Emergency funds are very important in investment and if you are planning to invest for a long time you must plan your investments with it because people do the mistake of investing all the money that they have and immediately emergency comes up they will be forced to sell the portfolio just to get things done because they did not plan for unforeseen circumstances.
In crypto where sometimes after we invest in a project we might be at a loss because the market is down and selling our assets at that time is not a good idea but because it emergency we must sell just to attain it because most times they are things we can’t attain to latter. Some people prefer to invest their emergency funds to get more money.
Some people buy gold or a house so that they won’t spend the money but depend on emergencies we are expecting and some save up for emergency things like light bills, groceries, and so on just to meet their monthly needs.
Many people choose to add their emergency funds to their investments and in the process of trying to attend to emergencies, we spend more because of emotion.
We must never believe that an emergency cannot show up at any time, we must always set aside some funds to tackle emergencies, whether short emergencies like rent, water, and light bill. Or maybe a long-time emergency like planning to leave the country etc we must be prepared. Investing all our money without setting aside some funds can jeopardize our investment.
Thanks for your time.
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This is absolutely true, emergency fund prepares us for unknown situations. This is One thing I've always done, if not for the emergency fund I had in 2021, probably I might be broke to even do anything, it preserved me from so many unnecessary selling.
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Exactly, help us to avoid unnecessary spending
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Emergency funds are very important. I had my main laptop break down a few months ago and I had to buy a new laptop plus pay for data recovery. It was expensive but I didn't have to modify my planned expenses due to my emergency fund.
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Emergency funds makes everything easier
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As much as we don't know when that emergency will show up, it is better to be prepared and put money aside for those days with discipline needs to be cultivated. Something I need to work on.
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Emergency funds really helps a lot and this should be taken serious for future purposes.
Planning ahead is one of the most important aspect of having emergency funds to maintain or solve unexpected bills.
Yes, it's very true that we must set aside for emergencies before we invest money. If we don't have savings for emergencies our investment will suffer.
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It's always good to have something aside, that's why I'm not all in crypto yet.