Should I Use Emergency funds or Sell my Assets ?

[Afnan_faizah]

people who suffer the most from inflation are those who only have fixed income. inflation cause the products price to rise, if we produce product to sell as well then usually we only weighing the production cost to the customers. when inflation happen, most of the time company do not have other choice except to rise the product price as well. even we can earn more profit from old stock that left, because the production cost is lower but we have chance to sell at current normal price. so my suggestion to you is to start your own business or buy productive assets, it's hard but it's better than use emergency funds or sell your asset.

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[CryptoBuds]

people who suffer the most from inflation are those who only have fixed income. inflation cause the products price to rise, if we produce product to sell as well then usually we only weighing the production cost to the customers. when inflation happen, most of the time company do not have other choice except to rise the product price as well. even we can earn more profit from old stock that left, because the production cost is lower but we have chance to sell at current normal price. so my suggestion to you is to start your own business or buy productive assets, it's hard but it's better than use emergency funds or sell your asset.

Do you know what you are saying? If he has enough money to open a business to earn extra income to fight inflation, why should he sell assets or use his emergency fund? Moreover, is it advisable to do business in times of crisis and high inflation? Because thousands of small businesses go bankrupt every day, large enterprises constantly have to lay off employees… the purchasing power in the market is still decreasing, so doing business in this period is not suitable, that is an unfeasible idea.

[Pamadar]

Unless you don't have other choices, that is their last resort. This is mostly the move of other people that has no savings and their relatives got hospitalize because they don't have enough money they will end up selling their land or lend it to others like making it as a collateral then they will pay back in the future but mostly they cant pay it back.When you really don't have emergency funds you have 2 choices to take out a loan or really sell off your assets which is very not a good move

This happens if you do not take care of savings. I'm not even talking about any investment, you just need to strive to have some kind of cash reserves. I know that there are people who find it difficult to save because their income is too low, but each of us can do something more to improve our lives. You need to prepare for difficult times when everything is fine, if such a situation occurs when you are not ready for this, then this ultimately leads to the fact that people lose their land and property in order to save their loved ones.

Part of the worse after-effect is to be forced to sell those properties just to cover your expenses.

I like the argument where you should spare some money to save up, it will be used as your emergency funds either
to minimize your expenses or try to find additional sources of extra income, it's needed now as we see what happens
to most of us during the pandemic, we all got surprise and most are leaning to government support.

[romero121]

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.

[blockman]

people who suffer the most from inflation are those who only have fixed income.

That's true that they do suffer the most and also those that have an unstable income. But the pain that this inflation causes isn't just felt by those people but even the ones with stable income, they can't keep themselves quiet from telling that they do also feel the pain of this inflation.

inflation cause the products price to rise, if we produce product to sell as well then usually we only weighing the production cost to the customers. when inflation happen, most of the time company do not have other choice except to rise the product price as well. even we can earn more profit from old stock that left, because the production cost is lower but we have chance to sell at current normal price. so my suggestion to you is to start your own business or buy productive assets, it's hard but it's better than use emergency funds or sell your asset.

A company has to react like that because it's a domino effect. From the rise of fuel and energy costs, to shipping costs which is also requiring fuel and energy for it and that's it. The domino goes from here and there and that's why the cost of goods are increasing and the by-product also is being increased for its price because of the increase of its cost to be made.

[AmoreJaz]

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.

this decision depends on your financial conditions. you have emergency funds for various reasons. weigh your options because the decision varies from one case to another. sometimes the emergency funds won't cover your present needs. so you may end up selling even your assets.

[Inwestour]

Part of the worse after-effect is to be forced to sell those properties just to cover your expenses.

I like the argument where you should spare some money to save up, it will be used as your emergency funds either
to minimize your expenses or try to find additional sources of extra income, it's needed now as we see what happens
to most of us during the pandemic, we all got surprise and most are leaning to government support.

This is not the best situation, because instead of doing something on their own, people are hoping for help from the state. The pandemic has shown how bad this decision is, as many chose to do nothing and just wait, receiving help from the state. But in order to ensure this, a lot of new money had to be printed. We all felt the consequences of this, it is the growth of inflation and the decline of the world economy.

So we all, each of us must take care to have a reserve of means and food. The world began to change too quickly, some may not keep up with it, but we need to learn to adapt, otherwise you can be left on the sidelines and no one will take care of you.

[Fara Chan]

people who suffer the most from inflation are those who only have fixed income. inflation cause the products price to rise, if we produce product to sell as well then usually we only weighing the production cost to the customers. when inflation happen, most of the time company do not have other choice except to rise the product price as well. even we can earn more profit from old stock that left, because the production cost is lower but we have chance to sell at current normal price. so my suggestion to you is to start your own business or buy productive assets, it's hard but it's better than use emergency funds or sell your asset.

The purpose of your advice is good, but it may be very confusing for those on fixed incomes in conditions of inflation. Because in general they also need additional money in these conditions by trying to deal with situations that may be unusual for them, so they have to be really wise in making decisions when they don't have to sell their existing assets. Opening any business under any circumstances must still have very basic capital because it will not open by itself if someone only has the intention while he does not have the initial capital for it.

Conditions of inflation may be conditions that can be very precarious for some people so that they will not be able to use larger capital for their new business, unless they have actually opened a business before for a long time. Whereas those who have spare money in their lives might be able to outsmart it to open a new business in inflationary conditions, but this is also very risky because the level of purchases in inflationary conditions will not be the same as usual conditions. So this should also be considered carefully by those who want to start a business in inflationary conditions.

[BRINIRHA]

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.

So true. Actually it's too easy to use an emergency fund which is also a bad thing and can make financial management go awry from time to time. But selling assets when you have an emergency fund is even worse than that. So basically an emergency situation that is truly an emergency is the most appropriate time to use emergency funds. whereas when the situation is not really an emergency, we really have to be able to try our best to solve it without using emergency money and of course also without selling assets.

Yes, having additional income and trying to live a simpler life will indeed allow us to better improve our financial situation. In essence, do not be too easy to assume the situation becomes an emergency when difficult situations come. Because not all difficult situations are emergency situations.

[shinratensei_]

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.

this much is true, when someone are resorting to use their emergency funds usually they are becoming dependant on it, taking things too easy and always using their supposed emergence funds thats only used when they are indeed in an emergency.
currently inflation is really bad but I guess we as the average joe just need to work harder and earn more. thats just how it is how life nowadays.
its all about being productive and earn more so that our life will be more comfortable and not being homeless.
i'd say, i agree with your statement, only resort to emergency funding when there's no other way, frugal living is a thing too after all.

[Bitcoin_people]

OP I don't know which country you are a citizen of and your inflation will depend on what the inflation rate is in your country. and not even mentioning your specific financial needs, but a person definitely needs cash to survive. Of course, you can pay your bills with the funds you have saved from your earnings. Otherwise, if you decide to sell your asset to pay the bill, it will not be good at all, instead you will lose the future profit from this asset.

[Iranus]

OP I don't know which country you are a citizen of and your inflation will depend on what the inflation rate is in your country. and not even mentioning your specific financial needs, but a person definitely needs cash to survive. Of course, you can pay your bills with the funds you have saved from your earnings. Otherwise, if you decide to sell your asset to pay the bill, it will not be good at all, instead you will lose the future profit from this asset.

If I were OP, I would also think about using an emergency fund first instead of selling assets because that's what emergency funds are created for. But if it's old assets and we hardly need them anymore, we should sell them too. The OP didn't tell us if the emergency fund could be used for any other purpose, and what properties he wanted to sell. Because if it's investments or assets that can appreciate in value over time like real estate, he really shouldn't even think about selling it.

[jasonjm]

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?

Use your emergency funds that are there for this specific purpose. Because if you sell your asset at the moment when the market is not looking good, you might end up losing your potential profit in the future. As far as inflation is concerned, it is hitting everyone hard and has shaken the budget of every individual.

[xSkylarx]

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?

Use your emergency funds that are there for this specific purpose. Because if you sell your asset at the moment when the market is not looking good, you might end up losing your potential profit in the future. As far as inflation is concerned, it is hitting everyone hard and has shaken the budget of every individual.

The purpose of Emergency funds really is for those situations when you need some money, which is why I don't understand why the OP thinks of selling his assets. Though it may not be enough or for other reasons, you shouldn't sell off your assets unless you have no other choice, like if you are in debt and still need money. Though it is still your money and your decision, follow others opinions here so that you won't regret it in the future.

[Oilacris]

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?

Use your emergency funds that are there for this specific purpose. Because if you sell your asset at the moment when the market is not looking good, you might end up losing your potential profit in the future. As far as inflation is concerned, it is hitting everyone hard and has shaken the budget of every individual.

The purpose of Emergency funds really is for those situations when you need some money, which is why I don't understand why the OP thinks of selling his assets. Though it may not be enough or for other reasons, you shouldn't sell off your assets unless you have no other choice, like if you are in debt and still need money. Though it is still your money and your decision, follow others opinions here so that you won't regret it in the future.

Selling assets just for you to make some investment on crypto? Its not something that worth on doing so because if we do speak about assets these are the things that generates income unless if we do speak about posessions and properties then we could really be able to sell out without having those hesitance due to loss of revenue or income because these are called assets. We do know that cutting off or selling those wont really be that something that recommended because we could eventually make out some investment without needing on doing such step because as long we do have the income source on other ways or methods then we dont really need to do such step. As much as possible we should accumulate and make more assets rather than on selling it because the more assets we do have
the more income we could generate and the more money we could be able to make use if ever we do see some opportunities.

It is really just that here are  business owners or individuals who are really just that too impulsive when it comes to opportunities and on the time that they would be able to see it
then they would be rushing up on making some decisions on which it isnt really that just wise anymore on doing so.

[Huppercase]

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.

Rather than take sell assets when the available is scarce or empty, I will take loan to relax the economy effect on my self because as you said, inflation is very scary right now and selling your assets at cheap price means you may be buying them at 2x or 3x price in the future because to sell assets that are not appreciating like land and others, it means they will be sold at lower price which is another lost on it own, loan would be the most easiest way to avoid this future uncertainty and problems.

Further more, by taking loan; It should done in the amount that will not exceed what he earn monthly or yearly because when you do and bills pile up, you will be left between path of selling anything you used the loan for and what pay the bills and if they have not appreciated over time, that will be another loss again, it is always advisable to do good mathematics and check the conditions if they are favourable or not before taking any loan.

[EluguHcman]

Before it would warrant you selling your assets either for problem solving or investing to yield more incomes, then it is considered that the venture is more profitable or essentially highily rated than that of your assets otherwise if you have an emergency fund it is better preferable to be used after all the reasons for emergency funds is keeping aside a specific amount of money for either unplanned problem solving or a readiness Incase an opportunity to invest and to yield incomes is made available in an unexpected scheduled but it whole depends if that of your venture requires an urgent or non-urgent actions.

Also considering how much is required and the value rate of your venture comparing to your assets and your emergency fund.

Summary: if your emergency fund can solve it then it's best for it because the fund is not there for a Statue but for problem solving or readiness to get into an unplanned or emergency schedules while your assets is to yield you incomes.

[blockman]

Use your emergency funds that are there for this specific purpose.

Lucky or it ain't luck for those people that have planned well to have emergency funds. While many are living paycheck to paycheck, those that are able to save for emergency funds knew what they're up to and the future is unforeseen.

Because if you sell your asset at the moment when the market is not looking good, you might end up losing your potential profit in the future.

Not bad if he's in profit and he can sell those assets but it's not really a perfect timing if the market doesn't look good at all.

As far as inflation is concerned, it is hitting everyone hard and has shaken the budget of every individual.

On the other hand, it's why many sell their assets during this time because everything has went up and they're coming up with this solution because that can be the only solution they have. But as long as you have an EF, that's all you need to use until it's not enough.

[Pamadar]

Part of the worse after-effect is to be forced to sell those properties just to cover your expenses.

I like the argument where you should spare some money to save up, it will be used as your emergency funds either
to minimize your expenses or try to find additional sources of extra income, it's needed now as we see what happens
to most of us during the pandemic, we all got surprise and most are leaning to government support.

This is not the best situation, because instead of doing something on their own, people are hoping for help from the state. The pandemic has shown how bad this decision is, as many chose to do nothing and just wait, receiving help from the state. But in order to ensure this, a lot of new money had to be printed. We all felt the consequences of this, it is the growth of inflation and the decline of the world economy.

So we all, each of us must take care to have a reserve of means and food. The world began to change too quickly, some may not keep up with it, but we need to learn to adapt, otherwise you can be left on the sidelines and no one will take care of you.

That's the risk, but since many choose that way, the government has no choice but to take that decision.

And like what you have mentioned, it gives us high inflation, and the economy is really giving a hard time for all of us. It's important
to have your alternatives, if you have option you should be wise in taking your decision, else, it will be harder for us.

having that emergency funds can help to avoid bigger problem. If you save while you still can, then you have that money to use
in case you are in need, that's the best thing to have it and to use it.

[DrBeer]

Good question. But there is a clarification, what do you consider to be the assets mentioned in the topic title ? I see 2 options:
- you are an ordinary average resident, who has an apartment, a car, perhaps a demanded household appliance from liquid assets. And also you have an "emergency fund" or "financial cushion", designed for example for 1-2 years of life without income.
- you have a business or are engaged in investment, you have liquid assets such as land, apartments, industrial real estate, gold,... And also savings in accounts, including a "financial cushion".

It makes a big difference, in terms of decision making. It is more difficult for an ordinary citizen to make a choice - selling today, for example, a car, the probability of buying a new one after problems is not 100%
A businessman can sell part of his assets and survive difficult times without any problems and then reinvest the profit in assets.