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

Liquid cash doesn’t earn you interest, so you want to try and keep only what you’re going to spend in a specific period of time in a liquid account.

Rich people get rich but loaning their money out. If you have $2 million in the bank, you are likely to earn $100,000 per year in interest…