What Is Liquid Net Worth?

3 Easy Steps to Calculate Liquid Net Worth

What is your liquid net worth?

If you’re asking this question, you probably already have a pretty good handle on your personal finances and are looking to dive deeper.

While net worth is an important measure,

I would argue that liquid net worth is even more important to determine your financial health.

Liquid Net Worth Definition

Liquid net worth is simply the amount of cash you would have available after selling all of your liquid assets and paying off your current liabilities.

Net Worth vs. Liquid Net Worth

Your net worth is the total value of all of your assets (things you own) minus your liabilities (things you owe).

Liquid net worth measures how much of your wealth is easily accessible during an emergency.

The Importance of Liquid Net Worth

Liquid assets are any assets you own that could be easily converted into cash, such as stocks and bonds or money in a savings account.

What Are Liquid Assets?

Marketable securities such as stocks and bonds would be considered liquid because they can be easily sold and converted to cash.

Stocks and Bonds

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