Topic: Should I Use Emergency funds or Sell my Assets ? - page 6. (Read 1413 times)

How can it be that the crypto market, whose movements are very volatile, makes Bitcoin a place for storage or for saving, that is clearly the wrong decision,
if for a place to save then the priority is with low risk,
what is clear is saving money on Bitcoin will make you lose.

I completely agree with your suggestion, although gold is an investment asset, it is well suited as a place to store savings because of its stability.
Fiat currencies depreciate very quickly, we should not hold them for a long time. But be sure only to use gold for savings, never use a volatile asset like bitcoin for storage. Many people think that putting money into bitcoin to save, but that is a big mistake because, as we have seen, its short-term volatility. Bitcoin is only suitable as an investment, it is not suitable for use as a store of value, such as savings or an emergency fund.

Inflation is robbery? Not exactly, inflation is effectively a transfer of value between people who own money to people who owe money. The other day I spoke with a guy from Poland that told me that in the times of hyperinflation, some people bought houses with a mortgage that after a few years could repay with "pocket money".

The key to let inflation play for you is to borrow in low interest times and fix the rate for a long time.

During the Covid pandemic, many people did not have emergency funds for their necessities of life and they hoped for financial assistance from the government to help their finances, due to the poor food conditions and high inflation that occurred in several countries.

So this condition is a warning for us to save funds for emergency purposes, I suggest that savings be kept in gold investments to provide price stability and avoid inflation, gold investments are easy to sell again whenever we need them for emergency purposes, we must have a savings fund 40 % of the total funds to maximize financial management, also to prevent selling our assets.

Ther is a reason why you termed it an emergency funds and that's because, its a fund reserved for moments of great and immediate need which seems like the kind of situation your in. A position where your left with 2 contrastive choices and you cautious not to make any bad decion.

If you call it an emergency fund and this is about that situation, you might just as well allow it to solve that which it was meant for. Otherwise, you could endure and adjust your budgets to suit prevailing circumstances in accordance with your economy.

Having to sell your assets doesn't seat well with me as, assets are investments of some sort and have the ability to generate that which you could spend in the future. This makes selling it a don't for just any course.

Obviously it is the right move to survive in the context of current conditions. Sometimes we have savings for our future but when our economy is getting more difficult and there is nothing else we can sell then these assets are worth using for current needs. For the current era, it is indeed difficult to predict both in terms of our work because everything can change quickly if the economic wave is not good. Where there is a layoff or anything that makes us lose our jobs that catch us by surprise therefore we need to set aside money for an emergency fund to deal with such conditions.

Apart from that, we also have to look at past experiences such as the Covid era where the economy almost stalled in a number of countries due to the disaster which made life difficult for many people. Therefore of that we have to prepare savings for things like that.

Dont wait for yourself to be put up on a situation on which you would really be regretting just because you havent been able to save up or been able to spend up into something. Always allocate  something on your savings on which it is true that not in all lifetime we cant really be able to experience emergencies and this is why savings or emergency funds would come into play but what if you dont have? For sure you would really be ending up on taking a loan or would really be borrowing just because you dont have the funds for that certain situation.

We arent hoping for accidents or emergencies but we do live a in life on which certain situations could happen which it would really be involving money and this is why its never been that something that you should neglect on. On the question in regarding on using up or selling your assets to invest on crypto space? then its not necessary on which if you do have an asset then you could actually invest on  crypto if you do like.
Expand out and diversify as much as you can and we know that opportunity on making profits or money is really there. You cant really just that make yourself that able to reach that financial
freedom if you arent wise on your investment and selling out your assets just because you are focusing on a single point?

Correct, once the situation got resolve you start again to save your money, for sure you learn a lesson from your experienced.

We don't know when the emergency will come up, but with the experienced we will start to
anticipate and we will allocate a certain amount to save.

It will help to avoid using your investment or your asset as you have dedicated savings
for any emergency it will cover the needs.

Take any action if it saves them from the uncertainty of inequality but if you must have it then use the emergency fund because it is for needs in times like this, so it is important for anyone to save an emergency fund in times like this we can use it but sell other property assets...

The Covid pandemic is a lot of lessons for us where many people use emergency funds because of their uncertain conditions in their income, the best way with emergency funds to survive, when conditions are normal again you can start the same way, namely saving and preparing emergency funds again.

I guess it's just different for everyone. We still don't have any proper budgeting breakdown from the OP just like I mentioned previously in this thread. Some people tend to use their emergency funds when they appear to be helpless ,like being brought to hospital which I hope does not happen to anybody, since you can't afford to make more money nor make moves to get one.

Emergency funds isn't entirely when things just go south so suddenly. It is kinda different on how everyone calls it an "urgent" situation.

If indeed there is no other option, do it, but if there is another way out, take that method. Sometimes reserve funds are needed when others are not available. and this is a tough choice indeed. for sure everything has a deadline ending for example the Covid Pandemic in the end too. whatever you do using the reserve fund benefits not only for you but for your family as well.

Simply because he still have a crypto that can be easily liquidated since this part of his investment while emergency funds is supposed to be use when you are on emergencies which you don't have pther source of money aside from that particular funds.

I will sell my crypto without a doubt If I'm on his situation since the price of crypto is very volatile and he might find is crypto assets value in very low price in bad market while he can use it not to cover for his expenses. He can always buy back into crypto anytime.

Selling property should only be considered when we have no savings because it is easy to sell but not easy to buy back if it is an asset of great value, like real estate.  i don't understand why the OP is confused when he also has emergency funds, and that's where they come into play.  Why is he not using it but thinking of selling the property?  it's hard to understand.  saving will always be easier than buying back any valuable property.

It is really to create a budget and tracking expenses if there is an economic crisis. With the inflation happening all over the world the prices of necessities increase drastically and it is really hard to adjust in that kind of situation. With that crisis our budget is suffering and even our normal salary cannot sustain our daily needs because of that price increases. If you will use your emergency fund make sure that you will replenish it or return back what you had used. Or you can find other source of income to be able not to use your emergency funds. For selling assets i will not agree with it unless you really cannot sustain your daily needs.

In my case, I live in a country that in recent years has experienced a highly volatile and weakened economy, I do not necessarily consider myself an expert but I believe that my experience is a good starting point to give a solid perspective, fortunately, where I live, people have been able to deal with an extremely uncertain economy, a suggestion would be the following

Keep your assets if they are stable or highly reliable, in the event that you are not sure of these, transfer them to a currency that is not your local currency and acquire another that may become more functional

if it is very necessary, resort to your emergency fund but if the time does not arrive, if you keep this in a volatile economic topic of today, such as your local currency, according to what you say or something similar, it is preferable that you change it or invest in any kind of article because in the fluctuating economy in a negative way it is much better to always bet on any type of property, ranging from a more stable currency, through any purchasable item to, of course, more reliable investment assets, that's all..

I don't think the devaluation of fiat is their reason, most won't want to save and just invest because they all think it's easy to make a quick return on investment. Many people are subjective and do not have the right plan for their life. If we say fiat currency depreciates rapidly, then I think in the short to medium term, it will not depreciate or be volatile as much as bitcoin. My fiat savings lost 3 to 5% of their value when inflation hit, while my bitcoin investment lost more than 30%. And I need money for an emergency, I don't think that investment will benefit me right now.

Exactly this is why i recommended to use emergency fund as bad economic time could be overcome by using emergency fund or getting loan. Actually OP not mentioned which kind of assets he have. some assets are worthy to hold which price rises every month or quartely in the year while some assets rises price very slowly so if OP believe that he will again get asset back easily then its also not too bad to sell this asset but i will not preferred this as he has already emergency fund for purpose to overcome bad  economic time and this is right time to use it


if OP has any online skill(freelancing, writing, designing) then i think it would be better to give some time to accumulate USD as the Usd has high price and will get better reward than than fiat but if he has no skill then side job is beneficial.

Well I guess it is not advisable to use emergency funds or neither sell your assets to sustain your financial needs unless it is absolutely necessary and you don't have other options. Emergency funds should be used in case of unforeseen circumstances such as medical emergencies or job loss. Selling assets can also have long term consequences on your financial stability. If you really have no other option maybe you can use it but of course you need to find solution to be able to replace the money you borrowed from your emergency funds, while for the asset if you sell it would be harder to replenish it. Better yet find a side job or a job that would sustain your needs or create a profitable business if you will sell your asset so that you can earn better and save to be able to buy another asset. 

Before you use your emergency funds or sell your assets, determine first the gravity of the situation economically.

Personally, I would always prefer to first use my emergency funds before selling my assets. Assets, in general, have a value that may increment annually depending on which kind of asset. If such asset is a land, then its value may appreciate. But if your asset is a car which the value depreciates as time passes by, determine the need of such situation.

Emergency funds are created in order to answer for whatever kind of emergency you deemed fit. If the purpose for selling it is due to some minor reason, then feel free to do so. But I personally suggest to only sell your assets if your emergency funds are already exhausted.

Financial advisors are not all the time reliable and trustworthy. The reason why instead of depending your decision into some financial advisors, have your own analysis on your current problem. For me, I don’t think it’s reasonable to use your emergency funds or sell your assets just because you are in a bad shape of your finances. You can have additional job if you want, that’s why most people these days are often online because of their online jobs. Maybe you can try exploring it and if it’s still not working and you hardly find ways to survive, then maybe consider use your emergency funds while looking for another source of income.