Liquid Net Worth: What It Is, Why It Matters And How You Calculate It
Knowing and understanding your liquid net worth can be the determining factor in how healthy your life really is and how financially secure you are when challenges do come.
Liquid net worth is the part of your net worth in cash or can easily be converted to cash. In case of an immediate expense, liquid assets will be extremely valuable.
Your liquid net worth is the advanced emergency fund that will cover you in the case of unexpected events.
Calculating the total liquid assets minus the total liabilities will get your total liquid net worth.
Increasing your liquid net worth is important to know that you can handle a financial setback without going into debt.
You can increase your liquid net worth by:
- Paying off debt
- Decrease your spending
- Increase your earnings
- Start investing
- Start building passive income
So what are you waiting for? Calculate your liquid net worth today and see what the results are!
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