When you hear the word liquidity, your thoughts probably go to water, or wine, or something similar. And up until the late 1800s, that is exactly what this word was associated with, the quality of being liquid. In 1897 however, the term began being used in finance and not because people were using liquid money. So, WTF does liquidity mean?
During my first finance class in college, my professor drilled two principles into my head. 1. The greater the risk the greater the expected return. 2. A dollar today is worth more than a dollar tomorrow. These two principles can be used when making all of your personal finance decisions, and here’s how. The first … Continue reading The Golden Rules of Finance