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I reluctantly followed the counsel of a financial advisor to fix my finances in order by creating a budget and tracking my expenses, inflow and outflow of cash using an excel sheet. The economy has been crazy in my country so I needed to do something urgently. My greatest realization after this is that inflation all round is destroying my budget. It's been  five months now. I am torn between using my emergency funds or selling some of my assets to cushion the effect of this economic situation. What do you suggest I do?

Are you holding fiat? Do you not know that if you are holding fiat, it is like your government are scamming you, although it is not a scam, but it is a means to lose money as your fiat money lose value and unable to buy what you can use it to buy before.

Likely you have your emergency money in your local fiat too. You said emergency, which means it should be used for inconveniences time and for emergencies. You supposed to use your emergency money, not that you should sell you property that may increase in value, although I am just saying that because some properties like land, metals, jewelries and many others like that  can increase in value.

It is better not to hold money in your local currency, bitcoin is still not that high, you can buy it instead. Ones the price is high very well and you have gained, you can convert some to dollar or other good foreign currency which are better than many fiat from countries like Venezuela, Lebanon, Sudan, Argentina, Zimbabwe, Turkey and many other countries.

You are in a difficult situation, selling your assets during a difficult period of time is exactly what everyone which is facing major problems does, meaning that if you do so now then you will have to sell your assets for a discount, and when we add the high inflation on top of that your losses will be even bigger, if I were you I would try to solve my problems without relying on either of those two options and find a way to reduce my expenses even further, but if I had no choice I would use my emergency fund first, I will keep holding my assets and I would only sell them as a last resort.

Yeah, what is that saying?  Inflation is theft, taxation is robbery?  Can't remember if it's vice versa or not, but to your point I absolutely agree that holding cash for a significant length of time (and the "significant" part depends on the inflation rate) you're just letting inflation pick your pocket.

OP, I don't know what country you're in or what the inflation rate is or what assets you hold or, most importantly, what your specific financial situation looks like, but if you need emergency cash in order to live and you're not making enough money to pay your bills, that's what your emergency fund is for.  That's my opinion and others might disagree, but selling assets can be a taxable event in addition to you losing whatever potential profit you could make from holding them.  I assume your emergency fund isn't earning enough interest to beat inflation, so that would be my first choice to tap into.

And inflation is hitting us all pretty hard, no matter what country you're in.  Unfortunately, it seems like a lot of governments have adopted the same idiotic monetary policies and are digging the world economy into the same hole.  Best of luck to you, OP.

Just like the word emergency implies I'll suggest you use the emergency funds as that was what the funds were meant for to fall back on as financial assistance should you face some uncertainty. Good a thing you had the wisdom of making savings for emergency issues and now is the time to make that wisdom pay off by using it now that the need has arise.

The economic situations is bewildering in every nooks and crannies of the world and no entity for sure knows when all these hardship will be ameliorated so selling your assets in a hurry would be a wrong approach to take on, instead make use of your emergency funds. Assets are value affiliated and they could fill in as security for you in the future based on their incremental value especially if these assets are tangible assets. 

If you make the mistake of selling one or more of your assets today to solve financial burden there's a probability another financial challenges may arise and you keep selling your assets till when?

You are quite an old member of this forum, like from 2013 and i assume you understand the finance sector and trying to make a better life for yourself. I am not judging you actually i went to see from which country you are but i found no post of yours in any of the local boards so i have to assume from which types of inflation you are passing. So i will assume it as global inflation.

Well, if the standards of the country are high and inflation hits it, it will become hard for an ordinary person to live there. as poverty is of two types, Absolute and Relative poverty, and in developed countries most poor are faced with Relative poverty and the opposite in developing countries. To face inflation, the usage of the budget in investment is necessary.

I say you should use some funds to meet your living expenses which are most necessary (Absolute poverty) if you want to compete with others in Fashion, culture, etc. (Relative poverty) then you should avoid the usage of your savings whether they are in fiat or in BTC. It depends on the intensity of the situation, if you are like in less trouble then i hope it might pass. But do not hesitate to make a better living and avoid dying in pain while you can live a better life by using that money in savings.

If your emergency fund is enough to take care of your expenses for 6 months then it's a good choice to hold on to to it and spend it carefully, while looking for other opportunities to argument your budget. Selling your assets isn't advisable yet. Unless you'll invest the money into a more profitable business that can change your financial status, no need giving out the asset for fiat that'll get to finish and you'll be left with nothing. You can hire the asset out, and make money from it, as it seems the asset is not yielding you enough money.

What I deduce from your narration before giving you my suggestion is that you have an income problem. Perhaps you should consider finding a better job or doubling your hustle. I've always advocated for more income streams no matter how much you are earning, this is unless you don't have time with your current job. And if that is the case, then you should know you are in the wrong job.

A good job should measure up in terms of earnings with the time and energy invested in it and also give you a little time to do extracurricular. If yours isn't, then it's time to say goodbye and find another adventure in your life.

What do you think the reason you create emergency funds? it's used when you in a bad financial and anything that you must to spend your money for your important needs. If you already don't have any money including your emergency funds, the last way is sell your assets or ask a loan without need to pay the interest e.g. with your friend, boss, family etc.

However I prefer to not have any emergency funds and just invest all to few commodities, if someday I need money ASAP, I can just sell my Bitcoin and withdraw it from bank ATM.

Don't you have cash flow like coming from active and passive income and you can just opt to keep all of it? But I guess you're in a very dire situation and you've got no option so you're opting to choose any of it. I think if you're in this situation and your assets have grown over time, it's best time for you to benefit from it and that's your choice to make. By the way, what's the purpose of you're in need of money? Is it that you're gonna need to spend a huge amount or you just want to have something in your hand for spending purposes like your daily stuff and monthly obligations? We need more info about that because if it's all about the economic situation deteriorating, you know what's best for yourself because you're the one in need and experiencing it and you know better based on the situation that you're dealing with.

What your advisor suggests is a good first step to collect and analyze your financial situation. Unfortunately, with the limited information you provide, such as, how your current exact cash flow looks like, the inflation rate, what your current urgent needs are, how many emergency funds you have, and what kind of assets, is hard to be carefully considered. Incomplete information might give someone bad advice.

One suggestion that I have for you is to contact again your former advisor, either asking for suggestions or consulting your current condition. It seems the only safe option, considering you have something to do urgently, unless you might want to give further information, but it could also potentially reduce your privacy.

You just said you are having emergency fun, then why do you have to sell your assets when you are having emergency fund. If you can sell your assets then your emergency fund is not serving its purpose. Since you are having emergency funds then i will recommend you make use of it, that's why its called emergency fund, you finished your emergency fund and you haven't balanced yet then you can start selling your assets to sustain yourself. It wont make sense that you are having emergency funds but you are not touching it when you are financially down, the purpose of emergency fund is for you to have something to fall back to when you are financially down.

It is actually preferable to invest emergency funds in assets that have stores of value so that inflation doesn’t affect their value. But I would advice him to invest everything into bitcoin Atleast he needs to hold some assets or fiat time to time. Because if at every moment of emergency you turn towards the assets like bitcoin which is volatile then due to the situation of emergency you might be selling at a way lower price than it should be. Imagine having bought bitcoin at $30k and when emergency arises the price then is below $20k then you might be selling way too low. But with other assets at hand you can actually sell those that aren’t going to cause loss. So in all honesty even if we want all our funds in bitcoin just to get away from devaluation we need to hold some fiat too but certainly not for way too long

You may use emergency funds now but what's going to happen next? The inflation in your country is probably not going to slow down and you'll still face the same problem so how about finding ways to increase the source of your cash inflow? You can sell some of your assets if you have the intention to roll it over. You can also have extra jobs that would only take 2-3 hours.

If he's not from high inflation countries like Venezuela, Türkiye... the emergency fund is fiat, what's wrong? You need to differentiate between an emergency fund and an investment fund, what happens when you have an emergency fund in bitcoin and when it is at $69k, and now you need to use them? Bitcoin is not suitable for use as an emergency fund because of its volatility, I recommend using local currency or USD as savings, not bitcoin.

OP, this is considered an emergency for you, and it is perfectly appropriate to use an emergency fund instead of selling another asset.

Inflation only affects me when I am holding fiat in my bank account, no Fiat, no inflation problem I believe, but I understand that we are not from the same country, but why is the emergency funds for if not for periods like this?

If your emergency funds are enough to solve all these problems you are facing well I am glad that you plan to store some funds for emergencies because if not, selling your crypto assets will be the only option left right now, this is why emergency funds are important.

Only you knows what will be best for you, but I see no reason to sell your assets to battle inflation when you already have emergency funds saved somewhere,  if you sell your asset to fix the problem, where is money going to come from in the future?

Considering the impact of inflation on your budget, it might be worth considering a combination of strategies. First, re-assess your budget and see if there are any areas where you can make adjustments or cut back on expenses. Next, evaluate your assets and determine if selling some of them would provide immediate relief without jeopardizing your long-term financial goals. And finally, if the situation is urgent and you have emergency funds specifically for unexpected situations, it might be worth using them temporarily.

I don't want to give financial advice, so I'll just share my reasoning for what I would do in that situation. To me, emergency funds exist for an emergency, and struggling to stay within my monthly budget because of the inflation is not an emergency. So I would sell a small amount of the assets as a temporary measure, but the goal is still to ensure that the earnings cover the monthly expenses, so neither emergency funds not selling some assets would count to me as a good solution. If there isn't enough in earnings, I'd consider looking for another job or just doing something in addition to what I already do. I would also consider if there are areas where it's easy to cut spending and do that.

Emergency funds are those that would keep you afloat during a crisis period. Use them cautiously. On the other hand the inflation may not end so easily so you might have to do both of selling assets and using the funds. You might be a better judge of the situation yourself but talking to your local community members might do you good, after all most of us come from a similar society structure and with similar income tabs.

We can only hold it out and cope with the increasing cost of stuff. Cut down on things that you don't need, though I guess you already did some of that.

The simple suggestion is don't sell your assets, make use of your emergency fund. It is called emergency because of some reason and that is what it is for. Your assets depend on what it is, if land or physical properties it should appreciate high with the inflation, land is not affected by inflation depending if not in swamp area or flooding area. If you are having asset in cryptocurrency be patient for the halving next year but fiat is going to be taken out by inflation you can use it as emergency fund also for your resolving of your emergency problem. Inflation in every country and affect average people more than rich people.

What is your purpose in creating an emergency fund, and why would you hesitate to use your emergency fund when you need it? I guess you're worried about what will happen if it's used up, right? That is very easy to solve, you should use it to solve immediate problems and then quickly find other sources of income to rebuild a new emergency fund. Remember that they are made for emergency use and that their use is entirely justified. Property should not be sold during this time because everything is seriously depreciating due to inflation, and should only be sold when we have no other solution.

It is very unfortunate Snr. Member mvdheuvel1983 that you are undergoing this hard time. Emergency funds could be your living expenses for three or six months. Selling of assets will be considered after your emergency funds have started running out and you have no option. Emergency funds are not investments, they are to be spent.  But if you have less than one month of emergency funds, you should start considering disposing of your assets.

Keeping emergency funds in bitcoin can be a good option because Bitcoin can be easily sold and it is a hedge against inflation. I know it has its own risk attached to it but keeping money in fiat is a disaster in my location. Inflation will make it worthless. These days bank fixed deposits are becoming obsolete especially among the youth because they prefer to keep it in cryptocurrencies.

Talking about limited economic conditions is indeed a difficult position. If you face this situation, you must be very confused between holding assets to keep thinking about the long term, but on the other hand, the limited budget that you have requires a bigger injection in order to survive amid soaring inflation. Try to cut down on unnecessary purchases so you only focus on the things that really matter. So you have time to think about and manage the emergency fund. Selling some assets might also be a solution because I don't know how much it costs to live per day where you live. Whatever decision you make and think is much better for survival, then that's the answer.

Isn't what makes you collect an emergency fund to deal with things like what you are experiencing right now? So I think it's in situations like that that emergency funds are needed to be used. But I don't know what kind of situation you are currently experiencing. But if inflation is really bad there. Then avoid holding the fiat for a long period of time is the best. if you have savings in fiat. then divert your fiat into assets that are less affected by inflation. or you can invest in things that have the potential to grow your financial future.

For what are you going to use the funds? If it's for something important, then you can use the emergency funds. Emergency funds are there for that purpose. But if you're quite reluctant to use that, if you think that you have other small value assets you can sell, then you can use that. But if it's something like land, properties, or something with great value over time, don't sell it.
Monitoring your budget and the inflow and outflow of your funds is great. If the inflation is affecting your budget and expenses, maybe try making changes on your budget, or sometimes others do is to find a cheaper alternatives just to fit the budget they have.

Then what is the use of an emergency fund if you have to sell assets that are stored neatly in your wallet. The function of an emergency fund is to deal with economic problems that come to you, a sudden urgency can be overcome with an emergency fund.
Assets can only be sold when they reach the target you want, there is no reason to sell assets to overcome the financial problems you are facing. Take an emergency fund and save your assets, when the time is right (get profit from selling assets) it can cover the emergency funds you have spent.

If you have an emergency funds why not use them than altering your investment between where do you hold your emergency fund?
usdt, fiat or bitcoin?
As a bitcoiner it's always advisable to have an emergency fund kept safe maybe whenever your investment didn't go as planned you could used those savings or emergency fund to start sustaining on, and also try not to saving your emergency fund in fiat rather store them in usdt or usd. Just as I does, NGN kept losing in value while Dollar appreciates whenever you are converting to fiat there is every possibility to have much in fiat.

Your first course of action should be identifying where you are spending beyond your means, if you are slowly chipping away at your assets. If you have a mortgage that is constantly going up due to rate rises and you cannot afford it on your salary, you need to seriously consider selling your property and downsizing - the alternative is trying to brave it out for another year in the hope of a payrise or rates coming back down. An emergency funds in intended for just that purpose, like if a big item such as a fridge or car was to break down and you need a replacement. It may be better to sell other assets but you need to rebalance your budget or it will only be a short term fix to the longer term problem.

It's actually a tax on those who hold money, especially the middle class. Rich guys have investment portfolios, hold gold. The poor spend everything they get every month, so they aren't affected that much, but the middle class, the people who have some savings, but not enough to have a stock portfolio or a number of real estate properties, have to pay the tax.


Inflation is just another form of taxation. Diluting the money supply makes everyone who holds it lose and makes all other assets gain value against the currency.

I'd use my emergency funds if I were you, but don't go to 0. When you're down to whatever you earn in a month, it should be a sign that you're getting into dangerous territory and better start looking for another job, or a property to sell. Maybe you have a spare room at home? Maybe you have 2 cars and could manage with 1?

If you think saving fiat is not the best because of bad economy, I think it will better if you invest the money into something that is valuable  than saving it as fiat that will constantly lose value.  The time we are right now, most economy are struggling and fiat is also struggling with its own value. Think of what you know you can do better that will help the savings in your hand not to be waste, with how things are going right now I don't think the economy will be better anytime soon so I don't think their is any need of saving fiat because it will keep losing value.

Their  are lots of investment, make research's and invest with the amount you can afford to lose , it can also not be crypto you need to invest on but something that is valuable and that you think you can also manage the risk. Since when  the economy have been this way I made a decision not to save any money as fiat because do that is a waste which my savings won't have value because of the serious inflation in the market. Savings in fiat is a wrong decision for this bad economy.

Budget planning is not a simple procedure. Sometimes it is the use of emergency funds that can make a big difference. Of course, you must calculate exactly how to use these funds, otherwise you can make the situation much worse. However, you can hire a good risk manager.

It depends but most likely selling the assets seems the right choice to me cause this inflation is not going to stable in the short term so you need to make changes to avoid the difficulty on your monthly economic expenses.

First of all you don't keep too much money as emergency funds especially when the economy is under crisis due to inflation, so better keep them in gold so you can liquidate whenever you want. Then about the assets, it should be generating revenue for you not just simply stable and you can get returns only if you sell them.

Better the emergency funds in place of your asset, You already know that your crypto asset especially btc holds a  very high value over any fiat currency. Despite the volatility of btc price it is much reliable in terms of keeping the value more than any fiat would. And in the absence of emergency funds,  you can always exchange a tiny part of your asset and receive more funds. So in my opinion, you should use the emergency funds and preserve your asset.

As a financial advisor my first recommendation is not to not take advice from those whom aren’t themselves licensed financial advisors. I’m not saying there aren’t people out there, or even in this thread that don’t have good advice to give, but you just don’t know if they actually know what they are talking about and so that’s a scary proposition to trust just anyone.

I often hear from my clients “my coworker said I should do this” and I can tell you that 99% of the time that advice given is awful and incorrect.

No one here can give you a truly good answer unless we knew your entire financial situation. Without knowing that, giving advice would come from an incomplete space.

I often offer to help people on here (for free), so if you’d like some help, feel free to DM me.

Cheers

Fighting inflation? Then if i do have that money or fund then it would definitely be putting up those money into several investment, doesnt matter on where you would be putting it as long it would really be giving out

that chance for you to make profits which would really be able to patch up that inevitable inflation effect. Once you do reach out this certain state on where you are already making profits then for sure you wouldnt really be able to felt out that effect. This is why if you do have that current income or inflow of money then try out to double it as best as you can. This might sounds easy but its not something that would anyone could
be able to pull on. This is why challenge yourself on creating more income source so that you would be able to survive and you arent alone that experiencing this stuff.

There's no need to sell or using up your emergency funds because as long you do still have the money to roll on then you should be wise on what you should gonna do.

Actually, dealing with inflation which causes the economy in your country to be unstable is very easy, because you have an emergency fund and several assets. You have an emergency fund why don't you use it as best you can, isn't it the emergency fund that you have prepared to deal with an economic situation like this. This is where the role of an emergency fund is because it can be a solution to address urgent needs in situations like this. In the midst of a surge in inflation and the threat of an even world economic recession that overshadowed the global capital market, not only in your country this can also happen in my country.

Assets should not be sold in conditions like this, if you are afraid that the emergency fund will not meet your needs for 6 months, it is better for you to take the initiative to find a side job to cover your shortfall. Because selling assets is not the best solution in the midst of inflation, inflation can actually reduce the real value of money, for that you have to hold on to the assets you have. Moreover, the asset that you have is bitcoin, this is good and gives you a return that is greater than the inflation rate.

What are you actually setting up an emergency fund for? I think your current condition is the best moment to use it than you sell the assets you currently have, always use an emergency fund according to what you initially planned,
but if you have prepared it from the start for things like illness or death, then just use half of it, not all of it because no one knows human age.

Or evaluate the assets that he has, because there are some assets that you don't need like it is just incurring expenses for you.
So if you have assets that you think you can sell, and won't hurt any of your financial plans, then better discard it.
It is you alone who can determine how valuable is your asset for you, so at the end of the day, you can decide this for yourself.
Either way, at least you have your back-up source of funds in case you badly need it. It is always best to have something valuable that you can rely on in times of need.

I mean. If you still have emergency funds then might as well. That's what it's used for anyway. I would see selling of assets as a last resort especially if you're in no position to let go of these stuff, like a car or a house for example, if let's say you need those to get by and help with what's powering your finances like work or business. Use your emergency funds first before selling your assets. that's basically it.

But if you still could weather the effects of inflation in your country, I'd highly suggest you wing it for the meantime. It's a little drastic to use your emergency funds for expenses when you still could manage your finances and budgeting albeit a little harder than what you're used to. If you could still stand to carry on with this current setup, withhold from spending your emergency funds or selling your assets just so you could live comfortably. If thing go sour then use emergency funds, if those dry up then sell assets. simple.

Using the emergency funds or selling the assets which will grow good in the long run isn't the right choice. Try to hold the situation and keep yourself in difficulty for a short. During the same time analyse well and find the right way to make some additional earnings. By the time you can use the emergency fund to have some passive income. This will help in cushion your life style amidst the inflation that is found all around the world.

Thats very generous of you ChiBitCTy, I hope the OP takes up your offer. Your advice
makes sense.

The only thing I can offer and its something others touched upon is that holding
onto FIAT is not beneficial in the long term and especially in this current inflationary times.

If one of the OP's assets is Bitcoin - thats the one you dont want to liquidate. Liquidate
the FIAT to save your Bitcoin.

When an asset turns out to be a liability because of some expenses due to maintenance and other related stuffs and it doesnt generate some income but rather taking some then it would be wise on taking up consideration on selling it out rather than on keeping it for long. We arent that dumb enough on making out some selling on properties on which we know that it would be beneficial or something that could take up profits. We are really that on our right minds on to determine which is and which is not to be released or to be on sell.  AS much as possible then i do agree on some advise that its not really needing for you to sell something to invest on Bitcoin. You could always be able to do on buying gradually and not in bulks but i do understand that kind of urgency on buying big is on the time that we do see that the market is really that
on that possible bottom on which as investors or does have the knowledge about price dips and opportunities would really be that having the eagerness on trying out to accumulate and this is why
we do really end up with these kind of options.

It depends on where you live but selling now will be a loss cause of the supply and demand power affected by inf. Use the emergency funds instead as it's getting affected directly and if you finish it and still need a help consider a no interest loan  or sell an asset. Selling is the last thing you do.

Well, it's called emergency fund for such reason. If you don't use it now, then when? Remember, the purchasing power of your fiat currency is depreciating as time passes - so it's gonna be a wise decision to use it now. Never touch your investment because that is your retirement insurance plan. The money that you set aside for your emergency funds will either have the same value in the future or worse it will only have a lesser value.
But of course I am not a professional financial advisor, but I'm just sharing my thoughts regarding your situation.

What do you think? You've hired a financial advisor but you haven't understood anything. What do you think a fund called "emergency fund" is for? I don't know, maybe I'm crazy, but maybe it's for use in an emergency like the one you're talking about.

The other thing would be to analyze what you mean by "I needed to do something urgently", to see if it really is an emergency or what.

If you are still surviving in the current conditions, you don't need to use your emergency fund because that is for emergencies that really need money to survive in extreme conditions. But before that happens, you should stay as usual and use the funds you earn to survive.

Many people experience this current situation, whether they use crypto or fiat because this all comes suddenly and makes it difficult for people to survive. You can make a budget or your financial report on an Excel sheet to track your expenses and how much money you can save if the situation worsens.

We cannot avoid heavier inflation but can be prepared to survive the toughest conditions. You can survive in these difficult conditions.

Inflation and economic issues are the same all around the globe, people who are not very rich are compelled to spend the money they have saved for bad times such as a medical emergency or something more severe like a funeral, etc. In such situations, you seem to have no choice but to use the money and then spend years and years to save that much again, it becomes very difficult to take decisions in such times just like what you are facing.

If I was to suggest something to you, I would say that you should first see if you don't have assets at a loss in case you had to sell them, if they are not at a loss, you can go ahead and sell them and use the money, or, you can alternatively use the emergency cash that you have and use the assets when an emergency comes so that your assets stay intact in case the market goes up, they might gain more value.

However, only those who possess superior insights than yours are worthy of offering their opinions and grievances on this platform. Up to this point, you will encounter a diverse array of users within this forum, and advice pertaining to financial planning holds immense significance for the progression of your life. It is highly discouraged to make decisions based on the opinions of individuals lacking expertise in the financial domain.

I am not demeaning the users here, but I am suggesting that you seek more reliable guidance for your financial concerns. The right individual to approach would be a financial advisor.

You need to look at the situation you have. if you really don't really need the assets you have, then you need to sell some. however, if you feel that these assets are really very important to you, then use an emergency fund. Aren't you raising an emergency fund for this? however, if you believe that an emergency fund is not for this, then you will need to sell some of your assets. well, going forward, when you have fixed your finances, you can buy new assets. however, personally, I would probably use an emergency fund in this current situation.

Although it's true relying to someone about financial decision is bad, but I don't think picking either emergency funds or sell his assets will give a bad effect for him. If he use emergency funds, he will don't have any money anymore. If he sell his assets, the money he get will be used for his emergency need and he still hold some money since he's not use his emergency funds. If his financial is fully recovered, he can use his emergency funds to buy the assets that he sold before.

Which one the decision, the ending is similar. It's not like asking which one is better to invest, Bitcoin or shitcoin.

Keeping a spreadsheet with expenses can be useful for those who have problems with financial planning in order to understand at the initial stage where the money is spent, but in the future it is not worth doing it all the time because it will be a tedious task, and will require a lot of time from you.

It is important to understand the very principle of financial planning and in the future strive to increase your earnings, because it is the increase in earnings that will help improve the standard of living and allow you to save your money for further investments.

In unforeseen situations, you can use the reserves, there is nothing wrong with that, they are created to support us at the right time. Moreover, such moments do not happen all the time, so sometimes it is possible. And if you have reserves for such cases, then you will not have to think about selling your investments.

The system implemented by the state is always one-sided, the people are always the victims of the government's atrocities. Taxes, inflation and the banking system are like leeches sucking human blood slowly. The people's economy is getting squeezed due to inflation. I'm sure you are not the only one who is experiencing this situation. There are many other people who are more miserable due to increasingly uncontrolled economic waves.
Use an emergency fund for the necessities of life, assets can still grow when prices start to increase, while the value of an emergency fund will never change.

Sometimes that is the case, but we must be able to get out of this situation in various ways without having to expect anything from the government.
It is true that it is better to use savings than to sell assets, because assets can have many possibilities in the future to get greater profits, but we must think more critically, not just arbitrarily to meet needs but must be able to rise in the economy to stabilize it.

I personally have experienced a very difficult economy, but slowly I was able to get up in various ways that I went through with the determination not only to make ends meet but to get out of my comfort zone to stabilize my own economy to be better.

If you already know the true face of the government, what do you expect from them? Instead of complaining and criticizing, we should find a way to save ourselves without having to wait for them to come to apologize and help. Although inflation and crises are draining our wallets, there is always a way to get through. Many others are still fighting and trying to fight it, why can't we? I usually don't like to criticize anyone even if they hurt me, instead, I will stop trusting them and find a way to save myself.

Yes, OP should have used the emergency fund because that was its mission, and our purpose in creating it was to deal with difficulties like now. Only sell assets when we run out of emergency funds because assets are easy to sell but not easy to buy back.

This really depends on the purpose of your emergency funds; if that funds is sole purpose is for emergencies like what you are experiencing now, then that is the best choice than selling your assets (I'm expecting this to be crypto, properties, gold, or jewelry), because for sure in the future you'll need your assets. Even if I'm in your position, I'm going to use my emergency funds, as that is the purpose I saved for, unless its purpose is more important than the struggle that you are facing right now.

Without any further information on how your budgeting works as well as summary of your expenses, we don't have any idea on what can we suggest for your situation, OP.  By default, I would just eliminate all the unnecessary expenses that you're buying.

Inflation is also a pain here in my country and buying food in fastfood chain is also a pain these days already so I just usually cook my own food. How do you do in your own 9-5 work, OP? If the pay just does not cut it, maybe it's time to find another high-paying job.

If it were me, I would also use an emergency fund, I don't want to sell any of my assets, especially investments or assets like gold or real estate.
But the OP didn't explicitly mention whether the emergency fund is for more important purposes and what properties he intends to sell. So it's hard to advise because we're not in his situation, and we don't know specifically what difficulties he's facing. If he doesn't want to sell the property or use the emergency fund, maybe think about a loan.

It will be difficult to give this answer without knowing the maturity period of your investment portfolio and how your savings are stored. To give an idea about this question in general I would like to state the following;

If your investments are made with a long-term plan in mind and are in a rapid appreciation process against the currency of your own country you should definitely not use your investments at this condition. An investment is  made with money that is not needed and that the maturity period must be adhered to. For this reason, it would be the best option to use your investments for your own expenses as a last resort.

As for your savings, especially if you have saved in fiat money I will definitely recommend you to use them in difficult situations. While you already have a savings that you can use as fiat money it would definitely not be right to meet your money needs by interfering with your investments. In addition, after the use of the capital you have saved in fiat money it will be much easier to add the amount that has been used back to your savings as fiat money.

If op has an emergency fund then he has to use it to solve the problem at hand. Nobody keeps money for any emergency. I have not heard someone or an individual saying that he or she is saving money for any emergency that will come on his or her way. It is only in government that I have heard such thing. As I said, if the op has emergency fund he should not sell it assets but use the emergency fund. Though I don't know the kind of assets the op is talking about. Probably it is landed property, gold, or Bitcoin. Even though it is any of the above mentioned, he should not sell them but use the emergency fund since he has it. Assets appreciate in future but the emergency fund will not appreciate if they are in the local bank.

If it's an emergency then I don't think you should have any second thought on what to sell and what not. Just do the math, how much money is needed by you in this emergency situation and how are you going to pay back the money, what would be the timeline for the same. I think it will make it lot easier to chose the right option for selling. One more thing, as I stated at the start it doesn't matter which one it is if it's an emergency. Now if I were you and if it was any medical emergency then damn, I would let go everything for the safety of my health or my loved ones. There are no second thoughts to it if bitcoin is rising or getting pumped to new heights. You can't get your soul back, you can always earn money, you got whole life for that. Also, this is the main reason why we need savings, and clear thoughts on those savings, like when to use it, what would be the situation when you should prioritize that particular trade etc.

We use the emergency fund only when we need more money. We basically save money in times of danger to overcome our danger through that money as your country is going through bad times now so you can spend money from your emergency fund if you want. During this period it is better to spend your savings than to sell the land. You can build an emergency fund again when your country's economic situation is back to normal. Money saved is worthless if it is not used in times of crisis. So you can get out of danger by using your emergency fund during this danger.

While I respect your approach to financial planning, I believe it's a bit skewed towards earning more and ignoring the critical aspect of controlled spending. As the saying goes, "It's not about how much you earn, but how much you save." Labeling expense tracking as a "tedious task" seems to downplay its importance. If we consider our finances as a garden, tracking expenses is akin to keeping an eye out for weeds. Yes, it may seem tedious, but it's necessary for a healthy financial garden.

Regarding your emphasis on increasing earnings, it's an essential aspect but not the only one. Not everyone can simply 'earn more.' Hence, managing what we have more efficiently could be a more inclusive advice. Your take on emergency reserves is well placed. They serve as a financial safety net, enabling us to face life's curveballs without compromising our investments.

It is tough time for many people all over the world. Some have it worse than others. Sometimes and make my budget and I know right there and then that it is just not going to happen as it is. Some months are great some other months are just terrible because you have a lot of unforeseen expenses coming up and being that the society I live in is not one where communism is valued more than individualism, you have more dependents and responsibilities.

In the case of the OP. I have been in situation where I have to strategically use my emergency funds knowing that I would quickly fill it up and there are times where I have close to selling an asset but I changes my mind at the last minute and sold a liability at a loss but it was able to solve the need at that moment. I'd say just do what you have to do to survive.

Everyone is actually facing financial struggles with this never ending inflation. Most especially for those low-income earners as they will really face a hard time in making their ends meet. However, with regards to your situation, I don’t think using any of those option is advisable at the moment. Instead, learn to accept some side hustles that will fit your skills, that way you will gain additional income. And as much as possible, know the things that are necessary to buy and disregard those are not. Sooner you will find it easier to handle your finances.

If you can find additional job that will pay you more income, then do it first. Do not just touch your emergency funds nor selling some of your assets as they might be more needed in the future. For now, study more some of your hidden talents and skills as they can be of great help so you can gain additional income for you. And try to live simply away from luxuries and expensive lifestyle, that will help you a lot to save if you have extra money.

Low income earners are usually the main ones who would really be struggling or mainly been affected if we do speak about economic problems on which interest and inflation becomes even getting worst as years passing.
Without having that right opportunity and increase of salary on the jobs that we are in, then we would really be seeing ourselves getting fucked up slowly and would really be suffering for the rest of our lives if we dont really tend to find other ways or solutions on making ourselves that better.We know that there are indeed various ways on making yourself that better when it comes to financial on which it would might not so simple
but doesnt mean that its impossible to be done. Selling out someones assets and emergency funds for the sake of crypto investment or earning is something a very risky move to be done.
If you arent be able to know on whats the risks then better go back and read up lots of informations and on the time that you do know those things then reassesss your decision that you had made earlier on.

I will be very careful not to give you anything that's directly a financial advice, since I am not a professional. So let's just say what will I do if I am in your position,

It will depend on how much is my emergency fund and what is my 'assets'. If my emergency fund is like one year of my living cost (or more) and my assets is fast moving assets (like stock, securities, crypto, and such) I would definitely use my emergency fund and leave my asset as it is. If my assets is slow moving assets (like property, land, .etc) I would sell my assets and turn it into fast moving, mostly into Bond since it low risk (I might still invest on high profit like crypto or stock, but it really depend on the value of my assets).

If my emergency fund is less than 6 month of my living cost and my assets is a slow moving one then I would immediately or even desperately sell my assets, if it fast moving, I will sell my assets gradually.

That after a couple of days and a couple of pages of thread, the OP has not given any response gives me the feeling that he wrote more to meet his post quota than out of an honest intention to debate the issue. It pisses me off because the topic of personal finance, and the emergency fund discussed here is of special interest to me, and the OP should have some interaction with the responses, although seeing the banality of the question he posed, I'm not really surprised either.

It will be favourable if you can use the emergency funds to invest the half on Bitcoin, and use the remaining ones to feed your family so that you will be alive to enjoy the seed you have sow in the past. This inflation really destroyed so many things in some country that is making some governments struggle to revival their economy so that their citizens will not be selling their assets than to create more business that will be bringing them income in the future. I believe you will not save that money in the bank, because it will not help you to make a good income at the end, I will advise you to invest the money on a potential coins and apply long term holding so that you will be able to recover in the future.

If you have emergency money, it's better to use emergency money first. Hopefully your economic condition will recover soon so you don't have to sell your assets to cover your living needs. I think it's times like this that emergency money is used. You're still lucky if in a bad economic condition you still have emergency money, most people don't have it

You're better off thinking of other ways to survive the bad economy, such as trying to start a new business or find a second job. If your emergency money runs out then you have extra income and it will improve your economic condition

Yes, that's why it's important to have a savings account or emergency money because we can use it when things are not going well,
selling assets for me is the last option which needs to be considered first,
I think your advice is good too and most importantly adjust it to each condition.

But at least with the OP creating this thread then we can learn from seeing and reading the many different responses and suggestions. So I still thank the OP for creating a thread like this. although the majority of responses seem to have something in common. Which indicates that the majority of users here understand very well what reserve funds are collected for. which means that users here are increasingly familiar with good financial management.

Some time ago (last night) I watched economic news which presented several sources who were economists. And the things discussed are not far from inflation, recession, savings, investment and emergency/reserve funds. I was quite surprised by their response from the experts. because it turns out that the suggestions they put forth in financial management are not much different from the suggestions we often read in this forum. especially on the Economy board. I think many users here are knowledgeable about the economy. or it could be that their insights have increased without them realizing it because they interact a lot in the discussions here.

You should not hesitate if it will be good for your daily life. Because I think you lack knowledge of financial management, that's probably what you're going through right now.

Especially in today's time when the inflation is still quite high so often we don't know how to fit our expenses because we also need it. Maybe to avoid confusion, first avoid spending on unnecessary things that are not a priority of your expenses, and tighten your belt a little when it comes to your tight budget at the moment.

So what do you think about the fund you created that? I don't know if I'm understanding what you started with, but try to think about what's happening as a general condition, it's not just influenced by a certain object, this life needs to be enjoyed. When I doubt that change, I sometimes jokingly say it is purification and who is strong enough will overcome anything. Regarding your personal financial situation, I can't give specific advice on what you should do, but I think you should act which will be less risky for your current life, don't think too far about life but see what things need to be solved, you are short of money or regret what is going on, it is easy as you mentioned that the reserve fund is used for the things that you are struggling with right now.

first of all, I don't think emergency funds are only saved and once until you used it up before you can decide to start saving from a fresh, from what I know about these whole emergency funds stuff, you always keep some portion of your monthly, weekly or daily earning, every month or even if not every months but you don't skip more than two months without savings a little in that emergency funds wallet, and now that you talk of the inflation messing with your budget, then for me I think you should rather collect money from your emergency funds rather than selling your asset, because if you take out the money from your emergency funds, you can still replace it after some times, because definitely you will need to add up to it so that in case of other emergency, you will still have something to run back to and by the way, which of your asset do you want to sell? Is it Bitcoin, a car, land, or a house? What do you really want to sell? Although I would say you should use your emergency fund instead, If you also decide to sell your asset, it should be something you are ready to buy back, knowing that it can generate more value for you in the future.



Cheers 🥂, Dr.Bitcoin_Strange 👺👺

It'd be best if the OP replied after reading an abundance of replies with what he actually proceeded to do or what he's considering, at least. I understand, however, that you're often lost in the replies after receiving a huge number of them and can't easily summarize them. Anyway, personally, I'd use my emergency fund instead of my assets, but that also depends on the occasion. If there was a market crash and I had the option to use fiat in an emergency, I certainly wouldn't use my bitcoin; I'd possibly consider it only if I was at a great gain, and even then, I'd do it in the event of an extreme need.

An emergency fund can be a huge money because we might be saving it for a long time already but depending on it for 6 months seems a long time as well. It would be better to find a profitable source while we start to use our emergency fund and depend on those sources ASAP, so that we still have something left on our emergency fund which we can be used again the next time we will having a trouble.

In between emergency fund and asset, I think I will go with the asset first, in which I will sell them to have a money on hand. It's okay if I will use all the money as long as I know that I spend it in those things which I think very important.

By creating a budget means you have to gain extra job that will create additional source of income, by not risking the option to use your emergency funds nor sell your assets as they might be highly needed in the future. Also, learn to manage your expenses and get rid of those that are unnecessary. If you can stick to what is highly important and much needed in your life, then you will lessen the chances to spend high and spend on wrong necessities.

What’s the reason with this? Are you in debt or don’t have any resources to deal with your daily expenses?
Use your emergency funds if you really need to, or you can just sell non performing asset if there’s a valid reason for that. If there’s a crisis, better to lower your cost of living but again if you are planning to invest with crypto using those funds, I don’t suggest this one.

You'll be doing wrong selling your investment before they're due, make use of your emergency funds that's why they're been kept for the exact reason you're in right now. Emergency funds are for when you have an emergency and right now you have a financial emergency because you're running out of cash. If you're financially strong you can always replace that emergency funds and you won't notice it wasn't there.

But when you sell your assets, you're throwing away an opportunity to make more money in the future because many people don't buyback assets that they sold. Also you become used to selling your investment prematurely and that's not a good habits to start developing now.

I don’t think that is a good advice. You might only regret it in the future doing that while you are still very able to create additional profits by going out from your comfort zone. Don’t just focus on your day job but explore online jobs as well. There are a lot of side hustles that give good compensation and you might land one of them so try to extend yourself as well. That way, you could earn more and save more as long as you also manage your lifestyle away from unnecessary expenses and all of that.

Fund or money management would really be crucial because usually people do really end up on unwise spendings on the time that they would really be upgrading when it comes to their earnings and this is why you should

really be that wise or really that mindful when it comes to your spendings because if not then time will come that you would really be finding yourself into having no investment or being on huge deep debts which is something that we do mainly be avoiding if we dont really like to mess up our lives. Never ever make yourself that too easy on selling your assets just because you do tend to dive in into other investment
such as crypto or Bitcoin itself.

As much as possible, if you do have other source of income, you could always consider on investing into those on using up those profits.Its not really that needing to sell something for that purpose.

Don't sell anything from your assets as this will help you to survive, instead get some portion of your emergency funds. Might this is not good advice but I was thinking that our assets would be our sources of income and once we cut them or sell them, it means that we are cutting one of the resources which in fact, we need to multiply them.

I've got also to that point and I think deeply and talk with some friends. You can also do this and then decide what is best for you.

emergency funds as the name implies is for emergency and this time around where the economy isn't that great is exactly the right time for you to get that share of emergency funds to fix your current economy conditions.
never sell any assets that could gain value overtime, it's some form of investments, but instead use your emergency funds that gonna gets eaten by inflation overtime.
you're doing yourself a favor for the long term this way so that your assets is still intact.
with emergency funds at least you could slowly save some money in the future to make your emergency funds back in its former state again.

I can guess that the OP's financial condition is very urgent, he must determine which one of the funds must be used both from emergency funds and asset investments, the right advice for him is to use emergency funds instead of selling assets because assets become resources that can improve finances in the future. We don't know how inflation will affect his country but he must reduce high spending until economic conditions have recovered from the impact of inflation.

We can discuss this issue with some friends but I think they will give the same advice for using an emergency fund when the effects of inflation are crazy, unless your friend is a company owner or entrepreneur can offer you a job to cover your current financial crisis.

as some members have already said, the most sensible thing in these cases is to use the emergency fund, but this will not solve your problem in the long run, after you use the emergency fund you will have to resort to having to sell all your assets because what is happening to you is that you are having a lot of expenses in relation to the amount of money that comes in, so you are being forced to resort to other sources to cover these expenses, it turns out that inflation in your country is not going to decrease so soon, being so you should start thinking about a business that will give you profits to be able to pay your bills

when more money comes in and covers all your expenses then you will already have money left over for the emergency fund, this is the only good long-term solution, now one of the big problems will be how you will be able to do a business in times of very high inflation high, for that you need to think about a business in which there will be demand every day, in times of crisis many people resort to doing business with food and selling clothes because they are things that everyone needs, but it turns out that with that the sales market clothes and food is saturated, in the end you will need to research the business yourself

It is wise if you to have realized you lose and understand how to track your expenses without much stress. I was once a victim of excess spending but I had to retrace the way I spend money and that helps me a lot. I will advise you to revisit your portfolio to know how much you have to spend for a particular budget and cut down the expenses buy reducing the quantities you might need to buy. This is one of the 2ays I was able to help myself to reduce expense by cutting down the amount of product I needed to get some things done.

Keeping track of expenses and income is a good way. Apart from that, one need to be very careful handling the funds. Due to the inflation the increase in price have its direct impact over the family budget. Rather than making yourself comfort using the emergency funds it is good to find a way to cut the unwanted expenses out of your budget. Unwanted doesn't mean which is completely not needed, it means even without those things it is possible to lead the life with less comfort. Maybe this can be followed for few months until the budget gets back into track.

Inflation is certainly making us living the hard way that's why if we don't create initiatives on how to save or find some means to back up our finances, then we will surely struggle for real. That's where side hustles start to emerge and take advantage of it using our own skills and knowledge. However, for the mean time, you can spend some portion of your emergency funds to make some ends meet, but make sure to fill in the amount you have spent so you can still benefit your growing emergency funds for your future use.

That is why we need to be aware that saving is very important because when there is an emergency and the economy is not doing well, the savings are really very useful,
We never know what will happen in the future, so we need proper anticipation,
I hope more and more people are aware to do that.

Inflation can attack anyone and requires us to fight it by fixing expenses and also minimizing expenses so that we are fine. Looking for income or a side job is an action that must be taken so as not to undermine the savings or investments we have for the future, and side jobs to support our finances because currently there are many side jobs that take advantage of technological developments. And it can also be done at home which in my opinion is a must-have skill and there are also many ways or tutorials that can help
and in the current situation we are required to be smart so that our needs are met and we can also save or invest starting from being smart to find additional income and managing finances so that everything is fulfilled and also still being able to set aside a little money for savings and investment.

That's right, I value saving more than any fund or investment because life is full of surprises, and we never know what will happen. But I find that many people still do not realize the importance of saving, instead, they consider investing more than anything. Because they believe that investment will give them a return, generating larger amounts of money instead of saving money, saving money to them is like dead money. They were too subjective and forgot that investing is not always profitable and its short-term volatility.
Many people have fallen into the dilemma of investing all their savings, and now they have to borrow to get through the economic crisis because their investments are also losing money.

Like most of the time people have it backwards, no one should think about investing unless they have an emergency fund which can help them solve most problems they may suffer, only then they may consider investing, however this is not a popular option, as most people do not save at all and have a lot of debts, while the few which save some of their money try to invest it all and keep almost no capital on them, as they understand the nature of fiat and how it devalues at an impressive speed.

Emergency funds are for things like this I don't understand why you are asking this question, what do you expect to use your emergency funds for? Unless you have other plans for your emergency funds if not, I don't see why you are hesitating and asking this question.

If I am in your shoe I would rather use the emergency funds to solve this problem and not touch any assets, this present market situation won't last long and many people will miss the boat, you have to avoid getting tempt by your assets.

Find other means to solve your problem, only the strong will laugh at last.

Yes indeed, by using your emergency fund to survive, just keep on trying to find ways in saving back.

Side hustle is something that will carry the load, if you have good skills, and you are willing to go out of your comfort zone
it will help a lot to survive and still live a life with a much decent style.

Your view point is very important in doing the decision if what will be the things that you'll going to sacrifice, with
a good judge you will be able to figure it out on your own interpretation.

He didn't mention to us that that emergency fund is dedicated to any other urgent matter, so it's hard to give exact advice. But if we have to choose between the two, using the emergency fund is a sure thing because selling the asset will lead to many problems, like we may have to sell at a loss or have difficulty buying back if their value suddenly increases...Selling property to cover a difficult life should only be considered when there is no other solution.

For me, it's better to use your emergency fund, that's why it's called an emergency fund because when you need it, you can use it. Don't trade or sell the assets that you hold because they are more valuable and you will benefit from them for life.

But if you are more enlightened by the financial advisor who gave advice, it is better to follow him, with the amount of experience he has, he will definitely give good advice and you will definitely improve that. However, the decision is still up to you mate.

Admittedly, taking advantage of opportunities in life requires some risks. Using an emergency fund I think it's also good if it's done, where when someone is in a state of urgency, it calms the mind even if only for a moment. But here's the thing, One has to do everything and risk everything and sometimes it's not fair.

Inflation is really making many terrible financial experience and forcing financial decisions. Do not sell off assets, they are meant to bring you money. Instead use up some emergency funds to find balance because the situation you are in is close to an emergency. Reduce the money you set aside for emergencies for the time being so you can have enough spare cash to fix into other budgets that inflation has raised the price of. If you sell assets, it is not a permanent solution to this challenge.

I think some are general suggestions and you should tailor them to your financial situation and do your research before making any decisions. Since everyone's personal financial situation is different, there is no single solution that works for everyone. Use that reserve fund first and reset the problems that appear and find solutions. But if you have assets that you don't need and can sell, you might consider selling them to create a backup source of cash. And try seeking advice from a financial professional to get the right solution for your financial situation.

There is no guarantee that a financial advisor's advice will always be correct. And the reason for this is the economic condition of the entire country. The situation you are in now is really a difficult situation but I think in this situation you should continue to hold the assets you hold and use the emergency funds. That's because not going to the strategy in which the assets are being held means loss. So overall I would say try to use emergency funds and look for alternatives.

Don’t sell the assets,because once you sell the assets.It’s hard to buy again with the cheap price.The demand for the crypto currency was huge now.So the price of stable coin will keep increasing and doesn’t reduce to the low price.Instead of selling the valuable coins,you can use the emergency funds and leave the same funds from the profit of your holding assets.

Yes it's a good option to select another job if your income is not enough for daily expenses but if you are selling your asset or use your emergency funds for daily expenses then it will become very hard for you to sustain life expenses without taking loan.

Focus on expenses because if you spend more money than the amount you earn then it is also not a good habit. I think if you cannot afford to live a wealthy life then try to live a simple life this will help you wealthy and will enhance the chances of saving more money for your future.

I know one cannot maintain two jobs because of physical tiredness but it is possible to continue your online job as it doesn't require your presence physically. So try to be involved in two jobs at same time and try to reduce your expenses it will be a great way for you to complete your responsibilities easily and will avoid using emergency fund and selling any asset.

Emergency funds is very important and if you have another way to get money then you have to save your emergency funds if you have many assets then i think selling one of it is not that difficult if you are in the most hard situation something like if you don't sell assets you also didn't have a food to eat or you can't buy your daily needs or basic necessities.

Op need to understand that inflation is increasing everytime and this is happening to every business man so we need to look for a way to make sure that we can minimize the method and ways we buy goods to enhance some profits. If it is very crucial to touch the saving to meet up with the necessary move, that's good to make things keep going. Everything is becoming expensive now and there is nothing we can do since the government can not make amendment thay will make life easier for the masses to spend less in the business and earn some profits. Now it is difficult to make good profits from business because of inflation.

If possible, find more ways to increase your income. If you stick to one thing and hope for the best, that day will never come. At least is a situation where inflation is happening like this all over the world. As for inflation, once it happens, it never goes back to being normal again. In the next inflation, it will be much worse than this time. Try to increase your way of earning or find something that offers you more than you are making right now. Or find a side hustle that will give you some extra income.
You can also try to invest in something by saving up for that from your current budget. If you keep the money as it is, in time it will lose its value and in a situation like this, it will be difficult to deal with. Money brings more money. If you know how to do it.

About the fact of using emergency funds. I am sure you have saved it up for some situations like this. If you keep holding on to something that is meant to be used in this kind of situation, then when will it be useful? I am not saying that you should keep on spending them. But make sure to live your life normally and save something from that which will be helpful in the future. Or use some from that to invest in something. Necessity is the mother of invention. Just like that, need in the mother of one's income. If you are in need, you will seek out different things in order to make income. Or in your situation, seek out more ways to increase it. So try to find more ways and keep on it until you find success. Until then, keep a tight budget for your spending.

If you don't keep enough money for emergency by increasing the amount you keep for emergency instead of reducing it then you won't have a better amount reserved that can help you out when you enter problem as the OP is asking about. When you keep more money with you, you might spend then unnecessary because there's always bills to sort out everyday. Instead of doing what you're saying I'll say we should saved more.

Nobody plans for emergency but when it happens we have to be prepared and ready for it and you can only be ready by having enough money reserved to handle the problem. We should also invest into profitable assets like Bitcoin that'll generate more Income for us.

I would say that you should check first the potential of your asset, if your asset is giving you profit then don't sell it and better use your emergency fund since it can be replenished by the profit of your asset.  But, if your asset is just idling, and does not give you any profit then it is not bad idea if you sell them.  You can always buy the same asset once you have a better income in the future.

Yes, always double check what would be the outcome of the decision you will be making like you said. I think if you already have profit or you could say passive income, why not use it for investment since it's like a spare money. Don't forget that emergency funds is important for every happenings in life so just simply using it at risky scenario wouldn't be a good idea at all. If you're profiting enough just 50/50 it.

Instead of immediately dipping into your emergency funds or selling assets, explore alternative ways to generate additional income. Look for potential side hustles, freelance opportunities, or creative projects that align with your skills and interests. Consider exploring investment opportunities that may offer better returns. Remember, adaptability and creativity are key during uncertain times. Diversifying your income streams can help offset the impact of inflation and provide more financial stability. Remember, individuals financial situation is unique, and as such you should tailor these suggestions to fit your needs and goals.

He already has an emergency and asset fund, so I think he already knows what you mentioned because if he had the opportunity to earn extra income, he would never have decided to use the fund emergency or property sale. It can be said that this is a reluctant decision when we do not have a better solution.

OP, between the choice between an emergency fund and an asset sale, I would think of an emergency fund because that is the mission it was created for. You shouldn't even think about selling an asset when you still have other options, no matter what it is, selling during an economic crisis is always a bad idea because its value is plummeting.

I will recommend to use emergency fund for fighting against this situation. Emergency funds are there to be used when needed , if you not use in this situation am then i am not seeing any better situation to use it. another option is asset selling but i will recommend to sell only those asset you believe that its price will not increase high in year because some asset are so worthy like land in our country. Also try to earn online by doing some skill work or trading as the value of usdt is high and you will get high payment than your fiat.

That's right, it's at a time like this that an emergency fund is needed and we set up an emergency fund for this kind of thing, compared to selling assets I think it's very ineffective, selling assets is not for reasons of improving the economy but selling assets when you already have a large or sufficient profit.
Assets may have better prospects in the future, so it would be a shame if they had to be sold just to reduce the impact of this economic situation, while there is no possibility for emergency funds in the future, we can still prepare them again when the situation recovers later.

Economic problems have always haunted us, especially now that the financial situation is getting worse and those of us who have assets certainly have to make considerations to use these funds, if that has become the only way we have to do, then just sell the assets you have so that your problems are quickly resolved and later you have to find a way so that everything you spend now you can have back, Because right now it is indeed in a difficult situation.

You need to sort all the venues that you have as an alternative to survive.

To the point that you'll sell your reserves, it might be difficult, but taking your decision will vary in how the needs you should
take care of, assets or savings both have the risk when taking it out of your holdings, but the fact that you need to
carry is on how you can replace it when you get the chance.

I don't think that's a good solution, because you also have to provide a more direct or more precise explanation of what situation is currently difficult? Because as long as there are ways and ways that can be taken to solve the problem, I don't think a person should immediately sacrifice the assets that he currently owns because getting back the assets that have been sold is also not easy. So this must really be considered wisely before he sells it, and besides what is it that is giving him trouble? Meanwhile, market conditions and the crypto space are much better now.

I agree, selling property needs to be considered carefully, we should find all other ways before thinking about selling our property because selling is easy, but buying back is not easy. Especially assets that increase in value over time, like gold, real estate, or bitcoin. But in OP's case, he has emergency funds, why not use them instead of thinking about selling the property? Let's make a comparison, and it can be easily seen that creating an emergency fund will be much easier than buying property. OP, you should carefully consider everything before making a final decision.

Diverting funds from selling investment properties to other investments is very ineffective because we cannot afford to buy the same property due to property prices increasing every year, OP needs to consider that each type of property generates promising profits for the long term, but if we still have alternative options to use allocation from an emergency fund so we can use it to add to other investments instead of keeping emergency funds in fiat, my suggestion is that emergency funds are better diverted to gold or bitcoin investments which are easy to exchange with fiat whenever we need those funds for urgent needs.

I simply believe that an emergency fund should be kept only for an emergency. Inflation in your country, which is also a global inflation cannot be said to be an emergency.
The second option which is to sell some of your assets might be preferable. But then you should not sell what you think that will worth more in the future.

There are some assets which we have at home that e do not have very severe need of but we keep them for decoration and maybe you for aesthetics purposes.
If you have such assets, you can sell them and reinvest the found, while having money to also sustain yourself and your family. Keep the emergency fund strictly for emergency.

Why should you sell your assets when there is an emergency fund available that you can use for your daily needs? The reality is that almost all countries are experiencing inflation and making it difficult for people to make ends meet. If I have an emergency fund saved in a savings account, then I will not decide to sell the existing assets because if I hold bitcoins it is very likely that ATH is so close and it is hoped that it will bring big profits from these assets.

It's simple you can use an emergency fund first and don't need to sell the assets you have to meet your daily needs. Selling the assets you have now also doesn't make you improve your finances and instead you lose the opportunity to make big profits when the time is right.

This is very true, it won't do good for you to sell your investment properties just to transition to other investment. In my case, I have some properties that are rented for me to have a passive income. The price of the house already doubled but still I stick to passive income for me to have extra money for other investment. I have two properties which I live in the other one and the one is for rented. But it's a good idea to use your emergency funds in investment where you can easily convert it back to fiat money such as you've mentioned. Once you've profited enough the best thing to do is to use those spare money for other investment as well for you to have a lot of options in case of emergency.

That is really good if your property has a house on it, but if it is just sitting around with no building at all, then you are waiting for someone to rent it. There are no problems with that, but if you don't have plans for that area, for example, if it is very far from the road or if it is very remote, and you really plan to sell it soonest, then that is only possible if it is just your spare land, but if that is only your land, then that is a really bad idea.

In your current situation, you'll see the real purpose and importance of your emergency funds. As for me, in an unexpected financial crisis, you better use your emergency funds than sell your assets. Just be sure to save for emergency purposes again so you'll always be prepared for unexpected circumstances.
Despite having financial trouble, you should still have your assets on hold as much as possible so you'll have something to rely on in the future and you could also expect a promising profit when the time comes. We must know when to use our savings and assets because it will affect our financial journey in the long run.

Isn't this situation the reason you have emergency funds? If you think you can get trough this hard period, you should use that fund rather than selling assets because that's the last thing you should do. Only start selling assets if it becomes the only exit for that problem. I also recommend storing your fiat into some stable currency, rather than your own. For an example, I store my cash in Euros(luckily, I can use it besides my local currency), since it is much safer than my local currency, which is already starting to be in inflation as well.

Even though inflation can be a really big problem, I hope you will get trough this situation without having to sell your assets.

Inflation really hit us hard these days. That’s the reason why we need to increase more of our sources of income than just settle in a single job and find it hard to make ends meet. That way, our emergency funds and our assets will not be compromised considering that they might be of great use for our children in the future. So instead of trying to rely from our emergency funds and some valuable assets, go and get another job or side hustle that will suit your profession and in which your knowledge and skills will be greatly maximized.

Depends on the situation really mainly if you got some spare cash or should I say emergency funds, considering that the place you've owned is situated in a very remote area and much away from the road then I think it will be beneficial for you to sell it rather than doing nothing about it given that you're inclined to have some money on your hands.

There's nothing to do about it as the described land will just give you additional bills without earning something from that land plus, selling that will be a good thing as that same land will probably take you a decade before the value will grow up.

Actually, in this condition, can't an emergency fund be used when things don't go as expected?
Even though sometimes we spend emergency funds for some problems such as accidents or other costs such as repairing something, but on the other hand, isn't this also to help us avoid trouble? I think using an emergency fund when you are having financial problems is not wrong in this regard.
Speaking of assets, I think it's the last option in this case. Even though sometimes it's an investment asset for the future, but on the other hand, when it's already profitable and we're involved in a condition that's quite difficult to avoid, I think that can also be used as one of the things we spend on condition that we've already benefited from it, but as long as there is an emergency fund that is still unused and can be fulfilled from there why not use the emergency fund first.
Personally, if that happens to me, I will do the things I wrote above because basically I feel that an emergency fund is still possible when it still can't be balanced with the existing problems, so investing is also not a problem to use. isn't the investment that you are doing the goal of being used for old age also it will be useless if you can't get out of an unsafe zone for now.

To be honest, I can't comment too much on specifics related to this thread, because I don't know for sure the conditions that actually happened in your country. and what are compelling reasons to use your emergency fund or sell your assets. what are the indicators of the cause, apart from the situation and economic conditions amid inflation. also, why are you reluctant to follow your financial advisor's advice, don't you use advisor services for that. then what business are you running, or do you need funds to pay your bills. I don't know what country you're from, but at least you have an emergency fund, and the situation is not at all possible. now is your time to use it, instead of selling your assets. at least, an emergency fund is more ideal than you have to sell assets that you think are valuable. if, you want to speculate to sell some of your assets to cushion the impact of the economic situation. is it worth it, and what are your steps going forward. you have to look at it from all angles, if it's feasible and can do it. but my question is, why are you reluctant to follow your financial advisor's advice, don't you use advisory services for that.

As long as that emergency fund is enough to finance what you are willing to do, then I will suggest you go with the emergency fund. Depending on what your expenses are that is what you need to find out, if it's for unprofitable means just leave your asset out of the way and make do with the available funds you have at hand.

Financial advisors are not all the time reliable and trustworthy. The reason why instead of depending your decision into some financial advisors, have your own analysis on your current problem. For me, I don’t think it’s reasonable to use your emergency funds or sell your assets just because you are in a bad shape of your finances. You can have additional job if you want, that’s why most people these days are often online because of their online jobs. Maybe you can try exploring it and if it’s still not working and you hardly find ways to survive, then maybe consider use your emergency funds while looking for another source of income.

Before you use your emergency funds or sell your assets, determine first the gravity of the situation economically.

Personally, I would always prefer to first use my emergency funds before selling my assets. Assets, in general, have a value that may increment annually depending on which kind of asset. If such asset is a land, then its value may appreciate. But if your asset is a car which the value depreciates as time passes by, determine the need of such situation.

Emergency funds are created in order to answer for whatever kind of emergency you deemed fit. If the purpose for selling it is due to some minor reason, then feel free to do so. But I personally suggest to only sell your assets if your emergency funds are already exhausted.

Well I guess it is not advisable to use emergency funds or neither sell your assets to sustain your financial needs unless it is absolutely necessary and you don't have other options. Emergency funds should be used in case of unforeseen circumstances such as medical emergencies or job loss. Selling assets can also have long term consequences on your financial stability. If you really have no other option maybe you can use it but of course you need to find solution to be able to replace the money you borrowed from your emergency funds, while for the asset if you sell it would be harder to replenish it. Better yet find a side job or a job that would sustain your needs or create a profitable business if you will sell your asset so that you can earn better and save to be able to buy another asset. 

Exactly this is why i recommended to use emergency fund as bad economic time could be overcome by using emergency fund or getting loan. Actually OP not mentioned which kind of assets he have. some assets are worthy to hold which price rises every month or quartely in the year while some assets rises price very slowly so if OP believe that he will again get asset back easily then its also not too bad to sell this asset but i will not preferred this as he has already emergency fund for purpose to overcome bad  economic time and this is right time to use it


if OP has any online skill(freelancing, writing, designing) then i think it would be better to give some time to accumulate USD as the Usd has high price and will get better reward than than fiat but if he has no skill then side job is beneficial.

I don't think the devaluation of fiat is their reason, most won't want to save and just invest because they all think it's easy to make a quick return on investment. Many people are subjective and do not have the right plan for their life. If we say fiat currency depreciates rapidly, then I think in the short to medium term, it will not depreciate or be volatile as much as bitcoin. My fiat savings lost 3 to 5% of their value when inflation hit, while my bitcoin investment lost more than 30%. And I need money for an emergency, I don't think that investment will benefit me right now.

In my case, I live in a country that in recent years has experienced a highly volatile and weakened economy, I do not necessarily consider myself an expert but I believe that my experience is a good starting point to give a solid perspective, fortunately, where I live, people have been able to deal with an extremely uncertain economy, a suggestion would be the following

Keep your assets if they are stable or highly reliable, in the event that you are not sure of these, transfer them to a currency that is not your local currency and acquire another that may become more functional

if it is very necessary, resort to your emergency fund but if the time does not arrive, if you keep this in a volatile economic topic of today, such as your local currency, according to what you say or something similar, it is preferable that you change it or invest in any kind of article because in the fluctuating economy in a negative way it is much better to always bet on any type of property, ranging from a more stable currency, through any purchasable item to, of course, more reliable investment assets, that's all..

It is really to create a budget and tracking expenses if there is an economic crisis. With the inflation happening all over the world the prices of necessities increase drastically and it is really hard to adjust in that kind of situation. With that crisis our budget is suffering and even our normal salary cannot sustain our daily needs because of that price increases. If you will use your emergency fund make sure that you will replenish it or return back what you had used. Or you can find other source of income to be able not to use your emergency funds. For selling assets i will not agree with it unless you really cannot sustain your daily needs.

Selling property should only be considered when we have no savings because it is easy to sell but not easy to buy back if it is an asset of great value, like real estate.  i don't understand why the OP is confused when he also has emergency funds, and that's where they come into play.  Why is he not using it but thinking of selling the property?  it's hard to understand.  saving will always be easier than buying back any valuable property.

Simply because he still have a crypto that can be easily liquidated since this part of his investment while emergency funds is supposed to be use when you are on emergencies which you don't have pther source of money aside from that particular funds.

I will sell my crypto without a doubt If I'm on his situation since the price of crypto is very volatile and he might find is crypto assets value in very low price in bad market while he can use it not to cover for his expenses. He can always buy back into crypto anytime.

If indeed there is no other option, do it, but if there is another way out, take that method. Sometimes reserve funds are needed when others are not available. and this is a tough choice indeed. for sure everything has a deadline ending for example the Covid Pandemic in the end too. whatever you do using the reserve fund benefits not only for you but for your family as well.

I guess it's just different for everyone. We still don't have any proper budgeting breakdown from the OP just like I mentioned previously in this thread. Some people tend to use their emergency funds when they appear to be helpless ,like being brought to hospital which I hope does not happen to anybody, since you can't afford to make more money nor make moves to get one.

Emergency funds isn't entirely when things just go south so suddenly. It is kinda different on how everyone calls it an "urgent" situation.

Take any action if it saves them from the uncertainty of inequality but if you must have it then use the emergency fund because it is for needs in times like this, so it is important for anyone to save an emergency fund in times like this we can use it but sell other property assets...

The Covid pandemic is a lot of lessons for us where many people use emergency funds because of their uncertain conditions in their income, the best way with emergency funds to survive, when conditions are normal again you can start the same way, namely saving and preparing emergency funds again.

Correct, once the situation got resolve you start again to save your money, for sure you learn a lesson from your experienced.

We don't know when the emergency will come up, but with the experienced we will start to
anticipate and we will allocate a certain amount to save.

It will help to avoid using your investment or your asset as you have dedicated savings
for any emergency it will cover the needs.

Dont wait for yourself to be put up on a situation on which you would really be regretting just because you havent been able to save up or been able to spend up into something. Always allocate  something on your savings on which it is true that not in all lifetime we cant really be able to experience emergencies and this is why savings or emergency funds would come into play but what if you dont have? For sure you would really be ending up on taking a loan or would really be borrowing just because you dont have the funds for that certain situation.

We arent hoping for accidents or emergencies but we do live a in life on which certain situations could happen which it would really be involving money and this is why its never been that something that you should neglect on. On the question in regarding on using up or selling your assets to invest on crypto space? then its not necessary on which if you do have an asset then you could actually invest on  crypto if you do like.
Expand out and diversify as much as you can and we know that opportunity on making profits or money is really there. You cant really just that make yourself that able to reach that financial
freedom if you arent wise on your investment and selling out your assets just because you are focusing on a single point?

Obviously it is the right move to survive in the context of current conditions. Sometimes we have savings for our future but when our economy is getting more difficult and there is nothing else we can sell then these assets are worth using for current needs. For the current era, it is indeed difficult to predict both in terms of our work because everything can change quickly if the economic wave is not good. Where there is a layoff or anything that makes us lose our jobs that catch us by surprise therefore we need to set aside money for an emergency fund to deal with such conditions.

Apart from that, we also have to look at past experiences such as the Covid era where the economy almost stalled in a number of countries due to the disaster which made life difficult for many people. Therefore of that we have to prepare savings for things like that.

Ther is a reason why you termed it an emergency funds and that's because, its a fund reserved for moments of great and immediate need which seems like the kind of situation your in. A position where your left with 2 contrastive choices and you cautious not to make any bad decion.

If you call it an emergency fund and this is about that situation, you might just as well allow it to solve that which it was meant for. Otherwise, you could endure and adjust your budgets to suit prevailing circumstances in accordance with your economy.

Having to sell your assets doesn't seat well with me as, assets are investments of some sort and have the ability to generate that which you could spend in the future. This makes selling it a don't for just any course.

During the Covid pandemic, many people did not have emergency funds for their necessities of life and they hoped for financial assistance from the government to help their finances, due to the poor food conditions and high inflation that occurred in several countries.

So this condition is a warning for us to save funds for emergency purposes, I suggest that savings be kept in gold investments to provide price stability and avoid inflation, gold investments are easy to sell again whenever we need them for emergency purposes, we must have a savings fund 40 % of the total funds to maximize financial management, also to prevent selling our assets.

Inflation is robbery? Not exactly, inflation is effectively a transfer of value between people who own money to people who owe money. The other day I spoke with a guy from Poland that told me that in the times of hyperinflation, some people bought houses with a mortgage that after a few years could repay with "pocket money".

The key to let inflation play for you is to borrow in low interest times and fix the rate for a long time.

I completely agree with your suggestion, although gold is an investment asset, it is well suited as a place to store savings because of its stability.
Fiat currencies depreciate very quickly, we should not hold them for a long time. But be sure only to use gold for savings, never use a volatile asset like bitcoin for storage. Many people think that putting money into bitcoin to save, but that is a big mistake because, as we have seen, its short-term volatility. Bitcoin is only suitable as an investment, it is not suitable for use as a store of value, such as savings or an emergency fund.

How can it be that the crypto market, whose movements are very volatile, makes Bitcoin a place for storage or for saving, that is clearly the wrong decision,
if for a place to save then the priority is with low risk,
what is clear is saving money on Bitcoin will make you lose.

If it's a cryptocurrency such as bitcoin, then I don't think the decision to sell at this point is a wise decision.  we don't know how much he bought it for, and with what's going on, almost every coin's price has dropped a lot.  he will probably lose a lot if he sells in this bear season.  furthermore, there is no guarantee that he will be able to buy back bitcoins at a low price, and he will need to spend more to own bitcoins if the bitcoin price rises sharply.  this is an emergency, and is it right to continue not using the emergency fund?

Selling an investment or property is a method of last resort. But when I say this, I also think about this. It can be preferred if your emergency funds are not sufficient.

If you try to pay off with your investment, you may suffer a loss. The price when you buy and the price when you sell may not be the same.

Saving is easier than investing. We have to make decisions like waiting for the right time to invest or investing in the right thing. Therefore, in such cases, it would be wiser to use the funds allocated for emergencies first.

Crypto can always be bought, but why sell it below the price we bought it? As a result, we sell the emergency funds first, then our crypto if not enough, and finally our property to pay off a debt.

At the end of the day, it's all a matter of choice and if it's the last resort for us to survive, why not.
Having difficult conditions in the economy and being pressured by several factors such as inflation and the current recession that is starting to get closer then indeed when there are still reserve funds or investments why not use them.
But it is certainly the last choice because if we feel that we can still get through it then it would be great if it is not used but if the difficulty of the reserve fund is the right thing to use but if it is still not covered then the funds from the investment may still be used. rather than looking for other options such as debt it would be better to take advantage of the existing ones first to support our needs.

Bro really out here defeating all the financial advisors on the planet lmao. Holding Fiat is a little out there you know, you got to be specific. For instance saving your money in the bank is considered holding fiat, and I dare say saving your money even if it's in fiat form isn't really that bad to be honest. You're also a little idk man. Your emergency funds are called emergency funds for a reason. You don't use them just cause your financial advisor asked you to invest your money on something. It's not money that is meant to be invested or be used to gain profits. It's literally there to be your safety net for when times get rough. I would much rather prefer OP using his assets as those can be reacquired anyway and who's to say he doesn't have assets that are easily recoverable? That way he doesn't have to spend his saving grace just so he can fund his investment? Cause I'd never go out there investing what's supposed to support me if shit hits the fan my guy. I'd much rather sell my other assets instead.

However, we need to be able to save money, learning from experience is important, and in times of economic uncertainty, the emergency fund has been set up again.

It always comes unexpectedly, so anticipating is very important, don't spend too much money the way you save and a little aside for investment then it's the best solution when there is pressure again.

As much as possible it should be able to be separated between investment and emergency funds.
Emergency fund is the first layer and Investment is the second layer to use, but if it can still be overcome by the first layer then the assets in the investment will remain safe for the long term.

The key question is how expensive the lesson is going to be. Making mistakes is usual, part of life and will provide an example of how not to do things. However you need to calibrate the cost of making that mistake and learn the lesson and know what you don't know and how bad can it get in case you miss.

Regarding inflation, the topic, getting it wrong is usually a very costly mistake that may end up with you having no home.

You have an emergency fund and times like this are the reasons you have that kind of funds. You properties you want to sell are most likely assets that can generate money for you so I wouldn't advice you to sell them except the cost of operation or maintaining it is higher than the profit it brings.
And also, it is not advisible to save your money in fiat. With the rate of inflation, your saving will lose value over time.


Inflation doesn't only affect his savings but it also increases the price of goods. When commodities become expensive it affects the cost of production and reduces sales in his business thereby placing him in a difficult position.
It is good advice that he should not save his money in his local currency, but I'm afraid that would not shield him from inflation.

You suggest an order of priority for selling off one's possessions: emergency fund, cryptocurrency, and finally real estate. But, man, your thinking is too simplistic. Cryptocurrency investments are an altogether new species. They have the potential to fall below their purchase price, but they also have the potential to soar to new heights. Surely by now we've seen Bitcoin pull this off before?

Selling cryptocurrency out of resentment when the price falls below our buying point is an irrational emotional reaction. A level-headed person would view it as a momentary setback, equivalent to a paper loss. If the market can recover from this, then what? What we've learnt from Bitcoin and Ethereum's past is that investing in cryptocurrencies may be a crazy rollercoaster ride, but ultimately rewarding.

Totally agreed, the money you have kept for emergencies shouldn't be used for anything at all, even if there is an investment opportunity that might provide you with great profits but you can't do that because the money for emergencies can't be used or made stuck in an investment plan. People usually get greedy when they hear about an opportunity, and they invest their life savings in it and then regret it later when they need money but have none.

Someone should always keep two types of savings, one they should keep for emergencies and the other they should use for things like these if they want to make an investment or buy something, they should use the other savings, but it is very difficult to manage to save that much money.

As you are currently spending from the fund, the funds are of a fixed amount you will run out of money if you use the amount of money you have. If it was the case that the account from which you are spending money, even after you spend money, a certain amount is constantly coming into the account, you would not have to worry about this issue so much. I think it will not be a good decision to spend money from this account regularly at this moment, instead of spending your money in this way, you have to take a risk of your total money, start any business with the total money. There may be risks in the business but there is no chance of running out of money at a certain time. If you know the business well and can hold the business, the chances of success in the business are very high. So instead of spending money in this way, try to use that money somewhere.

i agree with you, it all depends on the choices of each individual and not all individuals are in the same condition. whether it's using an emergency fund or selling assets, the most important thing is that we can think clearly to take a risk on one of the available options and at least we can survive without having debt, it's not very wise if we still have emergency funds and assets but we debt, it will add to the burden of life.
back to the topic the OP made, he wants to cushion the impact of the economic situation. actually we can't argue further because the OP explained the situation is too general and it all returns to the OP's choice because he is the one who will take the risk and only he knows how much the emergency fund and the value of the assets he has.
one more thing, i think it's also important to do a little to help deal with the economic crisis, namely by reducing your lifestyle or being more frugal.

I certainly agree with this. An emergency is an emergency, I get that there's that lingering guilt that you'll be touching your savings but it's honestly better than risking your assets. You should keep it mind that selling your assets now may lead to a bigger financial lost as the market today (at least in your area and based on your given situation) is on the low and your assets will surely sell lower than your target rate.

Certainly not your emergency funds. Emergency funds are funds that you will need in case of something disastrous happens and you will need money. You won't be able to risk that money by investing in crypto currencies. What if you need your emergency funds which you invested in crypto currencies, but the price of the crypto has fallen? That would bring you more trouble. The assets, depends on what kind of assets and how much you are willing to risks. I wouldn't say go all in with your assets, but yeah, maybe a few assets that you can risk and you think would be better to sell and invest in bitcoin or other crypto currencies. As long as you are holding for long term and not investing in some shitcoins, then you will be fine. Remember, invest only what you can afford to lose.

Good point, but there's always knowledge and understanding that you should carry when you invest your money.

I think in terms of saving or having an emergency funds, you should always think ahead of time,
emergency cases are unpredictable, so saving your spare money is really needed to cover those
possible expenses, take time to read and review all the possible venue to invest in if you are aiming
to grow your save money.

If you're so depressed to the extent of not having a breaking even experienced with the situation of economic impact through inflation, i will suggest that you consider your assets you hodl first, are they actually making money or they are just there for the formation sake turning to a liability over time, if they aren't that productive as expected, they you can convert them to bitcoin and try to hodl or engage doing trading in case you already have the experience of doing that, anything that is not earning you an income is a liability and that's why i asked for it at the first i stande that if the assets you're holding are being productive or not, your emergency funds is always ever relevant as not being touched because you may needee it at anytime, but another good decision is to also have them in bitcoin in your personal wallet decentralized.

We all know that cryptocurrency is a risky investment and it isn't easy to HODL your bitcoin unless you have savings that you could use if you experience problems and badly needed some money. Make sure to only invest money that you could afford to lose on cryptocurrency because if you are not careful you could possibly lose it all if you invest all of your money in cryptocurrency and then you didn't have savings something like health insurance if you needed money if your sick or one of your family members is sick where are you going to get that money your just gonna end up selling your cryptocurrency and probably end up with a lose.

I think in your situation you should use your emergency funds since it's for an emergency, if you use that money you could avoid selling your cryptocurrency assets meaning you're avoiding losing money, but I guess if its a good time to sell and you could make a profit if you sell if you make a decision to sell your cryptocurrency it doesnt matter since you already make a profit another opportunity will come to reinvest your money again on cryptocurrency or other investments.

People usually spend money from their emergency fund when they are in danger. Emergency funds are kept for that purpose so that those funds come in handy in times of need. Since you need to spend money right now, I don't see anything wrong in spending money right now, but instead of spending money the way you are spending money, you can spend your money in alternative ways. Instead of spending money in this way, make a plan with your total money so that you can earn some money by using that money and you can do the things you need with that earned money. By adopting this strategy, you will see that your emergency fund money has acted as capital and you have earned some profit by using that capital, thus keeping your emergency fund safe while you are able to do the things you need to do.

Well, emergency funds are indeed collected and prepared to be used in situations that are considered emergency or when we have unexpected needs. But sometimes people too easily think of a situation as an emergency. Even though he can still handle it without using an emergency fund. But that's not a problem as long as it can still help balance someone's finances. I have also used the emergency fund several times. like when my child is sick, my wife is sick and my brother has to be hospitalized. I was really helped and grateful to have raised an emergency fund at that time. Because I was able to help my brother who was in need of fast funds at that time. Sometimes we can also use emergency funds not only for emergencies in ourselves personally. but we can also use it to help other people who are in a situation that needs immediate help.

Use your emergency funds, don't sell your assets. Fiat will never give you any profits in the long run but your assets can.

Find a job that pays higher than your current job so you will never spend your emergency funds, unless it's really an emergency. The key so you will never be force to sell your assets is to earn fiat that will be enough or more than enough to sustain your needs and wants, also to have more to buy more assets.

The volatility of bitcoin is crazy, it can cause our assets to lose more than 50% to 80% of their value if we are in bear season. And if bear season lasts, what happens? That would be a dire situation for anyone who sees bitcoin as a store of value. But unfortunately, many people still have that mindset, they see bitcoin as a store of value, a safe haven for their wealth.

Many people think that fiat depreciates too quickly and that inflation in 2022 has caused the currency's value to depreciate severely. But I want to ask people who bought bitcoins for $50k or more in 2021, is it a store of value as many are saying? Or is it just an investment that would be better?

Inflation or other negative economic impacts of course make us have to make a lot of sacrifices, the right step is to ask economic and financial experts as you told, of course these 2 things are difficult because if we sell assets or use emergency money then it will slowly run out and the best solution is to increase the source of income.

Instead, the experience makes it an expensive lesson even though making mistakes is a common thing for us to do, but life needs to be considered which is better and which is worse, rather than they miss the process again it will take a long time to recover, so we have to think ahead and also the risks because in the journey of life it will not run smoothly.

When the economy is heating up, the inflation rate is high, there are no jobs, food is so high due to the situation that continues to be chaotic then their choice is none other than to sell assets including one of the houses, but when everything is prepared from the start then it won't be this bad to not have a house for example.

Good point, while you can do it without debt then don't make things harder and continue to use what you have because if you try to do it with debt then it will be difficult for yourself in the end.
Maybe some consider taking on debt to slow down the economy in the hope that the economy will be better in the next few months but that's the positive side and we know the possibility of negative conditions is actually much greater than the positive side when trying to take on debt.

Like I said before, it comes down to individual choice for the person who is feeling it. I think people here are mature enough to deal with life conditions and they know what to do so for that matter despite some good advice, the conclusion and the choice of path is still back to the OP.

So how about in a case where there is no means to increase source of income. What have you to say about that? Because to me, it's called "emergency fund" because it's meant to be use at emergency period, which in time of inflation is an emergency period, and selling of an asset is the worst decision anybody can do, because as time goes on, the value of an asset increases, unlike in the case of fiat currency whose value will either remain static or drop due to inflation.
So for me, I subscribe to using emergency fund in times of need.

If I will choose, it’s better you go for emergency fund, because as the name implies it’s for the sake of emergency, but if you think it’s better you sell your assets then it’s still okay, both the emergency fund and the asset belongs to you, as long as any one you use is going to solve the problem then you can use it. But just make sure you are not taking loan to solve problem when you are having emergency funds and you are still having assets which you know you can use. Some people are really used to taking of loan to solve problem even if they are having money to solve the problem, they will prefer to keep the money and take loan to solve the problem, which I don’t really think it’s a nice idea.

Why do you feel unhappy to follow the suggestion?
I think it is a good suggestion to analyze our income and outcome by using the excel sheet. In this way, we can minimize the unnecessary spending and realize whenever we need more side jobs the increase the income. If you are in a financial problem, there is nothing wrong to follow the suggestion although it seems a bit complicated to do.

What the problem you are facing exactly?
If it is about the increase of your spending, you just need to adjust the priority. Eliminate which one is not really necessary, keep the allocation for the urgent needs only.

By the way, if you think that you need to use your savings/emergency funds, just spend some of the money. If you still have emergency funds, just keep your assets. IMHO, only sell the assets if you have no fiats, no savings, and no emergency funds.

You can use 30% each of your emergency fund and your assets to meet your daily needs as long as inflation is still going on, the period of inflation causes an imbalance between income and expenditure, that's the reason why many people are in great trouble when the government is unable to reduce inflation wisely and precisely. 

also avoid buying unnecessary items and postpone your vacation plans with your family ^{(if you have those plans)}, as long as your economy is not stable, be consistent in maintaining your financial condition.

I dont know the country you are from, but if i am not advice you based on my current experience over here in my country, first, it all depends on the type of assets you have..
is it bitcoin and other types of cryptocurrencies?
Or is the asset a landed property like in real estate or so ?
Is bonds or company shares and so on ?

For me, if the asset is either in bitcoin or real estate, i will advice to use your emergency funds to cushion the effect of the economic inflation in your country if you must, leave your assets alone, those assets might be your savior in the future if eventually the economic situation fail to get better for whatever reason.
And also remember, In a country facing economic crises, the worst mistake any body can make is to save in that countries fiat, save money in assets like Bitcoin, lands and so on.

Everything would really be needing that extreme consideration on thinking up whether it would really be worth on such decision or not because there are things which we do make up some rush things without trying out to

reassess on what are the pros and cons on such decision that it would be taken.If you do really be able to find out and having those analysis that it would really be something beneficial then go ahead, but if you cant
really be able to bare up with the risks then better skip and dont bother yourself on doing such thing. If we do speak about crypto investment then it would really be that wise on using up emergency funds but
dont go all in because we know on whats the main usage of these funds on the first place in speaking about emergencies.

Selling out your assets is never been that ideal specially they are making or generating some income which you could really be able to make use for your investment means. Therefore, its not
really that recommendable on doing so.

The ones that have the greatest impact on a person's economy or finances are the long pandemic and quarantine. It's not easy to maintain our finances when a pandemic suddenly comes. the economy in the market suddenly paralyzed. shops were forced to close, people were told to stay at home. Because the Pandemic always comes suddenly. So many are not prepared to deal with it. Even if the pandemic lasts a long time, the emergency funds that we prepare are sometimes not enough to handle our needs for a longer time. so selling valuable items that can be cashed is indeed a solution in such a situation. Even selling a house is actually difficult to do. because even though we set a low price, it's still difficult to find interested parties. because everyone prefers to struggle to provide food stocks rather than buying property like a house. Even luxury watches become worthless when no one wants to buy them. The pandemic triggered all of this (inflation), and inflation forced banks to raise interest rates which then triggered a recession.

We must learn from all this chaos by taking advantage of the time now to have multiple emergency funds, more savings and investments. because we don't know when the economic situation will not be easy again.

Of course the most preferred answer are your emergency funds.

Why would you sell your assets? Are your assets in Bitcoin? Stocks? Land or property? You have failed to distinguish this in your thread.

Emergency funds can just stay in value but your assets like Bitcoin can either grow or fluctuate.

Like me, I always prioritize my emergency funds and not my Bitcoin without second thoughts.

As long as we don't have urgent needs such as food needs, paying house installments or something else then the best thing is not to sell assets or use emergency funds, most people are too afraid when they see economic predictions so they panic and sell anything to be able to overcome inflation or bad economic predictions.

Yeah right mate. Emergency money should only be used if the situation is beyond our control. like we need to quickly get cash right then and there. But as long as our economic situation is under control, well, we don't need to rush to use emergency money as long as we can solve the problems that arise. Selling assets is the last resort when we run out of emergency money. So the sequence remains Emergency money then selling assets. don't turn it upside down. Because it would be very funny if someone chooses to maintain the emergency money they have and instead chooses to sell the assets they have been collecting and maintaining to be used as an investment in the future. people like this are clearly people who don't understand the function of emergency money and they don't understand the principles of financial management. or there is language that is even more rude. but I don't want to say it.

The current price of your asset may determine what to do here. If you own Bitcoin and after studying your chart, you observe you are still selling at a good price. You may sell your asset and work on how to buy them later. You may even buy at a more good price giving you little profit compare to when you earlier sold. Although this may not be too easy but it could be a possible way out.

Emergency funds are what you must use if ever you're in immediate need. If you wanna sell your assets and you want to be liquid, you can sell them as well. You get the point why we're having assets and that's for us to have a cash flow whether we will gain through capital gains or through having a passive income out of it. But if that asset in generating income and you've got an emergency funds, don't sell the asset as it will continuously going to make you money and since you have a back up fund through emergency funds. That's all you need to have.

Op have two option due economic crisis in his country between use emergency fund or sell his cryptocurrency assets, I think depend which kinds of altcoin assets hold by OP, if potential altcoin like Ethereum, BNB and XRP is worth for holding it and use awhile with your emergency fund. But could you predict about how long economic crisis will happen in your country? will enough with emergency fund for you daily day needed?

For emergency fund enough until several months later, I think better hold your cryptocurrency assets and waiting when price going up to sell it, be patient with halving few months later and sure your assets will increase up and enough to recovery with your emergency fund. I hope your country economic crisis will be better without have to sell with your cryptocurrency assets.

You always need to weight the situation, like what you have said if you have savings that you can still use better to leave your assets, especially if the assets are providing decent passive income.

Or, if you are expecting good bounce from your asset and the chance of making money in the long run,
you only need to touch that asset if there's no available option, and the situation is something that you
can't ignore and there's a call of urgency.

Its already clear that aside from basic needs and health, like you said is not advisable to sell your assets, and in my opinion, since the emergency fund is for the unplanned situation then it should be used for whatever emergency it may be, selling out an asset is not worth it and from the look of the thing, assets are supposed to give you profit, and the emergency fund to be backup funds, people having that mindset of panicking and selling off what they have gathered, honestly we all know the economy is bad, all we can do is adjust to it and make good plans if not you will have more emergency to deal with.

During the Covid-19 pandemic where many people experienced a declining economy, the result was that the government implemented distancing and did not go out too much to avoid the spread of the virus, I know this is for the good of all but people's conditions are very difficult if they cannot work for a long time especially since the pandemic is an epidemic that we feel almost all over the world, this resulted in many bankruptcies and also increased in terms of poverty at that time.

Indeed, at that time many cities were paralyzed, many shops were closed, food became expensive, money was difficult to get because many were hit by mass layoffs due to this pandemic with that they could not work anymore, continued to send goods importing goods decreased, tourism decreased due to the prohibition of its citizens to travel and indeed at that time many were not strong with the emergency funds they had sometimes not enough to sell the goods they had.

Selling your home is the wrong decision in my opinion, unless you have more than one home, but now that dark period has passed and now many are starting the stage of growing their economy after the government lifted all restrictions during the pandemic.

It would be more better to use emergency funds kept aside for why purpose, an emergency. You don’t have to include your assets. Assets bring in income and grows the wealth of an individual so I wouldn’t say it’s wise to let go of that property which generates income.
I would probably take a loan from family or the bank even to help sort out the emergency than to sell off my property that is sure to generate income. Selling off assets would be my last resort if all avenues to raise some money have been exhausted.

Emergency fund is what i will choose. As it is indicated, use it in emergency situation like you are now right now. If you sell your assets, i think this is a wrong moved as of the moment especially when economic is not in good situation.

Unless you don't have other choices, that is their last resort. This is mostly the move of other people that has no savings and their relatives got hospitalize because they don't have enough money they will end up selling their land or lend it to others like making it as a collateral then they will pay back in the future but mostly they cant pay it back.When you really don't have emergency funds you have 2 choices to take out a loan or really sell off your assets which is very not a good move

Yeah, it's a matter of what's the best option if both things are available.

Right, if the assets are generating money then you don't have to sell them and just leave them alone while using the saved money you've got as the emergency fund. Lucky you are if you've got both choices but everyone has a different situation and it's hard to come up with the idea and choice to make if you don't have that much choices.

This happens if you do not take care of savings. I'm not even talking about any investment, you just need to strive to have some kind of cash reserves. I know that there are people who find it difficult to save because their income is too low, but each of us can do something more to improve our lives. You need to prepare for difficult times when everything is fine, if such a situation occurs when you are not ready for this, then this ultimately leads to the fact that people lose their land and property in order to save their loved ones.

I believe that it depends a bit on the emergency as well in this situation. Like just this Sunday I was taken to hospital, and I had to get MR scan and all that bells and whistles, in my nation thankfully it is not as expensive as USA so I was fine, but I had to sell just a bit of my bitcoins to pay for that, because I had no money left in either my credit card or debit card to pay for that and survive until the end of the month.

I am fine, just that it was an unexpected stuff and not like I cashed out a lot, I cashed out only what I saved last month, so it wasn't really much big deal at all, it was definitely small detail only. But I had to, and I did, didn't even worried about it, because that's literally why it's there.

Well, we should be grateful at this time because the difficult times during the pandemic and the economic crisis that followed have also gradually improved over time. The inflation rate has also slowly decreased and many factories have resumed operations and re-absorbed workers who had become unemployed due to layoffs and bankruptcy.

But still, the current economic conditions have not returned to economic stability as before the Pandemic. And actually, business competition is now much more difficult than before the pandemic. But at this time we cannot be careless in terms of financial management. We really have to be prepared for all the possibilities that could happen in the future. Setting up an emergency fund and having more savings and investments is the main subject of our current task. So that we will be more prepared when unexpected things come back.

back on the topic related to using emergency money or selling assets, the answer is still the same, namely using emergency money as long as we still have it. And related to selling a house is indeed the thing that must be avoided, especially if we only have one house.

That's the purpose of Emergency fund. Use it when you need it. Selling your asset is not option about this I think.
But the inflation in your country is not slowing down, maybe find a part time job or extra job

I believe selling of assets in this case is a very bad decision, but making use of emergency fund is not a bad decision.
You kept those funds for trying times and these are trying times. So why not use it as your bail out fund?
There's no point having and emergency fund and not use it in times of emergency.
If Assets must be sold then it has to as last resort. Make sure you've exploited all the other options and there is nothing you can do to solve the situation before selling your assets.
If the choice comes down to emergency fund or asset, use your emergency fund to solve an emergency immediately. That's what that fund is for.

Very bad decisions considering that assets does have appreciation or have increasing value or something that generates income, then it would really be no sense that you would be selling out in terms of other investment

specially on buying Bitcoin? Its never been worth and not really that something that wise on doing so. As much as possible we should really make use of those funds which are really that intended or was that in purpose for investment or emergencies as much as possible. You shouldn't really be that conclusive when it comes to various things specially if it does really need up some proper thinking and decisions because
one false move then it would really be affecting your overall income or cash flow.

This is why you should really be always having reconsideration whether you would really be needing to sell out first or would be finding other solution if you are really that aiming
for some options which you could potentially be able to make yourself avoiding for some possible problems.

It is not because you've got the emergency fund but upon usage of it, you've got to refill that once again so that you're set back and still prepared again.

Increase the source of income is best method defeating inflation and if got investment money, put it to the assets that will grow and appreciate over the period of time.

Selling assets usually has a spread cost to the deal which cannot be ignored.  Ideally you dont want to sell something you immediately are wanting to own the next month, but if you can sell an asset thats going to go down in price then you have the ideal scenario.   Really hard to advise anyone as the variety of assets will each have a different dynamic and time frame to its ideal ownership but even gold has spread cost so I presume it will be generally true for you.   I'd use plain capital funds personally, paper money loses value most often but also you have to stay liquid the assets can become locked up in the market and entirely illiquid in some cases.  Do a bit of both.

people who suffer the most from inflation are those who only have fixed income. inflation cause the products price to rise, if we produce product to sell as well then usually we only weighing the production cost to the customers. when inflation happen, most of the time company do not have other choice except to rise the product price as well. even we can earn more profit from old stock that left, because the production cost is lower but we have chance to sell at current normal price. so my suggestion to you is to start your own business or buy productive assets, it's hard but it's better than use emergency funds or sell your asset.

Do you know what you are saying? If he has enough money to open a business to earn extra income to fight inflation, why should he sell assets or use his emergency fund? Moreover, is it advisable to do business in times of crisis and high inflation? Because thousands of small businesses go bankrupt every day, large enterprises constantly have to lay off employees… the purchasing power in the market is still decreasing, so doing business in this period is not suitable, that is an unfeasible idea.

Part of the worse after-effect is to be forced to sell those properties just to cover your expenses.

I like the argument where you should spare some money to save up, it will be used as your emergency funds either
to minimize your expenses or try to find additional sources of extra income, it's needed now as we see what happens
to most of us during the pandemic, we all got surprise and most are leaning to government support.

If you start using the emergency fund or the assets, then you'll get used to it. Whenever the inflation makes a mark you'll keep on spending to have the cushioning effect. This needs to be avoided. Good choice is to try to live with what is available. Inflation have caused heavy rise in the price of each and everything, we need to limit on purchase or we should look for additional earning source with which we can meet the additional expenses happening out of inflation.

That's true that they do suffer the most and also those that have an unstable income. But the pain that this inflation causes isn't just felt by those people but even the ones with stable income, they can't keep themselves quiet from telling that they do also feel the pain of this inflation.

A company has to react like that because it's a domino effect. From the rise of fuel and energy costs, to shipping costs which is also requiring fuel and energy for it and that's it. The domino goes from here and there and that's why the cost of goods are increasing and the by-product also is being increased for its price because of the increase of its cost to be made.

this decision depends on your financial conditions. you have emergency funds for various reasons. weigh your options because the decision varies from one case to another. sometimes the emergency funds won't cover your present needs. so you may end up selling even your assets.

This is not the best situation, because instead of doing something on their own, people are hoping for help from the state. The pandemic has shown how bad this decision is, as many chose to do nothing and just wait, receiving help from the state. But in order to ensure this, a lot of new money had to be printed. We all felt the consequences of this, it is the growth of inflation and the decline of the world economy.

So we all, each of us must take care to have a reserve of means and food. The world began to change too quickly, some may not keep up with it, but we need to learn to adapt, otherwise you can be left on the sidelines and no one will take care of you.

The purpose of your advice is good, but it may be very confusing for those on fixed incomes in conditions of inflation. Because in general they also need additional money in these conditions by trying to deal with situations that may be unusual for them, so they have to be really wise in making decisions when they don't have to sell their existing assets. Opening any business under any circumstances must still have very basic capital because it will not open by itself if someone only has the intention while he does not have the initial capital for it.

Conditions of inflation may be conditions that can be very precarious for some people so that they will not be able to use larger capital for their new business, unless they have actually opened a business before for a long time. Whereas those who have spare money in their lives might be able to outsmart it to open a new business in inflationary conditions, but this is also very risky because the level of purchases in inflationary conditions will not be the same as usual conditions. So this should also be considered carefully by those who want to start a business in inflationary conditions.

So true. Actually it's too easy to use an emergency fund which is also a bad thing and can make financial management go awry from time to time. But selling assets when you have an emergency fund is even worse than that. So basically an emergency situation that is truly an emergency is the most appropriate time to use emergency funds. whereas when the situation is not really an emergency, we really have to be able to try our best to solve it without using emergency money and of course also without selling assets.

Yes, having additional income and trying to live a simpler life will indeed allow us to better improve our financial situation. In essence, do not be too easy to assume the situation becomes an emergency when difficult situations come. Because not all difficult situations are emergency situations.

this much is true, when someone are resorting to use their emergency funds usually they are becoming dependant on it, taking things too easy and always using their supposed emergence funds thats only used when they are indeed in an emergency.
currently inflation is really bad but I guess we as the average joe just need to work harder and earn more. thats just how it is how life nowadays.
its all about being productive and earn more so that our life will be more comfortable and not being homeless.
i'd say, i agree with your statement, only resort to emergency funding when there's no other way, frugal living is a thing too after all.

OP I don't know which country you are a citizen of and your inflation will depend on what the inflation rate is in your country. and not even mentioning your specific financial needs, but a person definitely needs cash to survive. Of course, you can pay your bills with the funds you have saved from your earnings. Otherwise, if you decide to sell your asset to pay the bill, it will not be good at all, instead you will lose the future profit from this asset.

If I were OP, I would also think about using an emergency fund first instead of selling assets because that's what emergency funds are created for. But if it's old assets and we hardly need them anymore, we should sell them too. The OP didn't tell us if the emergency fund could be used for any other purpose, and what properties he wanted to sell. Because if it's investments or assets that can appreciate in value over time like real estate, he really shouldn't even think about selling it.

Use your emergency funds that are there for this specific purpose. Because if you sell your asset at the moment when the market is not looking good, you might end up losing your potential profit in the future. As far as inflation is concerned, it is hitting everyone hard and has shaken the budget of every individual.

The purpose of Emergency funds really is for those situations when you need some money, which is why I don't understand why the OP thinks of selling his assets. Though it may not be enough or for other reasons, you shouldn't sell off your assets unless you have no other choice, like if you are in debt and still need money. Though it is still your money and your decision, follow others opinions here so that you won't regret it in the future.

Selling assets just for you to make some investment on crypto? Its not something that worth on doing so because if we do speak about assets these are the things that generates income unless if we do speak about posessions and properties then we could really be able to sell out without having those hesitance due to loss of revenue or income because these are called assets. We do know that cutting off or selling those wont really be that something that recommended because we could eventually make out some investment without needing on doing such step because as long we do have the income source on other ways or methods then we dont really need to do such step. As much as possible we should accumulate and make more assets rather than on selling it because the more assets we do have
the more income we could generate and the more money we could be able to make use if ever we do see some opportunities.

It is really just that here are  business owners or individuals who are really just that too impulsive when it comes to opportunities and on the time that they would be able to see it
then they would be rushing up on making some decisions on which it isnt really that just wise anymore on doing so.

Rather than take sell assets when the available is scarce or empty, I will take loan to relax the economy effect on my self because as you said, inflation is very scary right now and selling your assets at cheap price means you may be buying them at 2x or 3x price in the future because to sell assets that are not appreciating like land and others, it means they will be sold at lower price which is another lost on it own, loan would be the most easiest way to avoid this future uncertainty and problems.

Further more, by taking loan; It should done in the amount that will not exceed what he earn monthly or yearly because when you do and bills pile up, you will be left between path of selling anything you used the loan for and what pay the bills and if they have not appreciated over time, that will be another loss again, it is always advisable to do good mathematics and check the conditions if they are favourable or not before taking any loan.

Before it would warrant you selling your assets either for problem solving or investing to yield more incomes, then it is considered that the venture is more profitable or essentially highily rated than that of your assets otherwise if you have an emergency fund it is better preferable to be used after all the reasons for emergency funds is keeping aside a specific amount of money for either unplanned problem solving or a readiness Incase an opportunity to invest and to yield incomes is made available in an unexpected scheduled but it whole depends if that of your venture requires an urgent or non-urgent actions.

Also considering how much is required and the value rate of your venture comparing to your assets and your emergency fund.

Summary: if your emergency fund can solve it then it's best for it because the fund is not there for a Statue but for problem solving or readiness to get into an unplanned or emergency schedules while your assets is to yield you incomes.

Lucky or it ain't luck for those people that have planned well to have emergency funds. While many are living paycheck to paycheck, those that are able to save for emergency funds knew what they're up to and the future is unforeseen.

Not bad if he's in profit and he can sell those assets but it's not really a perfect timing if the market doesn't look good at all.

On the other hand, it's why many sell their assets during this time because everything has went up and they're coming up with this solution because that can be the only solution they have. But as long as you have an EF, that's all you need to use until it's not enough.

That's the risk, but since many choose that way, the government has no choice but to take that decision.

And like what you have mentioned, it gives us high inflation, and the economy is really giving a hard time for all of us. It's important
to have your alternatives, if you have option you should be wise in taking your decision, else, it will be harder for us.

having that emergency funds can help to avoid bigger problem. If you save while you still can, then you have that money to use
in case you are in need, that's the best thing to have it and to use it.

Good question. But there is a clarification, what do you consider to be the assets mentioned in the topic title ? I see 2 options:
- you are an ordinary average resident, who has an apartment, a car, perhaps a demanded household appliance from liquid assets. And also you have an "emergency fund" or "financial cushion", designed for example for 1-2 years of life without income.
- you have a business or are engaged in investment, you have liquid assets such as land, apartments, industrial real estate, gold,... And also savings in accounts, including a "financial cushion".

It makes a big difference, in terms of decision making. It is more difficult for an ordinary citizen to make a choice - selling today, for example, a car, the probability of buying a new one after problems is not 100%
A businessman can sell part of his assets and survive difficult times without any problems and then reinvest the profit in assets. 

Totally agree fiat is losing its value

https://cdn.howmuch.net/articles/Rise-and-Fall-of-the-USD-64c2.jpg

Tho if I were you OP i would using my emergency fund first rathen than cut lose and sell your asset. tak example if you have crypto we are in the q3 of 2023 the halving is near and maybe like the past history we are going see ATH next year or early 2025.

If you have a mutual fund, especially in the money market you can sell it to cover your expenses

or take profit any investment that already showed green <-- but this is last effort

I don't know what type of assets you hold, let's say I guess your assets are in the form of property or coins of a different type. If the assets you hold are in the form of property, Are you sure you want to sell assets in the midst of economic difficulties?, inflation will make the price fall even more and you will suffer big losses.
While assets in coins do not need to be sold before the investment plan is not in accordance with expectations, let your assets remain in the wallet until the price has reached what you planned when you started investing.

The only way you can use emergency funds to finance your daily needs, you need to find additional funds by looking for routines that can support your economy. Never rely on assets or emergency funds when the economy is in a pinch, you need to be creative in order to maintain economic stability so that your assets are not touched.

I guess that it is easy to give advice when it is not your money what is at stake, so I hope the OP eventually makes the most reasonable decision under his personal circumstances.

In my case, I remember that I was tempted to panic sell some coins back in 2020 when the coronavirus kicked in and everything went down. That situation was hard for many people, and my case wasn't an exception. I am happy that I didn't sell my assets then, but the story could've been the other way too...

Today, we hope for a new ATH next year, but the truth is that the price for many coins is quite good. So, depending on what assets you are talking about and the amount of emergency funds you hold, you could use both in some degree and still hold a part, so you don't regret in the future for making the wrong decision.

You are right. Because of course we don't know exactly what situation the OP is in. Even though in ordinary situations we would prefer to use an emergency fund in an emergency situation. But in different situations, we can do different things. Especially if the need turns out to be far greater than the emergency fund. Then our assets will be threatened to be sold to cover the shortfall. And in the end only OP really knows the situation he is in and only he can make the most appropriate decision for himself. But normally I personally still recommend that maintaining assets is the main thing and using emergency funds in emergency situations is the right thing to do.

We are indeed getting closer to the bitcoin halving and it looks like a bull market is coming soon. So if it's a crypto asset then holding on to it until Bitcoin goes to a new ATH is something I would also do.

I agree, I would also like to add that each of us prioritizes different things. After all, OP was just asking for our opinions and perspectives, at the end of the day OP needs to consider his/her own priorities and situation first. Whatever the decision is I hope OP gets the best outcome for his/herself.

But I also agree with you regarding holding on to my crypto assets right now, especially when I know I still have other means to get money for my needs and wants.

As human beings, of course, it makes us potentially have sudden or emergency needs, using an emergency fund is the last step we can do, as long as there are assets that can be sold, this is better so that we are always safe and not worried about any situation.

Of course, if we see the potential for crypto, especially bitcoin, to be very profitable what else in the near future, I will also choose to defend it. And if there's an emergency need it's best to try to find another way, which I think there must be another way if we want to look for it and I also don't know exactly what emergency need the OP is dealing with.
and if I were in the OP's shoes I would sacrifice my car or some other expensive item to back up for emergencies if needed. And I will save the crypto or bitcoin that I have and when the time comes and get a big profit I can buy it back the expensive things that I sacrificed, even replace them with new ones.
and I hope the OP's problem has been resolved and whatever he does is for the best.

You have spoken wisely human nature is predisposed to encounter difficulties regardless of status, and there is no way issues of life can be avoided. As for the topic, since emergency funds are set aside for emergencies, I believe they should be used to address whatever the issue is rather than selling assets. And the reason I mentioned it's best to maintain your assets is that they can help you in the future, whereas selling them is like cutting off your lifeline; making such a decision requires caution. Since its a free world anybody can  actually decide what is best for them.

If you are in such condition on having leaving you no choice then there's no other way but to sell out those assets but its true that as much as possible then it would really be that wise that you should really be that

trying out to sell first those things which arent generating some income on which as long it does able to give out some money or value then it would surely do rather than on directly selling out assets which is income generating on which there's no one on their right minds would really be having that consideration unless if there's no other options left for you to do so.We do know that not all people possess out properties or assets on which they could really be able to take advantage on.This is why its always been that relevant that you should really be always having the allocation when it comes to saving up for such condition because not all the time we would really be living on not to be able to face up some challenges in life on which it would really be just that right that you should be making  yourself that get prepared.

Selling assets should be your last resort or option but as much as possible if you do still have other things which you could sell off then better prioritize that rather than on directly selling out
those things that income generating.Its never been worth for such action to be made on.

Honestly, I fully agree with you on this one. We are already self aware that it is very likely for sudden and unexpected situations to happen that will require funds. Hence, we should make sure that we have savings just for that.

As for assets, I think this is why it is important that we know the market of the things we buy so in the future if we are push to sell them then we'll know what what to sell first and not just sell everything out of panic.

I agree that an emergency fund should be used in an emergency. And as much as possible we should not lose our assets. The assets themselves are divided into various types. And in it there are assets such as future investments. So we have to try hard to maintain the assets we have as best as possible because this is indeed closely related to our situation in the future. Asset value can even grow if stored in the long term. such as property and the like whose prices continue to rise from year to year. So maintaining assets is the wisest in this matter.

That's great and when you sheet a cash inflow and outflow sheet at your disposal it's easy to track the in the money we spend each month on non-productive activities.

In conditions like this, saving the incoming budget and saving the outgoing budget is an effort that must be made. A balance between income and expenses is needed in conditions like this, because many people will find it very difficult to make money and it can also destroy our unstable income budget.

For me if faced with this condition, I would use an emergency fund instead of having to for sale my assets. Emergency funds are used in conditions like this, while assets are used to be sold when prices rise, that's how I deal with unfavorable economic conditions. When in difficult economic conditions, selling the assets that we have does not necessarily mean that the price can match the expectations we want, so that the accuracy of the assets that we have cannot generate the profit in accordance.

Referring back to OPs original post, it's hard to find out how inflation is hitting him directly that it causes him to chose either using his emergency fund or selling his assets. I would say that let your money sit in for what it is. If you sell your asset then you're also losing the possible gain in the future, if you use your emergency then what is it for? Is there any kind of emergency?

If inflation is really buzzing you out, then the best move is accumulate more assets. The returns won't be emmidiate but it will serve good in the long run.

Someone who can still work to earn an income would be better off not fixating on existing assets because they can still find other income to live on so they don't have to sacrifice existing assets. If a person is only fixated on existing assets and prefers to sell them when he is in an emergency or needs money, in the end he will also experience difficulties when his assets are sold out. So try to see other solutions before selling any assets for this sudden need, maybe there is a solution that can solve the problem without having to sell assets.

Selling at this point is just not a good idea especially if your portfolio is way way down from your portfolio's high positions but if it's really that important and urge to between life and death then never think twice, sell it for the sake of emergency issues. Inflations really made people into these kind of mess, but never give up you will be able to recover your sold tokens.

Economic problems are felt by every human being, fortunately for those who keep an emergency fund, that is the true function of an emergency fund, for those who are aware that an economic crisis can occur unexpectedly.

OP, if you really have no other vision of money that you should use, stuck, the final choice if I may suggest using an emergency fund, don't sell your investment assets, that's what an emergency fund is for, when we need it in an emergency you can use it for something that must be used.

I believe whatever your decision to grow your economy back by utilizing emergency funds, against the crisis that is happening in your country and with yourself at this time is the best decision.

Emergency is that situation in which your life is hard to sustain so in such circumstances if you don't have another way to get money then utilizing emergency fund is needed.

Sometime people heard about wrong business and without research they utilize all the emergency fund in that business which is a worst discount so try to always save fund for emergency and don't use it in useless activities otherwise you will be regret for what you are doing.

I agree with what you convey, when inflation is going crazy, what we have to do is try to survive with what is available and reduce our lifestyle based on what we really need, not what we want.
And it's true, don't get into the habit of always using an emergency fund if it's not really a very urgent need. And don't get used to selling assets if the conditions are not possible to sell, because we could sell our assets at a very low price.
Looking for additional sources of income is indeed important because sometimes fixed income may not be able to meet the needs if there is crazy inflation in a country.
In essence, I agree that the most effective thing to reduce the impact of inflation is to survive with what we have and limit a consumptive lifestyle and if it is possible to find additional income will be very helpful, although this might be a little difficult when crazy inflation occurs.

There's a reason why it's called emergency funds; it should only be for emergency purposes. So if you are thinking of investing, the best way to do it is to sell some assets and hope that you will be able to grow your funds. It's not hard to make a decision if you understand the purpose of your money. In times of trouble, what we need is mature thinking in managing our finances.

Investing and saving (for emergencies) should both exist, and once you have failed in your endeavors, then you can resort to the last option, which is touching your emergency funds. Remember, it should be the last option.

Sounds right, as long as you understand the purpose, you can decide things the right way, just make sure you know everything and all the factors behind your decisions.


Yes, it's best to have both as you can use either or even both when you really needed that funds, if there's nothing
left for you, the decision should be  base from the fact that you know what will be the consequence and you know
that you will be able to handle things out.

Indeed, why using your emergency fund ? if you cannot afford some things do not force yourself to afford it, if he cannot invest for now he is just feeling FOMO because maybe he is thinking that bull run is coming that is why he think to use his emergency funds or sell his assets. He should also learn that the market is volatile and there is not assurance at all for now, he should learn to read charts and do not be impulsive.

There's nothing wrong on making yourself having the urge of investing knowing and able to see on whats the potential and basing up on the history then it cant really be avoided that you would be making yourself that positive towards things and on the time that you do see that  you are in short of funding but you do have some assets or properties or having those emergency funds on which you could really make use of then you would definitely making those considerations on taking up such step as long you do know that you could be able to retrieve it out later on.It is really that impossible that you arent wary about the risks on dealing
with such decision knowing that you wont really be coming into that point without having that financial background on which it would really be normal that you would be wary on what are the things that you should really be doing in the first place.

Emergency funds are for when you are ill or similar no alternative fast situations, so the answer is in the question.   The only person who can really answer this properly is OP or at best you gain the advice of an investment adviser of some kind.  I'd say preferably they should be independent not attached to any particular bank, etc.    Advisers have insurance coverage to their business and a large amount of experience, if they advise you badly on these decisions you can always claim on their insurance if professionally negligent.  They cant cover normal risks and market fallout, thats not their fault but discussing a structured plan for the idea of emergency funds, cash flow vs investment seems well within their remit.

Based on my opinion, better use with your emergency fund than selling your cryptocurrency assets with something urgent needed, your cryptocurrency assets has chance or potential break out to higher price one day later but not with your emergency fund saving as fiat. I want adopt with your ideas having two option between saving assets in cryptocurrency and you still have emergency fund to anticipate things that are needed suddenly. Your cryptocurrency assets as investment fund for the future and you have save emergency fund for using unpredictable moment happened to you.

Nice ideas, have insurance can coverage our healthy without need spent our cryptocurrency assets or emergency fund, but in my country difficult find right insurance can coverage full healthy insurance.

It's a bit hard to give a general advice without knowing more about you. From what I get from thread is that you are struggling with your living and food expenses, which is definitely a serious situation. It's good that you have an emergency fund and investments you can rely upon. Now with the question of which one you should choose first we would need to know what kind of assets you have. In case you have positions that done really well this year and are deep in the green, than I would recommend you take some profit. And if it's the opposite I would probably rely on your emergency cash and wait for your assets to do better. The problem with high inflation and expensive food and drinks is that it's not likely to go down anytime soon. The companies used the inflation excuse to increase prices and boost profits and will likely not revert to pre 2022 levels again. Don't empty your emergency fund completely now, because things could still get worse and you might have another emergency coming up.

Is the emergency fund you mean in fiat? If so, you can use fiat to cushion the impact of the economic situation you are currently experiencing. Fiat is never resistant to inflation, keeping Fiat in the midst of uncertain economic conditions will have a negative impact on the amount of money you have because of its reduced value.

You can develop an emergency fund in the form of Fiat to maintain your financial stability, start doing something to form the Money formula to make money. If the asset that you hold is currently in the form of Bitcoin, then defend the asset that you hold even if you are in financial trouble. Look for money from other sources to finance your life, selling Bitcoin at this point will make you regret it when the price has increased.

Using emergency funds intended to finance living needs amidst difficult economic conditions and using emergency funds to invest are also not very good in such conditions. How is it possible that people can force investment in conditions like this, even emergency funds that are intended to be used to support life in economic difficulties, such as financing unexpected things and forcing to use emergency funds for investment can disrupt the stability of fulfilling needs

Let alone talk about a market that is volatile and having a unstable trip in a period of severe correction. Emergency funds can be used to be more productive in the short term, such as selling groceries and other things that are more productive and profits from this can be used for other desired needs.

The use of emergency funds should only be available when you are in a really difficult financial situation, in the event of a job loss, or someone from your family needs urgent help. Actually, emergency funds were created for this.

Perhaps in some cases, if the reserves are not enough, you will also have to resort to the sale of assets, but this will only indicate that the reserve was created insufficient and you need to think about how to increase it in the future. Even if your emergency funds lie idle for a long time and you have never used them, you should not think about trading or investing them, because we never know what will happen tomorrow.

It seems that this is quite appropriate for someone who wants to overcome an emergency situation in the fund sector that he has. Because if it is about fiat, he should have no difficulty in overcoming it if he has the capital and knowledge to raise his economic condition in life. Especially if he wants to make some of the money he has as capital to get other money through doing business or a business that he has mastered.

If he already considers Bitcoin as a very valuable asset for him, of course he will not let go of Bitcoin when facing difficult conditions. Because he can look for other options to deal with the emergency problem he is facing, especially if the emergency problem is fiat. I think it won't be that difficult as long as you try to earn some money through more logical things in life, because someone who doesn't get anything is someone who often complains in life. So he never thought of a way to fix himself from a difficult condition at any time.