Emergency Money vs Investment Money

[Saltysugar99]

I have seen in my acquaintances that the mistake they make the most and the mistake that brings them back to the same place over and over again is to make emergency money and investment money the same thing. Then when the price drops a little, they cry  , said Scam, The market is over , I won’t buy anymore, If you don’t sell now, you will loss . These kind of more  dramas we can see . The reality is that it’s not about Bitcoin, but the mistake in using your wrong fund that is killing your investment . If you make emergency money an investment, you will not be an investor but a forced seller, right at the worst possible time.
 
Emergency money means money to live on emergency condition . When illness, job or income loss, sudden expenses in the family come, the market will not stop for you. Emergency money has to be kept in a place where it can be accessed immediately then the risk is lower possible, and your sleep will not lost at night . If you put that money in bitcoin, it is no longer an emergency fund, it becomes a forced-sell waiting fund. Then the market dips, and at the same time the cost of emergency comes, what will you do? Sell. And sell at a time when selling is most harmful. That's why I say, volatility doesn't destroy your economic condition, investing with the wrong money kills your financial ability.
 
Now investment money is a different thing. This is your discretionary income that survives by meeting all necessary expenses. This money is not money that you will need next month. This is money that you can't touch for 4-10 years. If you really want to invest in Bitcoin, then first decide "Can I lock this fund in for a few years?" If you can't, the problem is not with Bitcoin, problem is in your cash flow setup. Investors don't think about what will happen if the price drops tomorrow.
 
In our country, this mistake is even more acute, because income is uncertain, inflation is on the rise, government support is low, as a result, many people save Bitcoin as an emergency backup, or as a quick rescue from economic problems. This is not an investment, it makes you a hostage mentally. You are happy when the price goes up, and you break down when it goes down because you don't have a time horizon for investment, you have survival urgency. If you don't fix this thing, no matter how many tactics you learn, you will end up in the same place and get hit.
 
Many people say,  if I don't have an emergency fund, I won't start. Many others say, though   I don't have a fund I will go into bitcoin buying with big amount and what will happens I will  see later. Both are extreme problematic . The truth is that you can start even if you don't have a perfect emergency fund, but going in big with zero backup is trapping yourself. The good method is to start small amount, and slowly build a backup fund. Create both bitcoin and backup in parallel, so that even if life pressures you, you don't have to break Bitcoin. Because breaking Bitcoin is the easiest, but that's where the biggest loss occurs. You should remember that as long as you don't sell Bitcoin, you haven't faced any losses.
 
Bitcoin rewards patience, not hurry. Those who survive are not geniuses, they just know exactly what money is for. Letting emergency fund remain boring is their job. Accumulating regularly with investment money is their job. And once you can get this division right, then the market dip will not scare you. Instead, you will understand that volatility is actually testing your discipline. And those who pass with discipline, are the ones who get results in the end.

[Gost ms]

After investing in Bitcoin, when the price of Bitcoin decreases and at that time the person who says all this to Bitcoin does not have faith in Bitcoin, which is why they say this. A person who invests with emergency money never says this after investing with emergency funds. To start investing, it is very important for a person to build faith in Bitcoin, even if it is a small amount. When a person believes in Bitcoin, he will not be afraid of the market falling and will not make such tasteless comments.

If a person invests with his required money. And when he needs that amount of money, he is forced or forced to sell Bitcoin due to financial pressure. A person should never invest with his required money or emergency funds. He should always invest with his discretionary income and he should keep one thing in mind, what % of his discretionary income will he buy with.

[Jubilee58]

Emergency money can not be used for investment and doing that is totally wrong. For instance if you invest your emergency money in bitcoin when you know too well that Bitcoin is not a short term investment but generate profit on the long run. Such investment will keep your mind up and will make you to sell your investment at loss.

Emergency fund is only meant to be kept where you can access it any day any time because if your emergency fund is invested, when the emergency comes, you will thrown into confussion.

[I_Anime]

First op this is quite bulky , I don’t really get the vs part . But I will say both are use for different purposes, first investment money , just as the name implies is the money use in investing and while emergency money Emergency money means money set aside to use only in unexpected or urgent situations, like accidents, sudden illness, or urgent repairs.

But both are gotten from what we call discretionary income, the money remaining after taken care of your expenses (extra money ) , so your emergency and investment money are gotten from the discretionary.

[Cgrexp]

Emergency money can not be used for investment and doing that is totally wrong. For instance if you invest your emergency money in bitcoin when you know too well that Bitcoin is not a short term investment but generate profit on the long run. Such investment will keep your mind up and will make you to sell your investment at loss.

Emergency fund is only meant to be kept where you can access it any day any time because if your emergency fund is invested, when the emergency comes, you will thrown into confussion.

It is important to have an emergency and backup fund in place before or alongside starting to invest in Bitcoin. Once this fund is sufficiently established, additional additions are not necessary unless expenses increase or the funds are used up. In general, many people keep a backup fund of two to six weeks, depending on their financial habits and organizational skills. If someone has a four-week backup fund, an equal amount can be allocated to Bitcoin investments and then the fund can be increased equally in both areas until it has a three-month equivalent. Alternatively, one can set a priority ratio of 75 percent Bitcoin and 25 percent. However, if income or expenses are volatile, then one should focus on building a strong backup fund. Ultimately, the right balance depends on the individual's personality, risk-taking mindset and stability, as the risk of misallocation is ultimately borne by the individual.

[Female King]

First op this is quite bulky , I don’t really get the vs part . But I will say both are use for different purposes, first investment money , just as the name implies is the money use in investing and while emergency money Emergency money means money set aside to use only in unexpected or urgent situations, like accidents, sudden illness, or urgent repairs.

But both are gotten from what we call discretionary income, the money remaining after taken care of your expenses (extra money ) , so your emergency and investment money are gotten from the discretionary.

The vs is as if the both are playing football investment money and emergency money is important if it's about bitcoin investment that the op is talking about, investment money he mean could be the discretionary income before we can get started with our bitcoin investment we first of all need to be sure that we have a discretionary income go get started with, when investing you can also be saving some emergency fund so that in time of trouble instead of selling your investment premature you can use your emergency fund to settle it.
In conclusion both discretionary income and emergency fund is very important in bitcoin investment.

[Cryptomultiplier]

Emergency funds is always cash set aside for capital preservation in many cases and for situations that need immediate attention and as such, it shouldn't be kept in a cold wallet or far from reach or for long term with thoughts of it producing more profits, because, it is built for the advantage of stability and survival, while investment money which should aim to increase our capital, enforce discipline and patience, is meant to enable growth and speed for wealth accumulation and fulfillment of noteworthy goals.

Knowing how a basic budgeting scape works and how risk management practices works, should be able to properly help any person distinguish both and thus know what to set aside for the main purpose deemed fit.

[DiMarxist]

Emergency money can not be used for investment and doing that is totally wrong. For instance if you invest your emergency money in bitcoin when you know too well that Bitcoin is not a short term investment but generate profit on the long run. Such investment will keep your mind up and will make you to sell your investment at loss.

Emergency fund is only meant to be kept where you can access it any day any time because if your emergency fund is invested, when the emergency comes, you will thrown into confussion.

You're right when it comes to investments especially in volatile assets like Bitcoin you should clearly spell out the monies that you are to use in investing. Alot of people have different criterias which they use in a portioning their funds and emergency funds are not monies that are ment for the purpose of investment rather emergency money is kept for the sake of unforseen circumstances that may arise. As investors we should clearly draw a boundary when it comes to this because we are not expected to use all our funds to invest. Always keep money separate for problems that may arise.

[Hardyrobust]

Emergency money can not be used for investment and doing that is totally wrong. For instance if you invest your emergency money in bitcoin when you know too well that Bitcoin is not a short term investment but generate profit on the long run. Such investment will keep your mind up and will make you to sell your investment at loss.

Emergency fund is only meant to be kept where you can access it any day any time because if your emergency fund is invested, when the emergency comes, you will thrown into confussion.

You're right when it comes to investments especially in volatile assets like Bitcoin you should clearly spell out the monies that you are to use in investing. Alot of people have different criterias which they use in a portioning their funds and emergency funds are not monies that are ment for the purpose of investment rather emergency money is kept for the sake of unforseen circumstances that may arise. As investors we should clearly draw a boundary when it comes to this because we are not expected to use all our funds to invest. Always keep money separate for problems that may arise.

For sure emergency funds shouldn't be used for investing in bitcoin. That is why before anyone should start investing in bitcoin they should first of all determine whether they have discretionary income to invest with. I know some people may be confused as to why they are to not invest with there emergency funds, the money used for investing in bitcoin isn't money that will be needing soon.
Traders may likely want to take the risk of investing there emergency funds since they won't be holding for long. However, trading is very risky and they may end up losing there money.

[Dreadboost]

You have said a lot about it already, and it's a good to make people understand.
Emergency money is indeed very important, it just there to protect your investment, it should be saved in fait currency for easy access,
Just aa the name sounds so is it, a money there for you in times of emergencies that is capable of forcing you to sale some of your coins to meet up.
But once you have money kept in place for that purpose already you wouldn't have to sale you coin, you will rather take for the money kept for that purpose

[Futurexxx]

First op this is quite bulky , I don’t really get the vs part . But I will say both are use for different purposes, first investment money , just as the name implies is the money use in investing and while emergency money Emergency money means money set aside to use only in unexpected or urgent situations, like accidents, sudden illness, or urgent repairs.

But both are gotten from what we call discretionary income, the money remaining after taken care of your expenses (extra money ) , so your emergency and investment money are gotten from the discretionary.

You have actually said it all mate, and I don't know why he is making it looks as if they are competing with each other or they have the same functions.
It's true that they are gotten from the same source, which is from our discretionary income but their purposes are different, so as their importance. Having an investment  without having an emergency funds in place make your investment vulnerable to any emergency situation that arises, because you will be forced to sell when you never wanted to, so they are both important for the success of our investment.

[Zanab247]

I notice that those that gather investment money have the confidence to hodl their BTC for long years without experience any fear of releasing their BTC without fulfilling their target, because they believe that BTC will continue pumping and dumping to continue creating opportunity for hodlers to earn good profits from BTC.when you gather your capital to invest in BTC there will be peace of mind, because you will not be in a hurry to sell your BTC than to hodl for long years before you can sell to praise yourself for the success.

One thing I notice from emergency money is that you will not have peace of mind, because you will be worry on how to get the money back to pay back or to replace the money back so that the family will have food to eat at home.

[Yeesha]

Bitcoin investment indeed a great thing, and can be a great opportunity for financial growth, especially for those who understand the market and are willing to accept the risks involved. But under no circumstances should an emergency fund be used for bitcoin investment or any other investment. An emergency fund is meant strictly for unexpected and urgent situations such as job loss, family emergencies, medical bills or fees. We don't know when when we find ourselves in difficult situations, So, emergency funds must be kept safe, stable and easily at all times and anywhere. Just like other cryptocurrencies, bitcoin is highly volatile. its value can rise sharply, but at the same time it can also fall drastically within just a short period of time.

[fredericktaylor]

Bitcoin investment indeed a great thing, and can be a great opportunity for financial growth, especially for those who understand the market and are willing to accept the risks involved. But under no circumstances should an emergency fund be used for bitcoin investment or any other investment. An emergency fund is meant strictly for unexpected and urgent situations such as job loss, family emergencies, medical bills or fees. We don't know when when we find ourselves in difficult situations, So, emergency funds must be kept safe, stable and easily at all times and anywhere. Just like other cryptocurrencies, bitcoin is highly volatile. its value can rise sharply, but at the same time it can also fall drastically within just a short period of time.

It is best to use emergency funds for urgent work, to invest in Bitcoin, you must use such money that you will not face any financial problems as a result of investing, and the investment can be managed properly in the long term, you do not have to stop investing midway due to financial problems, and even it is wise to buy Bitcoin with money that will not cause you financial problems as a result of losing money.

The future is uncertain, we do not know what awaits us in the future, creating a emergency fund to deal with unknown dangers and using it for that, as a result, the investment can be managed properly in the long term, so that you can reach your destination. Investing in Bitcoin with a emergency fund is not at all the right decision.

[Nightwatchmare]

Emergency money can not be used for investment and doing that is totally wrong. For instance if you invest your emergency money in bitcoin when you know too well that Bitcoin is not a short term investment but generate profit on the long run. Such investment will keep your mind up and will make you to sell your investment at loss.

Emergency fund is only meant to be kept where you can access it any day any time because if your emergency fund is invested, when the emergency comes, you will thrown into confussion.

Using emergency money to buy Bitcoin is unwise, and any investor that uses his/ her emergency money to buy Bitcoin will surely sell his/her Bitcoin and get out of the game without achieving success. Emergency money is the money that takes care of your unplanned expenses. People should always use their emergency money on emergencies if they want to reach over accumulation stage and hold their Bitcoin for a very long time. What we should use to accumulate Bitcoin is discretionary income because discretionary income is the money we can use on nonessential things.

[Makus]

When making an investment emergency funds shouldn't be included, a lot of people don't remember to take out or separate emergency funds. if you are investing in bitcoin for example it is important to have an amount of money that's specifically for contingencies or emergencies because you cannot really expect when these things would come up. But what a lot of people do is that after they have decided to keep their investment running for a certain period of time they sell their coins when an emergency comes up and this is not a wise thing to do.

[iBaba]

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You're right when it comes to investments especially in volatile assets like Bitcoin you should clearly spell out the monies that you are to use in investing. Alot of people have different criterias which they use in a portioning their funds and emergency funds are not monies that are ment for the purpose of investment rather emergency money is kept for the sake of unforseen circumstances that may arise. As investors we should clearly draw a boundary when it comes to this because we are not expected to use all our funds to invest. Always keep money separate for problems that may arise.

my first point of advice to whoever wants to go fully into investing in volatile assets like bitcoin should firstly have the mindset of taking risks in business and should equally see what he is doing as a form of business that is liable to winning or failing so that expectations can be reduced to a certain extent, because the more expectations you put into your investments portfolio the more you will naturally be willing to put more risks which sometimes become unrealistic.

Every form of bitcoin investment you decide to put your money into, although does not apply on bitcoin investments alone, should try as much as possible to make two types of funds available like op mentioned above, let there by an emergency fund and the investment fund being it in lump sums or DCA and also treat your emergency fund as important as the investment funds because you need the emergency funds to protect your investments in the long run especially against inflation, medical attention and force majeuer.

[Tonimez]

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You're right when it comes to investments especially in volatile assets like Bitcoin you should clearly spell out the monies that you are to use in investing. Alot of people have different criterias which they use in a portioning their funds and emergency funds are not monies that are ment for the purpose of investment rather emergency money is kept for the sake of unforseen circumstances that may arise. As investors we should clearly draw a boundary when it comes to this because we are not expected to use all our funds to invest. Always keep money separate for problems that may arise.

my first point of advice to whoever wants to go fully into investing in volatile assets like bitcoin should firstly have the mindset of taking risks in business and should equally see what he is doing as a form of business that is liable to winning or failing so that expectations can be reduced to a certain extent, because the more expectations you put into your investments portfolio the more you will naturally be willing to put more risks which sometimes become unrealistic.

Every form of bitcoin investment you decide to put your money into, although does not apply on bitcoin investments alone, should try as much as possible to make two types of funds available like op mentioned above, let there by an emergency fund and the investment fund being it in lump sums or DCA and also treat your emergency fund as important as the investment funds because you need the emergency funds to protect your investments in the long run especially against inflation, medical attention and force majeuer.

You initially generalized volatile assets instead of narrowing it down to bitcoin. There are many volatile assets out there and many of them are too volatile to hold unlike bitcoin. Bitcoin is special because it has proven itself overtime unlike many shitcoins that doesn't survive over time. Bitcoin is not to be tampered with, the level of risk in bitcoin is relatively low for bitcoin investors, Traders risk could be at its peak but every bitcoin investor stands better chances of making profit over a long period of time but you must have the discipline to HODL for long. You don't have to treat bitcoin as a trade if you don't want to loose your fund because even though you think you are selling off with a profit, you may end up buying back at higher price than you have sold

Emergency funds is very crucial to the success of every bitcoin investment and no one would successfully hold bitcoin for 4 to 10 years when he doesn't have emergency funds and back up funds set aside to handle unforeseen circumstances.

[Bryan jessy]

People that encounters this situation are the very set of individuals who can not differentiate emergency funds from their investment funds or rather an individual that failed in setting up his or her financial plan, this can disorganize some people in cases of DIPs. Because their was no plan aside for the future, as a Bitcoiner while you are hoping and praying to get lucky also get ready to be unlucky if the market takes a different turn from your direction, but emergency funds is something nobody should even wait to be told before setting it aside, except the person can see the future.

[yixichloro2xx]

Emergency money and investment funds are two separate entities,one is to cover your daily expenses or unexpected needs then the other is used for investment. mixing both of them is a very bad idea and it can cause a lot of confusion and panic. For example let's say that an  unexpected emergency comes up like health issues, it can make you to sell your bitcoin holdings prematurely just to solve those issues. when you are dependent on your investment on bitcoin because you don't have an emergency funds, you might have an emotional breakdown especially when bitcoin prices are going down. An investor must have both if they truly want to have a reward in Bitcoin investment.