Be financially healthy

Liquidity crisis, credit crunch ... newspapers use a lot of jargon. Liquidity is the technical word for 'quick cash'.

If the valuables you have - finance people call them 'assets' - are liquid, it means you can trade them for cash easily. A bank account is very liquid, for example.

You can withdraw the money easily, and at no cost. On the other hand, a house that you own is not liquid: it takes time to sell and it costs money.

You have to pay your property agent, possibly run ads, settle the taxes and so on.

Stocks are also not very liquid. You can sell them within a few days, but you might do it at the wrong time - when your stock is trading at a lower price than you bought it.

Money is like food. To be healthy, you need to have a balanced diet.

If you only keep a bit of liquid cash and invest the rest in a house or stocks, you could run out of money to pay for your daily or emergency expenses.

You need to be financially healthy.

Electronics, clothes or jewellery are not liquid assets. Make sure you keep enough for transportation and food.