When the economy is heating up, the inflation rate is high, there are no jobs, food is so high due to the situation that continues to be chaotic then their choice is none other than to sell assets including one of the houses, but when everything is prepared from the start then it won't be this bad to not have a house for example.
The ones that have the greatest impact on a person's economy or finances are the long pandemic and quarantine. It's not easy to maintain our finances when a pandemic suddenly comes. the economy in the market suddenly paralyzed. shops were forced to close, people were told to stay at home. Because the Pandemic always comes suddenly. So many are not prepared to deal with it. Even if the pandemic lasts a long time, the emergency funds that we prepare are sometimes not enough to handle our needs for a longer time. so selling valuable items that can be cashed is indeed a solution in such a situation. Even selling a house is actually difficult to do. because even though we set a low price, it's still difficult to find interested parties. because everyone prefers to struggle to provide food stocks rather than buying property like a house. Even luxury watches become worthless when no one wants to buy them. The pandemic triggered all of this (inflation), and inflation forced banks to raise interest rates which then triggered a recession.
We must learn from all this chaos by taking advantage of the time now to have multiple emergency funds, more savings and investments. because we don't know when the economic situation will not be easy again.
During the Covid-19 pandemic where many people experienced a declining economy, the result was that the government implemented distancing and did not go out too much to avoid the spread of the virus, I know this is for the good of all but people's conditions are very difficult if they cannot work for a long time especially since the pandemic is an epidemic that we feel almost all over the world, this resulted in many bankruptcies and also increased in terms of poverty at that time.
Indeed, at that time many cities were paralyzed, many shops were closed, food became expensive, money was difficult to get because many were hit by mass layoffs due to this pandemic with that they could not work anymore, continued to send goods importing goods decreased, tourism decreased due to the prohibition of its citizens to travel and indeed at that time many were not strong with the emergency funds they had sometimes not enough to sell the goods they had.
Selling your home is the wrong decision in my opinion, unless you have more than one home, but now that dark period has passed and now many are starting the stage of growing their economy after the government lifted all restrictions during the pandemic.
Well, we should be grateful at this time because the difficult times during the pandemic and the economic crisis that followed have also gradually improved over time. The inflation rate has also slowly decreased and many factories have resumed operations and re-absorbed workers who had become unemployed due to layoffs and bankruptcy.
But still, the current economic conditions have not returned to economic stability as before the Pandemic. And actually, business competition is now much more difficult than before the pandemic. But at this time we cannot be careless in terms of financial management. We really have to be prepared for all the possibilities that could happen in the future. Setting up an emergency fund and having more savings and investments is the main subject of our current task. So that we will be more prepared when unexpected things come back.
back on the topic related to using emergency money or selling assets, the answer is still the same, namely using emergency money as long as we still have it. And related to selling a house is indeed the thing that must be avoided, especially if we only have one house.
