Should I Use Emergency funds or Sell my Assets ?

[dansus021]

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.

Totally agree fiat is losing its value



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

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[mamesso]

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 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.

[Porfirii]

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.

[Ahli38]

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.

[dothebeats]

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.

[Kadal Ijo]

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.

[bitzizzix]

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.

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.

[RockBell]

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.

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.

[Hamphser]

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.

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.

[dothebeats]

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.

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.

[BRINIRHA]

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.

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.

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.

[ancafe]

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.

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.

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.

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.

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?

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.

[CarnagexD]

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.

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.

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.

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.

[Davian144]

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.

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.

[raidarksword]

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.

[YOSHIE]

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?

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.

[AnonBitCoiner]

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.

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.

[lousie9]

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.

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.

[stadus]

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.

[Pamadar]

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.

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.

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.

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.