Should I Use Emergency funds or Sell my Assets ?

iamsange

sr. member

Activity: 903

Merit: 391

Quote from: zaim7413 on August 05, 2023, 09:48:57 AM

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.

Quote

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.

Inwestour

hero member

Activity: 980

Merit: 947

Quote from: ancafe on August 06, 2023, 04:18:04 AM

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.

ancafe

hero member

Activity: 1778

Merit: 746

Quote from: molsewid on August 04, 2023, 04:51:16 PM

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.

zaim7413

sr. member

Activity: 1274

Merit: 337

Enterapp Pre-Sale Live

Quote from: mvdheuvel1983 on June 27, 2023, 02:23:13 AM

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.

Mauser

hero member

Activity: 1974

Merit: 534

Quote from: mvdheuvel1983 on June 27, 2023, 02:23:13 AM

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.

armanda90

hero member

Activity: 1190

Merit: 599

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.

Quote from: STT on August 04, 2023, 07:04:29 PM

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.

STT

legendary

Activity: 4088

Merit: 1452

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.

Fatunad

sr. member

Activity: 2226

Merit: 347

Quote from: molsewid on August 04, 2023, 04:51:16 PM

Quote from: stadus on August 04, 2023, 09:12:48 AM

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.

molsewid

hero member

Activity: 2170

Merit: 530

Quote from: stadus on August 04, 2023, 09:12:48 AM

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.

Pamadar

legendary

Activity: 2982

Merit: 1028

Quote from: stadus on August 04, 2023, 09:12:48 AM

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.

Quote

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.

stadus

legendary

Activity: 3080

Merit: 1292

Hhampuz for Campaign management

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.

lousie9

sr. member

Activity: 1680

Merit: 263

Quote from: romero121 on July 26, 2023, 06:12:47 PM

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.

AnonBitCoiner

sr. member

Activity: 1456

Merit: 326

Eloncoin.org - Mars, here we come!

Quote from: Pejoh Asu on July 20, 2023, 09:20:40 AM

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.

YOSHIE

legendary

Activity: 2128

Merit: 1775

Quote from: mvdheuvel1983 on June 27, 2023, 02:23:13 AM

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.

raidarksword

member

Activity: 2044

Merit: 16

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.

Davian144

hero member

Activity: 2576

Merit: 579

Quote from: Kadal Ijo on August 02, 2023, 09:11:09 AM

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.

CarnagexD

sr. member

Activity: 1498

Merit: 374

Leading Crypto Sports Betting & Casino Platform

Quote from: BRINIRHA on August 02, 2023, 10:13:53 PM

Quote from: RockBell on August 02, 2023, 11:10:47 AM

Quote from: Kadal Ijo on August 02, 2023, 09:11:09 AM

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.

ancafe

hero member

Activity: 1778

Merit: 746

Quote from: mvdheuvel1983 on June 27, 2023, 02:23:13 AM

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.

Quote from: mvdheuvel1983 on June 27, 2023, 02:23:13 AM

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.

Quote from: mvdheuvel1983 on June 27, 2023, 02:23:13 AM

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.

BRINIRHA

sr. member

Activity: 770

Merit: 266

Payment Gateway Allows Recurring Payments

Quote from: RockBell on August 02, 2023, 11:10:47 AM

Quote from: Kadal Ijo on August 02, 2023, 09:11:09 AM

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.

dothebeats

legendary

Activity: 3542

Merit: 1352

Cashback 15%

Quote from: Hamphser on August 02, 2023, 04:40:55 PM

Quote from: RockBell on August 02, 2023, 11:10:47 AM

Quote from: Kadal Ijo on August 02, 2023, 09:11:09 AM

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.

Topic: Should I Use Emergency funds or Sell my Assets ? (Read 1462 times)