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?
Is the emergency fund you mean in fiat? If so, you can use fiat to cushion the impact of the economic situation you are currently experiencing. Fiat is never resistant to inflation, keeping Fiat in the midst of uncertain economic conditions will have a negative impact on the amount of money you have because of its reduced value.
You can develop an emergency fund in the form of Fiat to maintain your financial stability, start doing something to form the Money formula to make money. If the asset that you hold is currently in the form of Bitcoin, then defend the asset that you hold even if you are in financial trouble. Look for money from other sources to finance your life, selling Bitcoin at this point will make you regret it when the price has increased.