Everyone seems to love the gossip surrounding the net worth of celebrities, business people, and athletes. Though, there is a difference between regular net worth and the lesser-known liquid net worth, which is what we’ll get into today.
Jeff Bezos is worth about $116 billion right now in terms of net worth, but does that mean he could go out and purchase 116 billion dollars worth of mansions, yachts, jets, and whatever else rich people buy?
While his net worth is $116 billion, his liquid net worth is a much smaller number.
Calculating liquid net worth is complicated for Jeff because of the huge amount of Amazon stock in his portfolio. This stock gives him a high net worth, but since it is challenging to sell such a large chunk of stock at one time, his liquid net worth suffers (poor Jeff…).
For the rest of us non-billionaires, it’s a little more straightforward, and a very important personal finance metric to understand.[Read more…] about Liquid Net Worth: What it is and How to Calculate Yours