Pages:
Author

Topic: Should I Use Emergency funds or Sell my Assets ? - page 4. (Read 1413 times)

sr. member
Activity: 658
Merit: 275
Emergency funds are what you must use if ever you're in immediate need. If you wanna sell your assets and you want to be liquid, you can sell them as well. You get the point why we're having assets and that's for us to have a cash flow whether we will gain through capital gains or through having a passive income out of it. But if that asset in generating income and you've got an emergency funds, don't sell the asset as it will continuously going to make you money and since you have a back up fund through emergency funds. That's all you need to have.

It would be more better to use emergency funds kept aside for why purpose, an emergency. You don’t have to include your assets. Assets bring in income and grows the wealth of an individual so I wouldn’t say it’s wise to let go of that property which generates income.
I would probably take a loan from family or the bank even to help sort out the emergency than to sell off my property that is sure to generate income. Selling off assets would be my last resort if all avenues to raise some money have been exhausted.
hero member
Activity: 1624
Merit: 791
Bitcoin To The Moon 📈📈📈
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.
sr. member
Activity: 784
Merit: 366
Underestimate- nothing
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.

Its already clear that aside from basic needs and health, like you said is not advisable to sell your assets, and in my opinion, since the emergency fund is for the unplanned situation then it should be used for whatever emergency it may be, selling out an asset is not worth it and from the look of the thing, assets are supposed to give you profit, and the emergency fund to be backup funds, people having that mindset of panicking and selling off what they have gathered, honestly we all know the economy is bad, all we can do is adjust to it and make good plans if not you will have more emergency to deal with.
legendary
Activity: 2982
Merit: 1028
Emergency funds are what you must use if ever you're in immediate need. If you wanna sell your assets and you want to be liquid, you can sell them as well. You get the point why we're having assets and that's for us to have a cash flow whether we will gain through capital gains or through having a passive income out of it. But if that asset in generating income and you've got an emergency funds, don't sell the asset as it will continuously going to make you money and since you have a back up fund through emergency funds. That's all you need to have.


You always need to weight the situation, like what you have said if you have savings that you can still use better to leave your assets, especially if the assets are providing decent passive income.

Or, if you are expecting good bounce from your asset and the chance of making money in the long run,
you only need to touch that asset if there's no available option, and the situation is something that you
can't ignore and there's a call of urgency.
sr. member
Activity: 1162
Merit: 253
Op have two option due economic crisis in his country between use emergency fund or sell his cryptocurrency assets, I think depend which kinds of altcoin assets hold by OP, if potential altcoin like Ethereum, BNB and XRP is worth for holding it and use awhile with your emergency fund. But could you predict about how long economic crisis will happen in your country? will enough with emergency fund for you daily day needed?

For emergency fund enough until several months later, I think better hold your cryptocurrency assets and waiting when price going up to sell it, be patient with halving few months later and sure your assets will increase up and enough to recovery with your emergency fund. I hope your country economic crisis will be better without have to sell with your cryptocurrency assets.
hero member
Activity: 2968
Merit: 572
Leading Crypto Sports Betting & Casino Platform
Emergency funds are what you must use if ever you're in immediate need. If you wanna sell your assets and you want to be liquid, you can sell them as well. You get the point why we're having assets and that's for us to have a cash flow whether we will gain through capital gains or through having a passive income out of it. But if that asset in generating income and you've got an emergency funds, don't sell the asset as it will continuously going to make you money and since you have a back up fund through emergency funds. That's all you need to have.
full member
Activity: 588
Merit: 119
Epsiloan Protocol
The current price of your asset may determine what to do here. If you own Bitcoin and after studying your chart, you observe you are still selling at a good price. You may sell your asset and work on how to buy them later. You may even buy at a more good price giving you little profit compare to when you earlier sold. Although this may not be too easy but it could be a possible way out.
sr. member
Activity: 728
Merit: 266
SOL.BIOKRIPT.COM
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.
Yeah right mate. Emergency money should only be used if the situation is beyond our control. like we need to quickly get cash right then and there. But as long as our economic situation is under control, well, we don't need to rush to use emergency money as long as we can solve the problems that arise. Selling assets is the last resort when we run out of emergency money. So the sequence remains Emergency money then selling assets. don't turn it upside down. Because it would be very funny if someone chooses to maintain the emergency money they have and instead chooses to sell the assets they have been collecting and maintaining to be used as an investment in the future. people like this are clearly people who don't understand the function of emergency money and they don't understand the principles of financial management. or there is language that is even more rude. but I don't want to say it.
sr. member
Activity: 1484
Merit: 254
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.
hero member
Activity: 2254
Merit: 658
Revolutionized copy gaming platform
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?

Of course the most preferred answer are your emergency funds.

Why would you sell your assets? Are your assets in Bitcoin? Stocks? Land or property? You have failed to distinguish this in your thread.

Emergency funds can just stay in value but your assets like Bitcoin can either grow or fluctuate.

Like me, I always prioritize my emergency funds and not my Bitcoin without second thoughts.
hero member
Activity: 784
Merit: 732
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.
legendary
Activity: 3108
Merit: 1138
i agree with you, it all depends on the choices of each individual and not all individuals are in the same condition. whether it's using an emergency fund or selling assets, the most important thing is that we can think clearly to take a risk on one of the available options and at least we can survive without having debt, it's not very wise if we still have emergency funds and assets but we debt, it will add to the burden of life.
If I will choose, it’s better you go for emergency fund, because as the name implies it’s for the sake of emergency, but if you think it’s better you sell your assets then it’s still okay, both the emergency fund and the asset belongs to you, as long as any one you use is going to solve the problem then you can use it. But just make sure you are not taking loan to solve problem when you are having emergency funds and you are still having assets which you know you can use. Some people are really used to taking of loan to solve problem even if they are having money to solve the problem, they will prefer to keep the money and take loan to solve the problem, which I don’t really think it’s a nice idea.
Everything would really be needing that extreme consideration on thinking up whether it would really be worth on such decision or not because there are things which we do make up some rush things without trying out to

reassess on what are the pros and cons on such decision that it would be taken.If you do really be able to find out and having those analysis that it would really be something beneficial then go ahead, but if you cant
really be able to bare up with the risks then better skip and dont bother yourself on doing such thing. If we do speak about crypto investment then it would really be that wise on using up emergency funds but
dont go all in because we know on whats the main usage of these funds on the first place in speaking about emergencies.

Selling out your assets is never been that ideal specially they are making or generating some income which you could really be able to make use for your investment means. Therefore, its not
really that recommendable on doing so.
legendary
Activity: 2254
Merit: 1052
Leading Crypto Sports Betting & Casino Platform
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?
I dont know the country you are from, but if i am not advice you based on my current experience over here in my country, first, it all depends on the type of assets you have..
is it bitcoin and other types of cryptocurrencies?
Or is the asset a landed property like in real estate or so ?
Is bonds or company shares and so on ?

For me, if the asset is either in bitcoin or real estate, i will advice to use your emergency funds to cushion the effect of the economic inflation in your country if you must, leave your assets alone, those assets might be your savior in the future if eventually the economic situation fail to get better for whatever reason.
And also remember, In a country facing economic crises, the worst mistake any body can make is to save in that countries fiat, save money in assets like Bitcoin, lands and so on.
full member
Activity: 1008
Merit: 141
Enterapp Pre-Sale Live - bit.ly/3UrMCWI
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 can use 30% each of your emergency fund and your assets to meet your daily needs as long as inflation is still going on, the period of inflation causes an imbalance between income and expenditure, that's the reason why many people are in great trouble when the government is unable to reduce inflation wisely and precisely. 

also avoid buying unnecessary items and postpone your vacation plans with your family (if you have those plans), as long as your economy is not stable, be consistent in maintaining your financial condition.
legendary
Activity: 2226
Merit: 1086
Free Bitcoins Every Hour!
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.
Why do you feel unhappy to follow the suggestion?
I think it is a good suggestion to analyze our income and outcome by using the excel sheet. In this way, we can minimize the unnecessary spending and realize whenever we need more side jobs the increase the income. If you are in a financial problem, there is nothing wrong to follow the suggestion although it seems a bit complicated to do.

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.
What the problem you are facing exactly?
If it is about the increase of your spending, you just need to adjust the priority. Eliminate which one is not really necessary, keep the allocation for the urgent needs only.

By the way, if you think that you need to use your savings/emergency funds, just spend some of the money. If you still have emergency funds, just keep your assets. IMHO, only sell the assets if you have no fiats, no savings, and no emergency funds.

sr. member
Activity: 630
Merit: 420
i agree with you, it all depends on the choices of each individual and not all individuals are in the same condition. whether it's using an emergency fund or selling assets, the most important thing is that we can think clearly to take a risk on one of the available options and at least we can survive without having debt, it's not very wise if we still have emergency funds and assets but we debt, it will add to the burden of life.
If I will choose, it’s better you go for emergency fund, because as the name implies it’s for the sake of emergency, but if you think it’s better you sell your assets then it’s still okay, both the emergency fund and the asset belongs to you, as long as any one you use is going to solve the problem then you can use it. But just make sure you are not taking loan to solve problem when you are having emergency funds and you are still having assets which you know you can use. Some people are really used to taking of loan to solve problem even if they are having money to solve the problem, they will prefer to keep the money and take loan to solve the problem, which I don’t really think it’s a nice idea.
hero member
Activity: 980
Merit: 713
Inflation or other negative economic impacts of course make us have to make a lot of sacrifices, the right step is to ask economic and financial experts as you told, of course these 2 things are difficult because if we sell assets or use emergency money then it will slowly run out and the best solution is to increase the source of income.
So how about in a case where there is no means to increase source of income. What have you to say about that? Because to me, it's called "emergency fund" because it's meant to be use at emergency period, which in time of inflation is an emergency period, and selling of an asset is the worst decision anybody can do, because as time goes on, the value of an asset increases, unlike in the case of fiat currency whose value will either remain static or drop due to inflation.
So for me, I subscribe to using emergency fund in times of need.
hero member
Activity: 2856
Merit: 644
https://duelbits.com/
At the end of the day, it's all a matter of choice and if it's the last resort for us to survive, why not.
Having difficult conditions in the economy and being pressured by several factors such as inflation and the current recession that is starting to get closer then indeed when there are still reserve funds or investments why not use them.
But it is certainly the last choice because if we feel that we can still get through it then it would be great if it is not used but if the difficulty of the reserve fund is the right thing to use but if it is still not covered then the funds from the investment may still be used. rather than looking for other options such as debt it would be better to take advantage of the existing ones first to support our needs.
i agree with you, it all depends on the choices of each individual and not all individuals are in the same condition. whether it's using an emergency fund or selling assets, the most important thing is that we can think clearly to take a risk on one of the available options and at least we can survive without having debt, it's not very wise if we still have emergency funds and assets but we debt, it will add to the burden of life.
back to the topic the OP made, he wants to cushion the impact of the economic situation. actually we can't argue further because the OP explained the situation is too general and it all returns to the OP's choice because he is the one who will take the risk and only he knows how much the emergency fund and the value of the assets he has.
one more thing, i think it's also important to do a little to help deal with the economic crisis, namely by reducing your lifestyle or being more frugal.
Good point, while you can do it without debt then don't make things harder and continue to use what you have because if you try to do it with debt then it will be difficult for yourself in the end.
Maybe some consider taking on debt to slow down the economy in the hope that the economy will be better in the next few months but that's the positive side and we know the possibility of negative conditions is actually much greater than the positive side when trying to take on debt.

Like I said before, it comes down to individual choice for the person who is feeling it. I think people here are mature enough to deal with life conditions and they know what to do so for that matter despite some good advice, the conclusion and the choice of path is still back to the OP.
hero member
Activity: 1624
Merit: 791
Bitcoin To The Moon 📈📈📈
The key question is how expensive the lesson is going to be. Making mistakes is usual, part of life and will provide an example of how not to do things. However you need to calibrate the cost of making that mistake and learn the lesson and know what you don't know and how bad can it get in case you miss.
Instead, the experience makes it an expensive lesson even though making mistakes is a common thing for us to do, but life needs to be considered which is better and which is worse, rather than they miss the process again it will take a long time to recover, so we have to think ahead and also the risks because in the journey of life it will not run smoothly.

Regarding inflation, the topic, getting it wrong is usually a very costly mistake that may end up with you having no home.
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.
sr. member
Activity: 1526
Merit: 255
Inflation or other negative economic impacts of course make us have to make a lot of sacrifices, the right step is to ask economic and financial experts as you told, of course these 2 things are difficult because if we sell assets or use emergency money then it will slowly run out and the best solution is to increase the source of income.
Pages:
Jump to: