Discretionary Income vs Emergency Funds: Why It Matters for Bitcoin Investing

[yixichloro2xx]

[edited out]

If you measure backup funds by expenses instead of income, it really changes the calculation. Three months of expenses is already tough for most people, and the extra three months is more like a safety net for those with unpredictable situations.

The tricky part is when someone is just starting out. In the first stage, you are trying to stack Bitcoin and build that cushion at the same time. That is when most people slip, because one unexpected bill wipes out their savings and forces them to sell sats. Even a small buffer before going heavy into accumulation helps avoid that problem.

Sure there are going to be folks who have more experience and some who have less experience in managing their finances, yet I like to consider that many normal people get into a habit of keeping a little bit of a cash cushion so that they are not putting themselves into situations of completely running out of cash, since it is quite stressful to run out of money.. and so it seems likely that many normies are already in some kind of a habit to keep somewhere between 2 to 6 weeks of their expenses in cash, and sure some normies are more prepared with larger quantities of funds and some are less prepared and maybe just keeping $100 or so in the cookie jar, and not everyone falls within a range of keeping at least a 2 week cash cushion.

Most people are also not used to investing, so if they get into bitcoin they have to learn how to invest (to the extent that they had not already known about investing), but they also have to learn that since bitcoin is so volatile and also upwardly inclined in the longer term, therefore, it is not good to just tap into the bitcoin investment once it is in place, even if the bitcoin investment might be in profits, and so therefore the back up funds, such as emergency funds and reserve funds become more and more important to keep a gap between the person's ongoing income and cashflow situation as compared with their investment into bitcoin that they may well have had decided that they would be holding 4-10 years or longer or for the remainder of their life.. ..

Bitcoin is likely a life time investment so if we build it up early then we may well just constantly be keeping our value in bitcoin and learning how to manage it.

I agree with your suggestion that there likely is going to be quite a bit of variation in regards to how much back up funds guys are keeping, and that their own financial and psychological circumstances will most likely affect how much they keep, how they are going to keep it and the extent to which they need to make sure that they are not putting themselves in stressful situations and/or that they are perhaps trying to figure out ways to prioritize the protection of their BTC stash.... so with greater and greater practice they will likely get better at it, especially if they are trying to learn from their experiences.

What you pointed out about most people already having a small cushion, even if it’s just a couple of weeks of expenses or some cash in a jar, really makes a lot of sense. That habit might not look like much, but it’s the starting point that can grow into something more stable once they begin to see the need to separate daily survival money from long term investments like Bitcoin. The challenge for most newcomers is often that they  usually underestimate how quickly those little gaps between income and expenses can decide whether they hold or are forced to sell.

And I also agree that learning to treat Bitcoin as a lifetime position changes how backup funds are viewed. Once you frame Bitcoin as something to hold 4 to 10 years or longer, every bit of cash buffer feels like insurance against touching your stash too early. The process won’t be perfect from the beginning, but over time people refine how much they keep, where they keep it, and how they balance peace of mind with steady accumulation. That balance is what helps someone avoid stress while still building a position they can carry for decades.

Looking at savings rates shows how big the gap can be.

Many normal people have forgotten how to save (and/or so they never learned it) in modern times.  When the money is debasing so bad and they are not able to earn interest on their deposit in banks, then they don't want to save and they have not learned how to save, even though intuitively people still know that if something (like a currency or something that is spendable) is more valuable or less valuable then they would spend the less valuable thing first and hold onto the more valuable item.  Many folks are still just learning that bitcoin is the most valuable of currencies and/or assets, so there is a need to spend fiat and even other assets before spending bitcoin, and part of the reason for us to build and maintain a cash cushion is so that we won't have to spend bitcoin merely based on some short term situation in which the income might be low and the expenses high (or expenses exceed income).
[/quote]
The real shift comes when people see that fiat savings are constantly eroded, which discourages the habit altogether, while Bitcoin flips the incentive because what you set aside today can hold or even grow in value. That is why a cash cushion matters so much in the early stages, since it shields the Bitcoin position from short term shocks. Once someone avoids being forced to sell sats during an unexpected expense, saving stops feeling like punishment and starts becoming a system that protects and grows long term value.

[henmark]

People here (some, not all) confuses spending money, and emergency. I have literally seen people mention buying stuff for your family, dude that is just spending money. Nobody says put 100% of your income into bitcoin or emergency fund, that's not possible. Of course you are going to spend most of your money when you earn something.

The trick is, whatever is left after you spend for a full month, is the money you saved. That is the money we are talking about, you saved some, now what you are going to do? It's the unspent money after you reach another salary and your last salary is not fully finished. God that sounds so great, to me I am done with all my money on day three, because I have to pay my debts, so I can't do neither at this moment.

[Silikiem]

People here (some, not all) confuses spending money, and emergency. I have literally seen people mention buying stuff for your family, dude that is just spending money. Nobody says put 100% of your income into bitcoin or emergency fund, that's not possible. Of course you are going to spend most of your money when you earn something.

The trick is, whatever is left after you spend for a full month, is the money you saved. That is the money we are talking about, you saved some, now what you are going to do? It's the unspent money after you reach another salary and your last salary is not fully finished. God that sounds so great, to me I am done with all my money on day three, because I have to pay my debts, so I can't do neither at this moment.

It’s never advisable for an investor to invest 100% of his or her income in bitcoin because that is one of the reasons why most people will not be able to stand the test of time by investing for the long term goal, such investment won’t last long and they will sell off when it’s not yet time and that is more of gambling. To be able to invest for the long term goal then it’s advisable not to go into bitcoin investment with 100% of your income. It’s advisable that you use just your discretionary income to accumulate and invest in bitcoin. Spending money comes in different categories, most people spend money on things that are not really worth spending on especially on frivolous things, you can cut down on such spendings so you can be able to figure out a discretionary income at the end of the day to use and invest in bitcoin. As for building up your emergency funds, it’s not mandatory you must save your emergency funds before getting started in bitcoin investment, you can always be able to figure that out as time goes on while you’re already accumulating and investing in bitcoin, but the most important thing is to make sure your discretionary income is available to accumulate bitcoin.

[liasbaa]

The trick is, whatever is left after you spend for a full month, is the money you saved.

Instead of a monthly Bitcoin savings strategy, a weekly one might be a better investment strategy. Accumulation monthly would only add up to 12 times in a year. If you deposit Bitcoin weekly, that number would be 48 and over a four year cycle, that number would be 192. Regardless of the deposit amount the more Bitcoin hits your portfolio, the more your holdings will continue to grow. For smaller investors, a small scale Bitcoin accumulation strategy can provide higher returns at the end of their cycle. The higher the cycle, the higher the return.

[Cossyblack]

People here (some, not all) confuses spending money, and emergency. I have literally seen people mention buying stuff for your family, dude that is just spending money. Nobody says put 100% of your income into bitcoin or emergency fund, that's not possible. Of course you are going to spend most of your money when you earn something.

The trick is, whatever is left after you spend for a full month, is the money you saved. That is the money we are talking about, you saved some, now what you are going to do? It's the unspent money after you reach another salary and your last salary is not fully finished. God that sounds so great, to me I am done with all my money on day three, because I have to pay my debts, so I can't do neither at this moment.

In a Literal sense, spendings 100% of your savings into Bitcoin doesn't make sense . when you start spending it all on Bitcoin,how then are you going to sort out your basics needs with all of the money been invested into Bitcoin. Money that should be used to invest in Bitcoin should be done using your discretional income, anything otherwise is gambling. You can't just ignore taken care of your personal expenses because you want to go aggressive on bitcoin. Your personal expenses should be taken care, whatever extra cash that is left can be used to invest in Bitcoin and also be used to build up your Emergency fund and reserve fund.

[_BlackStar]

-snip-

In a Literal sense, spendings 100% of your savings into Bitcoin doesn't make sense . when you start spending it all on Bitcoin,how then are you going to sort out your basics needs with all of the money been invested into Bitcoin. Money that should be used to invest in Bitcoin should be done using your discretional income, anything otherwise is gambling. You can't just ignore taken care of your personal expenses because you want to go aggressive on bitcoin. Your personal expenses should be taken care, whatever extra cash that is left can be used to invest in Bitcoin and also be used to build up your Emergency fund and reserve fund.

It's not unreasonable to spend all your savings on investments - but I don't think it's a good idea. Set aside 20% to 40% of your savings for an emergency fund and the other 60% for investments or accumulation. I think it's a wiser idea than spending it all. A budget for basic needs is basically different from savings - the source may be the same, but savings is money set aside before spending or the remaining money for basic needs.

Whatever your investment goals, set aside a certain percentage of your money for an emergency fund. This approach is very wise because if you need funds urgently, you won't have to disrupt your investment plan. Without a reserve fund, you might have to take out a loan or sell some percentage of your investment assets - so, having a reserve fund is a must in any investment plan.

[Grace333]

People here (some, not all) confuses spending money, and emergency. I have literally seen people mention buying stuff for your family, dude that is just spending money. Nobody says put 100% of your income into bitcoin or emergency fund, that's not possible. Of course you are going to spend most of your money when you earn something.

The trick is, whatever is left after you spend for a full month, is the money you saved. That is the money we are talking about, you saved some, now what you are going to do? It's the unspent money after you reach another salary and your last salary is not fully finished. God that sounds so great, to me I am done with all my money on day three, because I have to pay my debts, so I can't do neither at this moment.

In a Literal sense, spendings 100% of your savings into Bitcoin doesn't make sense . when you start spending it all on Bitcoin,how then are you going to sort out your basics needs with all of the money been invested into Bitcoin. Money that should be used to invest in Bitcoin should be done using your discretional income, anything otherwise is gambling. You can't just ignore taken care of your personal expenses because you want to go aggressive on bitcoin. Your personal expenses should be taken care, whatever extra cash that is left can be used to invest in Bitcoin and also be used to build up your Emergency fund and reserve fund.

I get your point, and it actually makes a lot of sense. Putting 100% of your savings into Bitcoin sounds bold, but when you think about it practically, it does not really work. Life doesn’t stop just because you’re investing, you’ll still need to eat, pay bills, sort out daily needs and unexpected stuff. If all your money is locked in Bitcoin, you would either end up struggling to survive or be forced to sell at the wrong time just to cover expenses. That is not really investing, that’s gambling with your stability. Taking care of your basics first gives you peace of mind, and whatever is left after that can go into Bitcoin without stressing you.

I also agree with what you said about using discretional income. It’s a smarter and calmer approach because you know your living expenses are already covered, and you’re only putting in money that you can afford to leave untouched. That way, even if Bitcoin dips, you don’t panic or feel pressured to sell, because your survival does not depend on it. It is more like building in steps, handle your needs, keep a little emergency fund, then grow your Bitcoin stack steadily. That kind of balance keeps you grounded and lets your conviction actually play out long term, instead of turning into desperation…

[Mr_Brilliant$]

People here (some, not all) confuses spending money, and emergency. I have literally seen people mention buying stuff for your family, dude that is just spending money. Nobody says put 100% of your income into bitcoin or emergency fund, that's not possible. Of course you are going to spend most of your money when you earn something.

The trick is, whatever is left after you spend for a full month, is the money you saved. That is the money we are talking about, you saved some, now what you are going to do? It's the unspent money after you reach another salary and your last salary is not fully finished. God that sounds so great, to me I am done with all my money on day three, because I have to pay my debts, so I can't do neither at this moment.

It’s never advisable for an investor to invest 100% of his or her income in bitcoin because that is one of the reasons why most people will not be able to stand the test of time by investing for the long term goal, such investment won’t last long and they will sell off when it’s not yet time and that is more of gambling. To be able to invest for the long term goal then it’s advisable not to go into bitcoin investment with 100% of your income. It’s advisable that you use just your discretionary income to accumulate and invest in bitcoin. Spending money comes in different categories, most people spend money on things that are not really worth spending on especially on frivolous things, you can cut down on such spendings so you can be able to figure out a discretionary income at the end of the day to use and invest in bitcoin. As for building up your emergency funds, it’s not mandatory you must save your emergency funds before getting started in bitcoin investment, you can always be able to figure that out as time goes on while you’re already accumulating and investing in bitcoin, but the most important thing is to make sure your discretionary income is available to accumulate bitcoin.

Honestly, most people rush into Bitcoin with this all or nothing mindset. The problem with that is, life is not built for extremes, there will always be moments where you need quick cash, and if every dime is sitting inside Bitcoin, you will end up selling out of pressure, not strategy. That is why I like your point about discretionary income, it feels like the most practical way to play the long game. If the money you are putting in doesn’t affect your daily survival, then you can actually hold through without shaking..

Another thing I picked from your take is the idea of trimming wasteful spending. It is such a simple adjustment, but people overlook it. Those small cuts, like spending less on wants you barely remember a week later can silently fuel your Bitcoin stack without making you feel broke. And on the emergency fund side, I get your angle that it does not have to be perfect before you start. That part really stood out, because waiting for a perfect moment often means never starting at all. If someone can balance building their Bitcoin bag while still putting something aside for safety, that is a more realistic approach than just sitting on the sidelines waiting for the stars to align…

[Bitcoin_people]

It is very important to have an emergency fund in your investment because it will help you in times of danger. Of course, every investor should remember these things that it is very important to divide the emergency fund and the percentage of money before investing. We know that the market goes up and down and sometimes it goes down due to instability, then if you have an emergency fund, you can buy from there in full, which will give you profit later. Emergency fund always gives confidence to an investor, if the market falls, you can easily earn a good profit by investing with that money. So emergency fund is not only helpful in investment but also in other areas.

[JayJuanGee]

The trick is, whatever is left after you spend for a full month, is the money you saved.

Instead of a monthly Bitcoin savings strategy, a weekly one might be a better investment strategy. Accumulation monthly would only add up to 12 times in a year. If you deposit Bitcoin weekly, that number would be 48 and over a four year cycle, that number would be 192. Regardless of the deposit amount the more Bitcoin hits your portfolio, the more your holdings will continue to grow. For smaller investors, a small scale Bitcoin accumulation strategy can provide higher returns at the end of their cycle. The higher the cycle, the higher the return.

There are 52 weeks in a year, so over 4 years there are 208 weeks.  If you invest $100 per week for 10 years, then you would have had invested $52k, yet surely the value of the investment will depend on if the bitcoin price went up or down and also if it outpaced the debasement of the dollar or was able to outperform other places that you might have had chosen to put your money.

-snip-

In a Literal sense, spendings 100% of your savings into Bitcoin doesn't make sense . when you start spending it all on Bitcoin,how then are you going to sort out your basics needs with all of the money been invested into Bitcoin. Money that should be used to invest in Bitcoin should be done using your discretional income, anything otherwise is gambling. You can't just ignore taken care of your personal expenses because you want to go aggressive on bitcoin. Your personal expenses should be taken care, whatever extra cash that is left can be used to invest in Bitcoin and also be used to build up your Emergency fund and reserve fund.

It's not unreasonable to spend all your savings on investments - but I don't think it's a good idea. Set aside 20% to 40% of your savings for an emergency fund and the other 60% for investments or accumulation. I think it's a wiser idea than spending it all. A budget for basic needs is basically different from savings - the source may be the same, but savings is money set aside before spending or the remaining money for basic needs.

I think that it is more accurate to think about savings as money that is left over after you have accounted for basic needs.  You are not necessarily going to know how much to pull out unless you account for your basic needs first.

Whatever your investment goals, set aside a certain percentage of your money for an emergency fund. This approach is very wise because if you need funds urgently, you won't have to disrupt your investment plan. Without a reserve fund, you might have to take out a loan or sell some percentage of your investment assets - so, having a reserve fund is a must in any investment plan.

I agree with the various other points of your post, including this one..

[Pandu Geddon]

It is very important to have an emergency fund in your investment because it will help you in times of danger. Of course, every investor should remember these things that it is very important to divide the emergency fund and the percentage of money before investing. We know that the market goes up and down and sometimes it goes down due to instability, then if you have an emergency fund, you can buy from there in full, which will give you profit later. Emergency fund always gives confidence to an investor, if the market falls, you can easily earn a good profit by investing with that money. So emergency fund is not only helpful in investment but also in other areas.

In allocating emergency funds, it actually requires a good understanding when managing finances. I have experienced it myself when the emergency fund was not enough to fully cover unexpected expenses, which resulted in the disruption of the investment plans that had been made.
The most important thing is that the income you obtain from your job or other sources must first be sufficient for safe allocation for you. So you will see the right allocation.

I have related experience regarding investment management that isn't very good, so I will not use emergency funds for investment when prices drop.

[liasbaa]

The trick is, whatever is left after you spend for a full month, is the money you saved.

Instead of a monthly Bitcoin savings strategy, a weekly one might be a better investment strategy. Accumulation monthly would only add up to 12 times in a year. If you deposit Bitcoin weekly, that number would be 48 and over a four year cycle, that number would be 192. Regardless of the deposit amount the more Bitcoin hits your portfolio, the more your holdings will continue to grow. For smaller investors, a small scale Bitcoin accumulation strategy can provide higher returns at the end of their cycle. The higher the cycle, the higher the return.

There are 52 weeks in a year, so over 4 years there are 208 weeks.  If you invest $100 per week for 10 years, then you would have had invested $52k, yet surely the value of the investment will depend on if the bitcoin price went up or down and also if it outpaced the debasement of the dollar or was able to outperform other places that you might have had chosen to put your money.

If you had deposited fiat in traditional banks for 10 years, you would have probably earned a maximum of 5% profit after deducting all charges. During this time, the value of money may have decreased due to inflation and there may be doubts about getting money from financial institutions on time during financial crises. And overall, if you calculate, then in these 10 years, there could be a huge deficit from your capital.

If you had invested in Bitcoin, it would have given you several times the profit, this can be said almost certainly. It may be a bit unfair to say for sure because the assumption about the price may not be correct. In the case of Bitcoin, the logical reason for this is its limited supply and the recommendation and widespread adoption of increasing strategic reserves.

[Grace333]

It is very important to have an emergency fund in your investment because it will help you in times of danger. Of course, every investor should remember these things that it is very important to divide the emergency fund and the percentage of money before investing. We know that the market goes up and down and sometimes it goes down due to instability, then if you have an emergency fund, you can buy from there in full, which will give you profit later. Emergency fund always gives confidence to an investor, if the market falls, you can easily earn a good profit by investing with that money. So emergency fund is not only helpful in investment but also in other areas.

I actually see the whole idea of an emergency fund as more than just a safety net, it is like the backbone of every serious investor. Without it, you are kind of playing because the truth is nobody can predict life perfectly, and markets will always swing both ways. What I like about what you said is that you tied it to confidence, because once you know you have that backup stash, you won’t panic sell or rush into bad decisions when things get rough.

At the same time even beyond markets, like you said, emergencies happen in real life too, health, family, or just unexpected bills. Having that fund makes sure you don’t wreck your portfolio trying to solve a real life problem. That balance between security and opportunity is what separates smart investors from reckless ones, and honestly it is something I’m still trying to improve on myself…

[Frankolala]

It is very important to have an emergency fund in your investment because it will help you in times of danger. Of course, every investor should remember these things that it is very important to divide the emergency fund and the percentage of money before investing. We know that the market goes up and down and sometimes it goes down due to instability, then if you have an emergency fund, you can buy from there in full, which will give you profit later. Emergency fund always gives confidence to an investor, if the market falls, you can easily earn a good profit by investing with that money. So emergency fund is not only helpful in investment but also in other areas.

In allocating emergency funds, it actually requires a good understanding when managing finances. I have experienced it myself when the emergency fund was not enough to fully cover unexpected expenses, which resulted in the disruption of the investment plans that had been made.
The most important thing is that the income you obtain from your job or other sources must first be sufficient for safe allocation for you. So you will see the right allocation.

I have related experience regarding investment management that isn't very good, so I will not use emergency funds for investment when prices drop.

I feel that the did not have sufficient emergency funds to cover up that emergency that happened which made you sell part of your bitcoin. This is how it always be like when you don't have sufficient emergency funds available or you fail to build up an emergency funds as you Hag e started your bitcoin investment. Your emergency funds should be at least three months of your monthly expenses, so that, it will be able to cover up whatever real emergency that pops up.

[_BlackStar]

but savings is money set aside before spending or the remaining money for basic needs.

I think that it is more accurate to think about savings as money that is left over after you have accounted for basic needs.  You are not necessarily going to know how much to pull out unless you account for your basic needs first.

I tend to agree with you - but my statement is somewhat subjective for each person, especially because of the difference in income amounts. People with high incomes can easily set aside 30% or 40% of their income for savings without having to calculate how much they'll spend on basic needs. Others, however, have to refrain from various desires or certain needs in order to save - this falls into the second category, saving at the end of the month after all basic needs have been met.

Whatever your investment goals, set aside a certain percentage of your money for an emergency fund. This approach is very wise because if you need funds urgently, you won't have to disrupt your investment plan. Without a reserve fund, you might have to take out a loan or sell some percentage of your investment assets - so, having a reserve fund is a must in any investment plan.

I agree with the various other points of your post, including this one..

Experienced investors who understand the risks and dynamics of investing will certainly agree with the points above - but I don't necessarily force everyone to have a reserve fund, it all depends on each individual and their investment approach.

[Sanitough]

It is very important to have an emergency fund in your investment because it will help you in times of danger. Of course, every investor should remember these things that it is very important to divide the emergency fund and the percentage of money before investing. We know that the market goes up and down and sometimes it goes down due to instability, then if you have an emergency fund, you can buy from there in full, which will give you profit later. Emergency fund always gives confidence to an investor, if the market falls, you can easily earn a good profit by investing with that money. So emergency fund is not only helpful in investment but also in other areas.

Just like what OP has stated, an emergency fund should not be used to invest, because it’s just for emergency events that aren’t predicted to happen. Use your discretionary income or spare money instead. However, knowing that you have emergency funds on the side makes you more confident to invest more and hold more. You won’t be distracted by any troubles or unexpected circumstances because you have funds for it, and you won’t be touching your discretionary income to serve as emergency funds or the vice versa.

[JayJuanGee]

The trick is, whatever is left after you spend for a full month, is the money you saved.

Instead of a monthly Bitcoin savings strategy, a weekly one might be a better investment strategy. Accumulation monthly would only add up to 12 times in a year. If you deposit Bitcoin weekly, that number would be 48 and over a four year cycle, that number would be 192. Regardless of the deposit amount the more Bitcoin hits your portfolio, the more your holdings will continue to grow. For smaller investors, a small scale Bitcoin accumulation strategy can provide higher returns at the end of their cycle. The higher the cycle, the higher the return.

There are 52 weeks in a year, so over 4 years there are 208 weeks.  If you invest $100 per week for 10 years, then you would have had invested $52k, yet surely the value of the investment will depend on if the bitcoin price went up or down and also if it outpaced the debasement of the dollar or was able to outperform other places that you might have had chosen to put your money.

If you had deposited fiat in traditional banks for 10 years, you would have probably earned a maximum of 5% profit after deducting all charges. During this time, the value of money may have decreased due to inflation and there may be doubts about getting money from financial institutions on time during financial crises. And overall, if you calculate, then in these 10 years, there could be a huge deficit from your capital.

If you had invested in Bitcoin, it would have given you several times the profit, this can be said almost certainly. It may be a bit unfair to say for sure because the assumption about the price may not be correct. In the case of Bitcoin, the logical reason for this is its limited supply and the recommendation and widespread adoption of increasing strategic reserves.

Of course part of the investment thesis for bitcoin is to provide a sort of hedge against the dollar  (and fiats) and a hedge against debasement and robbing of value that somewhat subtly takes place through fiat systems and even the way that debt is employed..   And as you mentioned bitcoin is a good hedge but it is not necessarily guaranteed to be successful.

Furthermore, Bitcoin is not going to completely stop the various shenanigans that happen through fiat and/or debt systems, yet it seems to attempt to put a pretty large check upon such systems, especially if adoption becomes somewhat widespread and normies do not contract away all of their rights to self-custody, since a decent amount of the power of bitcoin comes from an ability to take self custody and transact directly with other people/businesses/governments in the case that custodians are not being honest in their fiduciary duties, including their ways of diluting the supply and/or fractionally reserving it. Accordingly, it can be difficult to know the extent to which bitcoin an overcome the various fiat/debt based systems that already exist.

It is very important to have an emergency fund in your investment because it will help you in times of danger. Of course, every investor should remember these things that it is very important to divide the emergency fund and the percentage of money before investing. We know that the market goes up and down and sometimes it goes down due to instability, then if you have an emergency fund, you can buy from there in full, which will give you profit later. Emergency fund always gives confidence to an investor, if the market falls, you can easily earn a good profit by investing with that money. So emergency fund is not only helpful in investment but also in other areas.

I actually see the whole idea of an emergency fund as more than just a safety net, it is like the backbone of every serious investor. Without it, you are kind of playing because the truth is nobody can predict life perfectly, and markets will always swing both ways. What I like about what you said is that you tied it to confidence, because once you know you have that backup stash, you won’t panic sell or rush into bad decisions when things get rough.

At the same time even beyond markets, like you said, emergencies happen in real life too, health, family, or just unexpected bills. Having that fund makes sure you don’t wreck your portfolio trying to solve a real life problem. That balance between security and opportunity is what separates smart investors from reckless ones, and honestly it is something I’m still trying to improve on myself…

An emergency fund and back up funds is not necessarily going to completely save any of us from all negative cashflow situations, but it can mitigate damages, and frequently save us from a variety of scenarios.. but the mere existence of an emergency fund is not going to save us from every single scenario that could end up happening, which justifies our thinking about our emergency funds as a kind of protector and as the more prudent and reasonable thing to do, but not something that saves us in all negative cashflow scenarios..

[Alonso_]

An emergency fund and back up funds is not necessarily going to completely save any of us from all negative cashflow situations, but it can mitigate damages, and frequently save us from a variety of scenarios.. but the mere existence of an emergency fund is not going to save us from every single scenario that could end up happening, which justifies our thinking about our emergency funds as a kind of protector and as the more prudent and reasonable thing to do, but not something that saves us in all negative cashflow scenarios..

You’re absolutely right and correct, emergency funds would not be mostly be a mean that will have to save us from whenever we have a bad cashflow problem, because it’s just something that is meant to safeguard us from whenever we have a challenge to deal with an unprecedented situation, same with financial challenges it all depends on our capabilities to try and manage cashflow challenges by trying to device other means of tackling cashflow issues, sometimes I used to think that backup funds would help to mitigate against bad cashflow challenges but I think I was actually wrong, because sometimes it could maybe probably help sometimes but it wouldn’t be a complete solution, that is why it’s important for me as an investor to try and device other means of dealing with financial challenges, and I can also decide to work on my expenses by reducing my unnecessary expenditure, and also generating other means of cashflow with developing other businesses or getting other means of financial income which will have the tendency of improving our bitcoin investment capabilities.

[liasbaa]

The trick is, whatever is left after you spend for a full month, is the money you saved.

Instead of a monthly Bitcoin savings strategy, a weekly one might be a better investment strategy. Accumulation monthly would only add up to 12 times in a year. If you deposit Bitcoin weekly, that number would be 48 and over a four year cycle, that number would be 192. Regardless of the deposit amount the more Bitcoin hits your portfolio, the more your holdings will continue to grow. For smaller investors, a small scale Bitcoin accumulation strategy can provide higher returns at the end of their cycle. The higher the cycle, the higher the return.

There are 52 weeks in a year, so over 4 years there are 208 weeks.  If you invest $100 per week for 10 years, then you would have had invested $52k, yet surely the value of the investment will depend on if the bitcoin price went up or down and also if it outpaced the debasement of the dollar or was able to outperform other places that you might have had chosen to put your money.

If you had deposited fiat in traditional banks for 10 years, you would have probably earned a maximum of 5% profit after deducting all charges. During this time, the value of money may have decreased due to inflation and there may be doubts about getting money from financial institutions on time during financial crises. And overall, if you calculate, then in these 10 years, there could be a huge deficit from your capital.

If you had invested in Bitcoin, it would have given you several times the profit, this can be said almost certainly. It may be a bit unfair to say for sure because the assumption about the price may not be correct. In the case of Bitcoin, the logical reason for this is its limited supply and the recommendation and widespread adoption of increasing strategic reserves.

Of course part of the investment thesis for bitcoin is to provide a sort of hedge against the dollar  (and fiats) and a hedge against debasement and robbing of value that somewhat subtly takes place through fiat systems and even the way that debt is employed..   And as you mentioned bitcoin is a good hedge but it is not necessarily guaranteed to be successful.

Furthermore, Bitcoin is not going to completely stop the various shenanigans that happen through fiat and/or debt systems, yet it seems to attempt to put a pretty large check upon such systems, especially if adoption becomes somewhat widespread and normies do not contract away all of their rights to self-custody, since a decent amount of the power of bitcoin comes from an ability to take self custody and transact directly with other people/businesses/governments in the case that custodians are not being honest in their fiduciary duties, including their ways of diluting the supply and/or fractionally reserving it. Accordingly, it can be difficult to know the extent to which bitcoin an overcome the various fiat/debt based systems that already exist.

The increasing depreciation of fiat is encouraging Bitcoin adoption. Investors are increasingly choosing to store Bitcoin rather than holding fiat in traditional institutions. Inflation has exacerbated the problem, as the erosion and depreciation of fiat have led investors to accumulate Bitcoin rather than hold those assets. The impact of the erosion of traditional assets is leading us to a stage where you are being robbed of your money at every traffic system. Economists believe that inflation is a deliberate process of looting of the centralized financial system that ordinary citizens cannot see with the naked eye. Decentralized investing ensures you have self-custody of your assets.

[_BlackStar]

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The increasing depreciation of fiat is encouraging Bitcoin adoption. Investors are increasingly choosing to store Bitcoin rather than holding fiat in traditional institutions. Inflation has exacerbated the problem, as the erosion and depreciation of fiat have led investors to accumulate Bitcoin rather than hold those assets.

You could be right - but probably not significantly. Every investor has their own preferences regarding which assets are suitable as hedge against the loss of fiat currency value due to inflation - bitcoin is just one option, not the only one. Many investors are reluctant to invest in Bitcoin because their risk tolerance tends to favor assets with low price fluctuations - while Bitcoin is considered one of the highest. They can invest a certain amount in Bitcoin, but not as their primary investment - it's up to them and their investment plan.

Decentralized investing ensures you have self-custody of your assets.

Only if you store bitcoin in your wallet - not with a third party.