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?
It's a bit hard to give a general advice without knowing more about you. From what I get from thread is that you are struggling with your living and food expenses, which is definitely a serious situation. It's good that you have an emergency fund and investments you can rely upon. Now with the question of which one you should choose first we would need to know what kind of assets you have. In case you have positions that done really well this year and are deep in the green, than I would recommend you take some profit. And if it's the opposite I would probably rely on your emergency cash and wait for your assets to do better. The problem with high inflation and expensive food and drinks is that it's not likely to go down anytime soon. The companies used the inflation excuse to increase prices and boost profits and will likely not revert to pre 2022 levels again. Don't empty your emergency fund completely now, because things could still get worse and you might have another emergency coming up.