Should I Use Emergency funds or Sell my Assets ?

[Lorence.xD]

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.

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.

[1715449428]

1715449428

[1715449428]

1715449428

[1715449428]

1715449428

[1715449428]

1715449428

[xSkylarx]

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.

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.

[Cling18]

If our economic situation is deteriorating then in addition to using the assets we have, an emergency fund is the best choice, because besides that we have to borrow money from others this will certainly be a big problem if we do not have a definite income because paying an installment will be difficult for those of us who borrow money in a certain place, So for the future, we must store our assets in crypto instead of fiat currency because this is all for our future.

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.

[PeRo]

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.

[Russlenat]

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.

[Japinat]

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.

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.

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.

[bitLeap]

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.

[rahmad2nd]

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?

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.

[hannahB4]

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.

[Distinctin]

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?

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.

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.

[qwertyup23]

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?

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.

[smile1218]

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?

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. 

[Gladitorcomeback]

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.

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

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.  

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.

[Swordsoffreedom]

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.

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.

[Wimex]

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..

[nesty]

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?

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.

[Texac]

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?

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.

[AbuBhakar]

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.

[Andrija Branislav]

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.

[isaac_clarke22]

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.

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.