If you own any assets, you have a net worth, which is the value of all your assets minus your liabilities. Your assets could include cash, investments, and property.
Your liquid net worth is significant because it represents how much money you would have if you had to sell everything immediately and pay off all your debts.
In simple terms, it’s the value of your liquid assets minus your liabilities. This number can give you a quick snapshot of your overall financial health.