Should I Use Emergency funds or Sell my Assets ?

[Litzki1990]

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

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

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

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

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

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

[Davidvictorson]

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

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

[Maslate]

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

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

[Japinat]

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

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

[Fatunad]

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

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

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

[icalical]

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

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

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

[Poker Player]

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

[Sebas.tian]

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

[komisariatku]

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

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

[Inspiron14]

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

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

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

[Ahli38]

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

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

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

[gunhell16]

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

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

[robattfield]

...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?

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

[Dr.Bitcoin_Strange]

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



Cheers 🥂, Dr.Bitcoin_Strange 👺👺

[Ultegra134]

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

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

[doomloop]

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

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

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

[Viscore]

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?

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

[goaldigger]

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

[irhact]

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

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