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Liquidity Risk
The chance that you cannot turn something into spendable money quickly without accepting a lower price.
Example
Kai needs $80 tomorrow but buyers offer only $55 for his rare bike. Waiting may bring a better price, but tomorrow's bill cannot wait.
How it fits in
Liquidity depends on buyers, trading rules, withdrawal terms, and market conditions. A quoted value does not prove that the full amount is available now. Some holdings can be sold quickly in normal conditions but become harder to sell during stress. Compare the sale time and likely price with the date the money is needed.
Where this is taught
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.