Liquid net worth refers to the amount of cash or cash equivalent someone has minus their total liabilities. A cash equivalent is generally referred to as anything that can easily be converted into cash, assets such as cars, houses, and other items are not part of your liquid net worth.
No, houses and other types of real estate properties do not count towards liquid net worth since they are not considered liquid assets.
No, cars are not generally considered to be liquid assets.
A good liquid net worth for one person may not be considered a good one to another person, so it all depends on your expectations, your current situation, and other factors. Generally, it can be said that a liquid net worth that remains north of $100,000 at all times is very good.
Cash, bank account balances, and stocks or bonds are three examples of liquid assets.
Create Date: October 17, 2024
Last Modified Date: October 17, 2024
