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What Does Liquid Net Worth Mean And How Do You Calculate It?
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[QUOTE="Yusra3, post: 321695, member: 31907"] Liquid net worth is a measure of how much money you have in your bank account and other assets, minus the amount of debt you have. It's similar to your net worth, but it takes into account the value of any investments or other assets that aren't liquid like real estate or cars that could be sold at any time. Liquid assets are those that can be converted into cash quickly, such as cash and checking accounts. They include stocks, bonds, mutual funds and retirement accounts. Liquid net worth is calculated by subtracting your total debts from your total assets. If you have more than one account with different balances and values, you'll need to combine them into a single figure before calculating liquid net worth. The easiest way to calculate liquid net worth is with a spreadsheet program like Microsoft Excel, or another program that lets you enter numbers into cells and formulas. You'll need to know how much money you have in each category (checking account, savings account, etc.), then add up all those numbers. The total is your total liquid net worth. If you don't have enough liquid assets to cover your current expenses and debts, then you'll need to make some changes in order for them to be able to cover their needs. [/QUOTE]
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What Does Liquid Net Worth Mean And How Do You Calculate It?
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