Balancing Financial security and Bitcoin Accumulation

[I_Anime]

You should not use all your money in Bitcoin investment. If someone decides to complicate real life and use all his money in Bitcoin, then I will call him an addicted investor, and addiction is never good.

Even while investing, we have to maintain a balance between daily life and investment life and give more priority to daily expenses and daily necessities than investment. On the way, we often have to face various unwritten expenses, we should have a part of our discretionary income to bear these expenses, if you add this part to Bitcoin investment or save it in Bitcoin, then it is definitely a harmful step. I think it is always better to keep such a part in fiat.

Such person is better called a gambler because a real investor don't just do things carelessly, the follow the real concept of investment, there is no where it's been said that we should invest all the funds we have, it has always been our discretionary income so anyone going outside that is will be doing the at his own peril which is bad for any investor.

The second point you made is a very important one as such, investment is very important which I don't joke with but our basic needs, emergency needs and every other need should also be taken care of that's why it is necessary for us not to try to go beyond our power while investing in Bitcoin, when I remember that their is something like discreationary income as an investor I become much relieved since I know that i can figure it out and keep going in with it.

Don’t let the act of relying on your bitcoin investment be a habit . That’s why one should set aside funds that will take care of anything that will make them run to their investment, just to solve a particular issue. Yeah their some time when it is necessary to take some profits from your investment especially when the reason is life threatening and stuff . Because only those who are alive can invest so always prioritize your health but when come to normal expenses or normal day live . Don’t rely on your investments, because no one is advising to go all in with your money it will not do you any good if you go all in with it, stick to your plans and allocate your earning properly .

[Creeper0]

You should not use all your money in Bitcoin investment. If someone decides to complicate real life and use all his money in Bitcoin, then I will call him an addicted investor, and addiction is never good.

Even while investing, we have to maintain a balance between daily life and investment life and give more priority to daily expenses and daily necessities than investment. On the way, we often have to face various unwritten expenses, we should have a part of our discretionary income to bear these expenses, if you add this part to Bitcoin investment or save it in Bitcoin, then it is definitely a harmful step. I think it is always better to keep such a part in fiat.

Such person is better called a gambler because a real investor don't just do things carelessly, the follow the real concept of investment, there is no where it's been said that we should invest all the funds we have, it has always been our discretionary income so anyone going outside that is will be doing the at his own peril which is bad for any investor.

The second point you made is a very important one as such, investment is very important which I don't joke with but our basic needs, emergency needs and every other need should also be taken care of that's why it is necessary for us not to try to go beyond our power while investing in Bitcoin, when I remember that their is something like discreationary income as an investor I become much relieved since I know that i can figure it out and keep going in with it.

Our main purpose of investing in Bitcoin is to make future life easier and improve the quality of life in the future, but when we become too future-worrying people, then maybe both our present and future are threatened or at risk. Because currently, since you are giving more importance to prudent investment and depriving yourself of basic rights by worrying about the future, then I think that investment is worthless. Maybe you are destroying investment funds due to lack of prudent money in an emergency, or gambling with your life in extreme stinginess, not only life, but also investment funds.

Because, an uncertain unexpected emergency moment can destroy your investment funds. Again, an uncertain accident can make your life's great sacrifice worthless. Therefore, before worrying about the future in life, the present must be fulfilled, the basic needs must be met. Because, if you cannot make the present easy, you will never be able to make the future easy. Even if you are somehow successful in investing, you will not be successful in investing for the purpose of investing. Give as much importance to investing as necessary and save as much as you can afford at present.

[Cgrexp]

You should not use all your money in Bitcoin investment. If someone decides to complicate real life and use all his money in Bitcoin, then I will call him an addicted investor, and addiction is never good.

Even while investing, we have to maintain a balance between daily life and investment life and give more priority to daily expenses and daily necessities than investment. On the way, we often have to face various unwritten expenses, we should have a part of our discretionary income to bear these expenses, if you add this part to Bitcoin investment or save it in Bitcoin, then it is definitely a harmful step. I think it is always better to keep such a part in fiat.

Such person is better called a gambler because a real investor don't just do things carelessly, the follow the real concept of investment, there is no where it's been said that we should invest all the funds we have, it has always been our discretionary income so anyone going outside that is will be doing the at his own peril which is bad for any investor.

The second point you made is a very important one as such, investment is very important which I don't joke with but our basic needs, emergency needs and every other need should also be taken care of that's why it is necessary for us not to try to go beyond our power while investing in Bitcoin, when I remember that their is something like discreationary income as an investor I become much relieved since I know that i can figure it out and keep going in with it.

Don’t let the act of relying on your bitcoin investment be a habit . That’s why one should set aside funds that will take care of anything that will make them run to their investment, just to solve a particular issue. Yeah their some time when it is necessary to take some profits from your investment especially when the reason is life threatening and stuff . Because only those who are alive can invest so always prioritize your health but when come to normal expenses or normal day live . Don’t rely on your investments, because no one is advising to go all in with your money it will not do you any good if you go all in with it, stick to your plans and allocate your earning properly .

The price of Bitcoin is very volatile, so if you suddenly need to sell it for some reason, there is a possibility of loss. Basically, everyone sees Bitcoin as an asset for growth. Therefore, it is important to have an emergency fund ready when investing because you do not have to sell at a loss to deal with bad situations and it is possible to keep a long-term plan in place. However, I think it may be reasonable to withdraw some of it for many negative situations such as an accident, illness and treatment. The use of investment in bad situations is not completely prohibited, but it can be used in a planned and limited way. Proper management of income is necessary. Expenses, savings and investments should not create a deficit for each other.

[Sim_card]

However, I think it may be reasonable to withdraw some of it for many negative situations such as an accident, illness and treatment. The use of investment in bad situations is not completely prohibited, but it can be used in a planned and limited way.

You don't need to sell part of your bitcoin investment when you are still in your accumulation stage. This is why you need to set up several backup funds to prevent you from selling when prematurely when it's not of your own will. The situation you mentioned above is better to be tackled with an emergency funds because this is a real life emergency that if not taken care of will lead to more damage.

It's very important as a long-term bitcoin investor to set up an emergency funds as he has started his bitcoin investment and other backup funds to enable you overcome real life emergencies when they pop up and continue with your bitcoin investment. Avoid anything that will lead to the depreciation of your bitcoin investment.

[Barikui1]

The price of Bitcoin is very volatile, so if you suddenly need to sell it for some reason, there is a possibility of loss. Basically, everyone sees Bitcoin as an asset for growth. Therefore, it is important to have an emergency fund ready when investing because you do not have to sell at a loss to deal with bad situations and it is possible to keep a long-term plan in place. However, I think it may be reasonable to withdraw some of it for many negative situations such as an accident, illness and treatment. The use of investment in bad situations is not completely prohibited, but it can be used in a planned and limited way. Proper management of income is necessary. Expenses, savings and investments should not create a deficit for each other.

What's the essence of emergency and reserve funds if we are still going to be selling our Bitcoin holdings when faced with real life emergencies?
The reason most bitcoin investors are adviced to make provisions for emergency and reserve funds is to safeguard your Bitcoin investment against any unforseen emergencies that may have warranted you to temper with it prematurely, so selling or tempering with your investment should never be considered when you have not gotten to your over accumulation status, because you can never achieve anything great with your bitcoin investment by selling anytime you are faced with real life emergencies.

[Loyang]

The price of Bitcoin is very volatile, so if you suddenly need to sell it for some reason, there is a possibility of loss. Basically, everyone sees Bitcoin as an asset for growth. Therefore, it is important to have an emergency fund ready when investing because you do not have to sell at a loss to deal with bad situations and it is possible to keep a long-term plan in place. However, I think it may be reasonable to withdraw some of it for many negative situations such as an accident, illness and treatment. The use of investment in bad situations is not completely prohibited, but it can be used in a planned and limited way. Proper management of income is necessary. Expenses, savings and investments should not create a deficit for each other.

Your statement is a bit vague, if we fail to meet adverse situations or medical expenses etc. with our emergency fund, then surely we can sell investments and deal with our adverse situations with that money. But yes, as you said, even after having an emergency fund, if a person does not deal with adverse situations with emergency funds and sells investments and deals with his crisis with that money, then it is definitely a wrong decision.

To deal with major financial disasters, it will be very effective for us if we divide our funds into several levels. For example, emergency fund, reserve fund, cash fund. You do not have to keep the same amount of money in these funds. You can keep the emergency fund equal to your 3 months' expenses, you can keep the reserve fund smaller than your emergency fund, and you can keep the cash fund smaller than your reserve fund.

[Jostern]

You should not use all your money in Bitcoin investment. If someone decides to complicate real life and use all his money in Bitcoin, then I will call him an addicted investor, and addiction is never good.

Even while investing, we have to maintain a balance between daily life and investment life and give more priority to daily expenses and daily necessities than investment. On the way, we often have to face various unwritten expenses, we should have a part of our discretionary income to bear these expenses, if you add this part to Bitcoin investment or save it in Bitcoin, then it is definitely a harmful step. I think it is always better to keep such a part in fiat.

Such person is better called a gambler because a real investor don't just do things carelessly, the follow the real concept of investment, there is no where it's been said that we should invest all the funds we have, it has always been our discretionary income so anyone going outside that is will be doing the at his own peril which is bad for any investor.

The second point you made is a very important one as such, investment is very important which I don't joke with but our basic needs, emergency needs and every other need should also be taken care of that's why it is necessary for us not to try to go beyond our power while investing in Bitcoin, when I remember that their is something like discreationary income as an investor I become much relieved since I know that i can figure it out and keep going in with it.

Our main purpose of investing in Bitcoin is to make future life easier and improve the quality of life in the future, but when we become too future-worrying people, then maybe both our present and future are threatened or at risk. Because currently, since you are giving more importance to prudent investment and depriving yourself of basic rights by worrying about the future, then I think that investment is worthless. Maybe you are destroying investment funds due to lack of prudent money in an emergency, or gambling with your life in extreme stinginess, not only life, but also investment funds.

Because, an uncertain unexpected emergency moment can destroy your investment funds. Again, an uncertain accident can make your life's great sacrifice worthless. Therefore, before worrying about the future in life, the present must be fulfilled, the basic needs must be met. Because, if you cannot make the present easy, you will never be able to make the future easy. Even if you are somehow successful in investing, you will not be successful in investing for the purpose of investing. Give as much importance to investing as necessary and save as much as you can afford at present.

Why worry about the future when you can live by the present, I don’t really think it’s wise to be worrying yourself about the future when you can possibly be making your investments for the parents and as time goes on all you have to do for yourself is keep buying and accumulating bitcoin, you should be more interested in buying bitcoin today or whenever you have a discretionary income because I personally think that is the only way that you can have a successful investment.

However as an investor you should be more concerned and pragmatic of how you are making your investments mostly based on having a reserved funds, most especially having an emergency fund and also having a reserved funds as well this are things we should be considering when making an investment and it’s should be considered when we have gone 3 months into our investments because that is what is mostly likely to sustain your investment for the long term, without having a significant reserved funds I think there is no way that your investments would last for a very long term.

[Bright0515]

However, I think it may be reasonable to withdraw some of it for many negative situations such as an accident, illness and treatment.

Based on the reasons you provided makes it very clear that it's very important to have an emergency funds while investing into Bitcoin. From what I have learned so far, it's very good to have emergency funds while investing into Bitcoin because at any moment an emergency situation might occur are if you do not have an emergency funds you will be forced ed to sell your Bitcoin to sort yourself out, but if you invest into Bitcoin through your discretionary income and you also have an emergency funds there's no way you will sell your Bitcoin to sort things out if an emergency situation occurs.

It very important for an investor not to buy Bitcoin with all their money, some of the money should be kept for emergency but first you must settle all necessary expense first before keeping some founds for emergency then if there's any leftover money you can buy Bitcoin with it (even though it's a very little SAT/s). The reason why having an emergency found is very important is because at any moment anything tjing might happen, another fact is that if you do not have any money for emergency you will be forced to sell your Bitcoin is any emergency situation occurs, and it's very obvious that most emergencies occurs when the price fallen, and if you don't have any emergency funds you will not have any other choice except to sell at loss. If you don't want to get your hand tied up, you need to have founds for emergencies.

However, ever my smart investors normally balance everything before they start because they have the common sense to know what to do and what not to do. They set some money for emergency and they invest with their spare money, but if by chance they receive unexpected money they mostly buy Bitcoin aggressively as they don't have any plans for it or expect the money.

[Sulegzy39]

Bitcoin's price is extremely volatile, so if you need to sell it unexpectedly, you risk losing money. Everyone sees Bitcoin as a potential growth asset. As a result, it is critical to have an emergency fund on hand while investing so that you do not have to sell at a loss to deal with unforeseen circumstances and can maintain a long-term strategy. However, I believe it is appropriate to withdraw part of it in many unfavourable situations, including an accident, illness, or treatment.

The use of investment in terrible situations is not entirely prohibited, but it must be done in a planned and limited fashion. Income needs to be well managed. Expenses, savings, and investments should not generate a negative feedback loop.

[Emjay24]

Don’t let the act of relying on your bitcoin investment be a habit . That’s why one should set aside funds that will take care of anything that will make them run to their investment, just to solve a particular issue.

From your explanation, I'm figuring out you've a wrong perspective of proper management of cashflow in bitcoin investment. You need to allocate some part of your discretionary income into building out backup funds like emergency fund that will take care of your issues that come up that you were not expecting.

Yeah their some time when it is necessary to take some profits from your investment especially when the reason is life threatening and stuff .Because only those who are alive can invest so always prioritize your health

There is no time that it becomes necessary to take profits from your investment while you're still in your accumulation phase, if there is a life threatening issue, you've your backup funds to attend to it, only when you have depleted your various backup funds and there is no other option to source out funds would you sell part of your portfolio to solve such persistent issue. Health issues are one of the reasons people may not really go very long-term with their portfolio, but you need to be sure that it is not as a result of your mismanagement of your cashflow that you have to liquidate your portfolio for survival.

but when come to normal expenses or normal day live . Don’t rely on your investments, because no one is advising to go all in with your money it will not do you any good if you go all in with it, stick to your plans and allocate your earning properly .

You should attend to your expenses first, only when you have removed them from your income would you identify if there is a remainder with which you would invest and build backup funds from it. Going all in with your total income is not investing, it is pure gambling.

[Ashawowo(OS)]

However, I believe it is appropriate to withdraw part of it in many unfavourable situations, including an accident, illness, or treatment.

Emergency situations should be handled with emergency fund and not your bitcoin portfolio, if you didn't build out your emergency fund while investing, then it is your fault and bad practice that put your portfolio at risk, but in a situation that you've used up your emergency fund and have not fully solved the emergency, then it is obvious you have no other option left and you can now use part of your holdings to save the situation.

Expenses, savings, and investments should not generate a negative feedback loop.

I do not entirely know what you mean by this, but it is worth mentioning that you remove your expenses from your total income first, then whatever remains is your discretionary income and from it you invest, have savings and allocate money for discretionary consumption. If you do this well, it would not affect you negatively as you continue buying and holding bitcoin

[Joeboy]

Bitcoin's price is extremely volatile, so if you need to sell it unexpectedly, you risk losing money. Everyone sees Bitcoin as a potential growth asset. As a result, it is critical to have an emergency fund on hand while investing so that you do not have to sell at a loss to deal with unforeseen circumstances and can maintain a long-term strategy. However, I believe it is appropriate to withdraw part of it in many unfavourable situations, including an accident, illness, or treatment.

The use of investment in terrible situations is not entirely prohibited, but it must be done in a planned and limited fashion. Income needs to be well managed. Expenses, savings, and investments should not generate a negative feedback loop.

That's a wrong way of going about your investment.... Bitcoin is volatile asset and that alone already make's it extremely unwise to sell your Bitcoin during cases of emergency coz you failed to create a cash buffer.. Truth be told, if you make it a habit of constantly dipping into your Bitcoin whenever you have an emergency, then you are setting yourself up for loses and also you are not ready for long term accumulation... This is why emergency funds is very mandatory coz it could very well protect your investment from being touched even in case if emergency...

[Frankolala]

. However, I believe it is appropriate to withdraw part of it in many unfavourable situations, including an accident, illness, or treatment.

The use of investment in terrible situations is not entirely prohibited, but it must be done in a planned and limited fashion. Income needs to be well managed. Expenses, savings, and investments should not generate a negative feedback loop.

This is why you need to have various backup funds which are the emergency funds, reserve funds and float so that when you are hit with real life emergency like the ones you mentioned above, you can tap first from yiur reserve funds and if it's not enough, you then dip hands into your emergency funds to tackle the problem.

This is the main reason why your emergency funds should be of at least three months of your monthly expenses so that, it can be able to solve whatever, emergency that pops up no matter the situation. Also, it's important to refill your emergency funds when you can after using part of it.

It's not a good way of growing your bitcoin stash by selling part of it which is the reason why proper planning should be made and good cash inflow management should be practiced so that, you use the right money for the right purpose. The plan is to build and grow your bitcoin investment and also look for means of increasing your income and cut down expenses for an increase in discretionary income

[ASloveapg]

Bitcoin's price is extremely volatile, so if you need to sell it unexpectedly, you risk losing money. Everyone sees Bitcoin as a potential growth asset. As a result, it is critical to have an emergency fund on hand while investing so that you do not have to sell at a loss to deal with unforeseen circumstances and can maintain a long-term strategy. However, I believe it is appropriate to withdraw part of it in many unfavourable situations, including an accident, illness, or treatment.

The use of investment in terrible situations is not entirely prohibited, but it must be done in a planned and limited fashion. Income needs to be well managed. Expenses, savings, and investments should not generate a negative feedback loop.

That's a wrong way of going about your investment.... Bitcoin is volatile asset and that alone already make's it extremely unwise to sell your Bitcoin during cases of emergency coz you failed to create a cash buffer.. Truth be told, if you make it a habit of constantly dipping into your Bitcoin whenever you have an emergency, then you are setting yourself up for loses and also you are not ready for long term accumulation... This is why emergency funds is very mandatory coz it could very well protect your investment from being touched even in case if emergency...

I agree with you, in the case of volatile assets Bitcoin, if we are forced to sell in emergency situations, then it often creates the risk of being forced to sell at a bad price. Because the price is always volatile, so if we face an emergency situation at a time when the price of Bitcoin is very low, then we have the possibility of a very big loss. So this kind of thinking must be abandoned, whatever you invest in Bitcoin, you have to hold it for the long term, because it will not bring you the profit as expected in the short term, so you have to be sure to hold the investment for the long term and for this it is necessary to create an emergency fund, this is the long-term protection of Bitcoin.

[Brizi5000]

You should not use all your money in Bitcoin investment. If someone decides to complicate real life and use all his money in Bitcoin, then I will call him an addicted investor, and addiction is never good.

Even while investing, we have to maintain a balance between daily life and investment life and give more priority to daily expenses and daily necessities than investment. On the way, we often have to face various unwritten expenses, we should have a part of our discretionary income to bear these expenses, if you add this part to Bitcoin investment or save it in Bitcoin, then it is definitely a harmful step. I think it is always better to keep such a part in fiat.

Such person is better called a gambler because a real investor don't just do things carelessly, the follow the real concept of investment, there is no where it's been said that we should invest all the funds we have, it has always been our discretionary income so anyone going outside that is will be doing the at his own peril which is bad for any investor.

The second point you made is a very important one as such, investment is very important which I don't joke with but our basic needs, emergency needs and every other need should also be taken care of that's why it is necessary for us not to try to go beyond our power while investing in Bitcoin, when I remember that their is something like discreationary income as an investor I become much relieved since I know that i can figure it out and keep going in with it.

Don’t let the act of relying on your bitcoin investment be a habit . That’s why one should set aside funds that will take care of anything that will make them run to their investment, just to solve a particular issue. Yeah their some time when it is necessary to take some profits from your investment especially when the reason is life threatening and stuff . Because only those who are alive can invest so always prioritize your health but when come to normal expenses or normal day live . Don’t rely on your investments, because no one is advising to go all in with your money it will not do you any good if you go all in with it, stick to your plans and allocate your earning properly .

The price of Bitcoin is very volatile, so if you suddenly need to sell it for some reason, there is a possibility of loss. Basically, everyone sees Bitcoin as an asset for growth. Therefore, it is important to have an emergency fund ready when investing because you do not have to sell at a loss to deal with bad situations and it is possible to keep a long-term plan in place. However, I think it may be reasonable to withdraw some of it for many negative situations such as an accident, illness and treatment. The use of investment in bad situations is not completely prohibited, but it can be used in a planned and limited way. Proper management of income is necessary. Expenses, savings and investments should not create a deficit for each other.

Yes the emergency funds is really important for our bitcoin investment as it protects our investment not to be sold when it’s not of our own choosing or perhaps when is not yet due as a long term investor, but then again You know folks will be needing at least a minimum of 3-6 months of their daily expenses for standard emergency funds and sometimes it’s not everyone who could be able to get that amount ready easily and for folks like that they shouldn’t delay starting to accumulate bitcoin especially if they have discretionary income available, so it’s important to first get started in purchasing bitcoin and hold if their discretionary income is ready and not to wait until they have or might have built this emergency funds before they can start investing as they can always try along the process of their ongoingly buying bitcoin to be building the emergency funds gradually. It can be build along side while accumulating bitcoin. In essence we mush not wait until we have emergency funds ready before buying bitcoin, it is advisable we can still get started in purchasing and investing in bitcoin if we have a discretionary income ready.

Again, the reason for the emergency funds is for an emergency situations just like you mentioned in your post e.g Illness treatment , accidents, etc. so if a situation like this occurs you don’t have to tend towards selling or withdrawing from your bitcoin investment to sort it out but rather you go to your emergency funds and sort such situations out. Except maybe in some instances after using up your emergency funds and still not enough to cover for the illness and treatment then you can decide to sell from your bitcoin holdings since this is about serious health conditions and life threatening conditions. The purpose is to stay alive first because only someone who’s alive and healthy can invest.

[The Founding Titan]

Bitcoin's price is extremely volatile, so if you need to sell it unexpectedly, you risk losing money. Everyone sees Bitcoin as a potential growth asset. As a result, it is critical to have an emergency fund on hand while investing so that you do not have to sell at a loss to deal with unforeseen circumstances and can maintain a long-term strategy. However, I believe it is appropriate to withdraw part of it in many unfavourable situations, including an accident, illness, or treatment.

The use of investment in terrible situations is not entirely prohibited, but it must be done in a planned and limited fashion. Income needs to be well managed. Expenses, savings, and investments should not generate a negative feedback loop.

The only way withdrawing you bitcoin stash works is if it's a last resort and the whole point of putting all the different backup funds in place is to make sure things never get to that point where you have to sell your bitcoin to take care of these things that might happen and this is also why we invest in bitcoin using our discretionary income, most situation where a person has to sell their bitcoin happens because they did not limit their investment to their discretionary income, this led to them running out of money because they've already put it all into bitcoin, there is no other alternative for them than to sell their bitcoin but if they had limited their investment to their discretionary income and got the emergency and their reserve funds in order then having to sell their bitcoin will not have had to be an option, at least not that quickly.

[Silikiem]

Bitcoin's price is extremely volatile, so if you need to sell it unexpectedly, you risk losing money. Everyone sees Bitcoin as a potential growth asset. As a result, it is critical to have an emergency fund on hand while investing so that you do not have to sell at a loss to deal with unforeseen circumstances and can maintain a long-term strategy. However, I believe it is appropriate to withdraw part of it in many unfavourable situations, including an accident, illness, or treatment.

The use of investment in terrible situations is not entirely prohibited, but it must be done in a planned and limited fashion. Income needs to be well managed. Expenses, savings, and investments should not generate a negative feedback loop.

You must not have an emergency funds in hand before you can start investing in bitcoin, what matters most is to get started immediately in buying bitcoin if your discretionary income is ready and along the line you can be building the emergency funds even while accumulating bitcoin.

If you are in a terrible situation that’s threatening and you might have exhausted all your emergency funds but still not enough then nothing is wrong if you sell some of your holdings to get some money to sort it out. But apart from that you should use your emergency funds in such situations and not tend towards selling your investment because the work of the emergency funds is to protect our Bitcoin investments from getting sold too earl when we have not even reached out accumulation target or over accumulation stage  and hold for long term.

[JayJuanGee]

The price of Bitcoin is very volatile, so if you suddenly need to sell it for some reason, there is a possibility of loss. Basically, everyone sees Bitcoin as an asset for growth. Therefore, it is important to have an emergency fund ready when investing because you do not have to sell at a loss to deal with bad situations and it is possible to keep a long-term plan in place. However, I think it may be reasonable to withdraw some of it for many negative situations such as an accident, illness and treatment. The use of investment in bad situations is not completely prohibited, but it can be used in a planned and limited way. Proper management of income is necessary. Expenses, savings and investments should not create a deficit for each other.

Your statement is a bit vague, if we fail to meet adverse situations or medical expenses etc. with our emergency fund, then surely we can sell investments and deal with our adverse situations with that money. But yes, as you said, even after having an emergency fund, if a person does not deal with adverse situations with emergency funds and sells investments and deals with his crisis with that money, then it is definitely a wrong decision.

To deal with major financial disasters, it will be very effective for us if we divide our funds into several levels. For example, emergency fund, reserve fund, cash fund. You do not have to keep the same amount of money in these funds. You can keep the emergency fund equal to your 3 months' expenses, you can keep the reserve fund smaller than your emergency fund, and you can keep the cash fund smaller than your reserve fund.

Cash funds is the same as emergency funds and/or reserve funds.  I don't see what advantage you get by making a new category that is the same as the two categories that already exists.


How is the cash fund different from emergency funds/reserve funds?  Seems like you are just making things up.

[Bigjoe33]

The price of Bitcoin is very volatile, so if you suddenly need to sell it for some reason, there is a possibility of loss. Basically, everyone sees Bitcoin as an asset for growth. Therefore, it is important to have an emergency fund ready when investing because you do not have to sell at a loss to deal with bad situations and it is possible to keep a long-term plan in place. However, I think it may be reasonable to withdraw some of it for many negative situations such as an accident, illness and treatment. The use of investment in bad situations is not completely prohibited, but it can be used in a planned and limited way. Proper management of income is necessary. Expenses, savings and investments should not create a deficit for each other.

Your statement is a bit vague, if we fail to meet adverse situations or medical expenses etc. with our emergency fund, then surely we can sell investments and deal with our adverse situations with that money. But yes, as you said, even after having an emergency fund, if a person does not deal with adverse situations with emergency funds and sells investments and deals with his crisis with that money, then it is definitely a wrong decision.

To deal with major financial disasters, it will be very effective for us if we divide our funds into several levels. For example, emergency fund, reserve fund, cash fund. You do not have to keep the same amount of money in these funds. You can keep the emergency fund equal to your 3 months' expenses, you can keep the reserve fund smaller than your emergency fund, and you can keep the cash fund smaller than your reserve fund.

Cash funds is the same as emergency funds and/or reserve funds.  I don't see what advantage you get by making a new category that is the same as the two categories that already exists.


How is the cash fund different from emergency funds/reserve funds?  Seems like you are just making things up.

I think he is just making things up, maybe due to lack of understanding about these funds. Most importantly, it should be noted that all it is generally Called..., 'Back up funds', and it's general essence is to ensure an investor go through his investment proceed without much financial stress and be able to HODL his investment for a very long time, depending on his investment plan or target.

The major thing is to ensure that once you figure out your discretionary income, and you have began your investment, you should also do well to ensure building up these back up funds in it's quota, as they are strong holds to ensuring the safety of your investment. No mixing words, they are all back up funds and serve major purpose, which is to ensure the safety of your investment and allow you invest  without much panic and also HODL for long

[The Founding Titan]

The price of Bitcoin is very volatile, so if you suddenly need to sell it for some reason, there is a possibility of loss. Basically, everyone sees Bitcoin as an asset for growth. Therefore, it is important to have an emergency fund ready when investing because you do not have to sell at a loss to deal with bad situations and it is possible to keep a long-term plan in place. However, I think it may be reasonable to withdraw some of it for many negative situations such as an accident, illness and treatment. The use of investment in bad situations is not completely prohibited, but it can be used in a planned and limited way. Proper management of income is necessary. Expenses, savings and investments should not create a deficit for each other.

Your statement is a bit vague, if we fail to meet adverse situations or medical expenses etc. with our emergency fund, then surely we can sell investments and deal with our adverse situations with that money. But yes, as you said, even after having an emergency fund, if a person does not deal with adverse situations with emergency funds and sells investments and deals with his crisis with that money, then it is definitely a wrong decision.

To deal with major financial disasters, it will be very effective for us if we divide our funds into several levels. For example, emergency fund, reserve fund, cash fund. You do not have to keep the same amount of money in these funds. You can keep the emergency fund equal to your 3 months' expenses, you can keep the reserve fund smaller than your emergency fund, and you can keep the cash fund smaller than your reserve fund.

Cash funds is the same as emergency funds and/or reserve funds.  I don't see what advantage you get by making a new category that is the same as the two categories that already exists.


How is the cash fund different from emergency funds/reserve funds?  Seems like you are just making things up.

Alot of people are confused on what the different backup funds are so they end up adding things based on their own understanding even though they end up being wrong, a better understanding of what the emergency fund, reserve fund and float is will make it easier for them to be able to differentiate between them and how they all interact with eachother, it's misunderstandings like this that make people think they can accumulate bitcoin using their emergency fund as I have seen alot of people falsely state. They need to know that emergency funds are not for accumulating bitcoin by buying the DIP as they think.