Bank and Emergency funds.

[yhiaali3]

I know, cryptocurrencies are volatile, and your money will either lose or gain value over time, but so are fiat currencies. You may not see your money losing value in numbers, but they are always losing purchasing power over time. $100 today won't have the same power after a couple of years, because of inflation and other economic problems within a country.

Yes, I agree with you.
They always shout that cryptocurrencies are extremely volatile and could lose value, but they remain silent about fiat currencies, which lose value daily.

There are many countries where their local currencies have lost incredible value (such as Venezuela and Zimbabwe), to the point where you need to carry a heavy bag full of cash to buy a bottle of Coke, for example. 

[eightdots]

I know, cryptocurrencies are volatile, and your money will either lose or gain value over time, but so are fiat currencies. You may not see your money losing value in numbers, but they are always losing purchasing power over time. $100 today won't have the same power after a couple of years, because of inflation and other economic problems within a country.

Yes, I agree with you.
They always shout that cryptocurrencies are extremely volatile and could lose value, but they remain silent about fiat currencies, which lose value daily.

There are many countries where their local currencies have lost incredible value (such as Venezuela and Zimbabwe), to the point where you need to carry a heavy bag full of cash to buy a bottle of Coke, for example. 

Fiat currencies lose value due to inflation, and this loss occurs rapidly in some countries, so it's necessary to take steps to preserve their value. The purchasing power of money decreases, meaning you can no longer buy the same amount of money for the same price. To combat inflation, you need to invest or make the right moves to preserve the value of your currency.

Cryptocurrency prices can be quite volatile, and fiat currencies can also lose value due to inflation. An individual's investment decision is crucial. This is where preferences and risk factors come into play.

[virasog]

Because of what someone said in a thread concerning holding your emergency funds for long term without using it, that why not invest it on something that will bring profit for you in a short period, I commented on that post and it is very important I create a thread about it here because I feel it is something of importance to Bitcoin investors.
I have an emergency funds that has been on my account for some time now and I have not touched it and the bank is taking their changes from the emergency funds, I have already decided to start lending the emergency funds out and then when those that borrowed it are paying back they are paying with interest and in other to protect my money if I'm lending you the money you most drop a sellable property that is worth that money or even worth more of that money that I can sell and recover my money when the date of repayment expires.
Because keeping my emergency funds in a bank that will be deducting my money or in the name of bank charges is something that does not make sense to me.
Some people will ask what if an emergency happens immediately I borrow out my emergency funds how will I solve it, well I will simply borrow and solve it then when I get my money back I balance things up.

So if your emergency funds have been with you for a very long time and you don't even use them, look for a 90 percent less risk business that brings profit in a very short time and invest it there.
When you have an emergency and you have already used your emergency funds for your business you can simply borrow and since it is a business that profit you in a very short period you can balance up without it affecting you financially or your Bitcoin investment, remember I said look for 90 percent less risky business.
Think about this.

First of all the emergency funds are the ones that needs to be fully secured and those should not be invested in giving out loans or any other selling or purchases. They meant to be in pure cash format and better they are saved with you and not any centralized entity like Banks.

The way you have presented the loan business, getting interest from it etc it is not that easy. Sometimes getting loans from the lenders becomes too difficult even though they have given you the solid property or anything in backup for that loan but still it's not easy to get back the loan on time. Also if you feel  difficulties in retrieving loans as you said, you will take loan yourself and therefore you will get to pay interest on it so the profits you are gonna gain from the interest are being leveled here. 

[Fredomago]

I know, cryptocurrencies are volatile, and your money will either lose or gain value over time, but so are fiat currencies. You may not see your money losing value in numbers, but they are always losing purchasing power over time. $100 today won't have the same power after a couple of years, because of inflation and other economic problems within a country.

Yes, I agree with you.
They always shout that cryptocurrencies are extremely volatile and could lose value, but they remain silent about fiat currencies, which lose value daily.

There are many countries where their local currencies have lost incredible value (such as Venezuela and Zimbabwe), to the point where you need to carry a heavy bag full of cash to buy a bottle of Coke, for example. 

Fiat currencies lose value due to inflation, and this loss occurs rapidly in some countries, so it's necessary to take steps to preserve their value. The purchasing power of money decreases, meaning you can no longer buy the same amount of money for the same price. To combat inflation, you need to invest or make the right moves to preserve the value of your currency.

Cryptocurrency prices can be quite volatile, and fiat currencies can also lose value due to inflation. An individual's investment decision is crucial. This is where preferences and risk factors come into play.

Good point, though there are wise individuals who took their extra steps making their emergency funds also their investment, though it's a tough call as there are situation where you need to carefully handle your decision making,

it's true that crypto is volatile and without proper knowledge you may ends up losing your patience then lose portions of your investment, but with good understanding and patience that you really need to keep that emergency funds untouched.

It's a crucial decision making but it's better to have that savings so in times that you barely needed money you have something to pullout and use.

[Leahized]

I don't know if there are any differences between countries. I am quite surprised to see so many people complaining about bank deposits being charged and deducted. Because depositing money in the bank in my country even earns interest, as well as opening a card and most services are completely free. There is only 1 fee when I want to withdraw cash but it is very small and insignificant.

There are such opportunities in my country. However, there are some problems for creating an account, but I think security is good. Those who deposit the money through the bank, they are paid as annually. It's good but for those who do not want profit, they are different. No profit is added to their account. However, the card has the advantage and some amount to give the card to create the card. And I feel better to invest more than that. Because it is possible to make a lot more money than profit in the bank. But investing can reduce the fund, but keeping money in the bank is not possible.

[henmark]

First of all the emergency funds are the ones that needs to be fully secured and those should not be invested in giving out loans or any other selling or purchases. They meant to be in pure cash format and better they are saved with you and not any centralized entity like Banks.

The way you have presented the loan business, getting interest from it etc it is not that easy. Sometimes getting loans from the lenders becomes too difficult even though they have given you the solid property or anything in backup for that loan but still it's not easy to get back the loan on time. Also if you feel  difficulties in retrieving loans as you said, you will take loan yourself and therefore you will get to pay interest on it so the profits you are gonna gain from the interest are being leveled here. 

Just lending the money to someone thinking we might earn some interest and that money can be useful in terms of emergencies is so wrong. The money we lend has very less chances of coming back and we might instead have to start begging for our own money just to see that person ignoring us like we are asking him for his money. Our reputation does come at stake here and I've seen best friends have huge fights over money. Lending money is never a good idea.

I would not agree with one point, why is it bad to save or store money in a bank? Even bank will give us fixed annual returns and banks are really safe as they are backed by the governments. If anything happens to our money, we can always blame the government and get our money back isn't it?

[Jaycoinz]

I don't know if there are any differences between countries. I am quite surprised to see so many people complaining about bank deposits being charged and deducted. Because depositing money in the bank in my country even earns interest, as well as opening a card and most services are completely free. There is only 1 fee when I want to withdraw cash but it is very small and insignificant.

There are such opportunities in my country. However, there are some problems for creating an account, but I think security is good. Those who deposit the money through the bank, they are paid as annually. It's good but for those who do not want profit, they are different. No profit is added to their account. However, the card has the advantage and some amount to give the card to create the card. And I feel better to invest more than that. Because it is possible to make a lot more money than profit in the bank. But investing can reduce the fund, but keeping money in the bank is not possible.

I don't really the essence of one having to keep all their money in the bank for an entire one year where inflation and charges will later affect the money well atleast that's how the whole banking system is designed over here and most especially when you aren't on any saving plan although even the saving plans won't yield much interest as to when you use that same money to invest in other things like Bitcoin or Real estate that's if the money is big.

[FBCTorg]

Fiat currencies lose value due to inflation, and this loss occurs rapidly in some countries, so it's necessary to take steps to preserve their value. The purchasing power of money decreases, meaning you can no longer buy the same amount of money for the same price. To combat inflation, you need to invest or make the right moves to preserve the value of your currency.

Cryptocurrency prices can be quite volatile, and fiat currencies can also lose value due to inflation. An individual's investment decision is crucial. This is where preferences and risk factors come into play.

Inflation will actually affect fiat when we think about long term like a decade. For a couple of years, I don't really think fiat will deflate and we can still use the same amount to buy exact same things. Yeah, over a long period we might loose value and that's why banks come in picture. If we do not really want the money as of now we can always lock in in some fixed deposit scheme from centralized banks where we can get fixed returns and this will balance the deflation of our money.

At least we will still have the same amount of money in terms of value which we deposited a couple of years back. Also these days fixed deposits are too flexible and we can actually start withdrawing the earned interest from the very first month which proves to be very useful.

[fuguebtc]

Inflation will actually affect fiat when we think about long term like a decade. For a couple of years, I don't really think fiat will deflate and we can still use the same amount to buy exact same things. Yeah, over a long period we might loose value and that's why banks come in picture. If we do not really want the money as of now we can always lock in in some fixed deposit scheme from centralized banks where we can get fixed returns and this will balance the deflation of our money.

At least we will still have the same amount of money in terms of value which we deposited a couple of years back. Also these days fixed deposits are too flexible and we can actually start withdrawing the earned interest from the very first month which proves to be very useful.

With global uncertainty on the rise, you don't have to wait a decade to feel the effects of inflation and currency devaluation. If you are a budgeter and spender in your family, you will feel how inflation eats away at your money every year. But you're not entirely wrong, because inflation doesn't make our money lose 20-30% of its value every year like some speculative investments.

Also, saving money in the bank is convenient and somewhat useful, but the interest rate is too low and not enough to compensate for the consequences caused by inflation. So putting money in the bank will not protect you from inflation or currency devaluation.

If you want to solve the problem of inflation, investing or business is the solution, depositing money in the bank is not an effective solution.

[BitBakerr1]

This reminds me of something that happened earlier where the daughter of a business woman was having  serous health challenge and the woman had no alternative aside her business funds of which the business is only their source of surviving so after considering this she decided to go in search of where she can take loan but she didn't get any, so instead of watching her daughter dieing helplessly she decided to temper her business funds which she never intend to do that in the first place because the business is only her source of survival but she had no option. imagine if she kept some money knowing too well that emergency issue may arise in the future, I'm sure that this wouldn't have happened. So emergency funds is very essential both in business and investment.

Well, I think cases like this happen quite often, including in my community. Quite a few people give up their ongoing businesses to deal with emergencies, such as accidents that require significant funds to resolve, or other issues. This is the purpose of having an emergency fund. Some people might not think about it, but it's quite important.
I'm currently working on this, setting aside a small portion of my income. It doesn't matter how small the amount, but it will help me someday.

Having an emergency funds is very important in our daily life because we usually have emergency issues and there is no way you can stop this emergency issues from happening Because they are just part of life, so if you don't have an emergency funds that means you are ready to lose your business or investment to it emergency funds helps your business to keep on going even when you have an emergency issue because you just dip hands into your emergency funds to settle it.
Just like you said it is true that a lot of people have lost their businesses and Investment because of emergency issues and that is why it is very important to have emergency funds, for me I have an emergency funds and it has helped me a lot, I know someone who lost house Because of one emergency he had he went to borrow money and as time goes on the money was increase and at a point he could not pay it and he was asked to evacuate his house because he used his house as collateral, if he had an emergency funds he won't have borrowed money to solve that emergency issue.

[pawanjain]

Because of what someone said in a thread concerning holding your emergency funds for long term without using it, that why not invest it on something that will bring profit for you in a short period, I commented on that post and it is very important I create a thread about it here because I feel it is something of importance to Bitcoin investors.
I have an emergency funds that has been on my account for some time now and I have not touched it and the bank is taking their changes from the emergency funds, I have already decided to start lending the emergency funds out and then when those that borrowed it are paying back they are paying with interest and in other to protect my money if I'm lending you the money you most drop a sellable property that is worth that money or even worth more of that money that I can sell and recover my money when the date of repayment expires.
Because keeping my emergency funds in a bank that will be deducting my money or in the name of bank charges is something that does not make sense to me.
Some people will ask what if an emergency happens immediately I borrow out my emergency funds how will I solve it, well I will simply borrow and solve it then when I get my money back I balance things up.

So if your emergency funds have been with you for a very long time and you don't even use them, look for a 90 percent less risk business that brings profit in a very short time and invest it there.
When you have an emergency and you have already used your emergency funds for your business you can simply borrow and since it is a business that profit you in a very short period you can balance up without it affecting you financially or your Bitcoin investment, remember I said look for 90 percent less risky business.
Think about this.

That's a horrible strategy to be honest. An emergency fund should be liquid. By liquid I mean to say it should be easily accessible when in need.
If you lend money to someone how would you guarantee that you can get the funds when in need. What if the lender doesn't give you the money in your urgency ?
What if the property that the lender has given you is not easily sold ?

You can keep your emergency fund in a bank but not in savings account. You should either opt for a fixed deposit or a auto-sweep account.
This way you will be making 6%-7% annually which will give you enough profits even after deducting the bank charges.
These days there are also liquid mutual funds where you can easily get 7% to 8% returns as well and can withdraw whenever you need it.
Still I would recommend the first option to stick with auto-sweep account or fixed desposits.

[Shafique Baba]

I think those who believe an emergency fund can be held in volatile assets or used for speculation. They still don't understand the true meaning and role of an emergency fund, and maybe they've never experienced it.

It is no coincidence that emergency funds need to be held in stable and highly liquid assets. It is the result of human experiences and mistakes over many generations.

I want to ask, what happens and what do you do then if you need to use emergency fund but unfortunately Bitcoin suddenly gets dumped heavily by Fud?

In that case OP will have no other option but to dump his bitcoins at market rate and get his hands on liquid funds which can hence be used for real expenses. This will not only make him end up in loss but will also impact him mentally as he might already going through a trauma if he is in need of these emergency funds. This trauma will just make things worst and he will start regretting his decisions.

Instead, investing these funds elsewhere where he can easily convert to fiat without having to go through any loss can be recommend. I would not actually say investing but storing these funds in assets like gold can be of much help here. He can liquidate gold anytime and that will hardly give him any loss.

To meet any emergency, we should always keep some amount aside for the name of emergency fund. In my opinion, this is not good approach to keep all funds in bank. You must have to categorized your amount some in liquid form or some in illiquid form. Keep half amount for the investment in the bank while rest can be kept in your hand. Because emergency can be occur any time.I agree here with you that this amount can be preserved in gold form because it can easily be converted into cash. . Govt also offer prize  bonds which can be another good option to saving emergency fund.
It is important to keep emergency funds to protect yourself from difficult situation.mostly people give no importance to this. But it is as important as investment funds are

[CageMabok]

It is necessary to have an emergency fund to avoid unpleasant situations. The one who has an emergency fund is able to face any situation. Especially for low-income people, it is definitely important to have this emergency fund. We do not think about this type of fund unless we are in danger. Our importance in important matters is often low. Therefore, it is necessary to make an emergency fund a part of our life.

The importance of an emergency fund in their lives for some people isn't really about how important it is to them. However, some low-income people often struggle to save for an emergency fund because their income is usually only enough for daily needs. They aren't intentionally neglecting important things like an emergency fund; they simply lack the ability to do so due to their limited income. Furthermore, the amount of an emergency fund varies from person to person, making it somewhat confusing for those who can afford it and want to create one. Because the amount is relative, there's generally no set measurement, so those who actually want to create an emergency fund can still feel confused.

[Stablexcoin]

I don't really the essence of one having to keep all their money in the bank for an entire one year where inflation and charges will later affect the money well atleast that's how the whole banking system is designed over here and most especially when you aren't on any saving plan although even the saving plans won't yield much interest as to when you use that same money to invest in other things like Bitcoin or Real estate that's if the money is big.

People do and have reasons for doing so. Most persons believe in traditional banking system to protect their money. It is difficult to have your funds stolen from banks, despite we've seen some in rare cases but over decades banks has been a good comfort for securing people's hard earned money after stages when valuables was stored at home.

It will demand progressive adoption of bitcoin to change the mind of people to begin investing in bitcoin other than holding their money in banks for a long time. In general, it is better to hold assets with appreciative value other than keeping funds in banks that will yield no interest only get charged.

[barbara44]

In the country where I live, saving money isn't common, and it's a very bad practice. For some reason, people prefer to live on credit. One in three people is heavily in debt, and so the statistics are alarming. What will they do when they urgently need money for a car or an apartment? And if they get sick, they won't be able to pay their loans, let alone find the money for their own treatment.
This is the height of economic illiteracy.

If you are in a nation with high inflation, that is actually smart. We should consider how inflation would make it harder for people and that is why the best way to move forward would be just handling this part with debt, so that you can gain more later. If you save, then your money will lose value due to high inflation and will not be able to buy the things you normally could.

When you make 100, and buy something for 10, if you save that 10 today, and in 6 months, you will make 120, and that 10 thing will cost 15 now, and your 10 only became 12, so you lost money. But if you made a debt then you are going to end up with a lot better results and won't actually be that bad at all, that is the most important part.

[Ricardo11]

We basically create emergency savings to use in times of danger so that we have cash at hand in times of danger.

When someone puts emergency savings money in the bank and wants to use it instead of leaving it idle, it is not bad. But before that, we have to think about some things because when I use my emergency savings money, I will not have any money to use in times of emergency.

So it is good to keep some money for emergencies. Also, before investing anywhere, analyze it well so that the money is not put at risk and it does not turn into gambling. Considering these aspects, it is important to know who can use it.

Basically, planning to grow money in a conscious and controlled way rather than leaving money in the bank is a sign of financial maturity.

[ASloveapg]

Emergency fund is something that we can use at any unexpected time, it is not money allocated for investment. And the feature or purpose of emergency fund is that it is immediately usable at any time. But if I use my emergency fund money for business or lending, it will not be fund, it will become an investment or loan business fund. If someone wants, they can definitely use their own emergency fund money, it is not a problem, but if a bad time comes in their personal life, they should make sure that they have enough money to handle that situation. Because if I myself get into danger while using the emergency fund money, then that money has no meaning. However, I think it is better not to invest or do any other work with the emergency fund money because emergency fund means that it is money for an emergency moment. If there is a strong desire to invest, then it is better to allocate money separately.

[justdimin]

There's nothing wrong with keeping emergency funds untouched, even for a limited time. This makes it easier when you need them without having to ask those you've borrowed from, even the bank.

Diverting untouched emergency funds to other areas, such as investments that have the potential to generate profits over a long period of time, like the length of time an emergency fund remains untouched, is better for me than finding alternatives rather than touching these funds that could save me someday.
Every financial plan has its own agenda. If you think what you're suggesting is good for you, do it.

A small amount maybe, but for people like me, who already do not make much, an "emergency fund" is literally bitcoin itself. I understand not many like it, because after all they want it to grow better, but that's just not going to happen

 I am not making enough to have; a spending money for the month, plus an emergency fund savings, and then an investment savings. That is not something a poor person can do and while I am not starving or homeless or anything like that, I am certainly not rich enough to do that. Even my investment is something that will take a long time and we should not be something that will get a greater return. So I make more debt, but get more investment and that will do a lot better.

[Botnake]

A lending business will not guarantee that all your funds will be back, some might get delayed or worst, you won’t have them back anymore. That’s why your idea isn’t safe for your emergency funds, otherwise be ready to lose your funds in less time.

The most appropriate thing to do is to keep your emergency funds and use it only according to its original purpose, but if you aim to start a business or invest into some profitable coins, save some funds first that would make up your investment funds once you hit already sufficient amount to invest.

[Zackz5000]

Banks doesn't charge much even when we are not investing in Bitcoin emergency fund is important we can't predict what will happen next the interest you will pay when repaying back your loan will be much higher than the little charges bank is collecting from you, emergency fund protects your investment from not selling when you are not supposed to sell because when real emergency occur you won't think of selling your Bitcoin hodling to settle the emergency because you already have an emergency fund that will give a solution to the situation.