Balancing Financial security and Bitcoin Accumulation

[Tungbulu]

I greet all of you my country people. I know there may be a few other topics that emphasizes on the importance of an Emergency fund to an investor. Yes, everybody knows say Emergency funds dey important, but that's not what I'm here to talk about. With the help of this thread I'm aiming to give a detailed and step by step guide on how to simultaneously build an emergency fund while also accumulating Bitcoin. This is to prevent the excuse of having to waste more time building an emergency fund before getting started with one's accumulation journey.

DETERMINING YOUR FINANCIAL PRIORITIES

1. Emergency Fund: An emergency fund like we already know should be at least 3 to 6 months of our living expenses and this is what we should aim for. The final amount usually varies from individual to individual so focus on your financial situation and allocate 20% of your income to a readily accessible savings account. You may also choose to diversify a lesser percentage of your Emergency fund to Bitcoin too. Note that this is by choice and not really necessary.
2. Bitcoin Accumulation: 30% of your income should go to your discretionary spending, you can choose to use all 30% to accumulate Bitcoin or use a lesser percentage, it's totally up to you, but note that it should be a reasonable amount.

I know some people might already be tempted to as where the other 50% of your income should go. Take a chill pill, we'll also come to that. Now, we move to another segment which is...

TIPS FOR BUILDING AN EMERGENCY FUND

1. Automate your savings: sometimes having to manually save money can be very tiring, you might even forget sometimes and before you know it, you've used the money for something else, so automating your savings can be a pretty helpful tip to ensure you stay religious with your savings.
2. Make use of the 50/30/20 allocation rule: 50% of your income allocation should go to taking care of essential expenses and immediate needs. The mistake people often make is neglecting this aspect, forgetting that it is actually inevitable and unavoidable, even when you manage to avoid it today, it'll come back tomorrow bigger, and you'll be forced to still sort them out, thereby messing up your plans. 30% goes to your discretionary income and the other 20% towards your savings and also for debt repayments.


TIPS FOR INVESTING IN BITCOIN

1. Dollar-Cost Averaging (DCA): This is a very popular strategy and every true Bitcoin enthusiast should have heard or known this strategy. Now the reason I'm bringing up this strategy is because, if you're to achieve building a portfolio and an emergency simultaneously, then you need to marry this strategy, because it's the only strategy I know that gives you the kind of flexibility to achieve this. So prioritize investing a fixed amount from your discretionary income/spending at a regular interval that sits well with you, regardless of the market's performance.
2. Start small: Starting small is very important, especially if you're a low income earner, don't look at how much you plan to achieve just yet and just start with a manageable investment amount and then you can gradually increase your pace/amount overtime.
3. Diversify your portfolio: for starters, this isn't actually very mandatory but I just wanted to include it because there are some unique situations that may likely arise that may potentially lead to diversifying your investment beyond Bitcoin in order to minimize risk.

BALANCE BOTH GOALS

1. Your Emergency Fund should come first (for now): If you're hoping to achieve both goals simultaneously, then your focus should be more on stacking up that emergency fund FIRST, and then you may allocate more funds to your BTC accumulation.
2. Adjust your allocations: This may not also be very necessary for some, but periodically review your income allocation and should the need arise, make some necessary adjustments in order to ensure you're actually meeting the goals.
3. Be Patient: this is actually the most important one, building an emergency fund and a Bitcoin Stash at the same time takes a lot of time and so requires lots of patience, because sometimes it might look like you're not even getting it right, but as long as you're following the above steps, just keep going and being patient.

These steps may not really look like pretty much but I assure you that these steps and tips can actually help anyone (with a steady income source) to build a robust Emergency fund while also accumulating Bitcoin regularly. And don't forget that staying disciplined, patient and informed is also key to achieving this goal.
Pls you can also include other helpful tools if you've got any.

[Bryan jessy]

Nice lesson! I like the fact that you spoke about automated savings, for emergency funds accumulation, because with manual savings alone somebody might go broke once, as things to spend on will always exist.

Also you  mentioned building emergency funds and Bitcoin stash at the same time can be quite draining, and so requires lots of patience, and discipline that is very true. But for people with stable income it is not as difficult, though not easy, but of course we need to save for future use. 

[Tungbulu]

Nice lesson! I like the fact that you spoke about automated savings, for emergency funds accumulation, because with manual savings alone somebody might go broke once, as things to spend on will always exist.

This na true talk.
Although, this na the purpose of the 50% of your income, to fit dey take sort out those kyn matters if them eventually arise, but just to dey on a safer side, e good to use the automated savings so that excuse no go dey, because any day you miss that savings, e dey draw your plans one step back and to fit balance the whole thing, e go require you to cut some kyn expenses in order to fit put back the one wey been don comot.

[Marvelockg]

Nice lesson! I like the fact that you spoke about automated savings, for emergency funds accumulation, because with manual savings alone somebody might go broke once, as things to spend on will always exist.

Even as you plan to automate your saving, an high level of discipline is also necessary if you hope to get the best from your investment and savings.

There are possibilities of saving for your emergency and then spending it all even when the emergency hasn't set in so, as much as saving for emergency is necessary, being disciplined enough that you're not touching whatever you've set aside is much more crucial.

Of cause, what will help you stay invested for the long run is when you're able to Ballance everything up. Expecially in our countries where needs are too much and the finances to meeting those needs are most times not enough, it's expected to do proper planning and implement a proper disciplinary measure that will keep you balanced up with the allocation that goes into your expenses, investment and also emergency fund.

[Ishicryptic]

I agree with your balancing financial security and Bitcoin accumulation strategies but I don't quite agree with your allocating the percentage that should be used by people's for their income. Our needs and financial obligations are different so generally allocating the 50 30 20 strategy can only work for people with same kinds of needs but generally it is not everybody that can afford to remove 20% or 30% of their income for discretionary funds. Some theories are perfect on paper but in practical they are not easy to implement, your basic expenses is more important than allocating funds into emergency funds and investment funds.

Sometimes 50% or more of a person's income is not sufficient to take care of their basic expenses so what I advice is giving priority to expenses that you cannot avoid like food, if you have children allocating funds for their school fees and the rest that you cannot avoid. If a person's income is not surficient for basic expenses they cannot allocate any funds for discretionary funds and your strategy is not for them. The economic situation is quite hard in the country and everybody needs to find legal ways to increase their incomes so that they can be able to allocate funds for discretionary expenditures.

[EluguHcman]

BALANCE BOTH GOALS

1. Your Emergency Fund should come first (for now)

Here is where caught my interest the most. Most Speculations we make here is to educate the beginners so that they don't get caught of default out of their ignorants. So it is our obligations and responsibilities to guide them through while we strive on breaking further barriers so that we can always reach our investment goals.

On different notation which must of us has been aware, when we hear about an investment opportunity which prove of successful persons who introduces us to it, out of excitement we could just jump in and invest all of our money on it and with the DCA strategy of accumulating of our Bitcoin assets, unknowledgeable investors will always consider their investment funds first while emergency funds that is to sustain them will be ignored just because the Bitcoin market is promising to get one rich without knowing that it is not a quick rich source.

And later on, they begin to panic why is the income not coming yet after they have invested all the live savings and was expecting a quick rich.

While some Investors may leverage most percentage of their alternative source of income on Bitcoin investment and when the alternative source is not generating a sustainable incomes anymore, due to lack of emergency funds savings, they turns to their Bitcoin investment and sell it without considering if they are selling at lost or profit just because emergency attention is needed.

[DubemIfedigbo001]

Of cause, what will help you stay invested for the long run is when you're able to Ballance everything up. Expecially in our countries where needs are too much and the finances to meeting those needs are most times not enough, it's expected to do proper planning and implement a proper disciplinary measure that will keep you balanced up with the allocation that goes into your expenses, investment and also emergency fund.

I always tell people that every planning you have to do with money must be done before it arrives and even if it has arrived, then you need to plan it before you start spending that money, so you can plan out every bit of it and allocate it to your needs and not mere wants. Believe me the moment you start spending that money void of proper planning, the tendency to mismanage it is on the high.

I would also not advise saving all funds in the same bank account, I literally have up to 4 bank accounts and they hold different funds for different purposes in order to eliminate every possibility of oversight and activate thorough precision when spending.

[CryptopreneurBrainboss]

2. Bitcoin Accumulation: 30% of your income should go to your discretionary spending, you can choose to use all 30% to accumulate Bitcoin or use a lesser percentage, it's totally up to you, but note that it should be a reasonable amount.

Me I no support the idea of using all 30% for accumulating Bitcoin. Don't put yourself in a bad spot because you want to prioritize accumulating Bitcoin. Use a smaller percentage that won't make you run out of cash or get to use your emergency funds for things that aren't emergency. Plan your finances properly and allocate your funds very well. No do pass yourself. Say your friends they invest 100k monthly no go make you to dey do the same. If na 10k you fit afford and you no go broker, they run am like that and soonest you go done accumulate some decent amount of Bitcoin.

[Tungbulu]

2. Bitcoin Accumulation: 30% of your income should go to your discretionary spending, you can choose to use all 30% to accumulate Bitcoin or use a lesser percentage, it's totally up to you, but note that it should be a reasonable amount.

Me I no support the idea of using all 30% for accumulating Bitcoin. Don't put yourself in a bad spot because you want to prioritize accumulating Bitcoin. Use a smaller percentage that won't make you run out of cash or get to use your emergency funds for things that aren't emergency. Plan your finances properly and allocate your funds very well. No do pass yourself. Say your friends they invest 100k monthly no go make you to dey do the same. If na 10k you fit afford and you no go broker, they run am like that and soonest you go done accumulate some decent amount of Bitcoin.

Wetin you talk no be lie at all, but then again, that 30% na initially for discretionary spending, which is money wey you no really plan to use or money wey no enter budget, so e fit enter for other petty stuffs too, like loan repayment, settling some kyn stuffs wey you been forget to settle and other stuffs, but in the absence of these stuffs and also depending on your financial situation, you fit choose to dey over aggressive and then put the whole of the 30% (if you know say e no go worry you last las), this one sha no supposed worry too much since you don already allocate funds for other important stuffs too. But last last e still depends on the individual wey dey do the investment, everybody cash flow and income no be the same and na so these kyn decisions too go dey different.

[SmartGold01]

You know what you must know is that people don't usually know when to invest, how to invest and when not to invest. Usually, investment is when you are financially stable to make it reality but most people nowadays jump into investments without at least having source of income or something that would give them income when they are in need or lacking moment.
It's true that everyone out there loves investments but getting to know the rules of investment is what most people are lacking, that is why many people faces hard time with their investments or ends up pulling off their investments when their time isn't yet to come.

[WhoYouCantKill]

You know what you must know is that people don't usually know when to invest, how to invest and when not to invest. Usually, investment is when you are financially stable to make it reality but most people nowadays jump into investments without at least having source of income or something that would give them income when they are in need or lacking moment.
It's true that everyone out there loves investments but getting to know the rules of investment is what most people are lacking, that is why many people faces hard time with their investments or ends up pulling off their investments when their time isn't yet to come.

I find this to be very true.
Inasmuch as it isn't advisable to waste so much time in getting started or keep procrastinating, it is also very important to take your time and study what you want to go into, the risks, the potential for profitability and other essential things that one should know before taking the first baby steps in Bitcoin investment.

It becomes a bad idea to waste further time after you've gathered the necessary information needed to get started, have a steady income, and then you keep procrastinating because you have a targeted accumulation pase in your mind but your current financial position and income is restricting from getting started. Rather than waiting to increase your income first, best you get started with any small amount you can and then subsequently reassess and readjust your strategy with time.

[Tungbulu]

This is a ver incredible guide  well detaild the way you put the steps on balancing an emergency fund with Bitcoin accumulation I will tell you this is what many newbie's my self included needs  but there was a question I wanted to ask How do someone  avoid  the temptation of using their  emergency funds

Well it's pretty simple. First of all, you'll need to have good cash flow management system in place. You can also put in place other backup funds, such as the float funds, this is like another smaller savings that is more liquid and accessible than the Emergency funds. The purpose of this back up fund is to tackle small and unexpected needs (which are not an emergency ) that arises without having to tamper with your emergency fund, since it should only be for actual Emergencies. This can be an effective way of avoiding whatever temptation of Dipping into your emergency fund to sort out things that are not really actual Emergencies.

[Gooner0]

With all you've said, be it manually saving money or automativelly saving emergency funds, it all requires discipline and a serious and determined mindset. With that you can achieve a lot more than you think.
I feel you giving a percentage of what to keep and what to save seems off because people would always save what they can afford to keep for a good period of time without looking back at it.

2. Bitcoin Accumulation: 30% of your income should go to your discretionary spending, you can choose to use all 30% to accumulate Bitcoin or use a lesser percentage, it's totally up to you, but note that it should be a reasonable amount.

Me I no support the idea of using all 30% for accumulating Bitcoin. Don't put yourself in a bad spot because you want to prioritize accumulating Bitcoin. Use a smaller percentage that won't make you run out of cash or get to use your emergency funds for things that aren't emergency. Plan your finances properly and allocate your funds very well. No do pass yourself. Say your friends they invest 100k monthly no go make you to dey do the same. If na 10k you fit afford and you no go broker, they run am like that and soonest you go done accumulate some decent amount of Bitcoin.

i also do not support the idea of 30% people should choose a percentage that seems appropriate for them.
, someone who earns more than I do is required to invest 30% , no problem. But I earn lower you can't also expect 30% from me too. You should do whatever amount you feel seems right.

[sotelorene]

You know what you must know is that people don't usually know when to invest, how to invest and when not to invest. Usually, investment is when you are financially stable to make it reality but most people nowadays jump into investments without at least having source of income or something that would give them income when they are in need or lacking moment.
It's true that everyone out there loves investments but getting to know the rules of investment is what most people are lacking, that is why many people faces hard time with their investments or ends up pulling off their investments when their time isn't yet to come.

Na waiting make them say failure to plan is planning to fail, person wey no plan en self well will definitely not get to a greater height ( success). This thing wey you take na the mistake some people dey make this time oo and waiting they cause this mistake na greed and big eye because when they see say there friends don dey grow for Bitcoin investment and those there friends get stable source of income, the person no go want calm down know say Bitcoin investment no be competition, them go rush carry money put and when e red for them, na them go still carry there hand sell off everything and sometimes them fit dey for loss.

[Moreno233]

You have made a very good post here since you are able to allocate percentages to the various segments, it will guide those who are having troubles knowing where to start from. The only thing I want to add is that individual needs varies hence allocating percentages will be a little problematic. What I mean is that there are people wh0 10% of their income is enough to cover their basic needs and the remaining 90% can be divided into emergency funds, reserve funds and investment funds. On the contrary, there are people that spend as high as 60% of their income on basic needs leaving them with 40% for every other thing. You should not allocate 30% of your income into emergency funds when your basic needs have not been met. In addition, you should not get too focused on building your emergency funds to be x6 of your basic needs before you get started else you will never even get started.

The most important thing is to be able to calculate and allocate funds correctly based on needs and our peculiarities and also being able to respect each of the components that makes investing in Bitcoin and holding it possible at minimal stress.

[Ruttoshi]

2. Bitcoin Accumulation: 30% of your income should go to your discretionary spending, you can choose to use all 30% to accumulate Bitcoin or use a lesser percentage, it's totally up to you, but note that it should be a reasonable amount.

Me I no support the idea of using all 30% for accumulating Bitcoin. Don't put yourself in a bad spot because you want to prioritize accumulating Bitcoin. Use a smaller percentage that won't make you run out of cash or get to use your emergency funds for things that aren't emergency. Plan your finances properly and allocate your funds very well. No do pass yourself. Say your friends they invest 100k monthly no go make you to dey do the same. If na 10k you fit afford and you no go broker, they run am like that and soonest you go done accumulate some decent amount of Bitcoin.

Baba you don talk am finish. Bitcoin investment no be competition on who buy pass but na to buy based on your own financial power so that you no go choke yourself. If na 5%, 10% of your income wey you go freely buy with and forget about am, na that amount good pass. E better say make person get little wey him go fit dey buy gradually for long than say him no get at all due to buying more than your financial strength.

[SuperBitMan]

You know what you must know is that people don't usually know when to invest, how to invest and when not to invest. Usually, investment is when you are financially stable to make it reality but most people nowadays jump into investments without at least having source of income or something that would give them income when they are in need or lacking moment.
It's true that everyone out there loves investments but getting to know the rules of investment is what most people are lacking, that is why many people faces hard time with their investments or ends up pulling off their investments when their time isn't yet to come.

You are right SmartGold01, going into investment without having a source of income is a very big mistake, especially going into Bitcoin investment, when it comes to bitcoin investment one needs money to be accumulating Bitcoin now without a source of income where will you be getting money from or will you depend on money they will be giving you, without having a source of income don't even think about investing in Bitcoin because you will find yourself dipping hands into it every day.
Without having a source of income how will you build your backup funds, and we know backup funds are very important as an investor because it always prevent us from dipping hands into our investment.
Those that really want to go into Bitcoin investment should first have a source of income, remember na money then they use fine money.

[Y3shot]

2. Bitcoin Accumulation: 30% of your income should go to your discretionary spending, you can choose to use all 30% to accumulate Bitcoin or use a lesser percentage, it's totally up to you, but note that it should be a reasonable amount.

Me I no support the idea of using all 30% for accumulating Bitcoin. Don't put yourself in a bad spot because you want to prioritize accumulating Bitcoin. Use a smaller percentage that won't make you run out of cash or get to use your emergency funds for things that aren't emergency. Plan your finances properly and allocate your funds very well. No do pass yourself. Say your friends they invest 100k monthly no go make you to dey do the same. If na 10k you fit afford and you no go broker, they run am like that and soonest you go done accumulate some decent amount of Bitcoin.

When it comes to accumulating bitcoin, it is impossible for everyone to accumulate the same percentage without stress. We have different amounts of income and different amounts of responsibility. It is important for everyone to understand their limit on how much they can accumulate without stressing themselves. If you try to accumulate like someone else, there is a chance that due to the load, the investment may not be a successful one. Invest what you can afford; that is the essence of using the DCA strategy in investing in bitcoin.

Even if one invests with a lower amount, as long as you are consistent in accumulating bitcoin, it is very possible to accumulate a reasonable amount of bitcoin at the end of the day.

[Tungbulu]

✂️✂️✂️
 

Me I no support the idea of using all 30% for accumulating Bitcoin. Don't put yourself in a bad spot because you want to prioritize accumulating Bitcoin. Use a smaller percentage that won't make you run out of cash or get to use your emergency funds for things that aren't emergency. Plan your finances properly and allocate your funds very well. No do pass yourself. Say your friends they invest 100k monthly no go make you to dey do the same. If na 10k you fit afford and you no go broker, they run am like that and soonest you go done accumulate some decent amount of Bitcoin.

Baba you don talk am finish. Bitcoin investment no be competition on who buy pass but na to buy based on your own financial power so that you no go choke yourself. If na 5%, 10% of your income wey you go freely buy with and forget about am, na that amount good pass. E better say make person get little wey him go fit dey buy gradually for long than say him no get at all due to buying more than your financial strength.

You know the problem be say most people wey dey invest for Bitcoin dey actually dey do follow follow, when them see person wey don already go far for their accumulation journey, them go mostly wan compare themselves with them and go wan copy their strategy without realising say them go first need to evaluate their own personal financial situation before choosing their own accumulation approach wey go suit well with their current financial situation. Na this thing dey mostly make people give up for road because the investment go later overwhelm them and them go come start to encounter one or two financial wahala.

[SmartGold01]

You know what you must know is that people don't usually know when to invest, how to invest and when not to invest. Usually, investment is when you are financially stable to make it reality but most people nowadays jump into investments without at least having source of income or something that would give them income when they are in need or lacking moment.
It's true that everyone out there loves investments but getting to know the rules of investment is what most people are lacking, that is why many people faces hard time with their investments or ends up pulling off their investments when their time isn't yet to come.

Na waiting make them say failure to plan is planning to fail, person wey no plan en self well will definitely not get to a greater height ( success). This thing wey you take na the mistake some people dey make this time oo and waiting they cause this mistake na greed and big eye because when they see say there friends don dey grow for Bitcoin investment and those there friends get stable source of income, the person no go want calm down know say Bitcoin investment no be competition, them go rush carry money put and when e red for them, na them go still carry there hand sell off everything and sometimes them fit dey for loss.

That is true, we must learn to place value on our investment if we must last longer and makes good profits from our investment. For instance, doing proper consultation before jumping doing into whatever we would want to do, most time when following how they shares their success stories you would see that there are also some difficult time for them but they wouldn't want to scare new investors rather cover up their bad experiences and share only the good side, but those who doesn't know how the investment works could just go invested with all their life savings with the mindset it would automatically be profited with few months or days.

Although, no doubt because there are all possibilities for such to happened only if they get involved in with altcoin that are more of pump/dump, when they are lucky they could get pumped to cash out good profits from their investments and only those who have been in the cryptocurrencies space can actually achieved such quicker profits.