#Liquidity101
Do you know what liquidity means in the world of investments?
Liquidity represents the ease and speed with which an asset can be converted into cash without a significant loss of value.
For example, money deposited in a checking account has high liquidity, as it can be used at any time.
A property, on the other hand, has low liquidity, as it takes more time to sell and convert into cash.
Understanding liquidity is essential for those who want to invest thoughtfully and balanced.
Not always is the most profitable investment the most suitable, especially if you need quick access to your capital.
So, before investing, consider: what is your liquidity need.