Thursday August 7, 2008 Talkback Question:

Of your total assets, what percentage do you keep liquid(cash, savings, checking, CD's, Money Markets)? What percentage of your Networth is liquid?
If you are not familiar with the term, "liquid" , it generally refers to cash that you can get at pretty quickly whereas with investments, you would have to sell the asset and wait for the transaction to clear. Getting money from investments can take a few days or even weeks.

** Looking at my Networth report I created in an Excel spreadsheet, about 31% of my Networth is liquid and about 5% of my total assets are in liquid funds. **

How liquid are your assets?


  1. Tom // August 7, 2008 at 9:09 AM  

    10% - Our networth is approx. $60K and we only have $6K in cash in various banks. We are working on building that up as that $6K is our E-Fund.

    Do you consider a CD to be liquid? I thought that was a type of investment.

  2. Anonymous // August 7, 2008 at 11:32 AM  

    About 20% of our net worth is liquid. Maybe a little less than 20%. I would think a CD would be on the more liquid side of things.

  3. Anonymous // August 7, 2008 at 12:01 PM  

    20% of my $215k networth is liquid. $6k in cash/checking and $37k in Capital One money market. Rest is in the market via mutual funds/stocks/stock options etc..

  4. Anonymous // August 7, 2008 at 5:10 PM  

    8% for me. My net worth is dominated by my 401k at 80%! that's what 100% matching of 100% maxing does for ya ;)

  5. Anonymous // August 7, 2008 at 11:56 PM  

    I use the concept of pay myself first to invest and only keep enough cash not invested to pay one month bills.

    All of my investments are in tax sheltered accounts, so though they can be cashed very quickly I would not want to as I would have to pay taxes at a very high rate. If I need cash urgently I have access to lines of credit.

    So my answer is less than 5% of my net worth is liquid.