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About the Liquidity Spectrum

It's all about when you need the money, and what you need it for.  If you have a lil' bit of money stashed away, do you need ready access to it at any moment?  Then it has to be liquid - like, in cash.  And if you're going to need ready access to it, then don't use it as a down payment on that funky condo your friends are moving into.... 
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But what if you don't know when you'll need it?  Some money you might need to have ready access to, some you think you want to put aside for the long term... for when you're old and might want to retire (not as an artist, you'll never retire from that!  We're talking about when you decide to stop your career as a: dishwasher, night watchman, waiter/ess, janitor, etc.).

And what if you want to really grow the little bit of money you have into something grander?  Can't you invest to do that?

Let's talk about each of the areas along the spectrum above.  Because, fact is, you might someday want to have a little money in each.

  • Highly Liquid Investments (First there's cash, then stocks, bonds, mutual funds)
  • Medium liquidity Investments (like supplies, musical instruments, specialty tools)
  • Illiquid Investments (Real Estate or ownership of a private business)





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