How to Build Emergency Fund During Crypto Dip Times

I always wanted to free myself by adding more income into the emergency fund. When you approach the investment like this you end up saving more.

Emergency fund does not mean saving some money for future. You have to approach this by systematic plan. You have to invest into variety of assets in order to build your emergency fund.

Like say your emergency fund currently involves around 100 dollar of investment per month. You can improve this by investment and have more cash in hand when you invest the right way.

Find out the Total Expenses for 1 Year

Let's say each month you have 1200 USD or so worth of expenses. Which includes everything like bills, internet, rent etc.

You have to multiple that with the 12 so that you can get the amount for the 1 year. This is one way you can make the total expense calculation.

You may notice that some months you spend more. You also spend less in some months like when there is lot of rain and the winter.

You have to calculate those months and the time where you will notice how the price for the stuff varies. You have to find those variations.

You can use the apps to calculate the expenses and then decide the monthly budget based on that.

Invest into Dividend Income

Best way to invest into the dividend income is through stocks and the mutual funds. This is something you can do properly if you learned how to invest into assets the right way.

For example there are some of the stocks that give you dividend twice a year and once a year. Invest in both of them and start collecting dividend to replace the investment and then get the abundance of the returns.

You can also invest by renting out your assets. This is another way of earning the dividend income too. I have seen that this is one of the way that has worked for others.

Invest into Stablecoins

Stablecoins are one of the ways you can do get the most out of your investments during the dip. Like you have emergency. You can withdraw that amount from the stablecoin.

So every quarter or year invest some money into the stablecoins and then get that invest rolling so that during the worst months you can have the funds back into the fiat. That's the way they do their job.

You can choose to convert into stablecoins before the market goes to dip. During the good market times they don;t have much gains unless you put them to some return giving saving plans of NEXO or the Celsius.

Buy Promising Coins during the Dip

You may notice that BCH plays really good during the dip and also it has not gone too down. So buying the BCH during this time is the best thing you can do.

Make sure to buy BCH and the SmartBCH this way you can invest into the FlexUSD type instrument and then earn something back in terms of the returns.

Apart from BCH ecosystem, you can buy the coins like BUSD, AVEX, SOL, DOT, and many others. Make sure to do your own research before buying anything.

What is promising and what is not is not so easy to find out but make sure that any blockchain you choose has a use case this way it holds the market price and also does not turn into exit scam.

Reduce Expenses, Increase Savings

Increase your savings as that is one of the ways you would not even need the emergency fund in the first place. This is one way you can plan emergency.

You can reduce expenses on the things that you don't need. Something like those SAAS packages and the plans that make you pay forever. You can avoid them.

These are just some of the tips that you can follow for building the emergency fund during the dip times.

What do you do for building emergency funds?

My plan may sound simple and steady but it does not have to be. You can be more aggressive with your approach on making the emergency build with the funds.

How do you choose to do the emergency funds? What are some of your strategies?

Do share :)