Well in Bitcoin investment no money is made permanent for a particular usage, the usage of this funds are not rigid but flexible and adjustable base on situation and or circumstances. There could be times when emergency fund can be used in the place of discretion fund when there is no discretion but that doesn't mean that it will remain permanent but these only happens when there is a financial difficulty or mismanagement of fund or when our source of income are whimpy. But However I don't mean to say yhat it is advisable to misplace the usage of each of this funds but we just need to know that sometimea we just need to be flexible in our investment approach in other not to follow a wrong investment approach expecialy anything that will leed to selling of Bitcoin when our target has not been met.
Hmm I don’t know if you understand the implications of what you’re saying and hope you’ve never advised someone this. You saying it means you’ve practiced it once or twice, it’s a very wrong thing to do. One thing with investment and financial security is understanding your finances and proper management, knowing which money is for what and sticking to plan. In a situation where you have no discretionary money available no need to invest for that week or month as the case may be if you must invest maybe there’s a dip and you don’t want to miss it you can use your reserve funds in hopes of replacing it, not your emergency fund. Emergency funds are meant for real life emergencies only, they’re not flexible at all. Reserve funds could be flexible but not emergency funds.
Yes, you are right. When someone says that it is not wrong to manipulate funds to be flexible in investing, I think that there is a flaw in his plan or he is an unplanned aggressive investor. If you have a proper plan, then you may never run out of discretionary money. If you ever run out of discretionary money, you should have cash flow or a reserve fund to maintain continuity in investing. In my case, if that happens, I don't even have to go to the reserve fund, because I have cash flow. I have not even been involved in a situation where I have run out of discretionary money to maintain continuity in investing. When this happens to someone, it reflects their poor planning, and when you have to go to the emergency fund, it shows your weakness in financial planning and risk management. It is important to have cash flow to deal with these common problems.
Life is full of uncertainties and one can be hit with a difficult situation like loss of job. Don't think that it will be rossy all the time which is why you need to plan and prepare for the worse case scenario when you're investing into bitcoin for a long-term. Emergency funds and reserve funds are important to help us holdi your bitcoin investment when such ugly situation of job loss happens.
You wouldn't have any discretionary income to invest but to hodli and survive with your reserve funds first before touching your emergency funds till you get a new job and replace it.