Should I Use Emergency funds or Sell my Assets ?

[dothebeats]

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.

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.

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[adzino]

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?

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.

[Pamadar]

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.

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.

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.

[Doan9269]

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?

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.

[Asuspawer09]

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?

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.

[Patrol69]

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.

[Ahli38]

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.

[AicecreaME]

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.

[Minecache]

✂️

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.

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?

[Joshapat]

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.

[salad daging]

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.

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.

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

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.

[Furious 7]

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.

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.

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.

[CryptoHeadlineNews]

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.

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.

[Stable090]

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.

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.

[kawetsriyanto]

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.

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.

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.

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.

[macson]

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?

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.

[Fivestar4everMVP]

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?

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.

[dunfida]

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.

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.

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.

[Ahli38]

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.

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.

[cheezcarls]

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?

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.