In Bitcoin investment what you should prioritize more as an investor is your discretionary income because that is what will be used in accumulating Bitcoin and if you don't have it, your investment won't work that means it is very vital to have or get it as an investor. There is no specific months to which you should keep an emergency funds but it is good that as you are keeping your discretionary income you are also at same time keeping your emergency funds for security reasons. I don't really know what you meant by prudent Income but I want to believe we don't need a prudent Income before we can investing, what will just need to invest is a source of income we can get a discretionary from.
Every body should know that discretionary income is really the base of any Bitcoin investment because without it, you will always feel pressured to sell when life hit.. I sha agree with you on emergency funds, it goes hand in hand, so you don’t end up touching your Bitcoin stack when urgent needs comes..
About the prudent income part, I think what some people mean by that is just being wise with whatever income you have, no matter how small…
If someone is putting money into Bitcoin without having any discretionary income, it is almost like they are setting themselves up to fail because the moment life throws them an emergency, the first thing they will do is panic and sell off their Bitcoin at the wrong time.. That is why emergency funds and discretionary income almost go hand in hand, like you said. If you have a cushion aside, you don't feel the pressure to liquidate your stack. I would even add that it’s not just about emergencies, sometimes opportunities come up in life, and if you have no spare funds (separate allocation), you’ll be forced to touch your Bitcoin…. Having those safety net gives you peace of mind to truly hold long term..
On the prudent income part, I agree with your view. It doesn’t matter how small your earnings are, what counts is how wisely you allocate them. Even someone earning little can still grow a Bitcoin position if they are disciplined with their spending and consistent with DCA. A rich guy wasting half of his income will end up worse than a poor man who is careful and intentional with his.. To me, being prudent also means not trying to overexpose yourself, don’t put everything in Bitcoin out of desperation, but also don’t neglect it entirely.. It’s all balance and discipline.