2007-09-26 09:37:17 · 11 answers · asked by icedcoffeeaddict 2 in Business & Finance ➔ Personal Finance
It means you have $250,000 in assets above the amount of debts you owe. If you have at least $50,000 liquid that means cash or cash equivalents. This is where the gray area is. Liquidity means that you can easily turn an invesetment into hard cash like a savings account or stocks. In the case of a business they use the term short term receivables like Accounts Receivables, CDs, Stocks and Bonds, Inventory or anything that can be turned into cash within the next year.
For personal finance, I would say that liquidity means cash or cash equivalents like stocks, bonds, etc that you can turn into cash within the month. A month is a typical billing cycle for all of us.
Good Luck.
2007-09-26 09:45:22 · answer #1 · answered by sfuller94 3 · 1⤊ 0⤋
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2016-05-19 02:24:52 · answer #2 · answered by Anonymous · 0⤊ 0⤋
'Liquid assets' means money you can spend right away. It's money in your wallet or a bank account where you won't be penalized for taking it out (a regular savings or checking account). Money tied up in real estate, collectibles, securities, etc. is not liquid.
If you need a lot of money in a hurry, you sell non-liquid assets for whatever you can get for them right away (which might be less than they're worth). This is called 'liquidization', you are 'liquidizing' the assets.
2007-09-26 09:40:57 · answer #3 · answered by Anonymous · 1⤊ 1⤋
First, it is a LIE. If you had anywhere near that net worth, you would KNOW what it means.
Net worth = Total assets - total debts.
Liquid = Easily converted to CASH. If you can't convert an asset to cash at full value in under 24 hours, it is not liquid.
2007-09-26 10:43:14 · answer #4 · answered by STEVEN F 7 · 2⤊ 2⤋
Your assets are worth $250,000 more than your debts, and you have $50,000 in cash. I would have you not post this type of personnel information on the net. I would suggest you read any of Suzi Ormans books about money.
2007-09-26 09:49:20 · answer #5 · answered by jean 7 · 0⤊ 2⤋
It means you have probably got a home, jewelry, stocks etc. (something you would have to sell to get cash) assessed at $250,000 and savings or bonds totaling $50,000.
Net worth is your assets minus your debits.
2007-09-26 09:40:40 · answer #6 · answered by justa 7 · 1⤊ 3⤋
It means you have 250 grand in assets after debt is taken off them and 50 grand is liquid meaning it does not have to be converted into cash,,,, it is already cash,,,,,,,doesnt need sold etc..........
2007-09-26 09:42:51 · answer #7 · answered by KatGotHerTongue 3 · 0⤊ 2⤋
the net worth is how much every thing you own is worth for example, your car, house, land etc. and the liquid is what you have saved up money wise
2007-09-26 09:41:48 · answer #8 · answered by prplfae 6 · 0⤊ 3⤋
It means you have at least a $50,000.00 foreign car (Paid in full) and a $200,000.00 house (Paid in full) and $50,000.00 in your bank account.
If you have $300,000.00 in Credit Card debt then you are broke.
Assets $10,000,000.00
Liabilities $9,750,000.00
Net Worth $250,000.00
2007-09-26 10:19:22 · answer #9 · answered by Anonymous · 0⤊ 3⤋
You need a financial adviser. They will tell you what to do and what you have access to!
2007-09-26 16:31:37 · answer #10 · answered by ? 4 · 0⤊ 1⤋