Feng Shui Your Financial House

The Dangers of Being Asset Rich and Cash Poor

Don’t get in a liquidity crisis

If you’re in a hurry, today’s financial feng shui task TLDR:

Are you asset rich and cash poor?

Being liquid and being wealthy is not the same thing. Being liquid means being able to get your hands on cash fast without taking a hit.

So today’s feng shui task is to find out if you have enough liquidity in your assets.

If you don’t, you could be setting yourself up for a future cash crunch, which is expensive, annoying, and possibly scary.

If you want to know the “why” behind today’s task, here you go:

Think Goldilocks and the Three Bears.

Never mind how much porridge you have in your financial bowl — you want liquidity, like temperature, to be “just right” for you.

Liquid assets can be quickly and easily accessed at full value.

For example, money in your checking and savings accounts. Stocks in your brokerage account are also liquid, but you don’t want to have to sell when the market is in the toilet. Still, if you need money fast, you gotta do what you gotta do. These funds are all liquid.