Liquid Assets are anything that is cash or easily converted to cash.
They can include the following:
- Cash on Hand in your wallet or your coin bank.
- Money in a Bank Account like a Savings Account, Checking Account, Money Market Accounts.
- Stocks and Bonds that can be sold and converted back into cash promptly.
A house is not a liquid asset because you cannot get back the money it is valued at quickly usually.
Your liquid assets are your assets that are:
- Assets that are available on a moment’s notice.
- You can access them easily within a few days time.
- Stays in the current currency that it’s in.
Many Add CDs and Securities that are available in less than a year to their calculation of liquid assets.
