Should I Use Emergency funds or Sell my Assets ?

[aoluain]

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

Thats very generous of you ChiBitCTy, I hope the OP takes up your offer. Your advice
makes sense.

The only thing I can offer and its something others touched upon is that holding
onto FIAT is not beneficial in the long term and especially in this current inflationary times.

If one of the OP's assets is Bitcoin - thats the one you dont want to liquidate. Liquidate
the FIAT to save your Bitcoin.

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[Hamphser]

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.

When an asset turns out to be a liability because of some expenses due to maintenance and other related stuffs and it doesnt generate some income but rather taking some then it would be wise on taking up consideration on selling it out rather than on keeping it for long. We arent that dumb enough on making out some selling on properties on which we know that it would be beneficial or something that could take up profits. We are really that on our right minds on to determine which is and which is not to be released or to be on sell.  AS much as possible then i do agree on some advise that its not really needing for you to sell something to invest on Bitcoin. You could always be able to do on buying gradually and not in bulks but i do understand that kind of urgency on buying big is on the time that we do see that the market is really that
on that possible bottom on which as investors or does have the knowledge about price dips and opportunities would really be that having the eagerness on trying out to accumulate and this is why
we do really end up with these kind of options.

[CryptoHFs]

It depends on where you live but selling now will be a loss cause of the supply and demand power affected by inf. Use the emergency funds instead as it's getting affected directly and if you finish it and still need a help consider a no interest loan  or sell an asset. Selling is the last thing you do.

[Oasisman]

I reluctantly followed the counsel of a financial advisor to fix my finances in order by creating a budget and tracking my expenses, inflow and outflow of cash using an excel sheet. The economy has been crazy in my country so I needed to do something urgently. My greatest realization after this is that inflation all round is destroying my budget. It's been  five months now. I am torn between using my emergency funds or selling some of my assets to cushion the effect of this economic situation. What do you suggest I do?

Well, it's called emergency fund for such reason. If you don't use it now, then when? Remember, the purchasing power of your fiat currency is depreciating as time passes - so it's gonna be a wise decision to use it now. Never touch your investment because that is your retirement insurance plan. The money that you set aside for your emergency funds will either have the same value in the future or worse it will only have a lesser value.
But of course I am not a professional financial advisor, but I'm just sharing my thoughts regarding your situation.

[Poker Player]

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 do you think? You've hired a financial advisor but you haven't understood anything. What do you think a fund called "emergency fund" is for? I don't know, maybe I'm crazy, but maybe it's for use in an emergency like the one you're talking about.

The other thing would be to analyze what you mean by "I needed to do something urgently", to see if it really is an emergency or what.

[michellee]

If you are still surviving in the current conditions, you don't need to use your emergency fund because that is for emergencies that really need money to survive in extreme conditions. But before that happens, you should stay as usual and use the funds you earn to survive.

Many people experience this current situation, whether they use crypto or fiat because this all comes suddenly and makes it difficult for people to survive. You can make a budget or your financial report on an Excel sheet to track your expenses and how much money you can save if the situation worsens.

We cannot avoid heavier inflation but can be prepared to survive the toughest conditions. You can survive in these difficult conditions.

[TheGreatPython]

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?

Inflation and economic issues are the same all around the globe, people who are not very rich are compelled to spend the money they have saved for bad times such as a medical emergency or something more severe like a funeral, etc. In such situations, you seem to have no choice but to use the money and then spend years and years to save that much again, it becomes very difficult to take decisions in such times just like what you are facing.

If I was to suggest something to you, I would say that you should first see if you don't have assets at a loss in case you had to sell them, if they are not at a loss, you can go ahead and sell them and use the money, or, you can alternatively use the emergency cash that you have and use the assets when an emergency comes so that your assets stay intact in case the market goes up, they might gain more value.

[bayu7adi]

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.

However, only those who possess superior insights than yours are worthy of offering their opinions and grievances on this platform. Up to this point, you will encounter a diverse array of users within this forum, and advice pertaining to financial planning holds immense significance for the progression of your life. It is highly discouraged to make decisions based on the opinions of individuals lacking expertise in the financial domain.

I am not demeaning the users here, but I am suggesting that you seek more reliable guidance for your financial concerns. The right individual to approach would be a financial advisor.

[Dr.Osh]

You need to look at the situation you have. if you really don't really need the assets you have, then you need to sell some. however, if you feel that these assets are really very important to you, then use an emergency fund. Aren't you raising an emergency fund for this? however, if you believe that an emergency fund is not for this, then you will need to sell some of your assets. well, going forward, when you have fixed your finances, you can buy new assets. however, personally, I would probably use an emergency fund in this current situation.

[Despairo]

It is highly discouraged to make decisions based on the opinions of individuals lacking expertise in the financial domain.

Although it's true relying to someone about financial decision is bad, but I don't think picking either emergency funds or sell his assets will give a bad effect for him. If he use emergency funds, he will don't have any money anymore. If he sell his assets, the money he get will be used for his emergency need and he still hold some money since he's not use his emergency funds. If his financial is fully recovered, he can use his emergency funds to buy the assets that he sold before.

Which one the decision, the ending is similar. It's not like asking which one is better to invest, Bitcoin or shitcoin.

[Inwestour]

If you are still surviving in the current conditions, you don't need to use your emergency fund because that is for emergencies that really need money to survive in extreme conditions. But before that happens, you should stay as usual and use the funds you earn to survive.

Many people experience this current situation, whether they use crypto or fiat because this all comes suddenly and makes it difficult for people to survive. You can make a budget or your financial report on an Excel sheet to track your expenses and how much money you can save if the situation worsens.

We cannot avoid heavier inflation but can be prepared to survive the toughest conditions. You can survive in these difficult conditions.

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.

[Razmirraz]

The system implemented by the state is always one-sided, the people are always the victims of the government's atrocities. Taxes, inflation and the banking system are like leeches sucking human blood slowly. The people's economy is getting squeezed due to inflation. I'm sure you are not the only one who is experiencing this situation. There are many other people who are more miserable due to increasingly uncontrolled economic waves.
Use an emergency fund for the necessities of life, assets can still grow when prices start to increase, while the value of an emergency fund will never change.

[uswa56]

The system implemented by the state is always one-sided, the people are always the victims of the government's atrocities. Taxes, inflation and the banking system are like leeches sucking human blood slowly. The people's economy is getting squeezed due to inflation. I'm sure you are not the only one who is experiencing this situation. There are many other people who are more miserable due to increasingly uncontrolled economic waves.
Use an emergency fund for the necessities of life, assets can still grow when prices start to increase, while the value of an emergency fund will never change.

Sometimes that is the case, but we must be able to get out of this situation in various ways without having to expect anything from the government.
It is true that it is better to use savings than to sell assets, because assets can have many possibilities in the future to get greater profits, but we must think more critically, not just arbitrarily to meet needs but must be able to rise in the economy to stabilize it.

I personally have experienced a very difficult economy, but slowly I was able to get up in various ways that I went through with the determination not only to make ends meet but to get out of my comfort zone to stabilize my own economy to be better.

[Marvell1]

The system implemented by the state is always one-sided, the people are always the victims of the government's atrocities. Taxes, inflation and the banking system are like leeches sucking human blood slowly. The people's economy is getting squeezed due to inflation. I'm sure you are not the only one who is experiencing this situation. There are many other people who are more miserable due to increasingly uncontrolled economic waves.
Use an emergency fund for the necessities of life, assets can still grow when prices start to increase, while the value of an emergency fund will never change.

If you already know the true face of the government, what do you expect from them? Instead of complaining and criticizing, we should find a way to save ourselves without having to wait for them to come to apologize and help. Although inflation and crises are draining our wallets, there is always a way to get through. Many others are still fighting and trying to fight it, why can't we? I usually don't like to criticize anyone even if they hurt me, instead, I will stop trusting them and find a way to save myself.

Yes, OP should have used the emergency fund because that was its mission, and our purpose in creating it was to deal with difficulties like now. Only sell assets when we run out of emergency funds because assets are easy to sell but not easy to buy back.

[xSkylarx]

This really depends on the purpose of your emergency funds; if that funds is sole purpose is for emergencies like what you are experiencing now, then that is the best choice than selling your assets (I'm expecting this to be crypto, properties, gold, or jewelry), because for sure in the future you'll need your assets. Even if I'm in your position, I'm going to use my emergency funds, as that is the purpose I saved for, unless its purpose is more important than the struggle that you are facing right now.

[isaac_clarke22]

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?

Without any further information on how your budgeting works as well as summary of your expenses, we don't have any idea on what can we suggest for your situation, OP.  By default, I would just eliminate all the unnecessary expenses that you're buying.

Inflation is also a pain here in my country and buying food in fastfood chain is also a pain these days already so I just usually cook my own food. How do you do in your own 9-5 work, OP? If the pay just does not cut it, maybe it's time to find another high-paying job.

[Wend]

This really depends on the purpose of your emergency funds; if that funds is sole purpose is for emergencies like what you are experiencing now, then that is the best choice than selling your assets (I'm expecting this to be crypto, properties, gold, or jewelry), because for sure in the future you'll need your assets. Even if I'm in your position, I'm going to use my emergency funds, as that is the purpose I saved for, unless its purpose is more important than the struggle that you are facing right now.

If it were me, I would also use an emergency fund, I don't want to sell any of my assets, especially investments or assets like gold or real estate.
But the OP didn't explicitly mention whether the emergency fund is for more important purposes and what properties he intends to sell. So it's hard to advise because we're not in his situation, and we don't know specifically what difficulties he's facing. If he doesn't want to sell the property or use the emergency fund, maybe think about a loan.

[BitcoinTurk]

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 will be difficult to give this answer without knowing the maturity period of your investment portfolio and how your savings are stored. To give an idea about this question in general I would like to state the following;

If your investments are made with a long-term plan in mind and are in a rapid appreciation process against the currency of your own country you should definitely not use your investments at this condition. An investment is  made with money that is not needed and that the maturity period must be adhered to. For this reason, it would be the best option to use your investments for your own expenses as a last resort.

As for your savings, especially if you have saved in fiat money I will definitely recommend you to use them in difficult situations. While you already have a savings that you can use as fiat money it would definitely not be right to meet your money needs by interfering with your investments. In addition, after the use of the capital you have saved in fiat money it will be much easier to add the amount that has been used back to your savings as fiat money.

[Agbe]

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.

Yeah, what is that saying?  Inflation is theft, taxation is robbery?  Can't remember if it's vice versa or not, but to your point I absolutely agree that holding cash for a significant length of time (and the "significant" part depends on the inflation rate) you're just letting inflation pick your pocket.

OP, I don't know what country you're in or what the inflation rate is or what assets you hold or, most importantly, what your specific financial situation looks like, but if you need emergency cash in order to live and you're not making enough money to pay your bills, that's what your emergency fund is for.  That's my opinion and others might disagree, but selling assets can be a taxable event in addition to you losing whatever potential profit you could make from holding them.  I assume your emergency fund isn't earning enough interest to beat inflation, so that would be my first choice to tap into.

And inflation is hitting us all pretty hard, no matter what country you're in.  Unfortunately, it seems like a lot of governments have adopted the same idiotic monetary policies and are digging the world economy into the same hole.  Best of luck to you, OP.

If op has an emergency fund then he has to use it to solve the problem at hand. Nobody keeps money for any emergency. I have not heard someone or an individual saying that he or she is saving money for any emergency that will come on his or her way. It is only in government that I have heard such thing. As I said, if the op has emergency fund he should not sell it assets but use the emergency fund. Though I don't know the kind of assets the op is talking about. Probably it is landed property, gold, or Bitcoin. Even though it is any of the above mentioned, he should not sell them but use the emergency fund since he has it. Assets appreciate in future but the emergency fund will not appreciate if they are in the local bank.

[Flexystar]

If it's an emergency then I don't think you should have any second thought on what to sell and what not. Just do the math, how much money is needed by you in this emergency situation and how are you going to pay back the money, what would be the timeline for the same. I think it will make it lot easier to chose the right option for selling. One more thing, as I stated at the start it doesn't matter which one it is if it's an emergency. Now if I were you and if it was any medical emergency then damn, I would let go everything for the safety of my health or my loved ones. There are no second thoughts to it if bitcoin is rising or getting pumped to new heights. You can't get your soul back, you can always earn money, you got whole life for that. Also, this is the main reason why we need savings, and clear thoughts on those savings, like when to use it, what would be the situation when you should prioritize that particular trade etc.