Fixed asset means assets that cannot be sold easily, or takes time to sell and convert into cash, for instance house or land. Liquid asset means assets that can be converted to cash pretty fast, for instance gold, stocks, etc.
Fixed Asset vs Liquid Asset
- Thread starter nomad
- Start date
I think that it could be a really hard thing to sell a fixed asset. Fixed assets include houses and other assets such as companies and business. It takes time to sell them.
- Thread starter
- #4
People buy fixed asset for financial stability. For instance, if you have a house, you can not only save money on rent but also make money by renting our.
For me, it's all about balance. Having a mix of both ensures I can weather financial storms and seize new opportunities. It's like having a solid foundation and a safety net. I can breathe easy knowing I've got both bases covered.
It seems like fixed assets appreciate quicker than liquid assets. And I would prefer them over liquid assets.
Fixed assets' value could increase by the passage of time. For example, a house's value can certainly increase or decrease depending on the value of the house and ongoing market conditions.
