#Liquidity101
#Liquidity101
Liquidity means how quickly and easily an asset can be converted into cash without losing its value. Cash is the most liquid asset, while things like property or equipment are less liquid. High liquidity gives you fast access to money in emergencies without major losses. Stocks are relatively liquid, while real estate takes longer to sell. Every investor should maintain a balance of liquidity in their portfolio to ensure cash is available when needed. It’s a key part of smart financial planning. Understanding liquidity helps you stay prepared and financially flexible. #FinanceBasics #SmartInvesting #MoneyMatters