liquid net worth

Definition

The part of an individual's net worth that can be readily turned into cash. Liquid net worth includes investments such as stocks and mutual funds, but does not include assets that are difficult to readily convert, such as real estate or cars.

Use liquid net worth in a sentence

Liquid net worth is an important factor to consider when planning your finances because having enough assets that can easily convert to cash will come in handy when there is an emergency.

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