Glossary
Liquidity
GeneralHow quickly and easily you can turn an asset into cash without losing value. A savings account is highly liquid; a house is not. Having some liquid savings matters for unexpected expenses.
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Asset
Anything you own that has financial value. Assets include cash in the bank, a vehicle, investments, or property. Your total assets minus your total debts equals your net worth.
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Balance
The amount of money in an account at a given time, or the amount still owing on a loan or credit card. A positive bank balance means you have funds available; a loan balance means you still owe money.