am curious to know the difference between emergency funds and backup funds.

[Slimzeee]

Emergency funds are more like strictly for unforeseen circumstances, while backup gives you the privilege to do more when required.

I will try to explain this using scenarios.
You should have emergency funds clearly stated for emergencies which means situations that were totally not expected let’s say the loss of your device (phone or laptop). This already creates a panic situation and must be attended to urgently since your phone can be your means of making money and you need a means of communication.

But backup funds could be your data expiring two days before its rightful expiry date. In this case, you already have backup funds on ground for new data, as it is not really an emergency since you knew it would still expire at some point.
They have to be separated so scenarios like this (your data expiring) wouldn’t make you dip your hands into your emergency funds which is meant for totally unexpected situations.

I stand to be corrected/Contributed to.

[Tonimez]

Emergency funds are those funds set aside for life threatening situations or emergency occurrence which could happen anytime. This fund is set aside to handle any unforeseen circumstances and natural disasters. Some situations like sickness does not give notice before happening and this is why it is advisable to have emergency funds so that you won't be forced into spending your bitcoin stash during this unforeseen circumstances. This does not mean that it must be enough to handle the emergency situation but it would cushion the effects to some extent or maybe until your next income.

Backup funds are those funds set aside to augment the already set responsibilities before your next payday. This backup funds is important due to inflation and some uncaptured but important exigencies. This fund does not need to be too much but it has to be used to subsidize for any excess.

You need the two funds for the safety of your bitcoin stash to avoid premature sales or selling at loss. As an investor who really cares about his HODLing success, you have to maintain your emergency funds and back up funds with discipline in order not to be caught unaware by unplanned eventualities.

[Gost ms]

An emergency fund is created to protect your holdings from unexpected financial dangers. For example, suppose someone in your family suddenly falls ill and you need a lot of money at that time. An emergency fund is created so that you can deal with your financial crises by taking money from your emergency fund at that time.

There is not much difference between a reserve fund and an emergency fund. The function of a reserve fund is a little more than an emergency fund. For example, suppose you work on a monthly scholarship. If the company delays your monthly salary in one month. At that time, if you need money, such as to meet family expenses or in any other case, at that time you can deal with your financial crisis by taking money from the reserve fund.

Again, if you want, you can use the reserve fund before using the emergency fund during an emergency situation. For example, if you have any kind of financial crisis, you can take money from the reserve fund to deal with the financial crisis, and if the reserve fund cannot deal with the financial crisis, you can take money from the emergency fund, which would be good for you.

[CryptoHeadlineNews]

Greetings to this house hold, please am still new on board and have been hearing more about this two funds  every now and then but what am sure of for the emergency funds is that it is use in financing future problems that would have make an investment to be unsuccessful  but the backup funds am not too clear on it, I will appreciate if some experience folks in the house will throw more lights on this two for me to get it right and understand more better thanks 🙏

A backup fund is actually meant to serve the purpose of an emergency. Hence, in a nutshell, they both actually mean the same thing, as they both compliment the actual fund or capital. And which is why as a Bitcoin investor who intends to hold his coin long term, it's always good to have an emergency fund, while you invest the rest in Bitcoin, so as to avoid scenario whereby you keep selling your Bitcoin even when the market is bearish, simply because you don't have any backup fund to compliment your daily lifestyles. And also a more reason why it's also good to invest an amount you know you won't be in need of long term. So as to avoid the same scenario of always reselling it whenever you are in need of extra fiat. Because it is better to invest small in Bitcoin and hold long term, than invest big in Bitcoin and start selling it back in few days, simply because that wasn't what he was willing and able to afford to let go that period.

[Pikiboy]

Emergency funds has the name implies emergency funds are fund or money that is been reserved Incase there is a misfortune need,for example if after investment and you needed money urgently instead of you to withdraw back the money been invested, you can go back to wherever you are saving your emergency funds and withdraw to solve such problem, mostly if you are preparing food and you notice your cooking Gas finished this is when emergency funds come in,or in a case that someone is sick, emergency funds is required importantly here

In my own opinion, backup funds and emergency funds are fund you use to assist emergency funds Incase the emergency fund is not sufficient either complete to solve the problem then you add  to support the emergency fund

Backup funds it used to support emergency funds.

[Agbe]

The terms can be used inter changeable. It's just a matter of choice by the person involved because, when we are talking about either Emergency or Backup funds we are talking about money that is kept outside for the purpose of unimagined situations that may arise in life. Hence the reason to keep out such an amount of money as a way to fall back when ever there is problems or crisis which were unforseen. It's not good to just go into an investment with all the money on your possession without having something to fall back on hence the need for emergency funds. So these two words mean these thing .

[Grace333]

The terms can be used inter changeable. It's just a matter of choice by the person involved because, when we are talking about either Emergency or Backup funds we are talking about money that is kept outside for the purpose of unimagined situations that may arise in life. Hence the reason to keep out such an amount of money as a way to fall back when ever there is problems or crisis which were unforseen. It's not good to just go into an investment with all the money on your possession without having something to fall back on hence the need for emergency funds. So these two words mean these thing .

Yeah you’re right, both are kind of the same thing. At the end of the day it is just money you keep aside for unexpected stuff.
People just use different names for it. What matters is having something to fall back on before investing, not the term you call it.

[rachael9385]

Greetings to this house hold, please am still new on board and have been hearing more about this two funds  every now and then but what am sure of for the emergency funds is that it is use in financing future problems that would have make an investment to be unsuccessful  but the backup funds am not too clear on it, I will appreciate if some experience folks in the house will throw more lights on this two for me to get it right and understand more better thanks 🙏

Emergency funds are just basically monies meant to take care of unexpected situations, the word emergency explains it all. Back up funds are totally different because you can call this extra or spare money kept as a support, these funds can be untouched for a long period of time unless it's necessary. There is a clear distinction between both of them and it would be wrong for anyone to say that they are similar and it's important for you to have both

[Jostern]

Greetings to this house hold, please am still new on board and have been hearing more about this two funds  every now and then but what am sure of for the emergency funds is that it is use in financing future problems that would have make an investment to be unsuccessful  but the backup funds am not too clear on it, I will appreciate if some experience folks in the house will throw more lights on this two for me to get it right and understand more better thanks 🙏

Backup funds comprises of emergency funds and reserved funds, I don’t think there is any much difference between them because, because I think the question you should’ve asked is that what is the difference between emergency funds and reserved fund, because most of all this you’re talking about and asking questions about them are quite difference, it depends if you want to try and generalize what you’re talking about depending on backup funds, because emergency funds are just same as reserved funds, the name backup just depends on you generalizing them together.

Emergency funds are just money you keep aside in case of emergency situations occurs, so you don’t fall back to your Bitcoin funds,

Reserved funds are also money that you keep in case of you loose your source of income in the future, you can pay your bills from there and also possibly accumulating Bitcoin until you get something else source of income.

[Stormisover]

Emergency funds falls under backup funds, there are several back up funds which includes emergency funds, reserve funds and float funds, all of this are under the umbrella of the word back up funds and they are there for their unique functions.
Emergency funds stands to cover up unplanned expenses when it arise and it must be used only when there is a real emergency
Reserve funds can be used for any other plan expenses for example buying the dip, all of this are known as backup funds.

[Supreme Donvic]

You asked a very good question, some senior members in this forum don't even understand the meaning of this funds, backup funds is a fund that is used to prevent you from tampering or touching your investment or dipping has into your investmen, this backup funds are divided into many places which are emergency, reserve and float funds, so backup funds is the general name for emergency, reserve and float funds. So there's no difference between backup funds and all this funds when you want to talk about all this funds you just mention backup funds but if you want to specify then you do that because emergency, reserve and float funds has different function even though they are to prevent you from dipping hands into your investment they still have there different functions.

[Marvelockg]

I will appreciate if some experience folks in the house will throw more lights on this two for me to get it right and understand more better thanks 🙏

when you set up a back up fund that serves to help[ out in times of emergency, it automatically becomes an emergency fund whose aim is to protect your investment such that you do not have any reason what so ever to go into spending your bitcoin. some investors are used to making use of emergency funds as back up funds in their statement and though it might be a totally different thing, what you choose to call her herds Little her taken as much as

[Iamgoat]

The terms can be used inter changeable. It's just a matter of choice by the person involved because, when we are talking about either Emergency or Backup funds we are talking about money that is kept outside for the purpose of unimagined situations that may arise in life. Hence the reason to keep out such an amount of money as a way to fall back when ever there is problems or crisis which were unforseen. It's not good to just go into an investment with all the money on your possession without having something to fall back on hence the need for emergency funds. So these two words mean these thing .

Both the Emergency funds and the backup funds sound like they mean same thing and yes people use them interchangeable sometimes and they are both the money you keep aside for any unexpected problems such as medical bills which are u expected, maybe your car broke down and so on because like you mentioned you cannot just throw in 100 percent of your funds in your investment without saving up anything for yourself how ever small. But if you ask me, I will say there are little differenxe between both of them, the emergency fund is more used for urgent and must fix now problems such as rent house, or urgent medical attention which requires immediate response and solutions so an emergency fund should be more of a liquid cash but backup funds could just basically be extra cash you keep with yourself to handle less urgent issues like when your investment is crashing or your business slows down you will have soothing to still contribute to the business to make it balance, it is not necessary urgent and life threatening but an extra cash which solves extra problems out there in the business or outside 

[Jamwatte]

From what I understand emergency funds are funds that comes in handy during critical times like in situations where an unexpected or unplanned situation occurs, like illness. Those funds comes in handy in times like that.
While backup funds are funds that comes in handy when the main funds have all been exhausted. For example, let's say you have a budget that you are working with to cover your expenses in a month. And that funds got exhausted before your next payment comes in, then you can fall back to your backup funds.
If you decide to use your emergency funds In this situation, and something terrible happens,  you won't have any emergency funds left with. Thatbis what I understand.

[NurseHub]

I will appreciate if some experience folks in the house will throw more lights on this two for me to get it right and understand more better thanks 🙏

when you set up a back up fund that serves to help[ out in times of emergency, it automatically becomes an emergency fund whose aim is to protect your investment such that you do not have any reason what so ever to go into spending your bitcoin. some investors are used to making use of emergency funds as back up funds in their statement and though it might be a totally different thing, what you choose to call her herds Little her taken as much as

Emergency funds and reserve funds and any type of savings that protect you from tempering your investment is usually withing one category of funds back up funds, back up means whatever that is going to protect you from yourself in a way that you will relay on them to survive than your investment hence emergency funds and reserve are subject to back up funds.