#Liquidity101

What is liquidity?

Liquidity is the ability of an asset to be quickly sold at market price without significant losses. Highly liquid assets (such as currency, blue chips) can be easily converted into cash, while low liquidity assets (real estate) require time and concessions in price.

Why is this important?

1. Flexibility — you can quickly respond to market changes.

2. Reliability — liquid assets are less risky in a crisis.

3. Access to capital — it's easier to obtain credit or invest.

Example: Money on a debit card is more liquid than an apartment.

How do you assess the liquidity of your assets? 💰 #Finance #Investments