The practice of self insurance and a boost to personal finance

[Solosanz]

If they don't have savings, how can they have an emergency fund? No one doesn't want to have savings, insurance or investments, it's just that it's very difficult to save even a little amount in the situation they have and we can't blame that because that's the reality that happens to simple people.

Moreover if they're sandwich generations where they not only work for themselves, but they also have to provide their parents and their younger brothers at the same time.  

so either rich or poor everyone can afford an emergency funds cause its relatable to your finance.

Someone will not become rich if they can't manage their money in the first place.

If I am earning only 50$ a month I can decide to keep 5$ as an emergency savings, there is very possibility that emergency won't arise every month so by the time it comes I'll be more than prepared with my savings. And I'm sure that there are some that are earning low that are already practising keeping an emergency funds available.

Imagine you can save $5 per month for 2 years, which mean you have $120 emergency funds. Unfortunately you're sick and need to seek medical treatment, you have to pay medical bills which cost you $200. Your emergency funds can help, but it's not enough and then you need to borrow money from your parents.

Now, you have to work in order to pay your loans and you don't have any money left. Then Troytech2 aka your friend ask you "do you have emergency funds?", you said "nope, you need to work to pay off your loans". But Troytech2 don't care with your financial condition and say you can't manage money...

It's back to my first post, making more money > money management.

[Zanab247]

The thing is that it's hard to have  emergency fund. I mean yeah we save and all of that, but not sure if others are treating like a emergency fund as there could be individuals who are going to immediately withdraw it in my opinion.

I don't think it hard to have emergency funds, if you wish to have it in your account, you can start saving some money that you are not going to touch or invest in BTC which is the best way to create emergency funds for future purpose.

Inside The emergency funds, you can solve your children school fees, you can support your husband through the emergency funds, you can solve house rent through the emergency funds which is very necessary for every BTC hodlers to have emergency funds.

And for me, emergency funds are not to be touch unless it's really important and it will like to have a buffer of 6 months before you can call it your emergency fund.

You can only touch your emergency funds to solve anything that will make you to touch your long term hodling, I have seen many people changing their minds to sell their BTC in the bear run because they didn't create emergency funds for themselves.

[Antotena]

Having an emergency fund is also important for a bitcoin holder cause it it help you in achieving a more long term investment than someone that doesn't.

Nice thread you open here, great article, thumbs up. However, there is difference between an ideal situation and real situation. What you just discussed are mostly ideal situation because they seems too perfect, most bitcoin holders are real situations where mostly don't have time to do this or if they have the time, they don't have the resources to do it as mostly people that invest in Bitcoin are also looking for a way to buy, hold and sell later for profit and then leave that dream life you just explained.

What I will emphasize on the things you have said is hold a significant amount of money with you as an emergency money so you can enjoy holding you Bitcoin, if you invest in Bitcoin without any backup plan, you are likely to sell your Bitcoin the moment emergency situations knoct at your door.