Balancing Financial security and Bitcoin Accumulation

[ZeroVinsonN]

What you are saying here is true.
As a man, it's important to have an emergency funds that can save you in times of needs, but as a Nigerian, I can tell you for free that we are not used to that, what I know that we normally does is by saving our money and be hoping that our savings, can save us in times if emergencies.

Having an emergency funds while accumulating consistently is very important to the success of your Bitcoin investment, because without having them in place and emergency struck, your investment will be doomed, so emergency funds is very important for the survival of your Bitcoin investment, which is why it's important to put it down in place alongside your Bitcoin investment, just in case emergency comes up at that early stage of your investment.

That money we are saving with the hopes that it saves us during emergencies is our emergency fund, it's just that most Nigerians don't use the term 'emergency fund' to describe it, they just call it their savings and that's also because it's not just our emergency fund but the entirety of our backup funds as well without individual distinctions, it will function as the emergency fund in the case of an emergency and will also function as our reserve fund when we decide to do something else with it.
It's better that we are now distinguishing between them so that we don't end up using our emergency fund to pay for a vacation or get ourselves a new phone/car, proper allocation of funds is the better way to go about things so that we don't end up not having our emergency fund ready when an emergency actually happens.

[Rhow]

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.

There is no mandatory condition to have an emergency fund at the beginning of investment. When you tell someone to make an emergency fund mandatory for investment, he will be busy after it. It can take 1 year or more to build an emergency fund. When keeping an emergency fund is made mandatory for investment, he can lose many investment opportunities.

Let's say a new person is interested in investing in Bitcoin who can keep some discretionary income after meeting the necessary expenses. But he has not yet been able to build an emergency fund of the same amount in three months. Now if he wants, he can start buying Bitcoin with some part of his discretionary income and allocate the rest to emergency fund and personal expenses. In this case, his decision cannot be called wrong, rather, he can collect Bitcoin and take responsibility for the protection of that Bitcoin at the same time without waiting. He only has to decide which part of the discretionary income to allocate to which sector, considering his financial situation.

[Princess Leah]

There is no mandatory condition to have an emergency fund at the beginning of investment. When you tell someone to make an emergency fund mandatory for investment, he will be busy after it. It can take 1 year or more to build an emergency fund. When keeping an emergency fund is made mandatory for investment, he can lose many investment opportunities.

Let's say a new person is interested in investing in Bitcoin who can keep some discretionary income after meeting the necessary expenses. But he has not yet been able to build an emergency fund of the same amount in three months. Now if he wants, he can start buying Bitcoin with some part of his discretionary income and allocate the rest to emergency fund and personal expenses. In this case, his decision cannot be called wrong, rather, he can collect Bitcoin and take responsibility for the protection of that Bitcoin at the same time without waiting. He only has to decide which part of the discretionary income to allocate to which sector, considering his financial situation.

Ofcourse it's mandatory to have an emergency fund, cause emergencies situation are things we don't bargain for and can't tell when it would happen but should be prepared for it, might even happen the period you intend starting your investment and if you don't have it ready you might use money you intend start your investment with to solve it.

 However where people go wrong is delaying the investment to build an emergency funds, it's wrong cause building an emergency funds doesn't stop anyone from investing and they can be done simultaneously so no one should use building an emergency fund as an excuse for delaying their investment.

[I_Anime]

There is no mandatory condition to have an emergency fund at the beginning of investment. When you tell someone to make an emergency fund mandatory for investment, he will be busy after it. It can take 1 year or more to build an emergency fund. When keeping an emergency fund is made mandatory for investment, he can lose many investment opportunities.

Let's say a new person is interested in investing in Bitcoin who can keep some discretionary income after meeting the necessary expenses. But he has not yet been able to build an emergency fund of the same amount in three months. Now if he wants, he can start buying Bitcoin with some part of his discretionary income and allocate the rest to emergency fund and personal expenses. In this case, his decision cannot be called wrong, rather, he can collect Bitcoin and take responsibility for the protection of that Bitcoin at the same time without waiting. He only has to decide which part of the discretionary income to allocate to which sector, considering his financial situation.

Ofcourse it's mandatory to have an emergency fund, cause emergencies situation are things we don't bargain for and can't tell when it would happen but should be prepared for it, might even happen the period you intend starting your investment and if you don't have it ready you might use money you intend start your investment with to solve it.

 However where people go wrong is delaying the investment to build an emergency funds, it's wrong cause building an emergency funds doesn't stop anyone from investing and they can be done simultaneously so no one should use building an emergency fund as an excuse for delaying their investment.

I knew that emergency funds is something I shouldn’t joke with through experience back then when I newly started my accumulation journey , I had no emergency funds which put in the position of relying on my investment whenever there’s any emergency or any urgent expenses ( I didn’t planned for ) . Affected the growth of investment for a while , before I finally realized that I need to start setting some amount of money (emergency funds) aside to handle any emergency or unplanned expenses .

There are a lot of reasons why you need to learn how to allocate your earnings to maintain a proper investment and do that we have to understand how money works and stuff.

[Homemade-IQ]

There are a lot of reasons why you need to learn how to allocate your earnings to maintain a proper investment and do that we have to understand how money works and stuff.

Learning how to allocate your earnings is important, it's like a proper money management skills, but what is more important is knowing how to allocate your discretionary income, and the best way to allocate it is by dividing it into three equal part. One part for investment, one part to put down your back up funds in place, which comprises of emergency and reserve forms, and the last  part for discretionary consumption, so if you can do that effectively, it will be almost impossible to make a mistake while investing.

[Hardyrobust]

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.

I don't think it is only serious family problems that should be considered an emergency. An unforeseen circumstances is an emergency and should be address using an emergency funds. It is only life threatening situations that should be seen as an emergency. As longer it is something that comes up when we are expecting it , then it is an emergency.
It is good to buy bitcoin when there is an available cash and not when an opportunity present itself.

[samadam007]

There are a lot of reasons why you need to learn how to allocate your earnings to maintain a proper investment and do that we have to understand how money works and stuff.

This your statement is making it sound too complicated, like folks must fully understand how money works before they can be able to manage their finances well and invest. This is not actually true because there simple financial habits an investor can practice without having deep financial knowledge….. taking care of important expenses, keeping money for emergencies and putting an amount aside to accumulate Bitcoin. These are basic things that does not require deep financial knowledge. Of course financial education is important, but it is something someone develops through experience, as he manages his cashflow.

[abaeze]

That money we are saving with the hopes that it saves us during emergencies is our emergency fund, it's just that most Nigerians don't use the term 'emergency fund' to describe it, they just call it their savings and that's also because it's not just our emergency fund but the entirety of our backup funds as well without individual distinctions, it will function as the emergency fund in the case of an emergency and will also function as our reserve fund when we decide to do something else with it.
It's better that we are now distinguishing between them so that we don't end up using our emergency fund to pay for a vacation or get ourselves a new phone/car, proper allocation of funds is the better way to go about things so that we don't end up not having our emergency fund ready when an emergency actually happens.

I think those who post here regularly have understood that savings and emergency funds aren't conceptually the same because whatever you do with an emergency fund, it is not to cover the expenses that you need to make your life better beyond traveling, buying a car, a phone, or any other wishes. But an emergency fund is to deal with job loss, sudden medical expenses, loss of income, or any other unexpected situation. In short, emergency funds and general savings are both accumulated money, but their purposes are different and the importance of emergency funds in investing in Bitcoin is very high, which is why it is discussed repeatedly here

[Cgrexp]

There are a lot of reasons why you need to learn how to allocate your earnings to maintain a proper investment and do that we have to understand how money works and stuff.

This your statement is making it sound too complicated, like folks must fully understand how money works before they can be able to manage their finances well and invest. This is not actually true because there simple financial habits an investor can practice without having deep financial knowledge….. taking care of important expenses, keeping money for emergencies and putting an amount aside to accumulate Bitcoin. These are basic things that does not require deep financial knowledge. Of course financial education is important, but it is something someone develops through experience, as he manages his cashflow.

Many times we unnecessarily complicate simple things. To be financially well, you don't need much knowledge at the beginning. Rather, it is more important to develop some simple habits. First, manage your expenses according to your income, meet necessary expenses, set aside some money, and invest in assets like Bitcoin according to your ability. These are very simple things. Which anyone can gradually turn into a habit. For this, it is not mandatory to have deep knowledge about economics or financial management. In addition to developing simple habits, it is also important to keep an eye on your financial situation. Not everyone's income, expenses and financial capacity are the same. The amount of money that is normal for one person to invest may be too risky for another. We need to understand our income, expenses and create a realistic plan. Financial management can be learned better through practical experience. The most important thing is to live according to our income. Control unnecessary expenses and do not invest beyond our ability. These simple habits can make us more  responsible in the long run.

[Saltysugar99]

There are a lot of reasons why you need to learn how to allocate your earnings to maintain a proper investment and do that we have to understand how money works and stuff.

This your statement is making it sound too complicated, like folks must fully understand how money works before they can be able to manage their finances well and invest. This is not actually true because there simple financial habits an investor can practice without having deep financial knowledge….. taking care of important expenses, keeping money for emergencies and putting an amount aside to accumulate Bitcoin. These are basic things that does not require deep financial knowledge. Of course financial education is important, but it is something someone develops through experience, as he manages his cashflow.

No one needs to be an expert in financial management to invest in bitcoin. The matter is very simple. There is no obligation to acquire deep knowledge about economics. The first task of a new investor should be to create a general idea of ​​​​his income and expenses. Only if he can determine how much money he is earning every month, how much money he needs to meet necessary expenses and how much  discretionary income is left after cost of everything then  he make an initial decision to start bitcoin accumulation. And this task is not very difficult to do. However, if a person cannot determine whether he has discretionary funds at all, then he really lacks common sense. Because a person who earns who is responsible for his family he certainly knows how much his expenses are and how much extra money he has left after expenses. But financial understanding is enough to start bitcoin investment, but more skills are needed to manage investment activities for a long time. Because it is not so easy to hold bitcoin for a long time on a regular basis. Because during this period, financial problems may arise, and the price of bitcoin may decrease again. along with strong financial ability, you also need to have a strong mindset.

[I_Anime]

There are a lot of reasons why you need to learn how to allocate your earnings to maintain a proper investment and do that we have to understand how money works and stuff.

This your statement is making it sound too complicated, like folks must fully understand how money works before they can be able to manage their finances well and invest. This is not actually true because there simple financial habits an investor can practice without having deep financial knowledge….. taking care of important expenses, keeping money for emergencies and putting an amount aside to accumulate Bitcoin. These are basic things that does not require deep financial knowledge. Of course financial education is important, but it is something someone develops through experience, as he manages his cashflow.

Many times we unnecessarily complicate simple things. To be financially well, you don't need much knowledge at the beginning. Rather, it is more important to develop some simple habits. First, manage your expenses according to your income, meet necessary expenses, set aside some money, and invest in assets like Bitcoin according to your ability. These are very simple things. Which anyone can gradually turn into a habit. For this, it is not mandatory to have deep knowledge about economics or financial management. In addition to developing simple habits, it is also important to keep an eye on your financial situation. Not everyone's income, expenses and financial capacity are the same. The amount of money that is normal for one person to invest may be too risky for another. We need to understand our income, expenses and create a realistic plan. Financial management can be learned better through practical experience. The most important thing is to live according to our income. Control unnecessary expenses and do not invest beyond our ability. These simple habits can make us more  responsible in the long run.

I’m not tryna complicate anything . I didn’t mention anything like newbies as to learn anything complex before starting their investment journey . Know this , there’s two thing when come to investment. One thing is to start it , and the other is to maintain that same investment.

Investment isn’t something that should be made complex or seems complex , but something that should be handled with care . The reason many have been in this space and still have nothing to show for when come to bitcoin investment is because they lacks the ability to maintain their investment and also due to procrastination too .

You to make sure things are well put in place when come to investment, things like your emergency funds , back up funds (when necessary).  And also, be persistent with it. Many folks start their investment journey with a strong fire burning within them, but as time goes by, that fire gradually begins to fade. In bonus still understand how money works it will help in many areas of your life .

[Rhow]

There are a lot of reasons why you need to learn how to allocate your earnings to maintain a proper investment and do that we have to understand how money works and stuff.

Learning how to allocate your earnings is important, it's like a proper money management skills, but what is more important is knowing how to allocate your discretionary income, and the best way to allocate it is by dividing it into three equal part. One part for investment, one part to put down your back up funds in place, which comprises of emergency and reserve forms, and the last  part for discretionary consumption, so if you can do that effectively, it will be almost impossible to make a mistake while investing.

Of course, discretionary income can be divided into three parts. However, it does not mean that it has to be divided equally for everyone. Because not everyone has the same income, expenses, savings and financial responsibilities. You may unknowingly be advising two people to divide it equally into three parts, where the first one has an emergency fund equivalent to 3-6 months of expenses from the previous one. He may have fewer family responsibilities and relatively low expenses. But the other one may not have an emergency fund, has irregular income and has more family responsibilities. In this case, following the same ratio for both may not be realistic. What is very easy for one may be a cause of stress for the other. The first person may be able to allocate more to investments according to his situation. But the second person may give more importance to protection at the beginning. Again, dividing money into three parts does not mean that it is possible to avoid all types of investment mistakes. The idea of ​​dividing it into three parts is logical, but it does not need to be mandatory for everyone.

[Xackie]

That money we are saving with the hopes that it saves us during emergencies is our emergency fund, it's just that most Nigerians don't use the term 'emergency fund' to describe it, they just call it their savings and that's also because it's not just our emergency fund but the entirety of our backup funds as well without individual distinctions, it will function as the emergency fund in the case of an emergency and will also function as our reserve fund when we decide to do something else with it.
It's better that we are now distinguishing between them so that we don't end up using our emergency fund to pay for a vacation or get ourselves a new phone/car, proper allocation of funds is the better way to go about things so that we don't end up not having our emergency fund ready when an emergency actually happens.

I think those who post here regularly have understood that savings and emergency funds aren't conceptually the same because whatever you do with an emergency fund, it is not to cover the expenses that you need to make your life better beyond traveling, buying a car, a phone, or any other wishes. But an emergency fund is to deal with job loss, sudden medical expenses, loss of income, or any other unexpected situation. In short, emergency funds and general savings are both accumulated money, but their purposes are different and the importance of emergency funds in investing in Bitcoin is very high, which is why it is discussed repeatedly here

People do confuse both since they feel it's the same thing, that's why they keep everything in one place. It doesn't sound okay because when they keep everything (both emergency fund and normal savings) together, they will start spending it  on transportation, groceries, gadgets etc Sometimes they do exhaust all their savings and when the real emergency comes , they have no no money left.  From my own view a person  can have his savings split into different ways like emergencies savings, target savings (maybe you want to start a business, build a house, travelling, car etc) and miscellaneous savings (eating out , groceries restocking and other everyday wants).  

If someone can do it this way , they won't have much issues when it comes to any huge financial demands (unexpected situations) that could force them to sell off their bitcoin. These type of savings I suggested could differ due to a person financial income level. Someone who barely had any money left after covering basic expenses and investing in Bitcoin could instead combine those types of savings together instead of trying to maintain or have separate funds.

[icebar]

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.

I don't think it is only serious family problems that should be considered an emergency. An unforeseen circumstances is an emergency and should be address using an emergency funds. It is only life threatening situations that should be seen as an emergency. As longer it is something that comes up when we are expecting it , then it is an emergency.
It is good to buy bitcoin when there is an available cash and not when an opportunity present itself.

In many causes situations can be urgent even if there is no risk of loss of life. If you lose your job, suddenly need medical costs, have a family emergency, or have a loss of income, then that can also be a reason to use an emergency fund. On the other hand, a sudden cost is not an emergency. You can keep separate savings for some irregular but predictable costs.

Let's say you suddenly lose your job and you don't have a regular income to conduct your family. In this case, although it is not a life and death situation, it is a big emergency for your financial situation. Similarly, if someone in your family needs sudden medical costs or there is an essential cost that cannot be avoided, then an emergency fund can be used there.

On the other hand, if you consider some costs as an emergency, then it becomes a problem. For example, some personal shopping or traveling that you did not plan in advance. In these cases, other savings can be used.

[abaeze]

People do confuse both since they feel it's the same thing, that's why they keep everything in one place. It doesn't sound okay because when they keep everything (both emergency fund and normal savings) together, they will start spending it  on transportation, groceries, gadgets etc Sometimes they do exhaust all their savings and when the real emergency comes , they have no no money left.  From my own view a person  can have his savings split into different ways like emergencies savings, target savings (maybe you want to start a business, build a house, travelling, car etc) and miscellaneous savings (eating out , groceries restocking and other everyday wants).  

If someone can do it this way , they won't have much issues when it comes to any huge financial demands (unexpected situations) that could force them to sell off their bitcoin. These type of savings I suggested could differ due to a person financial income level. Someone who barely had any money left after covering basic expenses and investing in Bitcoin could instead combine those types of savings together instead of trying to maintain or have separate funds.

You have divided savings into three categories here. I don't know where did you get the idea that it is mandatory for everyone to keep all kinds of savings separate among three parts, for someone whose monthly income is very low and who has very few Naira left after meeting basic expenses then it is difficult to manage three separate funds. If you have $100 as an emergency fund but your three month expenses are $700 (say for eg:) then should you set up three separate fund or focus on building a sufficient emergency fund wisely.

On the other hand, regular shopping, food and transportation expenses are usually part of Basic Living Expenses, if you putting them under Miscellaneous Savings can make the budget calculation a bit confusing, because Miscellaneous Savings is mainly suitable for irregular small wishes or extra expenses.

[Xackie]

People do confuse both since they feel it's the same thing, that's why they keep everything in one place. It doesn't sound okay because when they keep everything (both emergency fund and normal savings) together, they will start spending it  on transportation, groceries, gadgets etc Sometimes they do exhaust all their savings and when the real emergency comes , they have no no money left.  From my own view a person  can have his savings split into different ways like emergencies savings, target savings (maybe you want to start a business, build a house, travelling, car etc) and miscellaneous savings (eating out , groceries restocking and other everyday wants).  

If someone can do it this way , they won't have much issues when it comes to any huge financial demands (unexpected situations) that could force them to sell off their bitcoin. These type of savings I suggested could differ due to a person financial income level. Someone who barely had any money left after covering basic expenses and investing in Bitcoin could instead combine those types of savings together instead of trying to maintain or have separate funds.

You have divided savings into three categories here. I don't know where did you get the idea that it is mandatory for everyone to keep all kinds of savings separate among three parts, for someone whose monthly income is very low and who has very few Naira left after meeting basic expenses then it is difficult to manage three separate funds. If you have $100 as an emergency fund but your three month expenses are $700 (say for eg:) then should you set up three separate fund or focus on building a sufficient emergency fund wisely.

On the other hand, regular shopping, food and transportation expenses are usually part of Basic Living Expenses, if you putting them under Miscellaneous Savings can make the budget calculation a bit confusing, because Miscellaneous Savings is mainly suitable for irregular small wishes or extra expenses.

If you want to say something you can do that, but don't misquote me . I never said its mandatory for them to separate their savings into three. I only gave a suggestion on how someone can save without putting everything into one bag(everything inside one saving i.e emergencies savings and normal). Reason why suggested it is to prevent someone from spending all their savings into daily needs or wants , then when the real emergency comes they end up having no money to curb it. Hadn't been you read what I wrote properly before you replied me; you would have seen where I said it could differ depending on your income levels . If you are a person  who remaining cash is small after settling your bills and investment some part into bitcon, then there's no need to separate them.. I am even explaining too much , read and understand what I wrote.  What I suggested there, is something I have practising for a very long time.  People could have their own ways of saving.

[Son Of Blockchain (SOB)]

I think those who post here regularly have understood that savings and emergency funds aren't conceptually the same because whatever you do with an emergency fund, it is not to cover the expenses that you need to make your life better beyond traveling, buying a car, a phone, or any other wishes. But an emergency fund is to deal with job loss, sudden medical expenses, loss of income, or any other unexpected situation. In short, emergency funds and general savings are both accumulated money, but their purposes are different and the importance of emergency funds in investing in Bitcoin is very high, which is why it is discussed repeatedly here

Truth cause they both serve different purpose, though they might be helpful in sustaining an investment on the long run but the emergency funds is used to solve emergency issues like the ones you mentioned and not savings so they shouldn't be complicated for another, you're spot on concerning your statement.
 Yeah, lots of people didn't really understand the importance of the emergency funds to Bitcoin investment but it's good that it's been constantly discussed to create aware to people that would later join this thread and barely understand the importance so they'll learn too.

[samadam007]

People do confuse both since they feel it's the same thing, that's why they keep everything in one place. It doesn't sound okay because when they keep everything (both emergency fund and normal savings) together, they will start spending it  on transportation, groceries, gadgets etc Sometimes they do exhaust all their savings and when the real emergency comes , they have no no money left.  From my own view a person  can have his savings split into different ways like emergencies savings, target savings (maybe you want to start a business, build a house, travelling, car etc) and miscellaneous savings (eating out , groceries restocking and other everyday wants).  

If someone can do it this way , they won't have much issues when it comes to any huge financial demands (unexpected situations) that could force them to sell off their bitcoin. These type of savings I suggested could differ due to a person financial income level. Someone who barely had any money left after covering basic expenses and investing in Bitcoin could instead combine those types of savings together instead of trying to maintain or have separate funds.

I think you have a problem with differentiating “basic needs” from “non essentials” which is your discretionary consumption, reserve funds(backup funds) and emergency savings(backup funds) because you seem to be mixing everything up. When a person knows the things that falls under both categories, I don’t think he should have any issues planning and managing his cashflow.
Discretionary consumption from your discretionary income covers your non essential goods for personal enjoyment and comfort. It can be reduced or cut off whenever you have financial challenges and it won’t affect you, unlike basic needs(groceries, food, rent) that can’t be cut off because you need them to survive.

You also need to understand that emergency funds are only for real life emergencies unlike reserve funds which is flexible and can be used for planned or unexpected expenses instead of taking from your emergency savings or selling bitcoin. Reserve funds can also be used to tackle real life emergencies before tapping into the real emergency funds if it is not enough.

[Tongley]

There are a lot of reasons why you need to learn how to allocate your earnings to maintain a proper investment and do that we have to understand how money works and stuff.

Learning how to allocate your earnings is important, it's like a proper money management skills, but what is more important is knowing how to allocate your discretionary income, and the best way to allocate it is by dividing it into three equal part. One part for investment, one part to put down your back up funds in place, which comprises of emergency and reserve forms, and the last  part for discretionary consumption, so if you can do that effectively, it will be almost impossible to make a mistake while investing.

Of course, discretionary income can be divided into three parts. However, it does not mean that it has to be divided equally for everyone. Because not everyone has the same income, expenses, savings and financial responsibilities. You may unknowingly be advising two people to divide it equally into three parts, where the first one has an emergency fund equivalent to 3-6 months of expenses from the previous one. He may have fewer family responsibilities and relatively low expenses. But the other one may not have an emergency fund, has irregular income and has more family responsibilities. In this case, following the same ratio for both may not be realistic. What is very easy for one may be a cause of stress for the other. The first person may be able to allocate more to investments according to his situation. But the second person may give more importance to protection at the beginning. Again, dividing money into three parts does not mean that it is possible to avoid all types of investment mistakes. The idea of ​​dividing it into three parts is logical, but it does not need to be mandatory for everyone.

We discuss in this thread and everyone shares their opinions with us. Yes, it is true that dividing discretionary income into three parts is a very good idea, but it is not mandatory for every person. It is very common for a person to share a good idea with us. But before we follow that person's opinion, we will take a decision based on our financial situation, if our financial situation is good then we can use that method.

While taking a decision, each person has to take a decision according to their own situation, it is never a right decision to take a decision like someone else. It is never a right decision to prevent all other people from taking that good decision because a person's financial situation is bad

[cocadalcan]

There is no mandatory condition to have an emergency fund at the beginning of investment. When you tell someone to make an emergency fund mandatory for investment, he will be busy after it. It can take 1 year or more to build an emergency fund. When keeping an emergency fund is made mandatory for investment, he can lose many investment opportunities.

Let's say a new person is interested in investing in Bitcoin who can keep some discretionary income after meeting the necessary expenses. But he has not yet been able to build an emergency fund of the same amount in three months. Now if he wants, he can start buying Bitcoin with some part of his discretionary income and allocate the rest to emergency fund and personal expenses. In this case, his decision cannot be called wrong, rather, he can collect Bitcoin and take responsibility for the protection of that Bitcoin at the same time without waiting. He only has to decide which part of the discretionary income to allocate to which sector, considering his financial situation.

Ofcourse it's mandatory to have an emergency fund, cause emergencies situation are things we don't bargain for and can't tell when it would happen but should be prepared for it, might even happen the period you intend starting your investment and if you don't have it ready you might use money you intend start your investment with to solve it.

 However where people go wrong is delaying the investment to build an emergency funds, it's wrong cause building an emergency funds doesn't stop anyone from investing and they can be done simultaneously so no one should use building an emergency fund as an excuse for delaying their investment.

I knew that emergency funds is something I shouldn’t joke with through experience back then when I newly started my accumulation journey , I had no emergency funds which put in the position of relying on my investment whenever there’s any emergency or any urgent expenses ( I didn’t planned for ) . Affected the growth of investment for a while , before I finally realized that I need to start setting some amount of money (emergency funds) aside to handle any emergency or unplanned expenses .

There are a lot of reasons why you need to learn how to allocate your earnings to maintain a proper investment and do that we have to understand how money works and stuff.

You are right. Many of us who are new to Bitcoin investing are more likely to not have an emergency fund. In fact I did not have one but I am building an emergency fund along with Bitcoin accumulation because I now understand the need for an emergency fund to continue Bitcoin accumulation in the long term. At any time sources of income may stop or money may be needed due to physical illness. If you have an emergency fund available it will not be difficult to build a Bitcoin holding.

The journey of Bitcoin accumulation is not the same for everyone because of the differences in finances. Even if your financial capacity is limited you should start accumulation Bitcoin on a small scale and increase the amount as your discretionary income increases and of course keep the size of the emergency fund consistent with at least 3 months of household budget because you never know how big the need will be.