Quote from: Creeper0 on September 25, 2025, 10:34:11 AM

Quote from: Xhowdhury on September 25, 2025, 06:26:17 AM

Those who basically spend 80 percent of their income on basic family expenses. If they start investing without creating an emergency fund and suddenly their expenses increase and they fall into a financial crisis or disaster, they will not be able to maintain their investment.

People's income and expenditure are not fixed. Some people have much less expenditure than their income and some have much more expenditure than their income. However, normally those who have a discreet source of income may have an expenditure of 70-80 percent of their total income. The money left after expenditure is basically discreet money which is needed for investment.

Now, there is no need to deposit this discreet money in the emergency fund at the beginning, especially for investment. Because your investment fund has not become valuable yet. So there is no need to pay much attention to the emergency fund at the beginning, rather you try to pay attention to investment at the beginning. Emergency fund becomes important for you after starting investment. If your discreet income is very high, then you can also focus on building an emergency fund along with investment. Remember, there is not much need to buy rope before buying a cow. So delaying investment to build an emergency fund will not be the right thing to do.

You have several correct ideas, but you make a couple of mistakes too.

1) discreet and discretionary are different kinds of concepts..., so if you are using the word discreet to mean discretionary, it is better to use the word discretionary - since discretionary describes the kind of money that you are talking about... which is money that is available after accounting for expenses. discretionary means that you can do whatever you want with that money including consume, invest and/or save.

2) None of us should be completely ignoring the idea of emergency funds, and it is better to get into the habit of maintaining some kind of cash cushion right from the beginning, even though you are correct that the emergency funds are protecting the BTC, and if you have absolutely no BTC, then you have nothing to protect.. yet on the other hand, there is value in figuring out a cash cushion and trying to build such cash cushion with the passage of time, even if you might be giving priority to building up the investment.. and so it would be developing a bad habit to consider that emergency funds are completely unimportant, when they are important - not only to capture any mistakes that might happen, but also to try to minimize and perhaps better yet to create a system in which the bitcoin is not ending up serving as the emergency funds that are inevitably going to end up getting tapped into.. which is not a good idea, even if they are profitable.

In the early years of building the investment portfolio ad strengthening the cashflow management practices, there may well be ways that the the emergency funds are treated more like reserve funds when they are being built up, and there might end up being some dipping into the BTC, yet we should be trying to avoid situations in which we are putting ourselves into a situation where we are having to dip into BTC rather than ongoingly building our bitcoin stash, since it can take 4-10 years or longer to build up a decently-sized bitcoin stash, even for people who are persistently and ongoingly buying bitcoin.

Guys who are ONLY able to invest 10% of their income into bitcoin, may well take 10 years to put a whole years income into bitcoin, yet they are also going to likely need to dedicate some of that money towards making sure that their cash cushion is sufficient so that they can remain focused on making sure that their bitcoin is ongoingly growing during that time, rather than fucking up their own situation by engaging in too much risk taking in terms of ignoring or downplaying the role of emergency funds when they should not be doing that.

In the end, guys can do whatever they like, yet if they are going to be sloppy, they likely will end up with sloppy and uncertain results, too.

Quote from: Barrykbest on September 25, 2025, 05:05:38 PM

Quote from: Ruttoshi on September 25, 2025, 04:04:06 PM

[edited out]

I think the balanced, practical approach is to start both accumulating Bitcoin and an emergency fund at the same time, but to prioritize liquidity until a minimal safety net is in place. You just have to allocate your discretionary income with a temporary tilt toward the emergency fund, for instance like 60 to 70% to cash, 30 to 40% to BTC until you’ve covered 3 months of essential expenses. This lets your DCA consistently so you don’t wait on the sidelines while still building protection against life shocks that might otherwise force you to sell BTC at a bad time.

Maybe you can give an example of what you mean Barrykbest? Why emphasize the emergency fund rather than emphasizing the bitcoin investment? give some more details of a situation where that might be practical and perhaps compare to a situation where it might not be practical.