GlossaryBudgeting & Net Worth
Financial term

Liquid Net Worth

Your net worth excluding hard-to-sell assets like your primary home — the wealth you could actually spend.

Liquid net worth is your net worth minus illiquid assets, most notably your primary home (and its mortgage). It answers a sharper question than total net worth: how much could you actually access to fund your life without selling the roof over your head?

For retirement and FIRE planning, liquid or investable net worth is often the more meaningful figure, because home equity doesn't pay the grocery bill. A household can look wealthy on paper while being house-rich and cash-constrained, which is exactly what the liquid view exposes.

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This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.

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