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Glossary

Liquidity

How quickly an asset can be turned into cash without losing value.

Liquidity describes how easily you can access money. Cash in a savings account is highly liquid; a house or retirement account is not.

An emergency fund should be held in liquid form so it's available exactly when you need it.

Put it into practiceTry the Emergency Fund CalculatorRun your own numbers in seconds — free and private.

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