Balancing Financial security and Bitcoin Accumulation

[Roseline492]

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

What you are saying is like someone whom they ask to keep a lot of money for the trying time but decided to use all of those money for something that isn't capable of doing anything against the trying time. So actually I will first of all ask you if you no what emergency funds means to an investor because it could be that you do not understand what it means that's why you must have been trying to use another means to serve the purpose. I will use what usually happen in a family that's more than three person to illustrate this, if the wife or the husband is a salary earner they try as much as they can, never to exhaust all the money before the next one because if they do it will drag them out into looking for any of there investment to sell and use the money for other things so that's something that can also occur to a Bitcoin investor who consider what you said.

[AuchanX]

I think keeping money in cash for the emergency fund is the best way. Because many times it is seen that we need money very urgently. At that time, we do not get money if we keep it in the bank. Again, many times it is seen that our bank account gets locked or damaged. If we need money immediately at that time, we have to take a loan from somewhere at that time and if we do not get a loan, we may have to sell our holdings. I think it's a good idea to keep cash in an emergency fund.

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

You are probably not fully aware of the emergency fund. An emergency fund is not for investment. It is money that can be used immediately in a sudden emergency. For example, illness, job loss, accident or when you are in a financial crisis.

You mentioned that you should keep it in other assets outside the emergency fund.

If you keep the emergency fund money in gold, bitcoin or other assets, then it may be difficult to convert it into cash. The price may decrease, it may take time to sell. Then you may not be able to use that money immediately in a sudden emergency. Then you may have to take a loan from somewhere else. Therefore, the emergency fund should always be kept in an easily accessible and risk-free place.

Remember one thing, an emergency fund is not for investment. Rather, an emergency fund works as a strategy to maintain your investment in the long term.

[Merit.s]

I think keeping money in cash for the emergency fund is the best way. Because many times it is seen that we need money very urgently. At that time, we do not get money if we keep it in the bank. Again, many times it is seen that our bank account gets locked or damaged. If we need money immediately at that time, we have to take a loan from somewhere at that time and if we do not get a loan, we may have to sell our holdings. I think it's a good idea to keep cash in an emergency fund.

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

You already have your bitcoin investment ongoing, you don't need to keep your emergency funds in any asset because it will limit you to having enough cash at hand when a real life emergency plays out. We need to balance the cash in our hands for easy accessibility whenever an emergency occurs so that you don't sell any of your asset to take care of a real life emergency because if that asset dips at that moment, you will sell at loss and that will depreciate the value of your emergency funds which might not be enough. It will make you to sell part of your bitcoin to balance up the money for that emergency.

Imagine that your emergency funds is $1000 and you bought bitcoin with it, the next day bitcoin price dip and continue for one week before you are hit with real emergency, by the time you will sell your bitcoin it's value in dollar would have reduced below $1000. You are already at loss. This is the reason why you emergency funds should be in cash for easy access to use.

[ASloveapg]

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

I understand what you are trying to say and I think that you are wrong about it, keeping your emergency funds in asset like Bitcoin or gold as you suggested is wrong because the market might dip very badly and by then, their may be a pressing emergencies that is threatening your Bitcoin holdings, so in such a scenario you will likely sell that your emergency funds that is in  an asset at a loss because the market might be down then,  and sometimes it may even take you longer time to sell it off, so the best way to keep your emergency funds is in fiat, so that you can react fast to any emergencies that threatens your Bitcoin investment.

I agree with you. To keep your investment safe for the long term, emergency funds should be kept in fiat only. Most of the time, emergencies can come suddenly such as a physical accident be it to a family member or yourself. At such a time you may be a victim of an accident and there may be no facility to buy and sell. In developed countries various digital services are available but in underdeveloped or semi developed countries you have to rely more on cash funds.

I totally agree with you, and I have real experience of it, when we are prepared for an emergency, it is definitely better to have cash, I took my family member to the emergency at 2 am because he was sick, that time I didn't have any cash, the money was only in my mobile, but at that time I had to face a problem in paying the hospital bill, I told them to pay online, but they don't have any online payment system there, even though the hospital was very big, they don't have any online payment system, later I took cash from a stranger and paid the hospital bill, and I returned the money through that online payment to that person.
So you will face such problems at any unexpected time, and that is why keeping an emergency fund in cash is definitely the safest.

[Silikiem]

I think keeping money in cash for the emergency fund is the best way. Because many times it is seen that we need money very urgently. At that time, we do not get money if we keep it in the bank. Again, many times it is seen that our bank account gets locked or damaged. If we need money immediately at that time, we have to take a loan from somewhere at that time and if we do not get a loan, we may have to sell our holdings. I think it's a good idea to keep cash in an emergency fund.

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

I tried to understand your first write up but couldn't, but from your second sentence i understand you are saying we should buy bitcoin when the price is low and sell when it increase to make profit but this is a wrong way or method to invest in BTC mostly as a new investor buying low and selling when price increase are done by traders as a bitcoin investor we should plan for a long term we should buy and hold bitcoin till we have reached our accumulation stage before we could think of selling some part and still buy and hodl than chasing minor profit.

That’s a trader’s mindset he’s exhibiting there and i personally I think such narrative doesn’t speak well about what bitcoin investment is all about. He should first of all know that going into bitcoin investment, you should not think of profit making especially a quick one because if you do that, you might not last long in the investment as a result of you’re such in a rush to make profit and when the profit isn’t coming quickly as expected due to the volatility of bitcoin, you will definitely quit your investment. As a newbie it’s advisable to focus more on consistently accumulating bitcoin and hold for the long term goal let’s say 6-10 years and above to be able to reach your accumulation target first and perhaps even surpass your target before you can think of getting the profit. Bitcoin is a long term investment and at such one must be patient to accumulate consistently and hold for the long term goal.

[Emjay24]

That is why it is good for anyone who has an interest in investing in Bitcoin; they should wait for the right time then go and borrow money, which is a big risk, but they will think that it will favor them.

I like people going for what they want rather than just waiting. If you intend accumulating Bitcoin and you don't have discretionary funds, you can proceed to work around your finances, you can always do more to get more income. You can take up a side hustle with the purpose of making extra funds available which you dedicate to your Bitcoin investment.

It has to do with our mindset, as long as we desire to achieve something, you'll always see ways to get around it if you're not lazy minded and I see that term "waiting for the right time" to be associated with laziness. You go ahead and create the right time for yourself by working around your finances and creating avenue for discretionary income to be available to kickstart and follow up your accumulation journey.

[BTC-blaad]

I think keeping money in cash for the emergency fund is the best way. Because many times it is seen that we need money very urgently. At that time, we do not get money if we keep it in the bank. Again, many times it is seen that our bank account gets locked or damaged. If we need money immediately at that time, we have to take a loan from somewhere at that time and if we do not get a loan, we may have to sell our holdings. I think it's a good idea to keep cash in an emergency fund.

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

Hey dude, you don't have to say that one should keep his emergency funds in any asset before you mislead or contradict especially we the newbies in Bitcoin investment because from what I have learnt so far I learnt that your emergency funds should be kept where it can be easily accessible to you at anytime because emergency can occur at any time and if it occurs, you don't have to be running Helter skelter for the money to use in solving the issue, you don't have to start looking for how to sell your gold before you can get the money, because before you will be able to run here and there looking for a buyer to negotiate with and sell the gold, there's a possibility that such emergency will increase and get worst before time and if it's something that's life threatening it can lead to a lost of life. So I think is better you keep it in cash and should be readily available and accessible to you at any point in time.

[Barrykbest]

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

I understand what you are trying to say and I think that you are wrong about it, keeping your emergency funds in asset like Bitcoin or gold as you suggested is wrong because the market might dip very badly and by then, their may be a pressing emergencies that is threatening your Bitcoin holdings, so in such a scenario you will likely sell that your emergency funds that is in  an asset at a loss because the market might be down then,  and sometimes it may even take you longer time to sell it off, so the best way to keep your emergency funds is in fiat, so that you can react fast to any emergencies that threatens your Bitcoin investment.

I get the idea you’re trying to pass across, turning assets like Bitcoin or gold into backup funds when emergencies strike sounds smart on the surface, but it carries more risk than it seems. Emergencies are usually unpredictable, and when they happen, you might not have the time or favorable market conditions to liquidate those assets. Imagine Bitcoin dipping 30% right before you need the money, you’d end up selling at a loss and still be under pressure.

That’s why it’s safer and more practical to keep emergency funds in fiat or a stable, easily accessible form. Bitcoin should be treated as a long-term accumulation, something you build gradually and hold with patience. Once your emergency fund is well-structured, then it’s easier to stay consistent in your Bitcoin investment without fear of unexpected situations forcing you to sell.

In short, emergency funds protect your Bitcoin journey. Without that cushion, you might be forced to break your long-term plan whenever life throws a surprise.

[Loyang]

That is why it is good for anyone who has an interest in investing in Bitcoin; they should wait for the right time then go and borrow money, which is a big risk, but they will think that it will favor them.

It is never a good idea to wait to invest or wait for the right time. Because you can miss out on many buying opportunities during the time you wait. An investor should always continue to buy based on his discretionary income. If a person waits for the right time, it is seen that they cannot buy at all. Because the amount of decline they are waiting for may not happen and when it falls as expected, it is seen that they panic and buy, afraid.

A person needs to start investing first, if a person has basic knowledge about Bitcoin, has a source of discretionary income and has faith in Bitcoin, then he can start investing. Every time in the market is the right time to buy. If someone is looking for the right time to buy, it will never be good for him and his portfolio.

[Futurexxx]

You are probably not fully aware of the emergency fund. An emergency fund is not for investment. It is money that can be used immediately in a sudden emergency. For example, illness, job loss, accident or when you are in a financial crisis.

The problem most Investors that acted in such a manner is having is that they don't know  the true definition of emergency funds, because anyone that truly knows what emergency funds are kept for, will always find a way to make it easily accessible just in case emergency struck.
Keeping it in asset will make your response to an emergency situation that threatens your holdings very slow and most times the value of what you kept it in might have dropped drastically, so keeping it in fiat is the best for fast response and accessibility.

[Gentle_Soul]

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.

Very well said even if there are somethings that I may not want to tryout in your strategies but however I must say that it was a brilliant idea you have put in place .
I got caught with the idea of automating your savings and is one strategy I will put in place starting today, most times is really difficult saving up on your own how that what you don't intend to spend on will just come up and you end up attending to it thereby leading to misappropriation of funds.
One thing I do not think I can completely accept in this your break down is investing 30% of earnings in Bitcoin if you talk about investing 30% of your monthly income in Bitcoin after every 4 months, I don't know wether to say it may be fair enough but however one must know the risks involved in investing in Bitcoin before doing so

[Mvtech]

This approach nails the balance between safety and growth. One extra trick i will add is to store your emergency funds in a high yield savings account, that way your idle cash is at least earning interest while you DCA into Bitcoin.

[Frankolala]

This approach nails the balance between safety and growth. One extra trick i will add is to store your emergency funds in a high yield savings account, that way your idle cash is at least earning interest while you DCA into Bitcoin.

You still don't get the point why emergency funds shouldn't be put into any place that you wouldn't have easy access to. Why are people just feeling that they shouldn't keep idle cash in their possession for easy access whenever an unforeseen circumstances play out. If you put your emergency funds in a fixed position for little interest rate, what if it haven't reached the bargin time between you are the bank for you to have access to withdraw your funds and you are hit with a real life emergency, it means that you will end up selling part of your bitcoin to cater for that problem.

No need of complicating things for yourself as you are investing into bitcoin so that you don't make a wrong move that will lead you into selling part of your bitcoin when it's not time. Your emergency funds should be in cash in your possession so that you can easily take care of an real life emergency without stressing yourself unnecessarily. Emergency funds is not for earning or use to make profit.

[Sticky Bomb]

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

I understand what you are trying to say and I think that you are wrong about it, keeping your emergency funds in asset like Bitcoin or gold as you suggested is wrong because the market might dip very badly and by then, their may be a pressing emergencies that is threatening your Bitcoin holdings, so in such a scenario you will likely sell that your emergency funds that is in  an asset at a loss because the market might be down then,  and sometimes it may even take you longer time to sell it off, so the best way to keep your emergency funds is in fiat, so that you can react fast to any emergencies that threatens your Bitcoin investment.

I agree with you. To keep your investment safe for the long term, emergency funds should be kept in fiat only. Most of the time, emergencies can come suddenly such as a physical accident be it to a family member or yourself. At such a time you may be a victim of an accident and there may be no facility to buy and sell. In developed countries various digital services are available but in underdeveloped or semi developed countries you have to rely more on cash funds.

I totally agree with you, and I have real experience of it, when we are prepared for an emergency, it is definitely better to have cash, I took my family member to the emergency at 2 am because he was sick, that time I didn't have any cash, the money was only in my mobile, but at that time I had to face a problem in paying the hospital bill, I told them to pay online, but they don't have any online payment system there, even though the hospital was very big, they don't have any online payment system, later I took cash from a stranger and paid the hospital bill, and I returned the money through that online payment to that person.
So you will face such problems at any unexpected time, and that is why keeping an emergency fund in cash is definitely the safest.

Cash doesn't always have to mean physical cash but Fiat held in digital means too. It could mean having such funds in your bank account since carrying physical cash around can be very uncomfortable and tasky, not to mention the security threats. The hospital in question is not professional enough if at all to request physical cash as the only payment medium on an emergency note, the world has passed that stage of manual deposition.

[Okosisie]

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

I understand what you are trying to say and I think that you are wrong about it, keeping your emergency funds in asset like Bitcoin or gold as you suggested is wrong because the market might dip very badly and by then, their may be a pressing emergencies that is threatening your Bitcoin holdings, so in such a scenario you will likely sell that your emergency funds that is in  an asset at a loss because the market might be down then,  and sometimes it may even take you longer time to sell it off, so the best way to keep your emergency funds is in fiat, so that you can react fast to any emergencies that threatens your Bitcoin investment.

I agree with you. To keep your investment safe for the long term, emergency funds should be kept in fiat only. Most of the time, emergencies can come suddenly such as a physical accident be it to a family member or yourself. At such a time you may be a victim of an accident and there may be no facility to buy and sell. In developed countries various digital services are available but in underdeveloped or semi developed countries you have to rely more on cash funds.

I totally agree with you, and I have real experience of it, when we are prepared for an emergency, it is definitely better to have cash, I took my family member to the emergency at 2 am because he was sick, that time I didn't have any cash, the money was only in my mobile, but at that time I had to face a problem in paying the hospital bill, I told them to pay online, but they don't have any online payment system there, even though the hospital was very big, they don't have any online payment system, later I took cash from a stranger and paid the hospital bill, and I returned the money through that online payment to that person.
So you will face such problems at any unexpected time, and that is why keeping an emergency fund in cash is definitely the safest.

Cash doesn't always have to mean physical cash but Fiat held in digital means too. It could mean having such funds in your bank account since carrying physical cash around can be very uncomfortable and tasky, not to mention the security threats. The hospital in question is not professional enough if at all to request physical cash as the only payment medium on an emergency note, the world has passed that stage of manual deposition.

From my own point of view,
Tracking your spending is a great way to see where your money is going. You can use a budgeting app, spreadsheet, or notebook as well as pen and paper. If you want to go with just one method that works best for you, then try the following:

Use a combination of tools (e.g., smartphone app + budgeting spreadsheet).
Track your spending for 6 months at first, then extend it out over 12 months (or longer).
Improve your skills to earn more money.
Improve your skills so you can get hired by the best companies in your industry. If you’re looking for a better job in your industry and have no experience, you can start as an intern or join training programs that will teach you how to do what they need done (and maybe even pay it forward!). You can also use these skills as side hustles to bring in more income.

Pay off debt.
Paying off debt is a great way to get out of debt. It is not always easy, but you can do it with some determination and effort.

Reduce your bills.
Make your own food at home so you don’t have to eat out. You can also make purchases when they are on sales or having a discount. Also, ensure you don’t buy unnecessary items.

Create a budget you can stick to.
Creating a budget is the first step to financial freedom. It is important that you create one that works for you and not just something you are told to follow. Creating a budget doesn't have to be complicated or difficult, but it does require some preparation.

You will need to know what your monthly income is and how much money is going toward bills like rent or utilities each month. Then, based on those numbers, create an expense sheet with specific categories (e.g., food). Once this spreadsheet has been created, it becomes easier because all your expenses are contained within each category, so there's no guesswork involved when trying to figure out where exactly your Naira went!

 You can achieve financial freedom by having smart habits

[JayJuanGee]

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

I understand what you are trying to say and I think that you are wrong about it, keeping your emergency funds in asset like Bitcoin or gold as you suggested is wrong because the market might dip very badly and by then, their may be a pressing emergencies that is threatening your Bitcoin holdings, so in such a scenario you will likely sell that your emergency funds that is in  an asset at a loss because the market might be down then,  and sometimes it may even take you longer time to sell it off, so the best way to keep your emergency funds is in fiat, so that you can react fast to any emergencies that threatens your Bitcoin investment.

I agree with you. To keep your investment safe for the long term, emergency funds should be kept in fiat only. Most of the time, emergencies can come suddenly such as a physical accident be it to a family member or yourself. At such a time you may be a victim of an accident and there may be no facility to buy and sell. In developed countries various digital services are available but in underdeveloped or semi developed countries you have to rely more on cash funds.

I totally agree with you, and I have real experience of it, when we are prepared for an emergency, it is definitely better to have cash, I took my family member to the emergency at 2 am because he was sick, that time I didn't have any cash, the money was only in my mobile, but at that time I had to face a problem in paying the hospital bill, I told them to pay online, but they don't have any online payment system there, even though the hospital was very big, they don't have any online payment system, later I took cash from a stranger and paid the hospital bill, and I returned the money through that online payment to that person.
So you will face such problems at any unexpected time, and that is why keeping an emergency fund in cash is definitely the safest.

Cash doesn't always have to mean physical cash but Fiat held in digital means too. It could mean having such funds in your bank account since carrying physical cash around can be very uncomfortable and tasky, not to mention the security threats. The hospital in question is not professional enough if at all to request physical cash as the only payment medium on an emergency note, the world has passed that stage of manual deposition.

Remember with your various back up funds, whether emergency funds, reserve funds and/or float, you have to consider both volatility of how you are holding those back up funds and the availability (liquidity) of those funds.  Don't think that you have to be all or nothing in the way that you are holding your funds, but you have to take into account that various ways of holding your funds, whether it is your local money, or dollars or some other potentially acceptable means, you have to have some assurance that you are  not going to get locked out of them or lose them at the time that you need them, whether you are going through a temporary cashflow shortage or something that is more severe.  There are a variety of scenarios that could play out where your expenses might be going up and/or your available income (or cash) is going down.  You could be locked out of a bank, physical cash could be destroyed, lost or robbed, some forms of holding value might have a lot of fluctuation in its value to cause it to lose value right when you are needing to cash out of some or all of it.

[Money bag]

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

I understand what you are trying to say and I think that you are wrong about it, keeping your emergency funds in asset like Bitcoin or gold as you suggested is wrong because the market might dip very badly and by then, their may be a pressing emergencies that is threatening your Bitcoin holdings, so in such a scenario you will likely sell that your emergency funds that is in  an asset at a loss because the market might be down then,  and sometimes it may even take you longer time to sell it off, so the best way to keep your emergency funds is in fiat, so that you can react fast to any emergencies that threatens your Bitcoin investment.

I agree with you. To keep your investment safe for the long term, emergency funds should be kept in fiat only. Most of the time, emergencies can come suddenly such as a physical accident be it to a family member or yourself. At such a time you may be a victim of an accident and there may be no facility to buy and sell. In developed countries various digital services are available but in underdeveloped or semi developed countries you have to rely more on cash funds.

I totally agree with you, and I have real experience of it, when we are prepared for an emergency, it is definitely better to have cash, I took my family member to the emergency at 2 am because he was sick, that time I didn't have any cash, the money was only in my mobile, but at that time I had to face a problem in paying the hospital bill, I told them to pay online, but they don't have any online payment system there, even though the hospital was very big, they don't have any online payment system, later I took cash from a stranger and paid the hospital bill, and I returned the money through that online payment to that person.
So you will face such problems at any unexpected time, and that is why keeping an emergency fund in cash is definitely the safest.

Cash doesn't always have to mean physical cash but Fiat held in digital means too. It could mean having such funds in your bank account since carrying physical cash around can be very uncomfortable and tasky, not to mention the security threats. The hospital in question is not professional enough if at all to request physical cash as the only payment medium on an emergency note, the world has passed that stage of manual deposition.

Remember with your various back up funds, whether emergency funds, reserve funds and/or float, you have to consider both volatility of how you are holding those back up funds and the availability (liquidity) of those funds.  Don't think that you have to be all or nothing in the way that you are holding your funds, but you have to take into account that various ways of holding your funds, whether it is your local money, or dollars or some other potentially acceptable means, you have to have some assurance that you are  not going to get locked out of them or lose them at the time that you need them, whether you are going through a temporary cashflow shortage or something that is more severe.  There are a variety of scenarios that could play out where your expenses might be going up and/or your available income (or cash) is going down.  You could be locked out of a bank, physical cash could be destroyed, lost or robbed, some forms of holding value might have a lot of fluctuation in its value to cause it to lose value right when you are needing to cash out of some or all of it.

We should be careful to not store our reserves in assets that can lose value and end up reduced how much we had in reserve in the first place and we should also try to keep a reasonable amount of our reserved or emergency readily available for you at all times, it an emergency fund for a reason and emergency can strike at any time, so we should be able to access when we want to otherwise it won't really qualify as an emergency fund and some people just say that they will store the emergency and reserve in one form, it's ideal to spread them out this will help out alot as you could get locked out of you bank account and if all of your emergency fund is in there then you will be in a tight spot the moment you get locked out, the same thing is also likely if you keep it in cash since there is also the risk of a fire or even theft, we should be able to decisively think through scenarios like this and plan for them as well, that's the only way our emergency fund can be called an emergency fund.

[Sticky Bomb]

If you can keep assets other than an emergency fund, it would be better. You can buy them for a small amount and sell them at a higher price, such as gold or Bitcoin. You put them away for a small amount. Suddenly, you need emergency cash after 2/3 months. You sell them from there. You have invested, and then you have some profit!

I understand what you are trying to say and I think that you are wrong about it, keeping your emergency funds in asset like Bitcoin or gold as you suggested is wrong because the market might dip very badly and by then, their may be a pressing emergencies that is threatening your Bitcoin holdings, so in such a scenario you will likely sell that your emergency funds that is in  an asset at a loss because the market might be down then,  and sometimes it may even take you longer time to sell it off, so the best way to keep your emergency funds is in fiat, so that you can react fast to any emergencies that threatens your Bitcoin investment.

I agree with you. To keep your investment safe for the long term, emergency funds should be kept in fiat only. Most of the time, emergencies can come suddenly such as a physical accident be it to a family member or yourself. At such a time you may be a victim of an accident and there may be no facility to buy and sell. In developed countries various digital services are available but in underdeveloped or semi developed countries you have to rely more on cash funds.

I totally agree with you, and I have real experience of it, when we are prepared for an emergency, it is definitely better to have cash, I took my family member to the emergency at 2 am because he was sick, that time I didn't have any cash, the money was only in my mobile, but at that time I had to face a problem in paying the hospital bill, I told them to pay online, but they don't have any online payment system there, even though the hospital was very big, they don't have any online payment system, later I took cash from a stranger and paid the hospital bill, and I returned the money through that online payment to that person.
So you will face such problems at any unexpected time, and that is why keeping an emergency fund in cash is definitely the safest.

Cash doesn't always have to mean physical cash but Fiat held in digital means too. It could mean having such funds in your bank account since carrying physical cash around can be very uncomfortable and tasky, not to mention the security threats. The hospital in question is not professional enough if at all to request physical cash as the only payment medium on an emergency note, the world has passed that stage of manual deposition.

Remember with your various back up funds, whether emergency funds, reserve funds and/or float, you have to consider both volatility of how you are holding those back up funds and the availability (liquidity) of those funds.  Don't think that you have to be all or nothing in the way that you are holding your funds, but you have to take into account that various ways of holding your funds, whether it is your local money, or dollars or some other potentially acceptable means, you have to have some assurance that you are  not going to get locked out of them or lose them at the time that you need them, whether you are going through a temporary cashflow shortage or something that is more severe.  There are a variety of scenarios that could play out where your expenses might be going up and/or your available income (or cash) is going down.  You could be locked out of a bank, physical cash could be destroyed, lost or robbed, some forms of holding value might have a lot of fluctuation in its value to cause it to lose value right when you are needing to cash out of some or all of it.

With that being said is it more practical to hold your emergency fund in more than one form but not in a volatile vehicle (hopefully stable coins, cash, Bank accounts) so you can have more leverage and more options to retrieve funds from in the event one source locks you out on laying hands on the funds when an emergency situation occurs, or not to hold all variances of backup funds in one form and spread it out to other patterns of holding so that in case one backup funds becomes unreachable, the other might take it's place while work is done for the former to be retrieved and replace what stood in for it?

[Barikui1]

Remember with your various back up funds, whether emergency funds, reserve funds and/or float, you have to consider both volatility of how you are holding those back up funds and the availability (liquidity) of those funds.  Don't think that you have to be all or nothing in the way that you are holding your funds, but you have to take into account that various ways of holding your funds, whether it is your local money, or dollars or some other potentially acceptable means, you have to have some assurance that you are  not going to get locked out of them or lose them at the time that you need them, whether you are going through a temporary cashflow shortage or something that is more severe.  There are a variety of scenarios that could play out where your expenses might be going up and/or your available income (or cash) is going down.  You could be locked out of a bank, physical cash could be destroyed, lost or robbed, some forms of holding value might have a lot of fluctuation in its value to cause it to lose value right when you are needing to cash out of some or all of it.

With all that you said here, it shows that you are truly a veteran in Bitcoin investment, because with the way you explain everything and all possible scenario that may plays out, you are always ready for every possible scenario, and this should be a great lesson to all of us that they are in this thread to learn, because if our emergency funds is locked out or is being restricted from us for a stipulated time frame where we can't have access to it, it will be just like we don't have an emergency funds in place then, so putting it somewhere where we can easily have access to it is the best thing we can ever do to ourself when investing in Bitcoin.

So what I'm going to do next is that, I'm going to divide my emergency funds into two places, one part will be in our local currency which will be in two of my different bank  account, while the other part will be kept in usdt, so that if I can't have access to the emergency funds in my bank account when I need it the most, I can easily withdraw  the usdt in my possession, because I know for a fact that I can make withdrawal of my usdt in less than 10 minutes, so that's what I'm going to do right away for safety purpose of my bitcoin holdings.

[JayJuanGee]

Remember with your various back up funds, whether emergency funds, reserve funds and/or float, you have to consider both volatility of how you are holding those back up funds and the availability (liquidity) of those funds.  Don't think that you have to be all or nothing in the way that you are holding your funds, but you have to take into account that various ways of holding your funds, whether it is your local money, or dollars or some other potentially acceptable means, you have to have some assurance that you are  not going to get locked out of them or lose them at the time that you need them, whether you are going through a temporary cashflow shortage or something that is more severe.  There are a variety of scenarios that could play out where your expenses might be going up and/or your available income (or cash) is going down.  You could be locked out of a bank, physical cash could be destroyed, lost or robbed, some forms of holding value might have a lot of fluctuation in its value to cause it to lose value right when you are needing to cash out of some or all of it.

With all that you said here, it shows that you are truly a veteran in Bitcoin investment, because with the way you explain everything and all possible scenario that may plays out, you are always ready for every possible scenario, and this should be a great lesson to all of us that they are in this thread to learn, because if our emergency funds is locked out or is being restricted from us for a stipulated time frame where we can't have access to it, it will be just like we don't have an emergency funds in place then, so putting it somewhere where we can easily have access to it is the best thing we can ever do to ourself when investing in Bitcoin.

So what I'm going to do next is that, I'm going to divide my emergency funds into two places, one part will be in our local currency which will be in two of my different bank  account, while the other part will be kept in usdt, so that if I can't have access to the emergency funds in my bank account when I need it the most, I can easily withdraw  the usdt in my possession, because I know for a fact that I can make withdrawal of my usdt in less than 10 minutes, so that's what I'm going to do right away for safety purpose of my bitcoin holdings.

It is good to have a bit of physical cash, too... perhaps a couple of weeks of your expenses... or somewhere in the ballpark of at least 1/6th of the total of your emergency fund.