Topic: Should I Use Emergency funds or Sell my Assets ? - page 10. (Read 1462 times)
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.
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.
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.
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.
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.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.
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. 
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.
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.
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.
~snip~
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.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.
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.
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.
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 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.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.
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.
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.
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