How can you be “rich” but not liquid?

Question

How can rich people drop all so much money on a daily basis but when they need larger amounts of money, they need to liquidate assets?

Yes, I know that wealth can come from owning assets outside of cash, but how can you spend hundreds of thousands of dollars a month if a their money and wealth is all tied up?

In: 1

Answer 1

Wealth can be more than cash. If you own a giant diamond the size of a basketball, you are rich. But if you want to buy anything you need to either sell it at a good price(which takes forever),sell at a loss (quicker but stupid) or borrow on it(now you are talking).