What is net worth and liquid assets?

What is net worth? and is it real money you have in the bank? or can it be like your house? Also, what is liquid assets? thank you

3 Answers

  • DON W
    Lv 7
    7 years ago
    Favorite Answer

    Your net worth is the total of all the things you have that are of value: your savings account, any stocks and bonds, the value of your house, the value of your car, any precious metals you may own, etc. From that list, subtract anything you owe, like the loan on your car or your mortgage. The number is your net worth.

    The part of your net worth that are liquid assets are those that can be rapidly converted into cash. The prime example of a liquid asset is cash in a bank account. Go to the bank this afternoon and you can immediately have it in your pocket.

    The value of your house isn't a liquid asset. At a minimum, it would take several weeks to sell your house, pay off any mortgage you might have on it, pay taxes and fees to your county, etc. So, it's part of your net worth, but not as a liquid asset.

  • 7 years ago

    Real simple:

    Your net worth is all your assets less any outstanding debts you have.

    Liquid assets are anything that can be converted to cash quickly such as savings accounts, cash CD's, savings bonds etc.

  • 7 years ago

    Net worth = all your assets, cash, investments, property, cars etc--minus what you owe such as mortgage, loans. Car payments

    Liquid assets = assets that are available as needed---savings account, cash,

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