Balancing Financial security and Bitcoin Accumulation

[Abbatty]

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.

For me it doesn’t really matter how you keep your emergency funds but no matter the decision you make it should be kept in a place that is very accessible. It called emergency funds because it always need at an emergency time, so when it is in need, how accessible the funds is at that time is what really matters. If you decided to keep in naira or not, in bank or not, just make sure it not something that will be difficult to access when needed.

We have seen many people lose a lot of things, even human life just because they couldn’t have access to money, so it is very advisable to make your emergency funds very accessible.

[cxtreenal]

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.

For me it doesn’t really matter how you keep your emergency funds but no matter the decision you make it should be kept in a place that is very accessible. It called emergency funds because it always need at an emergency time, so when it is in need, how accessible the funds is at that time is what really matters. If you decided to keep in naira or not, in bank or not, just make sure it not something that will be difficult to access when needed.

We have seen many people lose a lot of things, even human life just because they couldn’t have access to money, so it is very advisable to make your emergency funds very accessible.

I agree with you. Emergency funds should be kept in a place where we can easily access them. Keeping them in a bank is risky because you may not be able to go to the bank or a cash withdrawal point in an emergency. Power and internet disruptions can happen and that situation can be long term. I think it would be most logical to keep the emergency fund in cash.

There have been cases of loss of life due to lack of cash funds. This is true because there may be some health complications that require your funds immediately. At that moment there may be a situation where you have no other option but to have cash funds.

[Qhunman]

Keeping your emergency funds in the bank is not a bad idea if it's not all of it, because the bank look like the safest among them all, but it's very wrong to keep all your emergency funds there, because if emergency situation comes up and the banks network is bad that particular moment, you will definitely be stranded, that is why it's very important that you also keep some percentage of your emergency funds in cash, just in case of any network troubles when you needed it the most.

I agree with what you said. We shouldn't save all our emergency fund with the bank because bank network could be unavailable when we need to access the fund in an emergency situation. To avoid being stranded, the money should be split into half, the second half should be saved in a secure place at home. this way if Bank network is unavailable when you needed the money, you wouldn't be stranded, you can used the other half of the money available at home.

[ASloveapg]

Keeping your emergency funds in the bank is not a bad idea if it's not all of it, because the bank look like the safest among them all, but it's very wrong to keep all your emergency funds there, because if emergency situation comes up and the banks network is bad that particular moment, you will definitely be stranded, that is why it's very important that you also keep some percentage of your emergency funds in cash, just in case of any network troubles when you needed it the most.

I agree with what you said. We shouldn't save all our emergency fund with the bank because bank network could be unavailable when we need to access the fund in an emergency situation. To avoid being stranded, the money should be split into half, the second half should be saved in a secure place at home. this way if Bank network is unavailable when you needed the money, you wouldn't be stranded, you can used the other half of the money available at home.

This idea is not bad at all, if we keep half of the money in cash at home and the other half in the bank, it can be safer. Because sometimes we may face many obstacles in getting money from the bank, in this case, if we have half of our emergency fund at hand, we can do some work with it and during that time we can get the remaining half from the bank. This can certainly be better, but it is a personal matter, because there are many who do not think it is safe to keep money at home, because there is a possibility of theft, so it is a personal matter.

[Stalker22]

This idea is not bad at all, if we keep half of the money in cash at home and the other half in the bank, it can be safer. Because sometimes we may face many obstacles in getting money from the bank, in this case, if we have half of our emergency fund at hand, we can do some work with it and during that time we can get the remaining half from the bank. This can certainly be better, but it is a personal matter, because there are many who do not think it is safe to keep money at home, because there is a possibility of theft, so it is a personal matter.

You are claiming that splitting your emergency funds between your home and the bank makes things "safer."  But right after that, you admit that keeping cash at home constantly exposes you to the risk of theft.  So, how can a plan like that be considered safer when it directly introduces the chance of you losing half your life savings to a burglar?

Having a lot of cash just sitting there, losing value because of inflation, and always stressing about keeping it safe - that just totally goes against why you have an emergency fund to begin with, imho.

[Joeboy]

If you get your back up funds to some level that you consider to be reasonable, you don't need to continue to add to them, except maybe if you realize that they are not enough to cover your expenses due to changes in your cost of living.. so you might maintain some cushion level and if you are neither tapping into it and your expenses are not greatly going up, then you can just try to maintain it at 3 months or whatever you might consider to be a comfortable maintenance level.

You are absolutely correct sir,... Truly, most folks tend to make use of their local currency when building their backup funds,  well I wouldn't necessarily say that that approach is wrong, since having your backup/or emergency funds in your country's currency are considered more accessible by majority of folks when the need for it comes .... Yet again folks have to also know that currency aren't fixed in value, the money can lose value just as it is been built.. And so, while someone may feel they are building up enough backup funds for their futuristic plans, the actual purchasing power of that money may also be decreasing way faster than expected...

And that exactly why it would obviously make more sense for folks to gradually shift their attention toward the increment of their investment amounts once they have built up their backup to a reasonable amount...  The goal of doing that is to strike a balance. A balance which would very well ensure that an investor isn't just storing money, but also making sure that his/her financial position can protect against emergency without having to have all of their money being affected by inflation.