Topic: Should I Use Emergency funds or Sell my Assets ? - page 2. (Read 1413 times)

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.

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.

Of course, if we see the potential for crypto, especially bitcoin, to be very profitable what else in the near future, I will also choose to defend it. And if there's an emergency need it's best to try to find another way, which I think there must be another way if we want to look for it and I also don't know exactly what emergency need the OP is dealing with.
and if I were in the OP's shoes I would sacrifice my car or some other expensive item to back up for emergencies if needed. And I will save the crypto or bitcoin that I have and when the time comes and get a big profit I can buy it back the expensive things that I sacrificed, even replace them with new ones.
and I hope the OP's problem has been resolved and whatever he does is for the best.

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.

I agree, I would also like to add that each of us prioritizes different things. After all, OP was just asking for our opinions and perspectives, at the end of the day OP needs to consider his/her own priorities and situation first. Whatever the decision is I hope OP gets the best outcome for his/herself.

But I also agree with you regarding holding on to my crypto assets right now, especially when I know I still have other means to get money for my needs and wants.

You are right. Because of course we don't know exactly what situation the OP is in. Even though in ordinary situations we would prefer to use an emergency fund in an emergency situation. But in different situations, we can do different things. Especially if the need turns out to be far greater than the emergency fund. Then our assets will be threatened to be sold to cover the shortfall. And in the end only OP really knows the situation he is in and only he can make the most appropriate decision for himself. But normally I personally still recommend that maintaining assets is the main thing and using emergency funds in emergency situations is the right thing to do.

We are indeed getting closer to the bitcoin halving and it looks like a bull market is coming soon. So if it's a crypto asset then holding on to it until Bitcoin goes to a new ATH is something I would also do.

I guess that it is easy to give advice when it is not your money what is at stake, so I hope the OP eventually makes the most reasonable decision under his personal circumstances.

In my case, I remember that I was tempted to panic sell some coins back in 2020 when the coronavirus kicked in and everything went down. That situation was hard for many people, and my case wasn't an exception. I am happy that I didn't sell my assets then, but the story could've been the other way too...

Today, we hope for a new ATH next year, but the truth is that the price for many coins is quite good. So, depending on what assets you are talking about and the amount of emergency funds you hold, you could use both in some degree and still hold a part, so you don't regret in the future for making the wrong decision.

I don't know what type of assets you hold, let's say I guess your assets are in the form of property or coins of a different type. If the assets you hold are in the form of property, Are you sure you want to sell assets in the midst of economic difficulties?, inflation will make the price fall even more and you will suffer big losses.
While assets in coins do not need to be sold before the investment plan is not in accordance with expectations, let your assets remain in the wallet until the price has reached what you planned when you started investing.

The only way you can use emergency funds to finance your daily needs, you need to find additional funds by looking for routines that can support your economy. Never rely on assets or emergency funds when the economy is in a pinch, you need to be creative in order to maintain economic stability so that your assets are not touched.

Totally agree fiat is losing its value



Tho if I were you OP i would using my emergency fund first rathen than cut lose and sell your asset. tak example if you have crypto we are in the q3 of 2023 the halving is near and maybe like the past history we are going see ATH next year or early 2025.

If you have a mutual fund, especially in the money market you can sell it to cover your expenses

or take profit any investment that already showed green <-- but this is last effort

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. 

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.