Buy Buy Buy or Sell Sell Sell?

[Emjay24]

It is not possible to know for sure what kind of emergency an investor will face in the future or how much money he will need to deal with that emergency. However, due to this uncertainty, it does not seem reasonable to me that an investor should regularly increase his emergency fund at the same rate as his Bitcoin purchases. Because we have different objectives for emergency funds and Bitcoin investments. I am saying that considering myself, an investor tries to increase the amount of Bitcoin in the long term. But the objective of an emergency fund is not to accumulate infinite amounts of cash. It depends on his necessary expenses, reliability of income, family responsibilities and alternative financial security.

The ideal thing is to prioritize your Bitcoin investment and emergency fund, but you shouldn't give your emergency fund more priority than your portfolio. Building emergency fund alongside buying Bitcoin is good but shouldn't make you unnecessarily wimpy in your Bitcoin investment. There should be no rush to stack up cash, you can still build your emergency fund over time and it might take a year or more to get it at 3 months worth of expenses, so there's no need rushing it at the expense of your Bitcoin investment. It should be built gradually, the investor can decide to put 40% of discretionary income into Bitcoin, 40% into building emergency fund and 20% as discretionary consumption.

[IceLincoln]

BS!…Once you have been able to accumulate your emergency funds to a level where it covers your actual risk profile(not some generic number), i don’t see any reason for you to keep piling it up at the same rate as your investment anymore.
You don’t need to treat your emergency funds as if it is a second investment cos it’s not, it’s called buffer for a reason.

He’s not totally wrong you know. The bigger the bitcoin portfolio the more important it becomes to have adequate emergency funds to safeguard it.
When you’ve built your backup to a certain level of about 3 months of expenses as we often suggest, the investor can afford to be more aggressive with their bitcoin accumulation but that doesn’t mean they should stop topping their emergency fund and reserves for specific purposes.
It’s important to reassess your portfolio, strategy and financial position as you progress in your investment journey.

[Loyang]

In my opinion, even investors who lack the discipline to hold Bitcoin for an extended period of time should be able to understand why emergency funds should be set aside not only for savings but also to protect your Bitcoin portfolio in the future. In the event that an emergency fund breaks while you are making purchases, it is crucial to remember that, just as you organize your discretionary income on a weekly or monthly basis, don't forget to organize your emergency fund as well.It doesn't really mean that just because you organized your emergency fund last week or last month, it doesn't mean that you didn't save regularly.

 It is crucial to be building up your savings as much as you are purchasing Bitcoin because you never know what kind of emergency might arise and require a large sum of money. Therefore, it is always a good idea to plan ahead for your investments so that you can withstand any situations like that and not be tempted to sell when it's not due.

Your comment is very confusing. I did not understand clearly what you meant even after reading it several times. However, it seems that you are talking about an emergency fund. It is never a good decision for a person to buy something with his emergency fund. Emergency fund should be used at a time when you face a financial crisis. Using emergency fund during small financial crises does not seem to me to be a good decision. If emergency fund is used during these small financial crises, many times that amount of money is not kept in the emergency fund. Therefore, creating a reserve fund for such emergencies seems to me to be the best decision.

[GoldBitcoin112]

In my opinion, even investors who lack the discipline to hold Bitcoin for an extended period of time should be able to understand why emergency funds should be set aside not only for savings but also to protect your Bitcoin portfolio in the future. In the event that an emergency fund breaks while you are making purchases, it is crucial to remember that, just as you organize your discretionary income on a weekly or monthly basis, don't forget to organize your emergency fund as well.It doesn't really mean that just because you organized your emergency fund last week or last month, it doesn't mean that you didn't save regularly.

 It is crucial to be building up your savings as much as you are purchasing Bitcoin because you never know what kind of emergency might arise and require a large sum of money. Therefore, it is always a good idea to plan ahead for your investments so that you can withstand any situations like that and not be tempted to sell when it's not due.

Your comment is very confusing. I did not understand clearly what you meant even after reading it several times. However, it seems that you are talking about an emergency fund. It is never a good decision for a person to buy something with his emergency fund. Emergency fund should be used at a time when you face a financial crisis. Using emergency fund during small financial crises does not seem to me to be a good decision. If emergency fund is used during these small financial crises, many times that amount of money is not kept in the emergency fund. Therefore, creating a reserve fund for such emergencies seems to me to be the best decision.

What he said is very clear and when I read his comments it sound so good we are all saying the same thing here but just using different words, to me I believe what @Sulegzy39 said the more your building up your portfolio that's the more you are organizing your emergency funds because when emergency happens you will know the funds you will use to face the particular problem as to deal with it, his explanation is very clear I think even newbies reading it will be clear , please newbies are to learn so that they will not be confused they need good directions about emergency funds so that them too , can tighten their own portfolio in case of any bad situation that might arise from any angle in the future.

[Showlove01]

Your comment is very confusing. I did not understand clearly what you meant even after reading it several times. However, it seems that you are talking about an emergency fund. It is never a good decision for a person to buy something with his emergency fund. Emergency fund should be used at a time when you face a financial crisis. Using emergency fund during small financial crises does not seem to me to be a good decision. If emergency fund is used during these small financial crises, many times that amount of money is not kept in the emergency fund. Therefore, creating a reserve fund for such emergencies seems to me to be the best decision.

Perhaps, you should be specific on the word "something" because something comprise of so many things which includes relevant ones and irrelevant ones also so you can not just say it is a bad decision to use emergency funds to buy something that doesn't make any sense. However, we can use our emergency funds to during the Dip if need be but we should endeavor to replace the emergency funds back since we can can't predict when emergency will come and it's gravity and also we can use our emergency funds to sort out Issues if need also be.

[Y3shot]

Fact. Most individuals just thinks an emergency funds is just a time setup. They just hit a little savings target and boom they just stop. But also one small hospital bill or car issue can just eat up our emergency funds with just a blink of an eye. Real life don’t really care about our plans, the moment we stop to add cash our Bitcoin stack because the next option when any emergency comes up.

Emergency funds should treated slightly like the way we treat our DCA , we should keep on topping up every month so we should never be forced  to touch our coin.

Emergency funds can be built consistently, but there is no way it can be done, just like accumulating Bitcoin. Challenges will always arise, but this doesn't mean you have to focus on building your emergency fund and give your Bitcoin holding less attention.

Emergencies happen, but they don't occur every day, and even if they do, they could be manageable without affecting one's Bitcoin investment. Invest in Bitcoin consistently, and if there are opportunities to build an emergency fund, it will really help your investment. However, you don't have to stress yourself too much all in the name of emergency funds; just do the best you can.

[Just Say]

In my opinion, even investors who lack the discipline to hold Bitcoin for an extended period of time should be able to understand why emergency funds should be set aside not only for savings but also to protect your Bitcoin portfolio in the future. In the event that an emergency fund breaks while you are making purchases, it is crucial to remember that, just as you organize your discretionary income on a weekly or monthly basis, don't forget to organize your emergency fund as well.It doesn't really mean that just because you organized your emergency fund last week or last month, it doesn't mean that you didn't save regularly.

 It is crucial to be building up your savings as much as you are purchasing Bitcoin because you never know what kind of emergency might arise and require a large sum of money. Therefore, it is always a good idea to plan ahead for your investments so that you can withstand any situations like that and not be tempted to sell when it's not due.

Your comment is very confusing. I did not understand clearly what you meant even after reading it several times. However, it seems that you are talking about an emergency fund. It is never a good decision for a person to buy something with his emergency fund. Emergency fund should be used at a time when you face a financial crisis. Using emergency fund during small financial crises does not seem to me to be a good decision. If emergency fund is used during these small financial crises, many times that amount of money is not kept in the emergency fund. Therefore, creating a reserve fund for such emergencies seems to me to be the best decision.

Buying anything through an emergency fund may not be a good decision as in my opinion the functioning and importance of this fund should be considered. As we suggest that if the initial stage of Bitcoin investment is at the beginning stage, one should continue to invest only through discretionary income without giving importance to emergency fund and other things and should run towards long term destination.

This fund is needed even when you face any financial crisis but instead of using this fund during minor financial crisis you should work with regular savings or any other savings, Because when saving Bitcoin with a long-term mindset, the larger the portfolio, the more important it becomes to have sufficient emergency funds to protect it, please everyone should learn these. Even it is correct that with the right decision and planning it is possible to accumulate enough bitcoins in the portfolio.

[Ruttoshi]

Emergency funds can be built consistently, but there is no way it can be done, just like accumulating Bitcoin. Challenges will always arise, but this doesn't mean you have to focus on building your emergency fund and give your Bitcoin holding less attention.

Emergencies happen, but they don't occur every day, and even if they do, they could be manageable without affecting one's Bitcoin investment. Invest in Bitcoin consistently, and if there are opportunities to build an emergency fund, it will really help your investment. However, you don't have to stress yourself too much all in the name of emergency funds; just do the best you can.

You don't need to neglect building your emergency funds immediately, you start your bitcoin investment if you don't have any form of emergency funds on ground because it's the life wire to your bitcoin investment. You can build your emergency funds simultaneously with your bitcoin investment in the beginning of your bitcoin journey and it's good to strike a balance between your bitcoin investment and your emergency funds as a brand new investor.

You can divide your discretionary income into three equal parts. The first 33.3% for your weekly DCA, the second 33.3% for building your emergency funds gradually till it reaches three months of your monthly expenses and the last 33.3% for your discretionary consumption.

If you want to build your bitcoin investment to a certain size first before you start building your emergency funds, if you are hit with real life emergency during that period that you neglected it and focus only on building your bitcoin stash, you will sell your bitcoin to take care of that real life emergency and if possible at loss, if you're selling when the price of bitcoin is below your entry point.

Of course, emergency may come or not, but you need to be prepared for it because you have ten years or more to build your bitcoin stash and one year or more to build your emergency funds.

[Maxwell-jr]

There's no way to build an emergency fund daily, and even monthly spending seems difficult for those with limited income. Unless they have more than one source of income, it's possible to build an emergency fund somehow. Because they already have more capacity to meet their needs,

Having more than one source of income do not guarantee anything because their are folks that have only a source of income but are doing better than those with several sources, since his income may be larger than someone with several sources of income put together. What I think is more important is figuring out your discretionary income, because if you can figure it out regardless of your net income, you can still invest in Bitcoin consistently, because you can easily divide your discretionary income into three equal part, one part for investment, one part to set up your back up funds and the other last part for discretionary consumption, because like that you can always invest at ease and be successful at it.

I think it fits with the language you said in the bottom line that emergency funds are taken from additional income so that prioritizing is a part that we must prioritize so that what I said above is very much aimed at that emergency funds

This is not the best way to put down emergency funds in place.  The best way to put down emergency funds and you wouldn't have to fall back to it again because of an unattended basic needs is to first take care of all your basic needs, then the discretionary income left, is what you should divide into three places, one for investment one to put down your emergency and reserve funds and one for discretionary consumption, like that you would have no problem, not by taking money from your additional income to put it down without first figuring out your discretionary income.

The part where you mentioned about figuring out your discretionary income caught my attention because I feel like people really get frustrated when they really do not figure out what there discretionary income is, and at first I was when I first heard of discretionary income I didn't know what it meant until I had to take out time to go through this thread and I saw some comments that clearly explained what it meant.  And I will highly recommend for anyone looking for clarity to spend time on this thread and read through because I got some answers doing so.

And also the part where you mentioned about taking care of your basic needs before putting down your emergency funds is also at peace with what I believe because when you talk about attending to all your basic needs is different from attending to all your needs.  As an investor you need to know the difference between your basic needs and your needs when you do that isolation you will discover that it is more profitable to invest the money than attending to some of the things you actually a need.

[PhilosopherKing]

Perhaps, you should be specific on the word "something" because something comprise of so many things which includes relevant ones and irrelevant ones also so you can not just say it is a bad decision to use emergency funds to buy something that doesn't make any sense. However, we can use our emergency funds to during the Dip if need be but we should endeavor to replace the emergency funds back since we can can't predict when emergency will come and it's gravity and also we can use our emergency funds to sort out Issues if need also be.

And how has that been working out for you huh? Oh you even know that we can't predict emergency and you still want person to make that gamble. Broda man, it is a very dumb practice to dip buy with you emergency funds. What the fuck were you even thinking while you were giving that advice.

You have no clue when emergency will come, it could come immediately when you made that investment with your emergency funds and when you have no emergency funds for that emergency, you will have no choice other than to sell. And it will not be right to invest and then sell because you chose to do the wrong thing. This is why it is very dangerous to even use your emergency funds to invest. The only money that is right to ongoingly invest with or to dip buy is discretionary fund.

[Sally9256]

He’s not totally wrong you know. The bigger the bitcoin portfolio the more important it becomes to have adequate emergency funds to safeguard it.
When you’ve built your backup to a certain level of about 3 months of expenses as we often suggest, the investor can afford to be more aggressive with their bitcoin accumulation but that doesn’t mean they should stop topping their emergency fund and reserves for specific purposes.
It’s important to reassess your portfolio, strategy and financial position as you progress in your investment journey.

I don't think there will be any need to top up your emergency fund when you have accumulated enough already. The essence is to have a back up and 3 months back up is enough protect your investment. The only time you should top it should be when you have use part of it to sort an emergency. It's there for a purpose and once you've reached over accumulation point then it's more better to get aggressive with accumulation because the more you are able to put into Bitcoin the more the benefits you are likely to get in future. Emergency fund is very important in an investment but your Bitcoin holding is more important and that's why once your emergency fund is enough you should be more focused on accumulating faster.

[Ashawowo(OS)]

The bigger the bitcoin portfolio the more important it becomes to have adequate emergency funds to safeguard it.

No size of portfolio is less important to have emergency fund to protect it. It should be a due diligence for investing in bitcoin to build emergency fund alongside investing. Importance of emergency fund is not attached based on size of your portfolio, but as a good investment practice. I don't like this your proclamation because it might mislead newbies to wait until their bitcoin stash is large enough before building emergency fund to protect it is a very bad cash-flow management practice and the downsides is that if emergency comes up before the portfolio is big and there is no adequate emergency fund in place, the portfolio will be tampered when it is not the choosing of the investor which would depreciate the bitcoin portfolio.

[Lida93]

In my opinion, even investors who lack the discipline to hold Bitcoin for an extended period of time should be able to understand why emergency funds should be set aside not only for savings but also to protect your Bitcoin portfolio in the future. In the event that an emergency fund breaks while you are making purchases, it is crucial to remember that, just as you organize your discretionary income on a weekly or monthly basis, don't forget to organize your emergency fund as well.It doesn't really mean that just because you organized your emergency fund last week or last month, it doesn't mean that you didn't save regularly.

 It is crucial to be building up your savings as much as you are purchasing Bitcoin because you never know what kind of emergency might arise and require a large sum of money. Therefore, it is always a good idea to plan ahead for your investments so that you can withstand any situations like that and not be tempted to sell when it's not due.

You build an emergency fund because you don't have to sell Bitcoin to meet unexpected expenses. On the other hand, the purpose of collecting Bitcoin is to build your wealth in the long term. Although it is not possible to know for sure what kind of emergency will arise. That does not mean that due to this uncertainty, along with buying Bitcoin, you should increase your emergency fund indefinitely. In my opinion, the amount of money to allocate between collecting Bitcoin and building an emergency fund needs to be determined according to the financial situation of the person.

Many people may have a regular income that is quite reliable and they already have a cash backup to cover several months of essential expenses. Again, some people may have irregular income and have a lot of family responsibilities. If you advise these two types of people to increase their emergency fund at the same rate, you may not have considered the difference in their real situations.

In this stables the investors with a regular income has an advantage in organizing an increasing emergency funds at same time with increasing his DCA amount he is buying bitcoin on a weekly or monthly. But in the case of the investor with an irregular income, if i was to be that investor i would increase my emergency funds than the amount am accumulating my bitcoin investment if with my income i have just one healthy option of increment that can accommodate my income.

We can't predict what emergency weight to expect and while  we can adjoin our bitcoin accumulation for a week into the next week, we can't postpone emergency from occurring when and how it choose to. in other words, emergency isn't within our control as it is for buying bitcoin whenever and in what amount i n our DCA. To accomplish success in long time bitcoin investment the decisions we make among various options are also vital to it success.

[Agbam]

In my opinion, even investors who lack the discipline to hold Bitcoin for an extended period of time should be able to understand why emergency funds should be set aside not only for savings but also to protect your Bitcoin portfolio in the future. In the event that an emergency fund breaks while you are making purchases, it is crucial to remember that, just as you organize your discretionary income on a weekly or monthly basis, don't forget to organize your emergency fund as well.It doesn't really mean that just because you organized your emergency fund last week or last month, it doesn't mean that you didn't save regularly.

 It is crucial to be building up your savings as much as you are purchasing Bitcoin because you never know what kind of emergency might arise and require a large sum of money. Therefore, it is always a good idea to plan ahead for your investments so that you can withstand any situations like that and not be tempted to sell when it's not due.

You build an emergency fund because you don't have to sell Bitcoin to meet unexpected expenses. On the other hand, the purpose of collecting Bitcoin is to build your wealth in the long term. Although it is not possible to know for sure what kind of emergency will arise. That does not mean that due to this uncertainty, along with buying Bitcoin, you should increase your emergency fund indefinitely. In my opinion, the amount of money to allocate between collecting Bitcoin and building an emergency fund needs to be determined according to the financial situation of the person.

Many people may have a regular income that is quite reliable and they already have a cash backup to cover several months of essential expenses. Again, some people may have irregular income and have a lot of family responsibilities. If you advise these two types of people to increase their emergency fund at the same rate, you may not have considered the difference in their real situations.

You both are using confusing words in your statements and it makes your points difficult to understand. Sulegzy says organise your emergency fund just as you organise your discretionary income..,  Why do you say it like that?

@Primark what do you mean by increasing your emergency fund indefinitely?. Can you elaborate more on that?!.
The only thing I like about your reply is that the amount of discretionary money to allocate to accumulating bitcoin and building backups is dependent on the financial situation of the investor.

There is no standard sharing formula, each investor allocates based on where they are at financially, as long as the three options of invest, save and spend are considered.

[Perfect-World]

. However, we can use our emergency funds to during the Dip if need be but we should endeavor to replace the emergency funds back since we can can't predict when emergency will come and it's gravity and also we can use our emergency funds to sort out Issues if need also be.

This is a total mess and wrong investment practice my dear. It's wrong to advise that we can use our emergency funds to buy Bitcoin during the Dip.

What if emergency situations arises immediately we buy, how then do you handle the unexpected situation? You know we can't predict emergencies, so it's wrong to use your emergency funds for buying Bitcoin because you don't know when it will happen. Your emergency funds is strictly kept for emergency situations and we aren't advised to use it for buying Bitcoin.

You can buy from the Dip when it comes if you have extra funds for that, not your emergency funds.

[DubemIfedigbo001]

if i was to be that investor i would increase my emergency funds than the amount am accumulating my bitcoin investment if with my income i have just one healthy option of increment that can accommodate my income.

It is not ideal to prioritize emergency fund over bitcoin buys, you'll be busy stacking up cash while your bitcoin portfolio is experiencing very little growth. I don't really think that's a very good idea, rather give both bitcoin portfolio and emergency fund the same priority so that you grow them at the same pace instead of neglecting one over the other.
 

We can't predict what emergency weight to expect and while  we can adjoin our bitcoin accumulation for a week into the next week, we can't postpone emergency from occurring when and how it choose to. in other words, emergency isn't within our control as it is for buying bitcoin whenever and in what amount i n our DCA.

This is why it is important to build your emergency fund gradually as you invest into bitcoin, you shouldn't adjourn your bitcoin investment, that is prioritizing emergency fund over your bitcoin inestment. If you must practice consistency in your bitcoin accumulation, then you never have to miss out buying bitcoin unless you don't have discretionary income for the said period of time, as long as you've got discretionary income available, you should buy bitcoin as well as build emergency fund from it.

To give your emergency fund a high priority, you can use a 40:40:20 sharing formula for your discretinary income, that is 40% goes into bitcoin, 40% into building emergency fund and 20% as discretionary consumption. You don't need to prioritize emergency fund over bitcoin neither should you neglect your discretionary needs because you're prioritizing your emergency fund.

[Homemade-IQ]

. However, we can use our emergency funds to during the Dip if need be but we should endeavor to replace the emergency funds back since we can can't predict when emergency will come and it's gravity and also we can use our emergency funds to sort out Issues if need also be.

Before acting irresponsible by investing with your emergency funds, you should first ask yourself the very essence of having an emergency funds in place if it's not for emergency.

And since emergency can come at anytime, it shows that you are gambling with your holdings, because if emergency situation comes up that moment that you invest with your emergency funds, you will have no emergency funds to sort out that emergency needs, and it may force you to sell off your holdings or temper with it, so it is a bad gamble that should be avoided by all Bitcoin investor.

[Abbatty]

. However, we can use our emergency funds to during the Dip if need be but we should endeavor to replace the emergency funds back since we can can't predict when emergency will come and it's gravity and also we can use our emergency funds to sort out Issues if need also be.

Before acting irresponsible by investing with your emergency funds, you should first ask yourself the very essence of having an emergency funds in place if it's not for emergency.

And since emergency can come at anytime, it shows that you are gambling with your holdings, because if emergency situation comes up that moment that you invest with your emergency funds, you will have no emergency funds to sort out that emergency needs, and it may force you to sell off your holdings or temper with it, so it is a bad gamble that should be avoided by all Bitcoin investor.

Just to make it clear, our emergency funds is not to tempered with, it a rigid funds that can’t be used for anything except it main purpose, which is to be used for emergency situations. The only funds we are allowed to touch or used when their is a Dip and we want to buy aggressively is the reserve funds. It is more flexible and can be used for other purposes, like boosting the emergency funds if the need arise too.

So mate, unless you want to jeopardize your holdings, you can’t used you emergency funds for anything else unless it purpose.

[Noorooo]

The ideal thing is to prioritize your Bitcoin investment and emergency fund, but you shouldn't give your emergency fund more priority than your portfolio. Building emergency fund alongside buying Bitcoin is good but shouldn't make you unnecessarily wimpy in your Bitcoin investment. There should be no rush to stack up cash, you can still build your emergency fund over time and it might take a year or more to get it at 3 months worth of expenses, so there's no need rushing it at the expense of your Bitcoin investment. It should be built gradually, the investor can decide to put 40% of discretionary income into Bitcoin, 40% into building emergency fund and 20% as discretionary consumption.

I believe your first priority should always be your an emergency fund because life is unpredictable and anything can happen at any time. and also the crypto market is the most unpredictable in the world,I still remember the 10 october crash thats why i think once you have enough savings to cover unexpected expenses then you can focus on building your Bitcoin portfolio without worrying about selling it at loss.

[samadam007]

This is not the best way to put down emergency funds in place.  The best way to put down emergency funds and you wouldn't have to fall back to it again because of an unattended basic needs is to first take care of all your basic needs, then the discretionary income left, is what you should divide into three places, one for investment one to put down your emergency and reserve funds and one for discretionary consumption, like that you would have no problem, not by taking money from your additional income to put it down without first figuring out your discretionary income.

the part where you mentioned about taking care of your basic needs before putting down your emergency funds is also at peace with what I believe because when you talk about attending to all your basic needs is different from attending to all your needs.  As an investor you need to know the difference between your basic needs and your needs when you do that isolation you will discover that it is more profitable to invest the money than attending to some of the things you actually a need.

Maybe you should explain to us the difference between basic needs and needs? Cos you seem to be making shit up. Why would you invest the money meant to take care of your needs? Make it make sense. Whether you choose to call it needs or basic needs, they’re still the same. And you’re meant to take care of it first, then whatever fund remaining is what is called “discretionary income”. Now that you know how discretionary income is gotten. It is from there you buy  bitcoin, build backup funds and discretionary consumption.