Liquid assets is a type of asset that can be easily and quickly converted to cash or you can also say that its a type of cash. The today's topic which I will discuss is the defining of liquid asset and why it is helpful in different aspects.
Every person in this world is need of money and the money which has its original value. A money that can be invested as well and also not loose its value. That money is considered as liquid assets.
Market securities, liquid cash, bank accounts are the real example of liquid asset. These are the places where your money is kept in its original value. They are the place which also generates income for you but is available all the time if you need in emergency.
Such as bank accounts where you can keep your cash into saving account which generates interest for you. The APR which you take is your profit and benefit while your asset is always ready in case of need.
The other example is the prize bonds which is equivalent to cash which gives you an income if you are premium customer and in case of winning rewards. Bonds are assets which can be converted to cash any time you need.
Other investments which doesnot loose its value is the example of liquid assets. Which can be used in emergency need. Such as if you face any issue regarding medical emergency, car repair, unexpected bill payment then these assets will help you solve your problem without borrowing money from others.
One of the another benefit of liquid asset is that it provides you with financial flexibility. Means that you can invest your amount when you find a better investment choice.
Liquid assets will be helpful in the time of financial hardships. such as job loss, business failure, investment problems and economic downturns. During this time if you have liquid asset you will not be handy to others for help.
Another benefit is that while keeping with liquid asset you can also earn passive income. As i stated above that flexible saving accounts, prize bonds, market securities and even dividend shares which are most like stable will give you passive income as well you can withdraw your cash anytime.
Liquid assets will help in the time when you need to travel somewhere which is very urgent. But if you have invested in any market where your cash is not available all the time then the problem arises here and you must borrow from others which have many conditions.
Having liquid asset will also reduce financial stress and keep your mind calm and relax. Because you are satisfied that you have free cash and in case of any emergency you can easily utilize it.
Do you people like liquid assets and is it helpful in different aspects of life? Keeping Liquid assets will be helpful in the time of financial hardships? Will be glad to see your answers in the comment section.
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NOTE: IMAGES EDITED IN CANVA.
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