What To Sell When You Need Money?

Whether you’re learning on your own or from your favorite Youtuber, nobody is telling you what assets you should sell when you need money. Everyone is focusing on “buying the dip”, dollar-cost averaging, but there will be a time in your life when you will need to make a decision on what assets to sell.

The sooner you realize that life will not be like a rocket shot out of cannon where you’re able to make large investment returns, get consistent promotions, or even see huge gains in the gym. The funny thing about life is that it doesn’t care about your plan. What’s going to separate yourself from your peers is having a plan of action of when life doesn’t go your way.

So, let’s take a look at the order of operations I would recommend you implement in case you get yourself into a pickle. Well, how do you do that?

Rank your assets in order from lowest income-producing to highest income-producing.

I’ve had to make sacrifices to get where I am today. These decisions aren’t easy, but if you’re able to make the inherent sacrifices that others aren’t willing to make. That is the key to becoming successful.

So, before you’re hit by the struggle bus, rank your assets in order from the lowest income-producing to highest income-producing. Your list may look something like this (your list may look different).

Order of Assets You Can Sell:


                       Primary Residence




                       Mutual Funds


                       Rental House

                       Income from Job


Selling Your Primary Residence

This may be an unpopular opinion, but a primary residence isn’t an investment that is going to pay you any sort of income. Especially in this day in age where interest rates are near all-time lows, if you find yourself struggling, perhaps letting go of your home makes sense.

You can watch this video here where I breakdown the reality of owning a home versus renting: CLICK HERE.

Now, it’s not going to be an easy decision to let go of something you put your blood, sweat, and tears to obtain. However, if you have a good amount of equity in your home, it’s wise to lock in that gain sooner rather than later.

As Warren Buffett has said,

“Rule Number 1: Never lose money. Rule number 2: never forget rule number 1.”


Selling Your Rental House.

On the flip side, if you’re an investor that has a rental house, this may be the last asset you would want to sell. This is due to the fact, you want to be in the mindset of looking at everything you accumulate over your life and see what’s paying you the most income.

Most Americans don’t look at their income from a job as an investment, but if you look at it from a different lens, the income you receive from your company is your largest investment. With this thinking, when money gets tight, the last thing that’s prudent is to quit your job.

In between your primary residence and the income from your job are your basic investments, cryptocurrency, stocks, bonds, mutual funds, and ETFs. So, if you’ve saved up a lot of money in your 401k you can take advantage of the CARE Act.


Care Act.

The CARE Act allows you to withdrawal up to $100,000, tax-free, as long you pay the money back over the specified timeframe. This is a cool way to get money out of your 401k through your employer, without having to pay taxes, penalties. Think of it as an IOU that you’re paying back to yourself.

Nobody wants to have to sell the assets they accumulate over time. But, that’s why you have these investments to utilize as a tool from when you need them most. So, while you’re still winning, make your list today, so that you’re prepared for when life hits you between the eyes.

Your Guide,

Joshua Krafchick, AKA “Chachi”


Additional reading to learn more about money.

1. Which Money Mistakes Are Costing You The Most.

2. How To Choose A Money Market.

3. When It’s Best To Sell Your Home.

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