Liquid assets are assets (things you own or are owed) that can be easily converted into cash.

The money in your checking account is a liquid asset – it can be accessed any time at the bank or by using an ATM. On the flip side, a house isn’t liquid at all. You may have sunk a million into purchasing it, but if someone asks you for that same million in cash tomorrow, you won’t be able to hand it over.

Tags: assets, ATM, cash, checking account, liquid assets, net worth