Should I Use Emergency funds or Sell my Assets ?

[molsewid]

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.

Indeed, why using your emergency fund ? if you cannot afford some things do not force yourself to afford it, if he cannot invest for now he is just feeling FOMO because maybe he is thinking that bull run is coming that is why he think to use his emergency funds or sell his assets. He should also learn that the market is volatile and there is not assurance at all for now, he should learn to read charts and do not be impulsive.

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[Fatunad]

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.

Indeed, why using your emergency fund ? if you cannot afford some things do not force yourself to afford it, if he cannot invest for now he is just feeling FOMO because maybe he is thinking that bull run is coming that is why he think to use his emergency funds or sell his assets. He should also learn that the market is volatile and there is not assurance at all for now, he should learn to read charts and do not be impulsive.

There's nothing wrong on making yourself having the urge of investing knowing and able to see on whats the potential and basing up on the history then it cant really be avoided that you would be making yourself that positive towards things and on the time that you do see that  you are in short of funding but you do have some assets or properties or having those emergency funds on which you could really make use of then you would definitely making those considerations on taking up such step as long you do know that you could be able to retrieve it out later on.It is really that impossible that you arent wary about the risks on dealing
with such decision knowing that you wont really be coming into that point without having that financial background on which it would really be normal that you would be wary on what are the things that you should really be doing in the first place.

[STT]

Emergency funds are for when you are ill or similar no alternative fast situations, so the answer is in the question.   The only person who can really answer this properly is OP or at best you gain the advice of an investment adviser of some kind.  I'd say preferably they should be independent not attached to any particular bank, etc.    Advisers have insurance coverage to their business and a large amount of experience, if they advise you badly on these decisions you can always claim on their insurance if professionally negligent.  They cant cover normal risks and market fallout, thats not their fault but discussing a structured plan for the idea of emergency funds, cash flow vs investment seems well within their remit.

[armanda90]

Based on my opinion, better use with your emergency fund than selling your cryptocurrency assets with something urgent needed, your cryptocurrency assets has chance or potential break out to higher price one day later but not with your emergency fund saving as fiat. I want adopt with your ideas having two option between saving assets in cryptocurrency and you still have emergency fund to anticipate things that are needed suddenly. Your cryptocurrency assets as investment fund for the future and you have save emergency fund for using unpredictable moment happened to you.

Advisers have insurance coverage to their business and a large amount of experience, if they advise you badly on these decisions you can always claim on their insurance if professionally negligent.  They cant cover normal risks and market fallout, thats not their fault but discussing a structured plan for the idea of emergency funds, cash flow vs investment seems well within their remit.

Nice ideas, have insurance can coverage our healthy without need spent our cryptocurrency assets or emergency fund, but in my country difficult find right insurance can coverage full healthy insurance.

[Mauser]

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

It's a bit hard to give a general advice without knowing more about you. From what I get from thread is that you are struggling with your living and food expenses, which is definitely a serious situation. It's good that you have an emergency fund and investments you can rely upon. Now with the question of which one you should choose first we would need to know what kind of assets you have. In case you have positions that done really well this year and are deep in the green, than I would recommend you take some profit. And if it's the opposite I would probably rely on your emergency cash and wait for your assets to do better. The problem with high inflation and expensive food and drinks is that it's not likely to go down anytime soon. The companies used the inflation excuse to increase prices and boost profits and will likely not revert to pre 2022 levels again. Don't empty your emergency fund completely now, because things could still get worse and you might have another emergency coming up.

[zaim7413]

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?

Is the emergency fund you mean in fiat? If so, you can use fiat to cushion the impact of the economic situation you are currently experiencing. Fiat is never resistant to inflation, keeping Fiat in the midst of uncertain economic conditions will have a negative impact on the amount of money you have because of its reduced value.

You can develop an emergency fund in the form of Fiat to maintain your financial stability, start doing something to form the Money formula to make money. If the asset that you hold is currently in the form of Bitcoin, then defend the asset that you hold even if you are in financial trouble. Look for money from other sources to finance your life, selling Bitcoin at this point will make you regret it when the price has increased.

[ancafe]

Indeed, why using your emergency fund ? if you cannot afford some things do not force yourself to afford it, if he cannot invest for now he is just feeling FOMO because maybe he is thinking that bull run is coming that is why he think to use his emergency funds or sell his assets. He should also learn that the market is volatile and there is not assurance at all for now, he should learn to read charts and do not be impulsive.

Using emergency funds intended to finance living needs amidst difficult economic conditions and using emergency funds to invest are also not very good in such conditions. How is it possible that people can force investment in conditions like this, even emergency funds that are intended to be used to support life in economic difficulties, such as financing unexpected things and forcing to use emergency funds for investment can disrupt the stability of fulfilling needs

Let alone talk about a market that is volatile and having a unstable trip in a period of severe correction. Emergency funds can be used to be more productive in the short term, such as selling groceries and other things that are more productive and profits from this can be used for other desired needs.

[Inwestour]

Using emergency funds intended to finance living needs amidst difficult economic conditions and using emergency funds to invest are also not very good in such conditions. How is it possible that people can force investment in conditions like this, even emergency funds that are intended to be used to support life in economic difficulties, such as financing unexpected things and forcing to use emergency funds for investment can disrupt the stability of fulfilling needs

Let alone talk about a market that is volatile and having a unstable trip in a period of severe correction. Emergency funds can be used to be more productive in the short term, such as selling groceries and other things that are more productive and profits from this can be used for other desired needs.

The use of emergency funds should only be available when you are in a really difficult financial situation, in the event of a job loss, or someone from your family needs urgent help. Actually, emergency funds were created for this.

Perhaps in some cases, if the reserves are not enough, you will also have to resort to the sale of assets, but this will only indicate that the reserve was created insufficient and you need to think about how to increase it in the future. Even if your emergency funds lie idle for a long time and you have never used them, you should not think about trading or investing them, because we never know what will happen tomorrow.

[iamsange]

Is the emergency fund you mean in fiat? If so, you can use fiat to cushion the impact of the economic situation you are currently experiencing. Fiat is never resistant to inflation, keeping Fiat in the midst of uncertain economic conditions will have a negative impact on the amount of money you have because of its reduced value.

It seems that this is quite appropriate for someone who wants to overcome an emergency situation in the fund sector that he has. Because if it is about fiat, he should have no difficulty in overcoming it if he has the capital and knowledge to raise his economic condition in life. Especially if he wants to make some of the money he has as capital to get other money through doing business or a business that he has mastered.

You can develop an emergency fund in the form of Fiat to maintain your financial stability, start doing something to form the Money formula to make money. If the asset that you hold is currently in the form of Bitcoin, then defend the asset that you hold even if you are in financial trouble. Look for money from other sources to finance your life, selling Bitcoin at this point will make you regret it when the price has increased.

If he already considers Bitcoin as a very valuable asset for him, of course he will not let go of Bitcoin when facing difficult conditions. Because he can look for other options to deal with the emergency problem he is facing, especially if the emergency problem is fiat. I think it won't be that difficult as long as you try to earn some money through more logical things in life, because someone who doesn't get anything is someone who often complains in life. So he never thought of a way to fix himself from a difficult condition at any time.