What it means
How quickly an asset can be turned into cash without losing value.
Saving & Investing
Liquidity
How quickly an asset can be turned into cash without losing value.
CategorySaving & Investing
Pro tip inside1 quick win
What “Liquidity” really means
The meaning, how it works in the UAE, and why it matters to your money.
How it works in the UAE
Liquidity is how quickly you can turn something into cash without losing value. A savings account is very liquid; property is not.
Why it matters
Emergencies need liquid money, not investments you'd have to sell at a loss.
EXAMPLE
A savings account is very liquid; property is not.
PRO TIPKeep three to six months of expenses somewhere liquid.
Test yourself
Which of these best describes Liquidity? Tap an answer.
Read more about Liquidity
Guides that use this term — and a tool to put it into practice.
