Balancing Financial security and Bitcoin Accumulation

[SmartCharpa]

You are right. Now the banking system has become much easier than before. With mobile banking, bank apps, cards, ATMs, and instant money transfer facilities, money in banks is not as inaccessible as before in many places. So I think if someone keeps their emergency fund in the bank and can use it in times of real need, then it cannot be directly called wrong. But there is another thing to think about here, the question of whether money can be kept in the bank is not the real issue. As far as I have read, the main function of emergency funds is to help in times when everything may not work normally. You are right that technology has improved. But app shutdowns, network problems, bank transaction limits, card problems, ATM running out of money, these are common issues with advanced technology.Therefore,it is not completely safe to rely completely on the bank for emergency funds. Therefore, it is also important to consider how to be more secure.

Nobody is saying that it's wrong or not good to save some percentage of your emergency and reserve funds in your bank, what is not good is relying only on banks to preserve your emergency and reserve funds, because even though technology has improved greatly in recent times, bad network can ruined everything, and once network is bad, you will be shut out until the network has improved, which might take hours, days or weeks in most cases scenario.
So it's very important to keep some percentage of your emergency funds in cash for easy access just in case of any emergency situation that may threatens your Bitcoin investment.

Do you think everyone that can hold cash without touching it? Some people prefer to keep their money in a bank account rather than holding the cash. Banks having issues once in a while does not mean they will always have problems. Some people spend money the more they see it, so they prefer keeping it in a bank accounts to avoid unnecessary spending. The most important thing is having an emergency fund regardless of how you keep it, whether in cash or in your bank account, just make sure you do not invest everything into bitcoin.

It’s not every hospital that can accept cash for the hospital bills, it depends on the standard of the hospital. We have many hospitals that may not accept transfers or even cash, and the only way to settle your bills is to use your ATM card for payment. So in a situation where you have cash in your hand, you may still need to deposit the money back into your account. My own advice is to always make sure you have the emergency fund set aside to avoid running up and down later.

[Joeboy]

~snip...

Do you think everyone that can hold cash without touching it? Some people prefer to keep their money in a bank account rather than holding the cash. Banks having issues once in a while does not mean they will always have problems. Some people spend money the more they see it, so they prefer keeping it in a bank accounts to avoid unnecessary spending. The most important thing is having an emergency fund regardless of how you keep it, whether in cash or in your bank account, just make sure you do not invest everything into bitcoin.

It’s not every hospital that can accept cash for the hospital bills, it depends on the standard of the hospital. We have many hospitals that may not accept transfers or even cash, and the only way to settle your bills is to use your ATM card for payment. So in a situation where you have cash in your hand, you may still need to deposit the money back into your account. My own advice is to always make sure you have the emergency fund set aside to avoid running up and down later.

Banks stays days without operation due to network issues(I have experienced this so many time with First Bank of Nigeria as well as other banks here in Nigeria)... Some banks could even fold up( remember Savannah Bank which once had its headquarters in Lagos Island)....And also again, keeping your money in the bank doesn't mean that you will not still touch it, so I think that what we folks have to understand is that every method of saving your emergency funds has its own strength and weaknesses... And so if we start talking or focusing on the varied risk that is attached to the different ways of storing our emergency funds, then most folks may end up not building an emergency fund at all... Truth be told, even if you keep your emergency funds in the bank or say in fiat or say in any stable coin, there would still be some level of  risks attached to each and every of one of them, none is completely risk free...

And that's the more reason why when keeping your emergency funds, your priority should be on how accessible it can be... Coz during emergency occurrence, the question at that point will be if your emergency funds be accessed in time to sort out that emergency...And if  it can't be accessed to provide one with the immediate financial support, then the whole purpose of it being an emergency fund has already been defeated... That's the more reason why folks should keep portions of their emergency funds across various accessible options...  Don't depend on just a particular method to avoid disappointments ...

[WhoYouCantKill]

Yes of course, i don't see any reasons wrong with an investors keeping his emergency fund in the bank, we should not be more concerned about were the emergency fund should be kept, what really matters is to make should you have reserves funds which you tag as an emergency fund and it is also bad to keep your emergency fund within your reach, because as the name implies emergency fund, it most serve its purpose for you as an investors, it is a very interesting discussion I'm seeing here, i know that it will help allot of newbies that doesn't have knowledge on how important emergency fund is to every investors .

So how exactly is it meant to serve its purpose if it's not within your reach? Let's assume you keep your emergency fund completely out of your reach and then boom, a emergency occurs at that very instance that requires you to dip into your emergency fund, but your emergency funds isn't currently in your reach and would take sometime for you to access it, what exactly are you going to do. An emergency fund should be kept in a liquid form, being made available and easily accessible to you whenever you need it, else yu might just end up going ahead to use your investment to sort an emergency, thereby defeating the purpose of the emergency fund.

[Icon Of Liar]

Why are you making a simple matter so difficult? The simple matter is, if we keep our emergency fund in the bank, it is wrong to expect that we will be able to withdraw it and use it very quickly in times of emergency. Yet you are making this simple matter difficult. If we keep our money in the bank, then why should we create an emergency fund? Leave this matter aside for now. Just tell me what is the definition of basic knowledge about Bitcoin?

[Futurexxx]

Yes of course, i don't see any reasons wrong with an investors keeping his emergency fund in the bank, we should not be more concerned about were the emergency fund should be kept, what really matters is to make should you have reserves funds which you tag as an emergency fund and it is also bad to keep your emergency fund within your reach, because as the name implies emergency fund, it most serve its purpose for you as an investors, it is a very interesting discussion I'm seeing here, i know that it will help allot of newbies that doesn't have knowledge on how important emergency fund is to every investors .

So how exactly is it meant to serve its purpose if it's not within your reach? Let's assume you keep your emergency fund completely out of your reach and then boom, a emergency occurs at that very instance that requires you to dip into your emergency fund, but your emergency funds isn't currently in your reach and would take sometime for you to access it, what exactly are you going to do. An emergency fund should be kept in a liquid form, being made available and easily accessible to you whenever you need it, else yu might just end up going ahead to use your investment to sort an emergency, thereby defeating the purpose of the emergency fund.

Our emergency funds should be kept in a manner where it can be easily accessible, like in the bank and some part of it be kept in cash , which is very  important, because we can't trust these banks all the time, since they can disappoint you with bad network. And when something like that happens, the one you kept in cash can easily save the day, but if your emergency funds is only kept in the bank, just know that you are in a serious trouble if the network is bad when emergency situation that may threatens your Bitcoin investment is at hand, so keeping your emergency funds in a way where it can be easily accessible is the best way forward.

[HodlPlanet]

Why are you making a simple matter so difficult? The simple matter is, if we keep our emergency fund in the bank, it is wrong to expect that we will be able to withdraw it and use it very quickly in times of emergency. Yet you are making this simple matter difficult. If we keep our money in the bank, then why should we create an emergency fund? Leave this matter aside for now. Just tell me what is the definition of basic knowledge about Bitcoin?

In fact the main thing is to clarify whether it is an emergency fund or basic knowledge about Bitcoin. In my opinion basic knowledge of Bitcoin does not mean memorizing all the technicalities but understanding the basic facts. For example why Bitcoin was created, its maximum supply is limited to 21 Million how it works without central control, and why its price fluctuations are normal. Along with this It is important to understand your own financial capacity Risk tolerance, and long term perspective. The most important thing before investing in Bitcoin is to clearly know what you are buying and why you are buying it.

[Icon Of Liar]

I also think that before investing, one needs to learn at least something. Otherwise, how will he understand?

[Jostern]

I also think that before investing, one needs to learn at least something. Otherwise, how will he understand?

You seems very lost, did you even read what this thread is all about before you started making post here? Well for your information here is about balancing financial capabilities and bitcoin accumulation and investments, I don’t really understand what you’re talking about here about learning something before starting bitcoin investment, you don’t need to learn anything, all you require is basic knowledge how to buy bitcoin and secure your bitcoin, and all you need to get started is a discretionary income and not whatever you feel you want to learn before you can get started with investing in bitcoin, try and have basic understanding about bitcoin, and if you’ve not started with bitcoin investment, endeavor to get started with your bitcoin investment.

[Obulis]

You are right. Now the banking system has become much easier than before. With mobile banking, bank apps, cards, ATMs, and instant money transfer facilities, money in banks is not as inaccessible as before in many places. So I think if someone keeps their emergency fund in the bank and can use it in times of real need, then it cannot be directly called wrong. But there is another thing to think about here, the question of whether money can be kept in the bank is not the real issue. As far as I have read, the main function of emergency funds is to help in times when everything may not work normally. You are right that technology has improved. But app shutdowns, network problems, bank transaction limits, card problems, ATM running out of money, these are common issues with advanced technology.Therefore,it is not completely safe to rely completely on the bank for emergency funds. Therefore, it is also important to consider how to be more secure.

Nobody is saying that it's wrong or not good to save some percentage of your emergency and reserve funds in your bank, what is not good is relying only on banks to preserve your emergency and reserve funds, because even though technology has improved greatly in recent times, bad network can ruined everything, and once network is bad, you will be shut out until the network has improved, which might take hours, days or weeks in most cases scenario.
So it's very important to keep some percentage of your emergency funds in cash for easy access just in case of any emergency situation that may threatens your Bitcoin investment.

Do you think everyone that can hold cash without touching it? Some people prefer to keep their money in a bank account rather than holding the cash. Banks having issues once in a while does not mean they will always have problems. Some people spend money the more they see it, so they prefer keeping it in a bank accounts to avoid unnecessary spending. The most important thing is having an emergency fund regardless of how you keep it, whether in cash or in your bank account, just make sure you do not invest everything into bitcoin.

It’s not every hospital that can accept cash for the hospital bills, it depends on the standard of the hospital. We have many hospitals that may not accept transfers or even cash, and the only way to settle your bills is to use your ATM card for payment. So in a situation where you have cash in your hand, you may still need to deposit the money back into your account. My own advice is to always make sure you have the emergency fund set aside to avoid running up and down later.

Inability to hold cash at hand/home is an indiscipline that keeping money in the bank is just camouflaging but this indiscipline is quietly taking it's holds. From your point of view, there are also exceptions where you need your cash to pay for the service you just received, yes these happens to be based on geographical location but that means you didn't consider other places @SmartCharpa.
Emergency really happens that money in the bank is not the answer but cash at hand. Having emergency funds in the bank and some cash is actually a healthy balance.

[Bigjoe33]

I also think that before investing, one needs to learn at least something. Otherwise, how will he understand?

Haven checked your profile, you were just newly registered last month, meaning you are fresh here, and it will benefit you if you try to scrole back and read some stuff for few information and knowledge before rushing to post or declare your thoughts about Bitcoin investment.

Getting knowledge is good, but for how long will you learn before you start investing. Remember you can't learn everything in a short time, and there are things personal experience will teach you too. Thus, you don't really need to learn so many things or go though rigorous learning process before you start investing. All you need is a basic knowledge about Bitcoin, I mean a common sense plus the availability so f your discretionary income, then you can begin. Your discretionary income is left over money from your income after you have settled your basic needs. Settling your basic needs is important so that you don't invest under pressure.

Perhaps, if you have settled your basic needs, and your discretionary income is ready, then you can begin your investment and then gradually learn as you go

[Hardyrobust]

~snip...

Do you think everyone that can hold cash without touching it? Some people prefer to keep their money in a bank account rather than holding the cash. Banks having issues once in a while does not mean they will always have problems. Some people spend money the more they see it, so they prefer keeping it in a bank accounts to avoid unnecessary spending. The most important thing is having an emergency fund regardless of how you keep it, whether in cash or in your bank account, just make sure you do not invest everything into bitcoin.

It’s not every hospital that can accept cash for the hospital bills, it depends on the standard of the hospital. We have many hospitals that may not accept transfers or even cash, and the only way to settle your bills is to use your ATM card for payment. So in a situation where you have cash in your hand, you may still need to deposit the money back into your account. My own advice is to always make sure you have the emergency fund set aside to avoid running up and down later.

Banks stays days without operation due to network issues(I have experienced this so many time with First Bank of Nigeria as well as other banks here in Nigeria)... Some banks could even fold up( remember Savannah Bank which once had its headquarters in Lagos Island)....And also again, keeping your money in the bank doesn't mean that you will not still touch it, so I think that what we folks have to understand is that every method of saving your emergency funds has its own strength and weaknesses... And so if we start talking or focusing on the varied risk that is attached to the different ways of storing our emergency funds, then most folks may end up not building an emergency fund at all... Truth be told, even if you keep your emergency funds in the bank or say in fiat or say in any stable coin, there would still be some level of  risks attached to each and every of one of them, none is completely risk free...

And that's the more reason why when keeping your emergency funds, your priority should be on how accessible it can be... Coz during emergency occurrence, the question at that point will be if your emergency funds be accessed in time to sort out that emergency...And if  it can't be accessed to provide one with the immediate financial support, then the whole purpose of it being an emergency fund has already been defeated... That's the more reason why folks should keep portions of their emergency funds across various accessible options...  Don't depend on just a particular method to avoid disappointments ...

To me keeping emergency funds in the bank will make it to be more accessible  although the idea of having it in different accessible form is good provided it is safe and secure.
The best place to store emergency funds is in the bank. I believe it will be more safe and secure here than keeping it in the house especially huge amount of money to avoid being stolen or the risk of losing it during fire outbreak. Though it won't be a bad idea to keep some small cash at home.

[Emjay24]

Why are you making a simple matter so difficult? The simple matter is, if we keep our emergency fund in the bank, it is wrong to expect that we will be able to withdraw it and use it very quickly in times of emergency. Yet you are making this simple matter difficult. If we keep our money in the bank, then why should we create an emergency fund? Leave this matter aside for now. Just tell me what is the definition of basic knowledge about Bitcoin?

The Emergency funds kept in the bank is the same emergency fund you are saving from your discretionary income in the case of emergencies and you are meant to keep it where it can be easily accessible in case of any emergency, optionally I always like to suggest to people to keep it in more than one channel, so that if one is not readily accessible, the other would be deployed to kick off response to the said emergency pending the time other channels becomes available for deployment and it is always good to have some in cash, banks, stable currency or even stocks that are less volatile and are easy to access and liquidate.

We should create emergency fund to respond to real emergencies. If we don't, then we are gambling with our portfolio because it would be left fragile when emergencies occurs and would be tapped into when we didn't choose to solve such urgent needs. Emergency fund is very important if we want to hold for long since it shields our portfolio during emergencies and our portfolio can be preserved for as long as we want to hold.

[GIF-JOBS]

~snip...

Do you think everyone that can hold cash without touching it? Some people prefer to keep their money in a bank account rather than holding the cash. Banks having issues once in a while does not mean they will always have problems. Some people spend money the more they see it, so they prefer keeping it in a bank accounts to avoid unnecessary spending. The most important thing is having an emergency fund regardless of how you keep it, whether in cash or in your bank account, just make sure you do not invest everything into bitcoin.

It’s not every hospital that can accept cash for the hospital bills, it depends on the standard of the hospital. We have many hospitals that may not accept transfers or even cash, and the only way to settle your bills is to use your ATM card for payment. So in a situation where you have cash in your hand, you may still need to deposit the money back into your account. My own advice is to always make sure you have the emergency fund set aside to avoid running up and down later.

Banks stays days without operation due to network issues(I have experienced this so many time with First Bank of Nigeria as well as other banks here in Nigeria)... Some banks could even fold up( remember Savannah Bank which once had its headquarters in Lagos Island)....And also again, keeping your money in the bank doesn't mean that you will not still touch it, so I think that what we folks have to understand is that every method of saving your emergency funds has its own strength and weaknesses... And so if we start talking or focusing on the varied risk that is attached to the different ways of storing our emergency funds, then most folks may end up not building an emergency fund at all... Truth be told, even if you keep your emergency funds in the bank or say in fiat or say in any stable coin, there would still be some level of  risks attached to each and every of one of them, none is completely risk free...

And that's the more reason why when keeping your emergency funds, your priority should be on how accessible it can be... Coz during emergency occurrence, the question at that point will be if your emergency funds be accessed in time to sort out that emergency...And if  it can't be accessed to provide one with the immediate financial support, then the whole purpose of it being an emergency fund has already been defeated... That's the more reason why folks should keep portions of their emergency funds across various accessible options...  Don't depend on just a particular method to avoid disappointments ...

To me keeping emergency funds in the bank will make it to be more accessible  although the idea of having it in different accessible form is good provided it is safe and secure.
The best place to store emergency funds is in the bank. I believe it will be more safe and secure here than keeping it in the house especially huge amount of money to avoid being stolen or the risk of losing it during fire outbreak. Though it won't be a bad idea to keep some small cash at home.

I agree with this, we must keep the emergency fund money in a place that is safe, easy to access and very easy to access when we need it. And for this, a bank can definitely be a good idea, because we can easily withdraw money from an ATM at any time of need, and ATMs are open 24 hours a day, so it should not be much of a problem in case of emergency. Also, keeping our money in a bank will also keep us safe from the possibility of theft, so it is better to keep the emergency fund in a bank.