Bank and Emergency funds.

[Supreme Donvic]

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.

[Free Market Capitalist]

An emergency fund is like insurance; it's a price you pay to protect yourself from risk. You seem to think you've come up with a great idea, but you're not the first person to have a similar idea and get burned. For starters, you don't have to keep your emergency funds in the bank; you can keep them in cash.

Relying on a loan when times are tough is high risk because when the time comes, they may not give it to you or they may charge you high interest. I had an emergency fund that I didn't use for years until I had to use it.

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.

[Plaguedeath]

I would argue if it's better to earn from interest account which you can retrieve your funds instantly without waiting for few hours or a day. Usually this only available for digital accounts, whether you stake your money in digital bank or centralized exchanges.

Emergency funds need to be very liquid, even you offer short term loan like a week, but you need the money in day 5, you will have a problem.

[Yaunfitda]

An emergency fund is like insurance; it's a price you pay to protect yourself from risk. You seem to think you've come up with a great idea, but you're not the first person to have a similar idea and get burned. For starters, you don't have to keep your emergency funds in the bank; you can keep them in cash.

Relying on a loan when times are tough is high risk because when the time comes, they may not give it to you or they may charge you high interest. I had an emergency fund that I didn't use for years until I had to use it.

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.

Exactly, as from what I learn from one famous financial adviser here, you should have at least 6 months buffer or emergency fund. Like in case that you lose our job, at least you still have the money to continue to live and pay the bills until you got a new job. So you will not be pressured at all and as you have said, peace of mind knowing that you still have the money to sustained. Worst case is that you can't find a job in that timeframe but I doubt if if you are really resilient to go find a new one. I have know someone, like that, in just a week she finds a new job and so her emergency fund is still intact and then he can continue to pay for the mortgage of her house.

[Marvelockg]

How much does bank charge compared to the risk of being hit by an emergency when you have nothing at hand and have to go source for means of borrowing?

emergency fund protects you and your asset from uncertainties that can either get you frustrated or push you to selling your coin in loss. there are chances that when you go sourcing for money to borrow, you might not see it and then might be left with the option of selling your coin to offset the emergency. this is what having an emergency fund can save you from. it is even better that if you are not comfortable with the banking system that you keep the funds in cash form or even in USDT depending on your country which is also a good alternative to the banking system.

[Roseline492]

That's also a clever way to use your emergency money for something that would profit you without losing, a lot of things makes absolutely sense in what you explain about bank because it will also going to be a lost on someone if they are saving an emergency money they do not want to use for another thing that would generate income and the bank is cutting it for them, except if the person would withdraw it into cash and save it manually that whenever the need arises they will just visit were they kept it and take the amount they need and leave the rest. Lending is risky but if this measures is what you usually explore then there is no way you will loss your money.

[Frankolala]

  Snip~

You should keep your emergency funds with you at all time and there's no need to use it for loan giving because it's for an unforeseen circumstances and not for doing business. Life is full of uncertainty, therefore, it is not wise to be hit with an emergency, you should start running here and there looking for who will borrow you money when you had yours but used it for business. What if you did not see anyone to lend you the money. You can keep your emergency funds in usdt, and keep it in a self custody wallet.

[DeathAngel]

If you want to hold an emergency fund then obviously you shouldn’t hold it in a bank. In some countries it’s more likely than others that you may have trouble withdrawing your funds in an emergency but even First World. Countries have withdrawal limits & red tape to access your funds. Keep it in cash & or Bitcoin. You should be the only person who can access that money.

[Marykeller]

as from what I learn from one famous financial adviser here, you should have at least 6 months buffer or emergency fund. Like in case that you lose our job, at least you still have the money to continue to live and pay the bills until you got a new job. So you will not be pressured at all and as you have said, peace of mind knowing that you still have the money to sustained. Worst case is that you can't find a job in that timeframe but I doubt if if you are really resilient to go find a new one. I have know someone, like that, in just a week she finds a new job and so her emergency fund is still intact and then he can continue to pay for the mortgage of her house.

Never knew about this "to have 6 months emergency funds saved upfront" and I will put it into practice.
For me, the emergency funds I like saving up to are what could last for me for a month. I haven't thought about having more emergency funds just in case the unexpected happens, like losing my job.

However, with this info learned, I will begin now to act fast, have more emergency funds so that I will have something to hold on to for some months, even when I have no source of income, my bills will still be paid from my emergency funds untill I bounce back(having a job or business)

[Powerjumboo]

Do you think the decision you have explained here is right? You should always act thoughtfully, never think after acting. When you have an emergency fund, it is better to use that fund for good purposes, never for risky purposes. You have said here that your emergency fund will lend money to those who want to borrow money with interest and they will continue to give you interest. At some point, your interest amount will become the total loan amount and you will make a lot of profit there. But here you will do everything right. But you should not take interest from the borrowers by lending money because doing this business is not accepted in most religions.

Moreover, if your money goes to an influential or bad person, then you may fail to withdraw your money from there, so I will never support your business and it is not reasonable. Do good business. If you can do good business, you can improve in life, but it is much better to be poor than to become rich by borrowing money with interest.

[retaur]

The question is what emergency are you preparing for and is your fund going to be impacted by lending out this money?

If you lend the money out and prices soar and you need to buy things with your emergency fund, you'll end up stuck because the people you lent to might not be able to pay back..
The same goes for how many people you're lending to, lending to one person is very different to lending to multiple with different payback periods - also the bigger these loans are risk wise, the higher your emergency fund being used for it should be.