Emergency funds are money /spare cash kept aside from your income within 2-6 months for the unknown day to day activities ,it is important to us because during the time of uncertainty you fall back to it ,i will say,it is a personal insurance that prevents you from owing debts , when the need arises for you to use it, it's always there because there are alot of unforeseen and unexpected expenses that one would need to incure.
Emergency funds helps you be at alart at all times in terms of your expenses. In Bitcoin,it helps you invest more when not spent for emergencies it will make you hodl it for a long-term ,as the money keeps increasing. It helps you avoid high cost of loan, that's having financial control .
Topic: Emergency funds is vital. (Read 273 times)
As an investor, if you consider making provision for emergency funds, you see how smooth your accumulation journey would go especially if you're using the DCA strategy for accumulating more Bitcoin. Any emergency that pops up from no where you know you have the finance to settle it without disturbing your investment. One important thing we must understand is that, discipline is a characteristic that we must not joke with. The moment you start running back to your investment due to emergency issues, you're just admitting that your investment in is trouble.
Investing in Bitcoin fit give big returns, but e dey important make you dey wise with your money by also setting aside emergency funds. Emergency funds dey like backup wey fit help you cover unexpected expenses like medical wahala, car repairs, or if you lose your job.
Putting plenty money into assets wey fit shake anyhow like Bitcoin get risk. E good make you spread your investments across different things like stocks, bonds, properties, and cryptocurrency like Bitcoin to reduce risk and make better long-term gains. E good to put some money for Bitcoin as part of your overall investment plan, but make you balance am with more stable investments.
Putting plenty money into assets wey fit shake anyhow like Bitcoin get risk. E good make you spread your investments across different things like stocks, bonds, properties, and cryptocurrency like Bitcoin to reduce risk and make better long-term gains. E good to put some money for Bitcoin as part of your overall investment plan, but make you balance am with more stable investments.
Emergency fund is the most important thing an investor should bear in mind in what ever thing he does because without emergency fund it will definitely affect your bitcoin accumulation journey. Those who don't take it emergency fund serious always find it difficult to achieve their goal.
At first it is alway difficult to accumulate btc through DCA and also setting aside emergency fund but as time goes on, an investor who takes btc investment seriously will definitely know the power of emergency fund. Because it is the key to long term investment which without it an investor might never achieved his goal.
At first it is alway difficult to accumulate btc through DCA and also setting aside emergency fund but as time goes on, an investor who takes btc investment seriously will definitely know the power of emergency fund. Because it is the key to long term investment which without it an investor might never achieved his goal.
Whether you are investing or not,. An emergency fund should be a criteria for a secure life. No one knows what will happen tomorrow or when life events may choose to happen. When times like this come, your only recourse is your emergency funds. Unless you want to go around begging for money when such things happen,. Insurance is one way to secure emergencies. Having an insurance is just the same thing as having an emergency fund.
For sure emergency funds is one of the major factors to consider before venturing into any long term investment, it's mostly the most important factor that determines how much one could hold bitcoin or any other asset invested on.
if one lacks a considerable source of income at a point the emergency fund could hold one together for as long as he or she needs to get a job. here in Nigeria most of us usually get side hustle as our emergency funds or reserve fund to facilitate our daily needs and every unforseen circumstances.
if one lacks a considerable source of income at a point the emergency fund could hold one together for as long as he or she needs to get a job. here in Nigeria most of us usually get side hustle as our emergency funds or reserve fund to facilitate our daily needs and every unforseen circumstances.
For those who are new to this space emergency funds are funds set aside for the proverbial rainy day, intended to cover expected or unexpected costs that may pop up over time. Most time there's this urge for one to go all in (in investing in BTC) that is putting higher percentage of your funds or earnings in investing in order to yield good and massive profit leaving only small percentage that may not cover your expenses in a long run before receiving in yah earnings sources again.
You're correct on your definition of emergency fund but I also want to add that emergency fund is like an amount that should be set outside your budget Incase if there are things that would come up after you've made your budget already then you can use the emergency fund to settle it without having to touch your initial budget. When you use the word "all in" you are actually talking about Everything so during any investment, going all in isn't advisable as there is need to also have some reserved funds for miscellaneous while still carrying on with your investment strategy.
They Is a local slang which I'm sure we are all conversant with 'your savings would save your, but In term of holding bitcoin, we can't actually tell what would happen along the line that would want to make you sell your holdings, this is not about been discipline, cause if you has a serious health challenge you won't think twice about selling you holdings to save your life, do it is good we prepare for this kind of senerios that could happen.
This emergency fund is not a mere extra cash, its purpose is oy gor emergency and should be treated like wise, cause you don't want to spend your emergency funds then find yourself in a real emergency.
This emergency fund is not a mere extra cash, its purpose is oy gor emergency and should be treated like wise, cause you don't want to spend your emergency funds then find yourself in a real emergency.
What am trying to say is that if one don't have a good emergency funds (mostly this time around things aren't getting better nor cheaper) it would difficult for one to exercise a good long-term investment. Because being short of emergency funds may lead to one withdrawing their investment in a premature state when haven't yield any good profits yet) Inorder to cover some unexpected expenses.
I have been hearing from people that has more experience than me in my locality, and they always say "save money today so money will save you tomorrow" If you understand watin emergency funds be you go know aay emergency funds nah wetin person no go use joke in one sec, money wey go save you from trouble nai be watin them dey call emergency funds.Although say person no go fit save funds for emergencies wey em never chop belle full, that one show say before you go save money for emergency you go also chop belle full and you go also get better paying job, when you done set with all this things then you put Bitcoin investment next to your plans.
As we all know that as an investor that are planning to hold Bitcoin (for long-term investment ) as things is getting expensive nor easy day by day we will all need good emergency funds to sustain a good and healthy investment. In order to be among the testifies of the next bull run and more that are yet to come.
If you are investing, you shouldn’t invest all your money, you suppose get money for reserve. If you no get money for reserve, you will find it difficult to hold your bitcoin, you will end up selling your bitcoin and u go use the money dey solve any problem wey dey or to dey feed, last last you go don sell everything wey dey your wallet finish before bull run even start. so it’s just better if you wan invest and you wan hold am for long term, make sure say you get other sources of income wey you go dey use take care of yourself, and your mind no go even go your investment, but if you depend on only ur investment, and you no get any money outside your investment, then you know go fit hold anything. Maybe if you are collecting salary, and you do use like 40 percent of your salary to invest, and 60 percent to take care of yourself, you have to increase the amount which you are allocating to take care of yourself, and reduce the amount which you are using to invest. You can decide to use 20 percent of your salary to invest, and use 80 percent to take care of yourself. If you don’t do that, you will end up selling some part of your investment to take care of yourself.
I have been hearing from people that has more experience than me in my locality, and they always say "save money today so money will save you tomorrow" If you understand watin emergency funds be you go know aay emergency funds nah wetin person no go use joke in one sec, money wey go save you from trouble nai be watin them dey call emergency funds.
Although say person no go fit save funds for emergencies wey em never chop belle full, that one show say before you go save money for emergency you go also chop belle full and you go also get better paying job, when you done set with all this things then you put Bitcoin investment next to your plans.
Although say person no go fit save funds for emergencies wey em never chop belle full, that one show say before you go save money for emergency you go also chop belle full and you go also get better paying job, when you done set with all this things then you put Bitcoin investment next to your plans.
Exactly OP himself actually said, the bitcoin investment which I am sorry to say is out of reach of people feeding hand to mouth, but they can use it for transaction if it warrants the use of it. Now to those investors and f bitcoin I agree with OP That they should have emergency funds which many people have mistaken for normal money to spend but no it is different. For me you need to have three different portfolios which are investments portfolios, daily expenses funds and emergency funds.
The investment portfolio can be diversified into any investment you have knowledge about like bitcoin, real estate and other diversification strategies.
The daily expenses as we know are for daily spending and should be in the fiat currency because it is a little more easier. This are for groceries and some stuffs like that.
Emergency should also be different and also be in a stable currency other than bitcoin. This emergency funds are for things like health related issues
My percentage for this things are; 35% emergency funds, 35% daily expenses and related expenses and then 30% for investment. This will allow one to hold on to investments for a long term they want
What am trying to say is that if one don't have a good emergency funds (mostly this time around things aren't getting better nor cheaper) it would difficult for one to exercise a good long-term investment. Because being short of emergency funds may lead to one withdrawing their investment in a premature state when haven't yield any good profits yet) Inorder to cover some unexpected expenses.
I have been hearing from people that has more experience than me in my locality, and they always say "save money today so money will save you tomorrow" If you understand watin emergency funds be you go know aay emergency funds nah wetin person no go use joke in one sec, money wey go save you from trouble nai be watin them dey call emergency funds.Although say person no go fit save funds for emergencies wey em never chop belle full, that one show say before you go save money for emergency you go also chop belle full and you go also get better paying job, when you done set with all this things then you put Bitcoin investment next to your plans.
Any adult wey get responsibility suppose know say emergency fund de very important because sometimes unforseen expenses fit to arise wey person go need money to quickly solve di problem, example na health matter, di person or im family member fit to fall sick and im go need emergency money to buy drugs or hospital payment, e fit even be accident matter wey go need sharp sharp money to save life. So e de very important to use sense de do our DCA method to hodle Bitcoin, make budget for your income, comot money for basic expenses, comot di one for DCA and keep some percentage as emergency fund, if emergency no happen, carry di emergency fund over to di next month.
No let dem see you finish, so make you no put all your money for Bitcoin, you no de for competition with anybody, for dis life anything can happen at anytime so e de very important to hold some money for hand, Incase dem say e don happen, so you go fit answer your name.
No let dem see you finish, so make you no put all your money for Bitcoin, you no de for competition with anybody, for dis life anything can happen at anytime so e de very important to hold some money for hand, Incase dem say e don happen, so you go fit answer your name.
For those who are new to this space emergency funds are funds set aside for the proverbial rainy day, intended to cover expected or unexpected costs that may pop up over time. Most time there's this urge for one to go all in (in investing in BTC) that is putting higher percentage of your funds or earnings in investing in order to yield good and massive profit leaving only small percentage that may not cover your expenses in a long run before receiving in yah earnings sources again.
Op I love the way you defined the emergency fund, your definition is pure and easy to comprehend. I would also love to add that, your emergency fund should be able to cover up to 3 to 6 months of your monthly earning or expenses. Assuming you are earning $2000 a month, your complete emergency funds would be $12000. If your monthly expenses is $1200 then you have $800 for your Bitcoin investment and emergency fund, so you could decide to split it equally which would be $400 for Bitcoin investment while $400 for emergency fund. Based on the statistics, you would be able to complete your emergency fund in 30 months because 400x30= 12000 and that is 2years and 6 months. Maybe after you have successfully completed your emergency funds, you could become more aggressive in your Bitcoin accumulation by totaling your investment to be $800.
Note: emergency fund should be refilled after use so that the chain of smooth investment would keep on going without being compelled to withdraw your investment to solve further issues.
With the inflation in Nigeria, having an emergency fund alone will not guarantee that you will hold your bitcoin investment for the long term because the cost of living has increased. You also need a good and stable source of income that can take care of your daily expenses, and as you use 10% of your income to accumulate bitcoin with the DCA strategy, save an emergency fund that you will use to solve your unforeseen problems, and a reserve fund that you can use to solve the problems that the emergency fund cannot solve sometimes, so that you will not depend on your bitcoin investment to solve your financial problems.
You're right, one not having good sources of income when come to investing can be pain Inthe ass. Because in doing so your portfolio won't undergo any growth because he or she would keep on running to their investment to cover up some expenses or for survival. That why before thinking of investing you must have good sources because alot of people out there are wanting to invest on Bitcoin they couldn't due to their low financial stability (not having good sources of income) . So those that have the previlage to invest and still able to coverup some expenses when doing so without withdrawing or tempering with their investment should be grateful for that . Well having good sources is really helpful both in this space (cryptocurrency) or outside it inorder to secure a good portfolio for the next bull run, and more that is yet to come. 
As we all know that as an investor that are planning to hold Bitcoin (for long-term investment ) as things is getting expensive nor easy day by day we will all need good emergency funds to sustain a good and healthy investment. In order to be among the testifies of the next bull run and more that are yet to come.
For those who are new to this space emergency funds are funds set aside for the proverbial rainy day, intended to cover expected or unexpected costs that may pop up over time. Most time there's this urge for one to go all in (in investing in BTC) that is putting higher percentage of your funds or earnings in investing in order to yield good and massive profit leaving only small percentage that may not cover your expenses in a long run before receiving in yah earnings sources again.
What am trying to say is that if one don't have a good emergency funds (mostly this time around things aren't getting better nor cheaper) it would difficult for one to exercise a good long-term investment. Because being short of emergency funds may lead to one withdrawing their investment in a premature state when haven't yield any good profits yet) Inorder to cover some unexpected expenses.
So all you got to do is to increase your emergency funds percentage to be able to keep up with your expenses, so that you won't endup running to withdraw your investment. Because it can't be tempting most time to withdraw your investment just to cover some expenses mostly when it come to desperate measure. So is better to increase emergency funds than to keep on running to your investment, so that you can be able to secure a nice and healthy investing during your accumulation of bitcoin.
Are you saying we should decreasing the percentage of our weekly DCA investment funds, in order for us to increase our investment funds? I will also have to let you know that our emergency funds is not something we run to everytime. We can only make use of our emergency funds when the money in our savings account that is ment for daily up keep has depleted and no other funds are coming in for that period. When you remove your percentage for investment, you still have to make provision for your savings account and emergency funds. Emergency funds is like our last option when there is no where to turn to. But nevertheless we should try to balance out investment and daily lifestyle so that none will suffer. In as much as we need to invest, we also have to survive. And we can't survive today and forget tomorrow, that's why we also need to invest for the future. For those who are new to this space emergency funds are funds set aside for the proverbial rainy day, intended to cover expected or unexpected costs that may pop up over time. Most time there's this urge for one to go all in (in investing in BTC) that is putting higher percentage of your funds or earnings in investing in order to yield good and massive profit leaving only small percentage that may not cover your expenses in a long run before receiving in yah earnings sources again.
What am trying to say is that if one don't have a good emergency funds (mostly this time around things aren't getting better nor cheaper) it would difficult for one to exercise a good long-term investment. Because being short of emergency funds may lead to one withdrawing their investment in a premature state when haven't yield any good profits yet) Inorder to cover some unexpected expenses.
So all you got to do is to increase your emergency funds percentage to be able to keep up with your expenses, so that you won't endup running to withdraw your investment. Because it can't be tempting most time to withdraw your investment just to cover some expenses mostly when it come to desperate measure. So is better to increase emergency funds than to keep on running to your investment, so that you can be able to secure a nice and healthy investing during your accumulation of bitcoin.
Emergency funds is needed when investing especially for an long term investment (bitcoin), when talking about emergency funds we should also know most people prefer to invest with every little money met for needs etc all with the idea of seeking for fast profit. This can easily fall an investment without reaching the target, even wealthy investors still preserve their funds for some certain reasons maybe for emergency so what's with this thought of not preserving little money. The advice on emergency funds should also go for doubling hustle as most people dey lack the money to invest so any little money wey come them go think to use all without a plan.
With the inflation in Nigeria, having an emergency fund alone will not guarantee that you will hold your bitcoin investment for the long term because the cost of living has increased. You also need a good and stable source of income that can take care of your daily expenses, and as you use 10% of your income to accumulate bitcoin with the DCA strategy, save an emergency fund that you will use to solve your unforeseen problems, and a reserve fund that you can use to solve the problems that the emergency fund cannot solve sometimes, so that you will not depend on your bitcoin investment to solve your financial problems.
We can still see from your points that keeping emergency funds is vital not just alone because of hoping to invest into Bitcoin but also on a normal basics of life, since we happen to experience unforseen circumstances.
When you speak about emergency funds, do you just mean funds stored up for consumption alone?, or do you mean another source of income that yields consistently to sort your daily needs?
Emergency funds are what is being kept aside for unforseen circumstances, maybe fortunate reason or some times unfortunate like health issues. 
When you speak about emergency funds, do you just mean funds stored up for consumption alone?, or do you mean another source of income that yields consistently to sort your daily needs?.
Practically, if you do not have another hustle like a business or a steady job that gives you renumeration at good intervals, you cannot invest for a long term. You should try to get one or more to suit your needs before venturing into investment. You do not invest on empty belly, lest you consume your investment before maturity. As I mentioned in my Post here, You need to take advantage of the situation of the country to find other sources of making more money or Increasing your finances in your present business to be able to meet up with the demands. That way, your investment is safe, and you can gradually increase your portfolio.
Practically, if you do not have another hustle like a business or a steady job that gives you renumeration at good intervals, you cannot invest for a long term. You should try to get one or more to suit your needs before venturing into investment. You do not invest on empty belly, lest you consume your investment before maturity. As I mentioned in my Post here, You need to take advantage of the situation of the country to find other sources of making more money or Increasing your finances in your present business to be able to meet up with the demands. That way, your investment is safe, and you can gradually increase your portfolio.
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