Liquid Net Worth and How to Calculate It
6 Min Read | Published: March 28, 2025
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Use a liquid net worth calculator to understand what your liquid net worth is, see why it matters, and learn tips to start growing your net worth long-term.
At-A-Glance
- Liquid net worth includes how much cash or cash-like assets you have after subtracting all debt, helping you prepare for emergencies and implement growth strategies.
- Calculating liquid net worth can help you determine the right amount to invest in a high-yield savings account (HYSA) or rewards checking account.
- Paying down high-interest debt, budgeting wisely, diversifying investments, and creating multiple income streams can positively impact your liquid net worth.
Knowing how to calculate your liquid net worth, a measurement of how much cash or cash-like assets you have after subtracting all debts, can help you prepare for out-of-the-blue setbacks.1 Let’s learn about the implications of high or low liquid net worth and strategies for growing your cash.
What Is Liquid Net Worth?
Your liquid net worth refers to the amount of money you have in cash or assets that can be converted easily into cash. Liquid means cash, and to liquefy is to convert something into quick cash, usually without penalty.2
Liquid Net Worth vs. Net Worth
Liquid net worth is your cash and easily cash-convertible assets minus debts, while total net worth also includes non-liquid assets like real estate, gold, art, jewelry, and retirement accounts. Liabilities such as loans, credit card balances, and mortgages reduce your total net worth, which turns negative if debts exceed assets. However, since liquid net worth excludes some assets, it may be lower than your total net worth even if you’re doing well and living within your means.
How to Calculate Liquid Net Worth
- Use the liquid net worth calculator below or manually add up all liquid assets, such as cash, money in savings or in a rewards checking account, stocks, bonds, and anything else that can turn into cash within 1-2 days.3
- Total your liabilities by listing all the debts you owe, including credit card balances, student loans, car payments, and any other outstanding balances.4
- Subtract your total amount of debt from the total value of your liquid assets. The result is your liquid net worth.5
Net Worth Meaning and Why It Matters
Knowing your liquid net worth can reveal how quickly you can access emergency cash. Whether you need to cover a sudden medical bill, jump on a limited-time high-yield savings account (HYSA) offer, or fund a last-minute vacation deal, a high liquid net worth may extend you more financial flexibility, too. Additionally, without enough liquid assets, you may have to cash out long-term investments at an inopportune time or take on high-interest debt to cover urgent bills.6
Tips for Growing Your Liquid Net Worth
Here are simple tips for building up your net worth and increasing liquidity.7
- Pay Down High-Interest Debt
Prioritize paying off high-interest debt or expensive credit card balances to free up savings and investment funds. If possible, consider debt consolidation or balance transfer credit card options to lower interest costs. - Get Budget Savvy, Cut Spending, and Save
You can choose among several varieties of budgeting and investment apps designed to help track spending, spotlight overspending, identify savings opportunities, and provide investment insights. Apps can also automate your finances, potentially making budgeting more effective. - Create Multiple Income Streams
Boost your earnings by creating multiple income streams, such as freelancing, side hustles, earning certifications to make your services more valuable, or finding rental income avenues. Small additional income sources can help accelerate savings and shave off debt sooner. - Invest and Diversify Your Money
All investment involves risk, but diversifying your portfolio with stocks, bonds, retirement accounts, and real estate can help you live the financial reality you want, widening your liquid net worth and overall net worth. - Consider Working With a Registered Financial Advisor
A registered financial advisor (RIA) can help you grow your net worth by guiding your investments, managing risk, and optimizing your spending. Even if you’re near retirement or new to investing, professional wealth management services may give your strategy the edge it needs.
Did you know?
You can add to your liquid net worth by saving for emergencies and retirement with a High-Yield Savings Account from American Express®.
Frequently Asked Questions
Vehicles and homes may fall under the illiquid asset category because receiving profits from a car sale takes time. Auto sales may be too slow to provide the cash that you may need in a hurry.
That depends on your 401(k)’s terms. The account counts as part of your liquid net worth if you can withdraw the cash quickly without penalty or fees, but if you can’t withdraw from the account without penalty, it’s illiquid.
The Takeaway
Calculating and growing your liquid net worth can make unexpected costs and financial opportunities more manageable without causing you to fall deeper into debt. By optimizing your spending, investing wisely, and pursuing multiple income streams, you can start to improve your net worth and long-term financial stability.
1,3,4,5 “Liquid Net Worth: Definition and Calculation,” Yahoo Finance
2 “What Are Liquid Assets?,” Experian
6 “What Is Liquid Net Worth And Why Does It Matter?,” Rocket Money
7 “How to Increase Your Net Worth,” Experian
Liv Gillespie is a Philadelphia-based writer with a double M.A. in English Linguistics & Literature and Secondary Education. Her work focuses on personal finance.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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