Is It Better to Have Cash or Assets?

Photo by Jp Valery on Unsplash

While having cash on hand is important, you want to make sure you have a steady cash flow coming in than flowing out.

When we think of wealthy people, we think of them owning many cars or having many properties.

These possessions are considered assets, however, they may not be able to convert to cash as quickly.

We all have belongings but not all of them provide enough value to convert to cash.

Assets are either considered liquid or fixed.

Liquid assets accessed or converted into cash quickly are considered liquid assets.

“Checking and savings accounts are obvious examples of liquid assets, but so are things like stocks, bonds, and shares of companies, which can easily be sold (liquidated) and converted into cash.”

You can easily access your money rather quickly if you need to, unlike fixed assets.

Fixed assets can be considered as real estate, cars, antiques, published work, and even jewelry.

Fixed assets are usually referred to as long-term investments where the production of goods or services can still be converted to cash a year later.

So many people build wealth through publishing a book, owning property, or buying vehicles for work where they can…