#Liquidity101 Liquidity means how quickly you can turn something into cash. Cash is the most liquid asset. Things like houses or cars take time to sell, so they are less liquid. In business, good liquidity means a company can pay its bills on time. Poor liquidity means it might struggle to do so. Banks, companies, and even people need to manage liquidity. A savings account has high liquidity, but investing in land has low liquidity. Always check how easy it is to get your money back before investing. In short, liquidity is about access to cash when you need it. The more liquid, the easier it is to use your money.😎