Balancing Financial security and Bitcoin Accumulation

[Princess Leah]

Emergencies like job loss are another reason to have an emergency fund. These are basic financial principles you should be familiar with.

The issue many are passing through is poor financial management.  Some folks don’t know how to allocate their earnings across different financial areas, such as emergency funds and investments, while keeping essential expenses as their top priority.

True, job loss is an emergency situation and why emergency funds exist so an investment can be sustained with it for short term before another job or means of means of generating discretionary fund is secured, an emergency funds isn’t only for situations like accident or things related with that.

 You're also right on swcond statement, every investor should have good financial management so they can properly determine the amount of funds that would apportioned to different financial areas.

[samadam007]

Investment asides, everyone should have an emergency funds and you don't necessarily need am Investment to make you have, emergency situations can happen to people who haven't started investing in Bitcoin or is it only investors that have emergency situations? My answer to your question is that you're saving it to help solve emergency situations.

What do you mean by investment aside? Since the discussion here is about the importance of one having financial security while accumulating bitcoin long term. I don’t think you should deviate from the main discussion by making it sound like it is mandatory for everyone to have emergency funds regardless of whether they’re not buying bitcoin. Who cares if folks that are not buying bitcoin decide to build emergency fund or not.

[Joeboy]

~snip~

Emergency funds are very important for anyone investing in Bitcoin. Life is very unpredictable, and unexpected emergencies can happen that requires money immediately. At that moment, the emergency funds you set aside will save you from the stress.

As a newbie, one thing i understand from emergency funds is that it may not be necessarily for everyone to have before investing. Emergencies are not something that can happen all the time, and setting aside emergency funds may be difficult from the beginning. If anyone encounters it, they can put it aside and build the emergency funds later. It’s never too late to build emergency funds along the investment journey.

Irrespective of the fact that folks shouldn't delay their investments simply because they are building backup funds, dosen't still make it a right decision to completely neglect it at the start of their investment...Building your emergency funds later as you very well suggested is more or less gambling... Simply because emergencies are unexpected situations that could arise without giving any sort of prior warning, and that's why folks should always have their emergency funds ahead of any emergency situation so as no to be caught unaware...The best approach is for folks to build their emergency funds while in the process of making their investments...Meaning that if one is able to realize $100 as their discretionary income after all basic needs and responsibility has been sorted out, then the investor can have their discretionary income shared into two or three or as much partitions as they want...One part is used for investment and the other part(s) could be used for building emergency funds..

[Princess Leah]

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What do you mean by investment aside? Since the discussion here is about the importance of one having financial security while accumulating bitcoin long term. I don’t think you should deviate from the main discussion by making it sound like it is mandatory for everyone to have emergency funds regardless of whether they’re not buying bitcoin. Who cares if folks that are not buying bitcoin decide to build emergency fund or not.

Where's the lie in what i said? That i said investment aside doesn't mean i deviating, I'm trying to let you know that if the emergency fund is still important and should be taken seriously by non investors cause they still face emergency situations then investors should take it more seriously cause their investment is at stake without it.

 But you were too eager to find fault and correct an impression that doesn't necessarily need correction and failed to comprehend the message, congrats for proving nothing cause whether you're an investor or not you still need an emergency fund.

[Qhunman]

What do you mean by investment aside? Since the discussion here is about the importance of one having financial security while accumulating bitcoin long term. I don’t think you should deviate from the main discussion by making it sound like it is mandatory for everyone to have emergency funds regardless of whether they’re not buying bitcoin. Who cares if folks that are not buying bitcoin decide to build emergency fund or not.

Princess Leah is right about a mandatory emergency fund and I don't think he or she is wrong to say that emergency fund is mandatory for investors and non investors. He or she is right because emergencies don't make exceptions, it can hits both an investor and a no investor.  So it is wise for everyone to build their emergency fund that can cover three months of their essential expenses until they find a job or that can sustain them until when next they have a discretionary income.

Having an emergency fund should be a top priority for an investor because his bitcoin investment would be danger without one.  Your emergency fund is a safety net that protects your bitcoin investment from emergencies.  If you re buying bitcoin without building your emergency fund stimutanously and emergencies occur, what will you do? because if you do not have an emergency fund in place when the emergencies occur, you may sell your bitcoin investment to sort out the cost.

So it is mandatory to have an emergency fund as an investor to protect your investment from emergencies so that you won't be forced to sell your investment when you don't have the intention to.

[POPOLUV]

I agree that building an emergency fund should come before investing heavily in Bitcoin. The market can be unpredictable, so having some savings for unexpected expenses makes a big difference.

Even after starting to invest, a person can continue to have an emergency fund and investments in parallel. A person does not need to wait to build an emergency fund before investing a large amount of money. If a person waits, he may fall behind and miss out on buying opportunities. So, the best decision for that person is to set aside money for emergency fund and investments and extra expenses from the day he starts investing instead of waiting.

He can divide his discretionary income into three parts. For example, one part is for emergency fund, one part is for investments, and one part is for extra expenses. He can decide how much money to keep in each part depending on his financial situation.

I don't have the idea of growing or sorting out my emergency fund until i was involved in several discussions within the community on how important an emergency fund could be, i will keep testifying how the idea i generate from the forum has been so very helpful to me both out here, the early investors should realize that emergency fund can be practiced in every where, providing you understand real facts behind sorting out your emergency fund, and i understand that you trying to share every potion of your income, so that it can be easier for you, although it is not a bad idea because every investors should be able to analyze his income in a manner that it will profit you, so investors should always be able to figure out what will work for them and work towards the success of your investments.

[Loyang]

I don't have the idea of growing or sorting out my emergency fund until i was involved in several discussions within the community on how important an emergency fund could be, i will keep testifying how the idea i generate from the forum has been so very helpful to me both out here, the early investors should realize that emergency fund can be practiced in every where, providing you understand real facts behind sorting out your emergency fund, and i understand that you trying to share every potion of your income, so that it can be easier for you, although it is not a bad idea because every investors should be able to analyze his income in a manner that it will profit you, so investors should always be able to figure out what will work for them and work towards the success of your investments.

Emergency fund is a safety net to deal with our financial crisis. We can use emergency fund during any kind of financial crisis. However, instead of using emergency fund during small financial crisis, it is a better decision to create another reserved fund separately. Because in such situations, due to taking small amounts from emergency fund, many times we forget to replenish that emergency fund, so creating a separate fund for such small financial crisis can be a good decision.

Instead of sharing every part of the income, a person needs to focus on fulfilling his needs first. If a person is able to find a source of discretionary income after fulfilling all his needs, then he can invest. When a person shares in advance, then he may be able to invest the required amount of money. So we need to focus on fulfilling the needs first

[I_Anime]

Investment asides, everyone should have an emergency funds and you don't necessarily need am Investment to make you have, emergency situations can happen to people who haven't started investing in Bitcoin or is it only investors that have emergency situations? My answer to your question is that you're saving it to help solve emergency situations.

What do you mean by investment aside? Since the discussion here is about the importance of one having financial security while accumulating bitcoin long term. I don’t think you should deviate from the main discussion by making it sound like it is mandatory for everyone to have emergency funds regardless of whether they’re not buying bitcoin. Who cares if folks that are not buying bitcoin decide to build emergency fund or not.

FYI emergency funds is still part of financial security. To be honest I’m getting tired of all these emergency funds and stuff . Though , for someone that’s ready to build something good in their financial life having an emergency fund play a crucial role in it .

We should talk more on financial security and bitcoin accumulation. I’m always interested in stuff that will help make my Bitcoin accumulation/investment smoother . That’s what I’m here for , to build and make sure any knowledge I’ve acquired count (in my bitcoin accumulation and other aspect of my life ).

[Homemade-IQ]

Emergency fund is a safety net to deal with our financial crisis. We can use emergency fund during any kind of financial crisis. However, instead of using emergency fund during small financial crisis, it is a better decision to create another reserved fund separately.

You don't have to create any separate reserve funds for such little emergencies, because the essence of having a reserve funds in place is to sorts out any minor needs, including using it for the betterment of your Bitcoin investment, so as long as you have both your emergency and reserve funds in place, you can still use your reserve funds to sort out those minor financial needs, instead of touching your emergency funds, because they are both back up funds that protect your Bitcoin investment, but the only difference about emergency and reserve funds is that one is flexible, while the other is not,  emergency funds is strictly for emergency purposes.

[NewRevelation]

 To be honest I’m getting tired of all these emergency funds and stuff . Though , for someone that’s ready to build something good in their financial life having an emergency fund play a crucial role in it .

We should talk more on financial security and bitcoin accumulation. I’m always interested in stuff that will help make my Bitcoin accumulation/investment smoother . That’s what I’m here for , to build and make sure any knowledge I’ve acquired count (in my bitcoin accumulation and other aspect of my life ).

And you think your Bitcoin investment can move smooth without an emergency funds? I doubt if an investor can HODL his investment for a long term without having back up funds readily available. It's important that investors build a substanable back up funds so that the can have a safety net to help thme handle financial emergencies.

Of course, we are all here to learn and grow out knowledge about our investment, that's why people are commenting and learning always.

[Cgrexp]

Emergency fund is a safety net to deal with our financial crisis. We can use emergency fund during any kind of financial crisis. However, instead of using emergency fund during small financial crisis, it is a better decision to create another reserved fund separately.

You don't have to create any separate reserve funds for such little emergencies, because the essence of having a reserve funds in place is to sorts out any minor needs, including using it for the betterment of your Bitcoin investment, so as long as you have both your emergency and reserve funds in place, you can still use your reserve funds to sort out those minor financial needs, instead of touching your emergency funds, because they are both back up funds that protect your Bitcoin investment, but the only difference about emergency and reserve funds is that one is flexible, while the other is not,  emergency funds is strictly for emergency purposes.

Not all financial needs should be considered as emergencies. Some expenses may come up suddenly, but they are not major emergencies. Having a separate reserve fund to meet minor needs does not put unnecessary pressure on the emergency fund. You may need to spend some extra money beyond the amount set aside for buying Bitcoin or you may want to buy extra Bitcoin because of a good opportunity in the market. In this case, you can use the reserve fund. An emergency fund should be reserved for situations like a serious family problem. This will prevent you from breaking the emergency fund to meet minor needs. The biggest advantage of keeping these two funds separate is that you will be able to have better control over your financial situation. Sometimes people are forced to sell Bitcoin for even a small expense. When they have no alternative money in hand. Having a reserve fund can avoid such situations. A good financial system should be developed to keep investments safe.

[BluebloodCXVI]

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What do you mean by investment aside? Since the discussion here is about the importance of one having financial security while accumulating bitcoin long term. I don’t think you should deviate from the main discussion by making it sound like it is mandatory for everyone to have emergency funds regardless of whether they’re not buying bitcoin. Who cares if folks that are not buying bitcoin decide to build emergency fund or not.

Where's the lie in what i said? That i said investment aside doesn't mean i deviating, I'm trying to let you know that if the emergency fund is still important and should be taken seriously by non investors cause they still face emergency situations then investors should take it more seriously cause their investment is at stake without it.

 But you were too eager to find fault and correct an impression that doesn't necessarily need correction and failed to comprehend the message, congrats for proving nothing cause whether you're an investor or not you still need an emergency fund.

No lies, i get what you’re saying though, emergencies can happen to the best of us regardless of whether the person is a bitcoin investor or not, and the fact that you pointed that out isn’t really a bad thing IMO.

Although i still think that investors are the ones that have more incentive to keep aside emergency funds so as to avoid forced selling unlike non-investors who might not feel the need for it because there’s nothing at stake for them to protect.
And this is where i think @Samadam007 is correct too, because this conversation we are having here is about people who are accumulating bitcoin and how they balance their financial security with it. So you now dragging non- investors into it kinda misses the whole point of the discussion and i don’t think samadam is also wrong for pointing that out.

Now y’all both should make up and kiss 

[Princess Leah]

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No lies, i get what you’re saying though, emergencies can happen to the best of us regardless of whether the person is a bitcoin investor or not, and the fact that you pointed that out isn’t really a bad thing IMO.

Although i still think that investors are the ones that have more incentive to keep aside emergency funds so as to avoid forced selling unlike non-investors who might not feel the need for it because there’s nothing at stake for them to protect.
And this is where i think @Samadam007 is correct too, because this conversation we are having here is about people who are accumulating bitcoin and how they balance their financial security with it. So you now dragging non- investors into it kinda misses the whole point of the discussion and i don’t think samadam is also wrong for pointing that out.

Now y’all both should make up and kiss 

Yeah that's the point i was trying to make, cause if a non investor still need emergency funds then investors should see more importance in having it cause not having it means your investment is at stake, the person would definitely tamper with the investment to solve the situation, something that would've been avoid if the emergency fund was available.

 Hahaha, kiss you said! I'll take that as a mere joke. Moreover giving reference to why the emergency fund is important to an investor by relating it with non investors doesn’t mean an deviating, maybe that's your ideology but then i believe you understand my point and I'm cool with that.

[devouring-DARKNESS]

What do you mean by investment aside? Since the discussion here is about the importance of one having financial security while accumulating bitcoin long term. I don’t think you should deviate from the main discussion by making it sound like it is mandatory for everyone to have emergency funds regardless of whether they’re not buying bitcoin. Who cares if folks that are not buying bitcoin decide to build emergency fund or not.

You are making it look like only those who are accumulating bitcoin should have emergency funds and that's very wrong because even without having a bitcoin investment going having an emergency fund is still very useful in the situation that you run into an emergency (something unexpected) and you need money to handle it, for bitcoin investorscthr emergency fund helps make sure they don't end up selling their bitcoin due to the emergency but for someone who isn't investing in bitcoin they probably still have other assets they wouldn't want to sell in case of an emergency and having an emergency fund will help make sure they don't sell.
So don't just be limited the purpose of having an emergency fund to investing in bitcoin online, we are discussing about bitcoin because this is a bitcoin investment thread but that doesn't make our life outside of our investment pointless.

[icebar]

You should have read @Lilycollins's words more carefully. You read his words as advice to complete an emergency fund before starting to invest. But he actually said to have an emergency fund before making a large investment. I don't think his words are completely unreasonable. Having some protection before making a large investment and having to fully fund before buying your first Bitcoin are two different decisions.

Try to understand that we all see differently, so I or some other person may not see a reason from our own perspective on what he was actually saying. You may disagree or argue with me if you want, but it is a normal thing to me because I don't expect us to see things the same way.

Well, let's say I'm talking about someone who may have an uncertain income next month, has very little cash on hand, and needs to meet essential expenses that month. In his case, it may not be possible to pay for both at the same time. I think in such a situation, prioritizing a few weeks of cash protection and starting to buy Bitcoin again later might be a realistic decision..

Even though an investor has an uncertain financial reality, like he is not certain of his next income and bills and debt has already pilled up, he can still invest and put down his back up funds simultaneously with it, if he can figure out his discretionary income, because the key thing there is figuring out his discretionary income, with is a funds that is left after all his needs and his debt has been paid, because all he just need is to divide it into three equal part, one for investment, one for emergency and reserve funds and one for discretionary consumption. So if things are done like that consistently, he will have no problem, and his investment will progress safely.

It certainly makes sense to split your money into three equal parts. But it's not like you'll have no problems if you split your discretionary income into three equal parts. Especially for the person you gave as an example, his income is not guaranteed next month and he has very little cash on hand.

I'm assuming that after paying off all your essential expenses and debts, you have $300 in discretionary income. If you follow your advice and put $100 in Bitcoin, $100 in an emergency fund, and $100 for personal expenses, how long will that $100 emergency fund last if you don't have any income next month? The issue here is not the method of splitting your money into three parts, but rather how appropriate that method is for your current situation.

[Loyang]

You should have read @Lilycollins's words more carefully. You read his words as advice to complete an emergency fund before starting to invest. But he actually said to have an emergency fund before making a large investment. I don't think his words are completely unreasonable. Having some protection before making a large investment and having to fully fund before buying your first Bitcoin are two different decisions.

Try to understand that we all see differently, so I or some other person may not see a reason from our own perspective on what he was actually saying. You may disagree or argue with me if you want, but it is a normal thing to me because I don't expect us to see things the same way.

Well, let's say I'm talking about someone who may have an uncertain income next month, has very little cash on hand, and needs to meet essential expenses that month. In his case, it may not be possible to pay for both at the same time. I think in such a situation, prioritizing a few weeks of cash protection and starting to buy Bitcoin again later might be a realistic decision..

Even though an investor has an uncertain financial reality, like he is not certain of his next income and bills and debt has already pilled up, he can still invest and put down his back up funds simultaneously with it, if he can figure out his discretionary income, because the key thing there is figuring out his discretionary income, with is a funds that is left after all his needs and his debt has been paid, because all he just need is to divide it into three equal part, one for investment, one for emergency and reserve funds and one for discretionary consumption. So if things are done like that consistently, he will have no problem, and his investment will progress safely.

It certainly makes sense to split your money into three equal parts. But it's not like you'll have no problems if you split your discretionary income into three equal parts. Especially for the person you gave as an example, his income is not guaranteed next month and he has very little cash on hand.

I'm assuming that after paying off all your essential expenses and debts, you have $300 in discretionary income. If you follow your advice and put $100 in Bitcoin, $100 in an emergency fund, and $100 for personal expenses, how long will that $100 emergency fund last if you don't have any income next month? The issue here is not the method of splitting your money into three parts, but rather how appropriate that method is for your current situation.

If a person's source of income is so unstable, then it is definitely necessary for that person to find a stable source of income as soon as possible. When they have a stable source of income, they will definitely be able to continue investing without facing such problems.

However, it is best for a person with this type of income source if they are able to find multiple sources of income. For example, starting a business along with a job, etc. When a person is involved in multiple sources of income, then all their sources of income will definitely not stop at the same time. Therefore, it is a good idea for each person to have a separate source of income.