During times when financial volatility is no longer just news but has become personal, many families may be experiencing tighter cash flow than before.
The question that arises is, "Should we use up all our emergency funds first?"
Or should we start "letting go" of some belongings now?
This is not merely about crunching numbers.
It's a decision that involves both the family's money and emotions together.
Many people keep spending their emergency savings until nearly gone before thinking about what to sell. But from a financial planning perspective, emergency funds represent "time".
Time allows us to think, plan, and "choose" instead of being forced by circumstances. Waiting until money is almost gone often leads to having to "sell out of necessity."
It is advised that once about 70% of emergency funds are used and the situation hasn't improved, you should start planning asset sales. Keeping a small reserve for another month or two helps reduce pressure and stress.
When deciding which assets to sell, ranking them correctly helps you survive sustainably and without emotional harm, not just for the short term.
Important caution:
"Income-generating items" should not be the first to go. For example, a car used to commute or generate income, work equipment, or tools related to your profession. Although these assets have value, selling them and losing income could worsen your situation in the long run.
Priority 1: Assets easily converted to cash without affecting daily life. Examples include investment gold or funds without redemption restrictions.
The advantage is they sell easily, have clear market prices, and do not disrupt everyday living.
Priority 2: Luxury items or non-essential possessions. Such as branded handbags, watches, or various collectibles.
These items may have once brought joy, and in times of need, converting them to cash is a reasonable use of assets.
Priority 3: Assets that "create expenses" but are unnecessary. For example, a seldom-used car or a condominium that cannot be rented out but still incurs costs.
Selling these assets—especially if their value is unlikely to increase—not only provides cash but also reduces monthly burdens that pressure cash flow.
Final priority: Your life's security base. Such as your home, life insurance, or health insurance.
These are your last line of defense and should be kept as long as possible.
In many families, the person managing money tries to handle everything alone to avoid worrying others. But major decisions like this should involve the whole household. Share the situation honestly but without causing panic, and listen to each other's feelings because some items carry more emotional than financial value.
Then set shared agreements, for example, deciding which assets to sell when emergency funds fall to a certain level. When everyone participates in decision-making, guilt lessens and cooperation grows.
Summary
Having to sell assets painstakingly acquired during hardship is not failure. Assets can be replaced. Choosing to let go of some things today is about preserving something more important—the chance for you and your family to move forward.
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