Topic: Should I Use Emergency funds or Sell my Assets ? - page 7. (Read 1413 times)
As long as that emergency fund is enough to finance what you are willing to do, then I will suggest you go with the emergency fund. Depending on what your expenses are that is what you need to find out, if it's for unprofitable means just leave your asset out of the way and make do with the available funds you have at hand.
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?
To be honest, I can't comment too much on specifics related to this thread, because I don't know for sure the conditions that actually happened in your country. and what are compelling reasons to use your emergency fund or sell your assets. what are the indicators of the cause, apart from the situation and economic conditions amid inflation. also, why are you reluctant to follow your financial advisor's advice, don't you use advisor services for that. then what business are you running, or do you need funds to pay your bills. I don't know what country you're from, but at least you have an emergency fund, and the situation is not at all possible. now is your time to use it, instead of selling your assets. at least, an emergency fund is more ideal than you have to sell assets that you think are valuable. if, you want to speculate to sell some of your assets to cushion the impact of the economic situation. is it worth it, and what are your steps going forward. you have to look at it from all angles, if it's feasible and can do it. but my question is, why are you reluctant to follow your financial advisor's advice, don't you use advisory services for that.
Actually, in this condition, can't an emergency fund be used when things don't go as expected?
Even though sometimes we spend emergency funds for some problems such as accidents or other costs such as repairing something, but on the other hand, isn't this also to help us avoid trouble? I think using an emergency fund when you are having financial problems is not wrong in this regard.
Speaking of assets, I think it's the last option in this case. Even though sometimes it's an investment asset for the future, but on the other hand, when it's already profitable and we're involved in a condition that's quite difficult to avoid, I think that can also be used as one of the things we spend on condition that we've already benefited from it, but as long as there is an emergency fund that is still unused and can be fulfilled from there why not use the emergency fund first.
Personally, if that happens to me, I will do the things I wrote above because basically I feel that an emergency fund is still possible when it still can't be balanced with the existing problems, so investing is also not a problem to use. isn't the investment that you are doing the goal of being used for old age also it will be useless if you can't get out of an unsafe zone for now.
Even though sometimes we spend emergency funds for some problems such as accidents or other costs such as repairing something, but on the other hand, isn't this also to help us avoid trouble? I think using an emergency fund when you are having financial problems is not wrong in this regard.
Speaking of assets, I think it's the last option in this case. Even though sometimes it's an investment asset for the future, but on the other hand, when it's already profitable and we're involved in a condition that's quite difficult to avoid, I think that can also be used as one of the things we spend on condition that we've already benefited from it, but as long as there is an emergency fund that is still unused and can be fulfilled from there why not use the emergency fund first.
Personally, if that happens to me, I will do the things I wrote above because basically I feel that an emergency fund is still possible when it still can't be balanced with the existing problems, so investing is also not a problem to use. isn't the investment that you are doing the goal of being used for old age also it will be useless if you can't get out of an unsafe zone for now.
I agree, selling property needs to be considered carefully, we should find all other ways before thinking about selling our property because selling is easy, but buying back is not easy. Especially assets that increase in value over time, like gold, real estate, or bitcoin. But in OP's case, he has emergency funds, why not use them instead of thinking about selling the property? Let's make a comparison, and it can be easily seen that creating an emergency fund will be much easier than buying property. OP, you should carefully consider everything before making a final decision.
Diverting funds from selling investment properties to other investments is very ineffective because we cannot afford to buy the same property due to property prices increasing every year, OP needs to consider that each type of property generates promising profits for the long term, but if we still have alternative options to use allocation from an emergency fund so we can use it to add to other investments instead of keeping emergency funds in fiat, my suggestion is that emergency funds are better diverted to gold or bitcoin investments which are easy to exchange with fiat whenever we need those funds for urgent needs.This is very true, it won't do good for you to sell your investment properties just to transition to other investment. In my case, I have some properties that are rented for me to have a passive income. The price of the house already doubled but still I stick to passive income for me to have extra money for other investment. I have two properties which I live in the other one and the one is for rented. But it's a good idea to use your emergency funds in investment where you can easily convert it back to fiat money such as you've mentioned. Once you've profited enough the best thing to do is to use those spare money for other investment as well for you to have a lot of options in case of emergency.
That is really good if your property has a house on it, but if it is just sitting around with no building at all, then you are waiting for someone to rent it. There are no problems with that, but if you don't have plans for that area, for example, if it is very far from the road or if it is very remote, and you really plan to sell it soonest, then that is only possible if it is just your spare land, but if that is only your land, then that is a really bad idea.
Depends on the situation really mainly if you got some spare cash or should I say emergency funds, considering that the place you've owned is situated in a very remote area and much away from the road then I think it will be beneficial for you to sell it rather than doing nothing about it given that you're inclined to have some money on your hands.
There's nothing to do about it as the described land will just give you additional bills without earning something from that land plus, selling that will be a good thing as that same land will probably take you a decade before the value will grow up.
Inflation really hit us hard these days. That’s the reason why we need to increase more of our sources of income than just settle in a single job and find it hard to make ends meet. That way, our emergency funds and our assets will not be compromised considering that they might be of great use for our children in the future. So instead of trying to rely from our emergency funds and some valuable assets, go and get another job or side hustle that will suit your profession and in which your knowledge and skills will be greatly maximized.
Isn't this situation the reason you have emergency funds? If you think you can get trough this hard period, you should use that fund rather than selling assets because that's the last thing you should do. Only start selling assets if it becomes the only exit for that problem. I also recommend storing your fiat into some stable currency, rather than your own. For an example, I store my cash in Euros(luckily, I can use it besides my local currency), since it is much safer than my local currency, which is already starting to be in inflation as well.
Even though inflation can be a really big problem, I hope you will get trough this situation without having to sell your assets.
Even though inflation can be a really big problem, I hope you will get trough this situation without having to sell your assets.
If our economic situation is deteriorating then in addition to using the assets we have, an emergency fund is the best choice, because besides that we have to borrow money from others this will certainly be a big problem if we do not have a definite income because paying an installment will be difficult for those of us who borrow money in a certain place, So for the future, we must store our assets in crypto instead of fiat currency because this is all for our future.
In your current situation, you'll see the real purpose and importance of your emergency funds. As for me, in an unexpected financial crisis, you better use your emergency funds than sell your assets. Just be sure to save for emergency purposes again so you'll always be prepared for unexpected circumstances.
Despite having financial trouble, you should still have your assets on hold as much as possible so you'll have something to rely on in the future and you could also expect a promising profit when the time comes. We must know when to use our savings and assets because it will affect our financial journey in the long run.
I agree, selling property needs to be considered carefully, we should find all other ways before thinking about selling our property because selling is easy, but buying back is not easy. Especially assets that increase in value over time, like gold, real estate, or bitcoin. But in OP's case, he has emergency funds, why not use them instead of thinking about selling the property? Let's make a comparison, and it can be easily seen that creating an emergency fund will be much easier than buying property. OP, you should carefully consider everything before making a final decision.
Diverting funds from selling investment properties to other investments is very ineffective because we cannot afford to buy the same property due to property prices increasing every year, OP needs to consider that each type of property generates promising profits for the long term, but if we still have alternative options to use allocation from an emergency fund so we can use it to add to other investments instead of keeping emergency funds in fiat, my suggestion is that emergency funds are better diverted to gold or bitcoin investments which are easy to exchange with fiat whenever we need those funds for urgent needs.This is very true, it won't do good for you to sell your investment properties just to transition to other investment. In my case, I have some properties that are rented for me to have a passive income. The price of the house already doubled but still I stick to passive income for me to have extra money for other investment. I have two properties which I live in the other one and the one is for rented. But it's a good idea to use your emergency funds in investment where you can easily convert it back to fiat money such as you've mentioned. Once you've profited enough the best thing to do is to use those spare money for other investment as well for you to have a lot of options in case of emergency.
That is really good if your property has a house on it, but if it is just sitting around with no building at all, then you are waiting for someone to rent it. There are no problems with that, but if you don't have plans for that area, for example, if it is very far from the road or if it is very remote, and you really plan to sell it soonest, then that is only possible if it is just your spare land, but if that is only your land, then that is a really bad idea.
I agree, selling property needs to be considered carefully, we should find all other ways before thinking about selling our property because selling is easy, but buying back is not easy. Especially assets that increase in value over time, like gold, real estate, or bitcoin. But in OP's case, he has emergency funds, why not use them instead of thinking about selling the property? Let's make a comparison, and it can be easily seen that creating an emergency fund will be much easier than buying property. OP, you should carefully consider everything before making a final decision.
Diverting funds from selling investment properties to other investments is very ineffective because we cannot afford to buy the same property due to property prices increasing every year, OP needs to consider that each type of property generates promising profits for the long term, but if we still have alternative options to use allocation from an emergency fund so we can use it to add to other investments instead of keeping emergency funds in fiat, my suggestion is that emergency funds are better diverted to gold or bitcoin investments which are easy to exchange with fiat whenever we need those funds for urgent needs.This is very true, it won't do good for you to sell your investment properties just to transition to other investment. In my case, I have some properties that are rented for me to have a passive income. The price of the house already doubled but still I stick to passive income for me to have extra money for other investment. I have two properties which I live in the other one and the one is for rented. But it's a good idea to use your emergency funds in investment where you can easily convert it back to fiat money such as you've mentioned. Once you've profited enough the best thing to do is to use those spare money for other investment as well for you to have a lot of options in case of emergency.
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?
Why should you sell your assets when there is an emergency fund available that you can use for your daily needs? The reality is that almost all countries are experiencing inflation and making it difficult for people to make ends meet. If I have an emergency fund saved in a savings account, then I will not decide to sell the existing assets because if I hold bitcoins it is very likely that ATH is so close and it is hoped that it will bring big profits from these assets.It's simple you can use an emergency fund first and don't need to sell the assets you have to meet your daily needs. Selling the assets you have now also doesn't make you improve your finances and instead you lose the opportunity to make big profits when the time is right.
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 simply believe that an emergency fund should be kept only for an emergency. Inflation in your country, which is also a global inflation cannot be said to be an emergency. The second option which is to sell some of your assets might be preferable. But then you should not sell what you think that will worth more in the future.
There are some assets which we have at home that e do not have very severe need of but we keep them for decoration and maybe you for aesthetics purposes.
If you have such assets, you can sell them and reinvest the found, while having money to also sustain yourself and your family. Keep the emergency fund strictly for emergency.
I agree, selling property needs to be considered carefully, we should find all other ways before thinking about selling our property because selling is easy, but buying back is not easy. Especially assets that increase in value over time, like gold, real estate, or bitcoin. But in OP's case, he has emergency funds, why not use them instead of thinking about selling the property? Let's make a comparison, and it can be easily seen that creating an emergency fund will be much easier than buying property. OP, you should carefully consider everything before making a final decision.
Diverting funds from selling investment properties to other investments is very ineffective because we cannot afford to buy the same property due to property prices increasing every year, OP needs to consider that each type of property generates promising profits for the long term, but if we still have alternative options to use allocation from an emergency fund so we can use it to add to other investments instead of keeping emergency funds in fiat, my suggestion is that emergency funds are better diverted to gold or bitcoin investments which are easy to exchange with fiat whenever we need those funds for urgent needs. 
Economic problems have always haunted us, especially now that the financial situation is getting worse and those of us who have assets certainly have to make considerations to use these funds, if that has become the only way we have to do, then just sell the assets you have so that your problems are quickly resolved and later you have to find a way so that everything you spend now you can have back, Because right now it is indeed in a difficult situation.
I don't think that's a good solution, because you also have to provide a more direct or more precise explanation of what situation is currently difficult? Because as long as there are ways and ways that can be taken to solve the problem, I don't think a person should immediately sacrifice the assets that he currently owns because getting back the assets that have been sold is also not easy. So this must really be considered wisely before he sells it, and besides what is it that is giving him trouble? Meanwhile, market conditions and the crypto space are much better now.
I agree, selling property needs to be considered carefully, we should find all other ways before thinking about selling our property because selling is easy, but buying back is not easy. Especially assets that increase in value over time, like gold, real estate, or bitcoin. But in OP's case, he has emergency funds, why not use them instead of thinking about selling the property? Let's make a comparison, and it can be easily seen that creating an emergency fund will be much easier than buying property. OP, you should carefully consider everything before making a final decision.
Economic problems have always haunted us, especially now that the financial situation is getting worse and those of us who have assets certainly have to make considerations to use these funds, if that has become the only way we have to do, then just sell the assets you have so that your problems are quickly resolved and later you have to find a way so that everything you spend now you can have back, Because right now it is indeed in a difficult situation.
I don't think that's a good solution, because you also have to provide a more direct or more precise explanation of what situation is currently difficult? Because as long as there are ways and ways that can be taken to solve the problem, I don't think a person should immediately sacrifice the assets that he currently owns because getting back the assets that have been sold is also not easy. So this must really be considered wisely before he sells it, and besides what is it that is giving him trouble? Meanwhile, market conditions and the crypto space are much better now.
Economic problems have always haunted us, especially now that the financial situation is getting worse and those of us who have assets certainly have to make considerations to use these funds, if that has become the only way we have to do, then just sell the assets you have so that your problems are quickly resolved and later you have to find a way so that everything you spend now you can have back, Because right now it is indeed in a difficult situation.
You need to sort all the venues that you have as an alternative to survive.
To the point that you'll sell your reserves, it might be difficult, but taking your decision will vary in how the needs you should
take care of, assets or savings both have the risk when taking it out of your holdings, but the fact that you need to
carry is on how you can replace it when you get the chance.
Economic problems have always haunted us, especially now that the financial situation is getting worse and those of us who have assets certainly have to make considerations to use these funds, if that has become the only way we have to do, then just sell the assets you have so that your problems are quickly resolved and later you have to find a way so that everything you spend now you can have back, Because right now it is indeed in a difficult situation.
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 will recommend to use emergency fund for fighting against this situation. Emergency funds are there to be used when needed , if you not use in this situation am then i am not seeing any better situation to use it. another option is asset selling but i will recommend to sell only those asset you believe that its price will not increase high in year because some asset are so worthy like land in our country. Also try to earn online by doing some skill work or trading as the value of usdt is high and you will get high payment than your fiat.Assets may have better prospects in the future, so it would be a shame if they had to be sold just to reduce the impact of this economic situation, while there is no possibility for emergency funds in the future, we can still prepare them again when the situation recovers later.
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 will recommend to use emergency fund for fighting against this situation. Emergency funds are there to be used when needed , if you not use in this situation am then i am not seeing any better situation to use it. another option is asset selling but i will recommend to sell only those asset you believe that its price will not increase high in year because some asset are so worthy like land in our country. Also try to earn online by doing some skill work or trading as the value of usdt is high and you will get high payment than your fiat.
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?
Instead of immediately dipping into your emergency funds or selling assets, explore alternative ways to generate additional income. Look for potential side hustles, freelance opportunities, or creative projects that align with your skills and interests. Consider exploring investment opportunities that may offer better returns. Remember, adaptability and creativity are key during uncertain times. Diversifying your income streams can help offset the impact of inflation and provide more financial stability. Remember, individuals financial situation is unique, and as such you should tailor these suggestions to fit your needs and goals.He already has an emergency and asset fund, so I think he already knows what you mentioned because if he had the opportunity to earn extra income, he would never have decided to use the fund emergency or property sale. It can be said that this is a reluctant decision when we do not have a better solution.
OP, between the choice between an emergency fund and an asset sale, I would think of an emergency fund because that is the mission it was created for. You shouldn't even think about selling an asset when you still have other options, no matter what it is, selling during an economic crisis is always a bad idea because its value is plummeting.
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?
Instead of immediately dipping into your emergency funds or selling assets, explore alternative ways to generate additional income. Look for potential side hustles, freelance opportunities, or creative projects that align with your skills and interests. Consider exploring investment opportunities that may offer better returns. Remember, adaptability and creativity are key during uncertain times. Diversifying your income streams can help offset the impact of inflation and provide more financial stability. Remember, individuals financial situation is unique, and as such you should tailor these suggestions to fit your needs and goals. Jump to: