Topic: Bitcoin reserved funds are not meant for fun spending - page 2. (Read 375 times)

Literally, a good investor that doesn't want any form of distraction during their accumulating stages makes plans for reserved funds and emergency funds because that is what will make them not to touch the money they have accumulated for their investments. There is a thread where discussions about having reserved and emergency funds is necessary and you can find the thread here Buy Bitcoin, and HODL! so if you want more understanding you can join the discussions going on there.

You will have a broad knowledge about investment in that thread by JayJuanGee, he's well knowledgeable and can guide you on how to go about in your investment in Bitcoin particularly.

Reserved and emergency to me are the same thing since the money is kept for an unforeseen circumstance that may occur in the future. Whether it’s called emergency funds or it’s called reserved funds, they’re use to tackle the same problem. It is necessary as an investor of bitcoin to have enough reserved funds because bitcoin is a long time investment and it is not something that can easily be cashed out from without waiting. In those periods of waiting, you’ll definitely witness important cases that needs money to be resolved, if they happen like that, you can run back to your investment to take the money back from there that you’ve already invested. It’ll make your plan to be destabilized and you won’t achieve your target of accumulation at the time you want to stop buying and start holding.

As an intending or existing investor in Bitcoin, it is very important to have a reserve fund, op you made a very good point, some investors feel that once they invest, there is nothing else to bother about anymore but the truth remains that needs must arise as days go by, this the reason I always stress the need for us to be prepared before investing, reserve funds simply means don't give your all, don't invest everything you have, make sure you have what you can fallback to, investment is nice but it doesn't mean that you should be hungry because you have an investment somewhere that's a no no for me, an investor should be able to lay hands somewhere if anything happens in the process not thinking of how to sell off or tamper some of the existing asset to solve the  problem.

Every investment has duration for its profit to be tapped, once an investor stops half way before time, such investor may  be tagged premature seller or shorterm investor, as a matter of urgency it will be nice if Bitcoin investors take this particular investment plan serious to enable them achieve the longterm goal which is the major reason for bitcoin investment.

We no suppose dey invest everything wey dey our pocket because e no make sense, we suppose dey get reserved wey we go dey use hold body make food no go finish for house. If you no get some reverse you no go fit hodl self because how you go get money for your wallet yet you no fit chop and you think say you go get peace of mind dey hodl Bitcoin. There are only one way to this, you have to invest only wetin you fit afford say you fit lose am (that's you need get chopping money as you dey invest inside Bitcoin). The reserve money needs dey before you invest self and no be say after you dun invest finish before you start to dey find reverse.


If we dey plan ourselves well we no go dey get all this problem. Spending money supposed dey budgeted for already, same as saving money and other basic things wey we go need like if you get car and you wan put down maintenance money. Emergency money supposed be for emergency and not use for something different. The only time wey I go fit say money meant for something else can be touched na if na life and death situation wey be say you go replace the money immediately e dey available (after you dun use am).

@Fiasem20, you don talk better thing, omo saving they save life oh, you no go get moni for saving come they borrow money from friends wen e red na. We save so that e go save us tomorrow,  but person need dey mindful on how e spend moni so u nor go dey touch ur savings. But incase of emergency you no get any option than to use it to dae life first. Bcos if you die, na another person go chop ur money oh.

E good to reserved funds for raining day shall, so wen u getoney money buy more BTC and hold.

Whether reserved fund or emergency fund,the thing be say if you be beginners or not e good make you set aside fund wey you dey use hold your side in other not to tamper your portfolio.Nai make in most cases dem prefer emergency funds,so dat incase of emergency cases like hospital bills, car repair and many more,nai make emergency fund na really the backbone of an investor wey dey invest in Bitcoin.You fit mistake reserved funds for emergency fund or call dem the same things but the thing be say na two different things dem be.Reserved funds na moni wey dey for your savings account while emergency funds na fund wey you suppose get incase of there is an emergency when you dey invest in Bitcoin.

I disagree with you bro on the bolded statement above. How will you depend on people to live and you are investing in bitcoin. Human beings will disappoint you at the very time that you need their help, and moreover nobody is planning you in their budget. I guess that you don't have a family and that is why you are saying that. If you have people that are your responsibility to take care of, you will understand that financial management is very important in life.

Please don't mislead newbies here in the forum because I know that the OGs already have bitcoin investment and they know the best way that they are using to cope without selling their bitcoin when it is not of their will. If you don't have the money to buy bitcoin and having emergency funds as back up in order to safeguard you from selling your bitcoin at loss when an emergency arises, there are newbies who are rich and will love to invest in bitcoin in long term and they need proper guidance on how to go about their bitcoin investment so that they don't face challenges that will make them not achieve their goal.

For a new beginner to invest in bitcoin, you shoukd have it in mind that you should make provisions for an emergency funds that you will use to solve emergencies when they arise so that you will not sell your bitcoin investment. This means that don't use an amount that you will not be able to forget about to buy bitcoin, only use that amount that you will not need in a long period of time to buy bitcoin from your savings regularly every month and gradually you are building your bitcoin portfolio.

I've been hearing about this reserved fund for a while now and I quite understand what it's all about but from what I understand, I'm finding it difficult to understand as you separated reserved fun from emergency fund, I always thought the both are thesame and here are my reasons. The definition of emergency funds also meet that of reserved fund, and come to think of it, as bitcoiners, what the essence of having two separate saving out your Bitcoin investment. Actually I would prefer using all the money for reserved to invest in Bitcoin while I still have an emergency fund to back me up should in case of emergency, if there is any reason to buy anything I've been anticipating for a while, then I'll just have to withdraw from my bitcoin and buy, after the fund might even gain value over that period of time.

Citing from your first line of statement OP,  in the accumulation journey, you are advised to have an emergency fund backup for your pressing needs and use your spare funds, more like find you're not going to need in a long time for your bitcoin accumulation.

You are not advised to tamper with your portfolio until its 4 - 10 years or even more, so that your investment would be profitable and you can spend wisely from it. If you don't have an emergency fund, or a good side hustle that can sort your need, there no need accumulating bitcoin.

Bitcoin is volatile and at the time you want to cash in your investments, it might be a bear market and you'll be cashing out on a loss which defeats the intent of investing in the first place

From my own point of view I no see anything different from the reserve fund you talk of and the normal emergency funds wey people don extensively exhaust with discussion for speculation board. The ideas, approach and usage of both reserve and emergency funds dey similar if not even the same sef. Moreover, taking one time out of life to use jollof no go end for person life because we wan invest and also get reserve. As you dey invest also the get time to chop life small small.

Everything depend on the individual and as far as I am concerned, majority of us do not belong to the category that will have enough funds to finance bitcoin accumulation such as through the DCA, set aside money for basic needs, emergency funds and still keep reserve funds. If we are propounding theories, we must consider the viability of such theories else we will make buying and holding bitcoin so complicated that starters might consider not getting started at all. If you have money to buy bitcoin and still have some to use and eat and take care of your needs with small change to support you when things not plan happens, you are good to start investing. As a Nigerian even if you have money to buy bitcoin and meet your basic needs and have people that you can call to rogger you small thing later you balance them up, you still dey ok to build your portfolio. You don't have to keep emergency plus reserved funds before you go run the matter.

Op I really don't see the difference between hodling and keeping reserve funds. Hodling in the first place simply means owning some Bitcoins and keeping them from spending them. In that case you are simply making a Bitcoin investment for different reasons like battling inflation and most especially to make profit. If not for the fact that hodling is in Bitcoins mainly, it's same as keeping some reserve funds.
Op the backbone per say of an investors investment is the capital and the profit it attracts. Saving in fiat is not wrong rather it is less profitable based on the fact that it's value falls each day because of inflation. Although Bitcoin too is a volatile asset, people overtime have come to accept it as the best crypto investment mainly because of its breakthrough over the years.

Make a budget and add an expenditure for emergencies and unplanned events so that you will not be under pressure when an unexpected event pops up. if you plan to accumulate bitcoin Budget, there are many unexpected events that could occur and prompt some kind of unplanned expenditure, you have to ready.

Having some of your income budgeted for unplanned expenses, is a safe way to make plans for the unexpected.

You are misunderstanding the difference between emergency funds and reserve funds. It is emergency funds that is very important when you are investing in bitcoin and plan to hodli for a very long time. Like you said it is emergency funds that is the back bone and should be your priority when investing.

Reserve funds is the back up to your emergency funds, and that is used to buy bitcoin when there is a dip, repairing of your car or buying a new one. Going on vacation and also going to eat in an expensive restaurant. While the emergency funds is only use when a real emergency occurs that if it is not taken care of it will lead to more destruction. Like when a storm pull off your house roof, when you lose your job, this is when your emergency funds will be spent.

Bitcoin investment no mean say person no go plan to enjoy himself, afterall di main reason wey we de take do investment na to enjoy a better life for future. Di solution to not spending money anyhow na to get budget for your income, you need to get plans for every expenses wey you go make so dat distractions no go enter, anything wey no de for di budget no go follow for expenditures. So person fit to make budget once in a while for fun and enjoyment because all work and no play no good for mental well-being.

Competition no de for Bitcoin investment, person go accumulate and hodl as im power reach from di budget wey im map out for investment. Di most important thing na to comot money for di basic needs of di month, save some money for miscellaneous and emergency expenses, den comot money for your Bitcoin DCA method. Once in a while if no emergency expenses happen, then e good to take di money to entertain yourself, afterall na you work for am.

In the process of our Bitcoin accumulation, it is beneficially necessary we keep aside reserve funds. Reserved funds are money kept aside for future purposes and these incidents are likely anticipated, it is slightly distincts from emergency funds.

Most investors now successfully keep aside their reserve funds but in a way are spending from it for the wrong reasons. These funds are the primary backbone of an investor and should be carefully spent, if wastefully spent then comes the need for financial involvement whereas if there is nothing left in the reserve funds balance then the investor will be left with no option than to terminate part of his portfolio which is a wrong practice for a good investor.

Our reasons as to spending from reserved funds shouldn't be for fun or enjoyment purposes so when a more pressing financial need strikes we should be able to afford it and not cater on how to raise such an amount of money.