Liquidity
Liquidity is how fast you can turn something into cash without losing value in the process. Cash is perfectly liquid; a house is not — selling takes months and eats a fortune in fees. Smart planning keeps enough liquid for surprises while letting the rest work harder in less-liquid investments.
Example: Stocks are highly liquid — sell in seconds. A rental property might take 60 days to sell and cost 8% in fees.
Related
Educational content only — not financial advice.