You have two options when valuing non-liquid assets. You can either apply a $0 value to them or calculate their “liquid value” by applying a discount percentage to them. Personally, I like the discount method. A $200,000 home is not necessarily worth $0 in it’s “liquid form.” App...
This part of calculating your liquid net worth is tricky. If you aren’t including your car, home or business equity in your liquid assets, should you include your car loans, mortgage debt and business debt in the calculations? This is up to you.Personally, I would only include any amount...
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Downsize the dishes.5We eat about 22 percent more when using a 12-inch plate instead of a 10-inch plate. When we choose a large spoon over a smaller one, total intake jumps by 14 percent. And we’ll pour about 30 percent more liquid into a short, wide glass than a tail, skinny ...
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Real estate is not aliquid asset. Even in the hottest market, it can easily take several months to complete a sale. And if your timing is driven by an emergency or other unexpected event, your need to sell fast might not garner the best price. ...
A liquidity cushion refers to the cash or highlyliquid assetsthat an individual or company might hold to meet unexpected demands for cash during aliquidity crisis. It's a rainy day fund, anemergency fund. Key Takeaways Liquidity refers to the cash assets a company or individual has on hand....