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I think greed and ignorance is the reason why some people feels emergency fund can be invested in Bitcoin. Some investors dont understand the risk behind this, thru think it is something that they csn try and succeed with it at the end. Bitcoin investment is what things are suppose to be done properly and if you try to do things just the way you want you may end up making mistakes that can affect the investment but some people dont understand this risk of investing emergency fund.
Investing doesn't have to be a trial and error process. If you don't understand yet, it's better to start with someone who understands Bitcoin firsthand. This way, even if you're just starting out you won't make mistakes that lead to greed which can become a burden before you even start investing.
Getting started investing into bitcoin is important, and all that is needed to get started investing in bitcoin is discretionary funds, so don't be trying to suggest that guys need to be spending a lot of time learning things that are not necessary to learn.
In this thread, we (mostly me) emphasize getting the fuck started sooner rather than fucking around waiting or trying to figure things out.
Of course, guys use their own judgement in regards to what they know and what they don't know and even use their own judgement in regards to what they need to know.
Guys also can choose their starting amount based on their comfort level, and frequently I like to use an example of a guy who is new to bitcoin and he figured out that he could buy $100 per bitcoin every week because he has at least $100 in discretionary funds every week, yet since the guy might not know shit about bitcoin, he purposefully decides to get started buying $30 per week in bitcoin and to learn as he goes, and sure, if he ends up buying bitcoin for 10 weeks and realize that he totally fucked up with what he did, then he ended up losing $300 over 10 weeks, and guys should be able to determine that $300 would be a reasonable loss - even though surely no guy invests in anything, including bitcoin, with intentions to lose money, so of course, he is ongoingly doing his best and exercising what he considers to be good judgement based on what he knows and his comfort level... and at the same time, he is building both his bitcoin and his back up funds and making adjustments to his approach as he goes.
The reason for ignorance is part of someone who does not want to fight for good so they are easier to say that because there are factors that make them immediately try without any further knowledge and many people why do not experience many risks, because they realize that in investing in Bitcoin more or less they have to know the way and knowledge so that their continuation will depend on their personality and it feels like it will be difficult to continue when they experience risks more quickly which makes their fighting spirit in investing decrease as they quickly get risks and these risks are actually the ones they create themselves before starting because they already know that they lack knowledge but they do not aim for knowledge from those who have long started in the world of investing in Bitcoin.
Whatever you are saying is confusing, and of course, a beginner to bitcoin may well have a lot of areas that he needs to learn about that relate to bitcoin buying and also cashflow management and also managing his psychology in regards to what he is doing and what he is balancing in his choosing how much bitcoin to buy each week. Furthermore, the guy does not need to know all of his
9 individual factors with specifics because he is learning them as he goes, and hopefully exercising good judgement in accordance to his own particular financial and psychological circumstances.
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Since there is an issue of inflation, it is said to keep an amount equivalent to 3 to 6 months of expenses as a backup fund. I do not think there is a need to keep more than this.
In this thread, I have repeatedly asserted that guys better have pretty big justifications for holding 6 months of cash, so it seems a bit inappropriate to be talking nonsense about keeping 6 months or more worth of cash unless either your bitcoin stash is already quite big or you have some pretty damned good reasons.... so let's talk about getting our back up funds up to 3 months. .and then going from there, since it is quite misleading to be proclaiming it is a good idea to have 6 months worth of cash.. especially given how fast cash is debasing in value and poor people will be spending their full time accumulating cash without every buying any bitcoin if they are trying to keep their cash up to that high amount.
I see guys who are mostly interested in building their backup funds up to 6 months as just making up reasons to stack up cash in preference to their Bitcoin investment. IMO they're really getting their priorities wrong. Your emergency fund shouldn't have more priority than your Bitcoin investment.
Now coming to the aspect of having enough Bitcoin, it's more than obvious that most guys following up on this thread have little stash, so it becomes important that more focus should be given to accumulating Bitcoin, while also building backup funds alongside it. 3 months is enough, funds should be redirected into increasing aggressiveness in buying Bitcoin. It's never a good decision to stack up cash unnecessarily because it would still lose value, Bitcoin should have more priority because it has more chances of preserving and increasing the value of our funds on the long-run.
Instead, you need to consider the financial situation of the investor. Maybe two people have the same monthly expenses.
I am starting to get irritated by the ongoing presumption that it is normal to talk about having 6 months of cash as if it were normal, when it is not.
There are not very many guys who need 6 months of cash. It is rare so in this thread, we should stop referring to the idea of keeping 6 months of back up funds as if it is normal, when it is not..
Sure, there are some folks who have a lot of bitcoin, and/or a lot of wealth, and/or a lot of discretionary income that is coming to them on a regular basis, yet these are not normal (or typical) people.
One of the main presumptions of this thread is that guys are both building up their back up funds and building up their bitcoin at the same time.
Yeah, sure there are some guys that have extra resources to draw from, yet since those guys are not typical guys, then participants in this thread better get the fuck with it and highlight that the person is in a special circumstances instead of ongoingly presenting the keeping of 6 months in cash as either normal or even a good practice for the overwhelming majority of normies, including the overwhelming majority of guys participating in this thread (or likely to read it). Yeah, if guys have different circumstances or circumstances that justify their keeping so much goddamned cash, then they will know their circumstances and be able to adjust. Otherwise, it seems more responsible to be trying to talk about and address the trials and tribulations of normal people rather than fantasizing the first world dilemmas of already rich people who already have a lot of options and part of the demonstration that they have a lot of options is because they have six months of cash sitting around, which again is not normal or typical.
n this thread, we should
But one of them has a regular job, other family members also earn, and if they lose their job, they are likely to find a new job quickly. But the other person may have an irregular income, a lot of family responsibilities, and is also at risk of not being able to work for several months. Do you think the same amount of emergency fund would be enough for both of them?
Of course, guys with irregular income and/or expenses, or even known upcoming drops in income and/or known upcoming expenses, they need to keep more money on hand, but I doubt that the extra money needs to be referred to as "emergency funds" especially if they know that they are going to suffer from loss of income and/or increases in expenses.
There are surely also guys who might know that they might lose their job at any time, and maybe that whatever skills, experience and/or education that they have is not very marketable..so yeah, there are surely a lot of normal people who struggle to ongoingly maintain discretionary funds coming in and being available that allow them to consistently and persistently invest into bitcoin.
For the first person, maybe three months of expenses may be enough, according to his opinion. But for the second person, if he wants to keep an emergency fund of six months to ensure his safety, it may be difficult to call it unreasonable.
I am starting to wonder maybe I should just delete your post? Are we talking about bitcoin investing here or what?
Yeah, it tends to take a long time to build up bitcoin and also to build up back up funds. You have only been registered here for slightly over a year. Have you been buying bitcoin and building up back up funds during that time, or just fantasizing about how much back up funds that you feel that you need, and you have almost absolutely no bitcoin? Maybe you need to give some kind of an example rather than just spouting out ideas that it is normal to be starting out bitcoin with 3-6 months of back ups.. and also I had already mentioned that if a guy has 3 months of back up funds and absolutely no bitcoin, then maybe he needs to put half of his 3 months of back up funds into bitcoin and build both his bitcoin and his back up funds simultaneously. Have you been reading any of my posts, in this here thread that is about my bitcoin investment ideas?
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I think your argument is quite logical. But we should also consider another aspect of this discussion.Just because two people have the same monthly expenses doesn't mean they will have the same financial situation or need the same amount of emergency fund. Income stability family responsibilities other family members' sources of income existing savings and the possibility of being unemployed for a few months all are important here.
Someone who has a steady job and other family members also earn money may find an emergency fund equal to three months of expenses sufficient. On the other hand someone with irregular income and more family responsibilities may want to save six months or more of their expenses for their financial security. This is not an unreasonable decision.
I doubt that those are emergency funds that are needed for guys expecting loss of income/increased expenses that will result in 6 months of their monthly expenses being needed.
It also does not sound like a typical situation.
It also sounds like a bit of an excuse for a guy to not buy bitcoin and to keep too much money in cash merely because he is afraid of bitcoin.
So it would not be right to conclude that someone is looking for an excuse to avoid buying Bitcoin just because they want to save six months of expenses as an emergency fund.
Sure. Guys choose what they want, but it seems a bit retarded for most normal guys to be keeping that much cash absent some compelling reasons.. and yeah, each of us have to assess our current income and expenses and also assess our future expected income/expenses too.
It is necessary to first understand their real financial situation. Having a large emergency fund is not always a good decision. And having a small emergency fund is not always wise. However one thing needs to be considered separately. Saving a reasonable amount of money for financial security and waiting to complete all possible financial preparations before starting to buy Bitcoin is not the same thing. There is no mandatory rule that one cannot start buying Bitcoin until one has a six month emergency fund.
You are starting to sound retarded to be proclaiming it to be reasonable to keep 3-6 months of back up funds - especially for guys who seem to have little or no bitcoin. We are in a bitcoin thread here.. Maybe some of you guys who believe it is prudent to have 3-6 months of cash without much or any bitcoin need to go to the cash thread or the have fun staying poor thread?
If one already has some backup fund in hand and has real discretionary income left after meeting essential expenses then one can start Bitcoin accumulation with a reasonable portion of that money. At the same time one can gradually strengthen one's backup fund.
At least you are not completely retarded, yet there are still trade offs if guys are coming to bitcoin and already having 3-6 months of cash before the start and not promptly assigning 1/2 or so of their cash value to bitcoin.
There is no such thing as everyone having to divide the money in the same proportion.
Yes. Everyone uses their judgement, and sometimes they decide dumb shit.
Some people will give more importance to emergency fund according to their situation while others can allocate relatively more money to Bitcoin accumulation.
This is a bitcoin investment thread, including a thread that is specifically about my bitcoin investment ideas, so maybe guys need to start to focus on bitcoin in this thread or go to some other thread, because your emergency fund building ideas (and emphasis) seem to be off topic.
The main thing is to create a balance that is possible to maintain in the long term by understanding one's income expenses, family responsibilities and financial risks. Our goal should be to build Bitcoin holdings while maintaining financial security not to create a situation where one is forced to sell one's Bitcoin in an unfavorable market due to a sudden expense.
Sure. Those goals seem largely correct, and perhaps even considering how to invest in bitcoin as aggressively as possible without overdoing it.. . or at least working up to that perspective and/or practices.
Maybe two people have the same monthly expenses. But one of them has a regular job, other family members also earn, and if they lose their job, they are likely to find a new job quickly. But the other person may have an irregular income, a lot of family responsibilities, and is also at risk of not being able to work for several months. Do you think the same amount of emergency fund would be enough for both of them?
For the first person, maybe three months of expenses may be enough, according to his opinion. But for the second person, if he wants to keep an emergency fund of six months to ensure his safety, it may be difficult to call it unreasonable.
The two examples isn't making any sense to me because how will someone with irregular income, family responsibilities and at the same time unable to work for several months be able to set up an emergency funds of six months of his monthly expenses when he will have to put in much effort with a longer time to build up his emergency funds of three months of his monthly expenses.
You are correct @Sim_card since @Charcol seems to be pointing out a situation in which poor people end up staying poor forever because they can never get enough cash because they are ongoingly worried, and so they spend 10-15-20 years or more ongoingly building up their cash and their cash is degrading in value almost as fast (if not faster) than they are adding to it, so they are ongoingly spinning their wheels, never getting anywhere, and never building wealth, such as in bitcoin.
