let's say your emergency funds is not enough!

[free-bit.co.in]

I can't count how many times I've used my Bitcoin on an emergency and one thing is sure to happen right after, I have always return the Bitcoin that I borrowed, it's all about your mindset and I always feel like any Bitcoin spent is borrowed I will have to return it. .

When emergency comes it's not bad to spend your Bitcoin, you still got your life and that means you can still get the Bitcoin back, all it takes is you keep working and making some money as usual then slowly start buying back some Bitcoin, before you know it you will have paid everything back.

But if you had an emergency fund, you probably wouldn't have needed to withdraw Bitcoin. As important as investing in Bitcoin is, I now realize that an emergency fund is equally important. You can't always say that you've withdrawn Bitcoin at a profit. Or if the Bitcoin price is much lower than your purchase price at the time you need the emergency fund, it will be a loss for you. In most cases, holding Bitcoin without an emergency fund is as risky as gambling.

I would never say that it's good to withdraw Bitcoin at a loss in an emergency. I would say that it's better to be prepared in advance and that an emergency fund is necessary to ensure the safety of your Bitcoin holdings.

But mate, nobody knows when an emergency will hit or how much it'll cost.  An emergency fund is one thing but that does not mean it is always going to be enough.

So what would you do in that case?

Nobody wants to sell their BTC or cut losses on their investment. But when real emergency hits and the fund falls short, we still have to deal with the urgent stuff first. You'd still have to pick between selling part of your stack and taking out a loan.

[Altryist]

Yeah, I see where you're coming from. If you have got enough cash or emergency fund to cover the expense, then obviously using that is still better than borrowing.

But I think what we are talking about here is when emergency fund has already run dry or just isn't enough. So it's either selling some of your BTC or taking out a loan.

In that spot, I don't agree that borrowing is always the better option, especially when loan comes with a high interest rate.

Imo, whether to borrow or liquidate part of your portfolio depend on the rate, your ability to repay, your financial situation at the time.

In that case, I also lean more towards selling part of your investments rather than borrowing money and then having to pay interest on that debt.

But I want to go back to the original point, to your reserve capital. If you're saying that it wasn't sufficient, then I think the initial calculation was wrong. In that case, it would be worth increasing your emergency savings so that you don't have to worry about running short of money in an unexpected situation.

[WhoYouCantKill]

If we really find ourselves in that kind of situation, then the top priority is always human life, especially when it involves the lives of our family members. Holding onto Bitcoin while someone close is dying is actually pointless, so if the emergency funds aren't enough and there are no other assets left, and the only thing available is Bitcoin, selling some Bitcoin to save a life is the most rational decision we can make because as long as we're alive we can always start accumulating Bitcoin again, even from scratch.

Sometimes taking loans to sort out such emergencies wouldn’t completely be a bad idea, as long as you’re 100% sure that repayment of the loan wouldn’t inflict any form of financial pressure on you. Selling your bitcoin, especially in a time like this when the market is heavily bleeding may turn out to be a financial mistake, especially when the amount is simply an amount that you can easily afford to borrow and repay without any stress.

[Babeth534]

The reason people have savings is to have something to fall back on in desperate times. If your savings can't save you then it's of no use, people have the misconception that savings are never meant to be touched but thats a wrong mentality. We are advised to always keep money for emergency use when the need arises so finding yourself in a difficult situation is an emergency and if it requires money then you should liquidate.

If you have other options that can prevent you from liquidation then you can opt for it but in a situation where there are no other options then you have to liquidate. I'm not big on taking loans because they come with other consequences that could put you into further situations arising from it.

[ASloveapg]

If we really find ourselves in that kind of situation, then the top priority is always human life, especially when it involves the lives of our family members. Holding onto Bitcoin while someone close is dying is actually pointless, so if the emergency funds aren't enough and there are no other assets left, and the only thing available is Bitcoin, selling some Bitcoin to save a life is the most rational decision we can make because as long as we're alive we can always start accumulating Bitcoin again, even from scratch.

Sometimes taking loans to sort out such emergencies wouldn’t completely be a bad idea, as long as you’re 100% sure that repayment of the loan wouldn’t inflict any form of financial pressure on you. Selling your bitcoin, especially in a time like this when the market is heavily bleeding may turn out to be a financial mistake, especially when the amount is simply an amount that you can easily afford to borrow and repay without any stress.

As far as I know, if you ever face such a problem for medical purposes, then you need a lot of money, which is not easily available for loans, no one will immediately lend you $1500 or $2000, and in such an emergency situation, you cannot even take a loan from the bank, you have to face various problems. And so I will also say that despite this, if it happens to me at such a stage, I am ready to sell my holding without any worries, life is the most valuable, I can bear the temporary loss I am facing, but if someone in your family is completely gone, what else will you have? And what is the value of your wealth if you cannot use it to save the life of your family? If someone in my family or myself were to face such a situation, then I would sell all my holdings despite the loss to save life. People want to save life by selling everything, and that is normal.

[WhoYouCantKill]

As far as I know, if you ever face such a problem for medical purposes, then you need a lot of money, which is not easily available for loans, no one will immediately lend you $1500 or $2000, and in such an emergency situation, you cannot even take a loan from the bank, you have to face various problems. And so I will also say that despite this, if it happens to me at such a stage, I am ready to sell my holding without any worries, life is the most valuable, I can bear the temporary loss I am facing, but if someone in your family is completely gone, what else will you have? And what is the value of your wealth if you cannot use it to save the life of your family? If someone in my family or myself were to face such a situation, then I would sell all my holdings despite the loss to save life. People want to save life by selling everything, and that is normal.

I’m never against selling one's bitcoin to save a life. A life should be a top priority, what I’m not in support of is moving ahead to sell your bitcoin when there are still several options to explore. There are people that even the slightest financial need would push them into selling their coin, rather than an actual investment,  they end up treating Bitcoin as an asset they can liquidate or sell at any time they have financial needs, for crying out loud, that’s a future investment and not some funds where you can just dip into whenever you have an emergency.

[red4slash]

The reason people have savings is to have something to fall back on in desperate times. If your savings can't save you then it's of no use, people have the misconception that savings are never meant to be touched but thats a wrong mentality. We are advised to always keep money for emergency use when the need arises so finding yourself in a difficult situation is an emergency and if it requires money then you should liquidate.

For now I actually consider savings and emergency funds to be different even though savings can also be used as an option as an emergency fund but the initial function of savings and emergency funds is different (that's what I do now).
When talking about savings, the ratio of the term that I use is medium-term such as when there are some items that I want or that I can't buy directly, I make this savings as an option to raise money while for emergency funds, the goal is clear when we have needs that we don't expect and some other things that may turn out to be urgent at one time so that this emergency fund becomes flexible, its nature is not tied to time in contrast to savings.
Indeed, in this case, savings can also be used as an addition but it does not necessarily make us equate savings and emergency funds because from the beginning all must remain in their posts when we want to do good financial management.

Sometimes a small mistake occurs is when we always equate each fund (income we have) without considering where the funds come from when we have separated discretionary funds into several things such as for investment (for the long term), emergency funds (for unexpected) and maybe a little deviation for savings as a form of us to be aware of the medium term we should be more able to manage the income we have.

[DYOR+BTC]

As far as I know, if you ever face such a problem for medical purposes, then you need a lot of money, which is not easily available for loans, no one will immediately lend you $1500 or $2000, and in such an emergency situation, you cannot even take a loan from the bank, you have to face various problems. And so I will also say that despite this, if it happens to me at such a stage, I am ready to sell my holding without any worries, life is the most valuable, I can bear the temporary loss I am facing, but if someone in your family is completely gone, what else will you have? And what is the value of your wealth if you cannot use it to save the life of your family? If someone in my family or myself were to face such a situation, then I would sell all my holdings despite the loss to save life. People want to save life by selling everything, and that is normal.

I’m never against selling one's bitcoin to save a life. A life should be a top priority, what I’m not in support of is moving ahead to sell your bitcoin when there are still several options to explore. There are people that even the slightest financial need would push them into selling their coin, rather than an actual investment,  they end up treating Bitcoin as an asset they can liquidate or sell at any time they have financial needs, for crying out loud, that’s a future investment and not some funds where you can just dip into whenever you have an emergency.

Anybody selling his bitcoin when there are other preferred option is not ready to get through and become stable financially,  they're some qualities possesed by a successful men and one of it is  determination, one with  a practice of selling when the challenges can be handled is not determined to escape poverty through his investment.
It takes only a determined investor to hold when challenges knocks and there are other preferred options that can help provide solution to an emergency situation.
Bitcoin i know is an asset for a future use and not within a particular time because if it is kept for a longer time that alone can one make a good profit from it.

[ejikeme24]

If we really find ourselves in that kind of situation, then the top priority is always human life, especially when it involves the lives of our family members. Holding onto Bitcoin while someone close is dying is actually pointless, so if the emergency funds aren't enough and there are no other assets left, and the only thing available is Bitcoin, selling some Bitcoin to save a life is the most rational decision we can make because as long as we're alive we can always start accumulating Bitcoin again, even from scratch.

Just as @ WhoYouCantKill has suggested that the best thing to do in that situation is to take out loan and add up with the little emergency funds rather than selling our Bitcoin investment, I believe before a real investor would venture into Bitcoin investment they are going to make a decision which is, never to sell their bitcoin investment until it gets to their target. And after that they will make sure they build emergency funds and reserve funds just to keep safety rules. Yet at the same time, every investors have the right to treat their bitcoin investment however they like.

[WhoYouCantKill]

Anybody selling his bitcoin when there are other preferred option is not ready to get through and become stable financially,  they're some qualities possesed by a successful men and one of it is  determination, one with  a practice of selling when the challenges can be handled is not determined to escape poverty through his investment.
It takes only a determined investor to hold when challenges knocks and there are other preferred options that can help provide solution to an emergency situation.
Bitcoin i know is an asset for a future use and not within a particular time because if it is kept for a longer time that alone can one make a good profit from it.

Sometimes I don’t really blame some people who often see their bitcoin as some sort of emergency fund, reason because they do not really understand the real concept of Bitcoin investment, the misunderstand it and that’s why they often feel as if Bitcoin is meant to serve as another get away card evens though there are really other options to explore.
Ordinarily, Bitcoin is meant to be an asset someone should lock away for a very very long term, which means you are not supposed to be able to reach it within the short term, and even though there are actually minor exceptions, it still doesn’t mean that Bitcoin should in  anyway serve as a backup fund, except there’s really no more option.

[2Pizza410000BTC]

You already make things easier for us since you mentioned available options. From the options available, selling BTC would be my last resort if other two options failed. Personally, I hate anything related to debt unless I have no other option. Hence, my first choice would be selling non essentials belongings. I will feel the pain of losing them but it's just one time and I will be debt free while my investment is still intact. Moreover, I can replace them in the future if situation changes for good. Bitcoin is the hardest asset to replace due to its price volatility.

It is better to sell your assets and save yourself from danger than to borrow money and save yourself from danger. But why is it better to save yourself from danger by borrowing money? When I go to borrow money from someone, if he lends me money, then I will have to be there for him and try to repay it whenever he wants. If I have a valuable Bitcoin investment without putting so much extra pressure on myself, then it would definitely be better to sell that investment and save yourself from danger and continue investing again later and complete that investment.