Bank and Emergency funds.

[DanWalker]

One of the best place to store fund like that longterm is in Bitcoin. It's better than idling it in fiat and letting it lose its purchasing power due to inflation. Bitcoin is not a high risk investment by the way. It's more suitable for long-term saving to earn you some sort of guaranteed RoI

*And since it's an emergency fund that you are probably not allowed to spend or use on something else, you're just better off storing it on deflationary currency like Bitcoin. Whenever you are asked about the fund you show them in Bitcoin

No one denies that bitcoin is a good long-term store of value because it not only helps us hedge against currency devaluation but can also bring us significant profits.

But emergency fund is the money that we are not allowed to spend and use for other things but we can use them at any time. So I don't think keeping them in bitcoin is a good idea. Even though bitcoin is a deflationary asset, we should be realistic that it is very volatile in the short term. Using Bitcoin as an emergency fund would be more harmful than helpful for us.

[junder]

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.

Having emergency funds is indeed one of the goals so that we can handle problems that arise without asking for help from others. Many people experience problems and ask for help from others, such as borrowing money. This case occurs in my neighborhood, with quite a number of households experiencing it.

Using it for investments or other potentially profitable ventures makes sense, but it should be carefully considered. If you decide to use it, it might be better to use only a portion of it rather than the entire amount. Even if the potential profits are clearly visible, avoid letting greed take over and lead to mistakes.

[Shadiq]

If you think you are right, then I will say you are wrong. First of all, interest business is not morally permissible, I am not forcing you to be moral, I want to leave it to your personal freedom.

You may think that interest business has comparatively less risk, but in fact, interest business does not have less risk. You have not yet faced loan defaulters or fraudsters, so you consider interest business to be less risky. Yes, you will have collateral which you can sell to get back the money. But if a person dies after taking the loan, how will you get back the money at the right time? You may not even be able to sell the collateral at that time due to social restrictions.

Even when you are in your emergency, who will help you? Do you think that getting help is always easy? You may not know the world well yet. Help is not always available when needed. Even I think it is foolish to depend on others in an emergency even though you have your own emergency fund. Don't keep your emergency fund in the bank or trade it, but keep it with you at all times, even if it loses value due to inflation. Save an amount in your emergency fund that is neither too much nor too little. Keeping too much can hurt you due to inflation, and keeping too little can lead to a financial crisis in an emergency.

[Chilwell]

Having emergency funds is indeed one of the goals so that we can handle problems that arise without asking for help from others. Many people experience problems and ask for help from others, such as borrowing money. This case occurs in my neighborhood, with quite a number of households experiencing it.

Using it for investments or other potentially profitable ventures makes sense, but it should be carefully considered. If you decide to use it, it might be better to use only a portion of it rather than the entire amount. Even if the potential profits are clearly visible, avoid letting greed take over and lead to mistakes.

Unforeseen circumstances are inevitable because it is part of our daily life. Sometimes you will sleep with a problem and wake up with another problem that is why getting an emergency fund is very very important which should be given more priorities to avoid disappointment. Actually no one prayer for any emergency problems but it's something we believe that it will come and when it comes running up and down to raise funds is always difficult that's why we should set aside some part of money to take care of the event when it comes.

Making useful of an emergency fund, i will say each an everyone of us have their own way of making money and emergency fund are gotten from our earnings. Based on my own opinion I will totally disagree to use an emergency fund for any business activities the profit is expected but know the loss is also behind and we don't know when an emergency will come.

[Issa56]

No one denies that bitcoin is a good long-term store of value because it not only helps us hedge against currency devaluation but can also bring us significant profits.

But emergency fund is the money that we are not allowed to spend and use for other things but we can use them at any time. So I don't think keeping them in bitcoin is a good idea. Even though bitcoin is a deflationary asset, we should be realistic that it is very volatile in the short term. Using Bitcoin as an emergency fund would be more harmful than helpful for us.

And even though it provides a hedge against currencies, there are benefits to investing in bitcoin, which is why it is preferable to keeping your money in banks because it will be extremely difficult for you to not make money rather than having it sit in banks unused. This is one of the reasons why investing in bitcoin is preferable to saving your money directly, and these are factors that have benefited investors personally.

Additionally, it is not the best idea to invest your emergency funds in bitcoin because the primary benefit of bitcoin is that it can be used whenever you need money. In my opinion, investing in bitcoin changes the status of emergency funds to something completely different, so we should be aware of the differences and know how to use them. We shouldn't worry about needing an explanation because the aim is obvious from the name. And it's clear to invest and the same time have your emerging funds in a bank for emergency.

[MArsland]

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.

So let me tell you that the purpose of emergency funds is to provide quick access or alternatives. If you invest it, regardless of the asset, is there a guarantee of instant withdrawal without selling at a loss? After all, no one knows when and where an emergency will strike us. The point for OP regarding emergency funds is not how much return you get, but how quickly you can overcome an emergency when you need funds.

[Fortify]

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.

For many people they over spend when they are younger and carry debt into their 20's and 30's, some even longer, so their first step is going to be hitting zero or break even. That is an important psychological step to establish control over your finances, only when you've paid off all non-mortgage debt and ideally don't have other big expenditure loans on depreciating assets like a car, should you really be considering an emergency fund. That can really be edited to your personal circumstances, because for some people a few thousand in short term liquid cash can be enough to provide the buffer they need while others might want the security of 6 or even 12 months salary in easily accessible bank account funds - but that can be detrimental to your future if you hoard too much cash without making a return on it. Luckily some banks are still paying in the 5% region on savings right now, which makes it a semi-attractive option.

[Josefjix]

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.

It might go wrong if your emergency fund is invested in Bitcoin while it's depreciated at the time of needing it, and what if could be needed to clear up an instant hospital bill, that shows a wrong investment in your emergency fund.

Your emergency fund shouldn't be used for investing in Bitcoin or be used to lend it out or be used in looking for more money in any way, you might end up getting disappointed at the time of needing it.

It's way more better to save your emergency fund in cash and not even in bank because of charges, to easily use it and need it when the right time of need arises.

[MRY]

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.

It might go wrong if your emergency fund is invested in Bitcoin while it's depreciated at the time of needing it, and what if could be needed to clear up an instant hospital bill, that shows a wrong investment in your emergency fund.

Your emergency fund shouldn't be used for investing in Bitcoin or be used to lend it out or be used in looking for more money in any way, you might end up getting disappointed at the time of needing it.

It's way more better to save your emergency fund in cash and not even in bank because of charges, to easily use it and need it when the right time of need arises.

The issues of investing emergency funds, especially those in high-risk assets such as Bitcoin, are quite legitimate, and I, also, embrace the idea that emergency money has to be held in a very liquid and stable manner. The concept of having an emergency fund in bitcoin is evident, to say the least, contravening the main reason as to why one needs an emergency fund which may be a guarantee at meeting fund requirements very fast at arguably reduced depreciation particularly in situations like having an emergency hospital bill.

Those funds must be considered as financial insurance which must not be subject to markets and therefore keeping the funds in cash or in the form of relative liquid savings account is a significantly safer place to keep the funds rather than risking them to be subject to the bank administration. With guaranteed value and quick access, one can much more easily count on advances made and returns, possibly meagre or none at best. I feel that I need to have a distinct boundary between emergency savings and risky investments.

[AprilioMP]

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.

I wouldn't pursue a business with a long-standing emergency fund, even though some aspects of your thinking are sound. According to business theory, it's beneficial because it prevents money from circulating. However, when you need money unexpectedly, say for medical expenses when the banks are closed and your account has nothing left, where are you supposed to go to pay for medical expenses? Or for other completely unpredictable needs?

Emergency funds are meant for emergencies, not for profit.
Money intended to generate profit is not meant to come from an emergency fund.
I disagree.

[laijsica]

Consider a 90-day emergency fund as part of your investment. You never know when an emergency might strike. The purpose of this fund is to provide protection for your investment. Try to keep this fund available as cash. There are many strategies you can use to make Bitcoin investments long-term, but this fund should not be used as an alternative strategy.

I understand that you are looking to increase the use of funds for alternative income and another source of income from that fund. There is no business that is 90% less risky. The risk in every business is much higher than the potential, so if you want to have an alternative source of emergency funds, you should use alternative funds. You need an emergency fund to stay in Bitcoin investments for the long term. You should not neglect valuable investments.

[bettercrypto]

I know we all have our own perspectives on the matter we're discussing, and we also know that once we put money in the bank, the interest they give is only around 1%.
In other words, even if we keep it stored in the bank for a long time, the per annum return they give us is still small.

Despite the inflation problem, the value of the money in our emergency funds doesn't increase, but the prices of goods rise as time goes by.
Even so, we each have our own strategy on how to roll out (manage/grow) the emergency funds we have in the bank.

[Smack That Ace]

Let’s take Bitcoin reserves for an example, same concept that backs emergency funds is what backs the idea behind reserves isn’t it? As a fund countries that owns reserves need to use for purposes ranging from conservation to emergency rescue of the economy.

Then again, emergencies doesn’t happen often, you might not have need in a year, 2years or even decades and even then, you might have it in a day, week or month. We never can tell and that’s why it’s an emergency.

Although national reserves have the same task as emergency. But it should be noted that the National Reserve consists of many different assets, of which stable and safe assets such as gold and bonds will always be the majority.
In addition, although there have been many rumors about Bitcoin reserves, so far no central bank has approved the idea of ​​adding Bitcoin to reserve. The central banks like Fed or ECB even made a blunt statement that they did not intend to add Bitcoin to reserve because it did not meet their criteria.

Emergencies don't happen often but can happen unexpectedly and that's why emergency funds should be kept in stable assets.

Of course you would sell it at the current price and be at a loss, you can’t do any better than that. You only have to hope that it’s well above or about the funds needed to solve your emergency situation. If it pumps, you do the same and stay in profit.

Mind you, even fiat is not stable, we all know inflation has affected everything and those being paid their pension that could have been worth more finds it to be worth nothing in today’s economy. Same thing applies to emergency funds saved through years, it also affected by inflation.

You only get to choose which one you can go with easily.

Fiat currencies are unstable and lose value due to inflation but they won't lose value as fast or get dumped by 20-30% or worse 50-70% in a short period of time like bitcoin.

Bitcoin is only suitable as a speculative asset or long term investment.

[Judith87403]

Having emergency funds is indeed one of the goals so that we can handle problems that arise without asking for help from others. Many people experience problems and ask for help from others, such as borrowing money. This case occurs in my neighborhood, with quite a number of households experiencing it.

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.

[slapper]

what is it you are protecting against?

You have determined that dead money is wasteful. Fair. But you are substituting certain liquidity with a collateralized lending operation, which is essentially operating an unlicensed pawn shop with your safety net. It is not a question of whether it is profitable or not. It is whether you have actually estimated what economists refer to as tail risk (the low-probability, high-impact events that emergency funds are there to absorb)

Picture having your cash put to work for you and suddenly losing your source of income when the economy is too weak to make repayments. You must now borrow (at what rate? of whom in a crisis?), and at the same time attempt to collect of your borrowers who are probably themselves struggling in the same depression. You are establishing correlated risk. Everything fails together

Psychological work is being done here with the framing of "90% less risky." It i allowing you to feel wise as you assume structural vulnerability. Real risk is about whether you can survive the worst 1% of outcomes. Emergency funds are insurance against yourself not being able to know when you will need it

Bank charges are not theft. They are the price of money in 30 seconds rather than 30 days. Sometimes it is the inefficiency that is the whole point

[Marvell1]

I know we all have our own perspectives on the matter we're discussing, and we also know that once we put money in the bank, the interest they give is only around 1%.
In other words, even if we keep it stored in the bank for a long time, the per annum return they give us is still small.

Despite the inflation problem, the value of the money in our emergency funds doesn't increase, but the prices of goods rise as time goes by.
Even so, we each have our own strategy on how to roll out (manage/grow) the emergency funds we have in the bank.

The role of an emergency fund is to protect us in situations such as job loss, accidents, and unexpected life events. Therefore, what we need to prioritize is safety, liquidity and access, not profits. That's why we need to budget and separate emergency funds, savings funds, and investment funds. Each fund has different roles and tasks in life.

Don't confuse or mix them up and profit is not always the top priority.


I see too many people obsessed with inflation and investing, forgetting about other risks we may face in life.
Inflation makes our money lose value but investing does not always bring profit, we can even go bankrupt if we invest wrongly. Investing is a financial solution, not a panacea that can solve all our other problems, don't be too obsessed with it.

[Cryptoprincess101]

If your emergency funds that is being kept in the bank is being deducted gradually with charges, I will suggest you keep your emergency funds in a stable coin, since it's a long time plan. Keeping your emergency funds in fiat is not only prone to charges by the bank but also prone to inflation that creeps in gradually, so a stable coin helps to maintain the value of emergency fund to certain extent.

This is not a good advice because keeping your money in a stable coin implies that it will be stored in an exchange which can be vulnerable to hacks and can be stolen, and you know that we have often times talked about the dangers of storing our coins in a centralized exchange so at this point i will say that OP has no option than to leave it in the bank because despite that he is complaining of deduction from the bank i think it's not that much though i don't know how much the charges are or the fiats currency he kept his money but from my own bank here in my country, they charge for service fee and card maintenance fee which amounts to less than 2 dollar in a year using my local currency. Stable coins can only maintain their value in dollar but when you want to convert it to your country's currency it might get devalued.

[Hamza2424]

It gives you much more financial peace of mind to have an emergency fund, even if you don't use it for a long time, rather than playing around with loans.

Yep this is the best advice bro, if we would rely on loans for emergency funds then they would know we are in hurry and we need the funds, because banks also have resources and the person who allows loans they have special skills to judge the person next to them asking for loan.

In short they can make the policies more hard and can charge more interest the main thing they make money on and they can even reduce the due date for the loan repayment.

It is indeed better to keep our funds in cash at home or somewhere safe that we can access anytime we want.

[Solodoski]

Emergency funds are for emergencies as the name implies,  but I wouldn't say the idea of using it for a short time investment that will bring profits rather than just leaving it in your bank account is a bad idea, but as you have mentioned that you will borrow from someone else if you have an emergency and your money is not available at the moment is a bad idea.  Someone mentioned that they might ask you for a very high interest, especially if the person knows that it's an emergency,  which is normal with human, because they like to take advantage of people's situation.
In my opinion if you must use your emergency fund for a short-term investment for profit,  I believe you should also have saving, so when you have an emergency and you money is not available,  you can take from your saving and put it back when your money is ready. This is just my opinion.

[yhiaali3]

The foundation of emergency funds is to have them available in case of an emergency. Therefore, I am not a fan of using emergency funds, whether by lending them for the short term or investing them in any investment that yields immediate profits.

It is also preferable for emergency funds to be cash, as storing them in a bank or even digitally will result in fees being deducted and decreasing over time. Therefore, it is best to always have an emergency fund ready and at hand.