you will feel like a genius that you were able to buy more bitcoin than you otherwise would have had been able to buy through your regular income.

The main things are the fees, the term of the loan and your ability to pay back the loan, even if bitcoin goes to zero during the duration of the loan.