THE GLOSSARY · ACCESS
Liquidity
How fast an asset becomes usable money again, without a loss. The best-stocked cushion is no use if it takes three days to arrive.
By the Yoseri News desk · · 1 min read
Liquidity — how easily an asset turns into available money, without having to knock down its price or wait.
It is the dimension people forget while building wealth. The same amount does not have the same use value depending on where it sleeps:
| Rate | Access | |
|---|---|---|
| Cushion · savings | 3.10% | Immediate |
| Dated goals | 3.10% | Immediate |
| Investments | Variable | A few days, at market price |
| Property | — | Months, with fees |
An estate of $342,520 in assets — $115,079 once debts are subtracted — of which $294,200 sits in a home and a vehicle does not hand you that sum as room to manoeuvre. Faced with the unexpected, only the first line of the table really counts.
The reverse exists too: $1,840 that never goes down, sitting in an account at 0.05%, is too liquid for what it does. Liquidity has a cost — it is paid in return not earned.
In Yoseri, what is reachable is kept apart from the total on the Accounts and net worth page, and the cost of a balance that sleeps — $56 over twelve months for $1,840 at 0.05% — appears on the Savings and goals page.
Yoseri News is an educational publication. Nothing in this article is investment advice, a recommendation to buy or sell, or tax advice. Yoseri is registered as neither an adviser nor a dealer with any market authority.