Glossary
Liquidity
Liquidity refers to how quickly and easily you can convert an asset to cash without significant loss in value. Cash and savings accounts are highly liquid; real estate and retirement accounts are not.
Why it matters
Having too little liquidity means you can't cover emergencies without selling investments at a loss or paying penalties. Having too much means cash sitting idle, losing value to inflation. The right balance depends on your job stability, expenses, and how quickly you might need access to funds.
Example
A savings account is fully liquid — you can withdraw anytime. A 401(k) is illiquid before age 59.5 because early withdrawals trigger a 10% penalty plus income tax.
How Ray helps
Ray shows you how much of your wealth is in liquid vs. illiquid accounts. Ask to see your readily available funds across all connected accounts.
$ ray "how much liquid cash do I have access to?"Related terms
Emergency Fund
An emergency fund is cash set aside specifically for unexpected expenses like medical bills, car repairs, or job loss.
Net Worth
Net worth is the total value of everything you own (assets) minus everything you owe (liabilities).
Cash Flow
Cash flow is the net amount of money moving in and out of your accounts over a period.
Savings Rate
Your savings rate is the percentage of your income that you save or invest rather than spend.
Portfolio
A portfolio is the complete collection of your financial investments — stocks, bonds, mutual funds, ETFs, real estate, and other assets.