What do you think the reason you create emergency funds? it's used when you in a bad financial and anything that you must to spend your money for your important needs. If you already don't have any money including your emergency funds, the last way is sell your assets or ask a loan without need to pay the interest e.g. with your friend, boss, family etc.
However I prefer to not have any emergency funds and just invest all to few commodities, if someday I need money ASAP, I can just sell my Bitcoin and withdraw it from bank ATM.
Topic: Should I Use Emergency funds or Sell my Assets ? - page 13. (Read 1462 times)
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 I deduce from your narration before giving you my suggestion is that you have an income problem. Perhaps you should consider finding a better job or doubling your hustle. I've always advocated for more income streams no matter how much you are earning, this is unless you don't have time with your current job. And if that is the case, then you should know you are in the wrong job.A good job should measure up in terms of earnings with the time and energy invested in it and also give you a little time to do extracurricular. If yours isn't, then it's time to say goodbye and find another adventure in your life.
If your emergency fund is enough to take care of your expenses for 6 months then it's a good choice to hold on to to it and spend it carefully, while looking for other opportunities to argument your budget. Selling your assets isn't advisable yet. Unless you'll invest the money into a more profitable business that can change your financial status, no need giving out the asset for fiat that'll get to finish and you'll be left with nothing. You can hire the asset out, and make money from it, as it seems the asset is not yielding you enough 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 quite an old member of this forum, like from 2013 and i assume you understand the finance sector and trying to make a better life for yourself. I am not judging you actually i went to see from which country you are but i found no post of yours in any of the local boards so i have to assume from which types of inflation you are passing. So i will assume it as global inflation.Well, if the standards of the country are high and inflation hits it, it will become hard for an ordinary person to live there. as poverty is of two types, Absolute and Relative poverty, and in developed countries most poor are faced with Relative poverty and the opposite in developing countries. To face inflation, the usage of the budget in investment is necessary.
I say you should use some funds to meet your living expenses which are most necessary (Absolute poverty) if you want to compete with others in Fashion, culture, etc. (Relative poverty) then you should avoid the usage of your savings whether they are in fiat or in BTC. It depends on the intensity of the situation, if you are like in less trouble then i hope it might pass. But do not hesitate to make a better living and avoid dying in pain while you can live a better life by using that money in savings.
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?
Just like the word emergency implies I'll suggest you use the emergency funds as that was what the funds were meant for to fall back on as financial assistance should you face some uncertainty. Good a thing you had the wisdom of making savings for emergency issues and now is the time to make that wisdom pay off by using it now that the need has arise.The economic situations is bewildering in every nooks and crannies of the world and no entity for sure knows when all these hardship will be ameliorated so selling your assets in a hurry would be a wrong approach to take on, instead make use of your emergency funds. Assets are value affiliated and they could fill in as security for you in the future based on their incremental value especially if these assets are tangible assets.
If you make the mistake of selling one or more of your assets today to solve financial burden there's a probability another financial challenges may arise and you keep selling your assets till when?
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 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. 
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.
Likely you have your emergency money in your local fiat too. You said emergency, which means it should be used for inconveniences time and for emergencies. You supposed to use your emergency money, not that you should sell you property that may increase in value, although I am just saying that because some properties like land, metals, jewelries and many others like that can increase in value.
It is better not to hold money in your local currency, bitcoin is still not that high, you can buy it instead. Ones the price is high very well and you have gained, you can convert some to dollar or other good foreign currency which are better than many fiat from countries like Venezuela, Lebanon, Sudan, Argentina, Zimbabwe, Turkey and many other countries.
Likely you have your emergency money in your local fiat too. You said emergency, which means it should be used for inconveniences time and for emergencies. You supposed to use your emergency money, not that you should sell you property that may increase in value, although I am just saying that because some properties like land, metals, jewelries and many others like that can increase in value.
It is better not to hold money in your local currency, bitcoin is still not that high, you can buy it instead. Ones the price is high very well and you have gained, you can convert some to dollar or other good foreign currency which are better than many fiat from countries like Venezuela, Lebanon, Sudan, Argentina, Zimbabwe, Turkey and many other countries.
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?
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