Once you get into the habit of spending less than you make, you’ll need to decide what to do with some of the money you’re not spending. It’s common for money that you can access pretty quickly to be referred to as liquid. So when people refer to financial liquidity or liquid reserves, they’re talking about accessible money.
It’s important for everyone to have a cash cushion for emergencies. So some of the money that you’re saving should go into this emergency fund.
Eventually, you’ll want to have at least 10% of your annual income where you can get to …Read More