Should I Use Emergency funds or Sell my Assets ?

[DanWalker]

What do you suggest I do?

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.

[1714634089]

1714634089

[Fiatless]

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 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.

[hyudien]

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?

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.

[Ahli38]

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.

[demonica]

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.

[reagansimms]

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.

[SmartGold01]

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 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.

[Fortify]

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?

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.

[coolcoinz]

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.

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.

Yeah, what is that saying?  Inflation is theft, taxation is robbery?  

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?

[Rockstarguy]

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 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.

[Unbunplease]

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.

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.

[Findingnemo]

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 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.

[Bitstar_coin]

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.

[ChiBitCTy]

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

[dunfida]

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?

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.

[Mame89]

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?

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.

[chigo]

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?

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.

[TimeTeller]

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?

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.

[panganib999]

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 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.

[n0ne]

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.