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How Can I Convert My Checking Account to Cash?

by gbaf

Liquid assets are those that can be immediately converted into liquid cash without loss of value. These come in a variety of forms, including certificates of deposit (CD’s), stock and other commodity marketable securities, funds and even more. With their versatility, liquid assets make it easy to obtain the returns you need on your money. However, with so many choices and opportunities available, how do you choose the best ones?

In most cases, when you hear the term “liquid assets”, the image that comes to mind is of a portfolio full of money that is easily accessible and liquidated. Some of the most common forms of liquid assets include savings accounts, mutual funds, bond funds, accounts receivable and certificates of deposits. All of these options have different ways of converting from liquid to solid form, and some are significantly more liquid than others. For instance, savings and bond funds are often able to be accessed quickly, making them ideal for quick turnaround. On the other hand, certificates of deposit (CD’s) take longer to convert, meaning they will not be as available if a sudden economic change occurs.

As you may be aware, virtually all banks offer the convenience of holding both CDs and credit cards. In addition, many banks provide the option of having multiple bank accounts. Many people choose to combine their checking and savings accounts, and keep one credit card for emergencies. These types of liquid assets also make great solutions when you need access to a particular dollar amount of cash over a short period of time. For example, if you are borrowing money to pay for an unexpected car repair, or another emergency expense, you may want to convert your checking to a bank account, in order to have instant access to the money you need.

Before deciding on the best types of liquid assets to purchase, it is important to determine what type of conversion is best suited to your needs. If you are converting your checking to a bank account, you can convert all of your checking balances to bank accounts. If you need to hold credit cards, the conversion process is simple. Typically, if you have a substantial amount of cash on hand, you can convert your credit cards to marketable securities. If you hold your checking account balances as liquid assets, you can convert any and all checking balances to liquid assets, which include stocks, bonds, and mutual funds.

A common practice among individuals and businesses is the conversion of checking to savings accounts. Typically, individuals convert their checking balances to savings, so they have available funds to be spent during an emergency situation. If you already possess a savings account, it is easy to convert your checking to a savings account by contacting your financial institution. Most banks will gladly convert your checking to a savings account, as long as you are opening a new account. If you elect to maintain your current checking account, your financial institution may be willing to give you a discount on the conversion, depending on your account’s current balance.

Businesses are often the target for conversion of liquid assets. Depending on the nature of your business (or if you are a sole proprietorship), you may have a wide range of options. For instance, some small businesses operate entirely on cash. Other small businesses use credit as their primary form of advertising and rely on liquid assets for day-to-day operations. If your business generates a substantial amount of cash, converting your checking accounts to cash can free up additional cash for growth or emergency purposes. Business owners can also choose to convert their other short-term assets, such as inventory, equipment, or inventory orders.

One of the greatest benefits of converting your checking to cash quickly is that the converted funds can be immediately used for your personal financial needs. This is especially true if your financial needs do not immediately arise but are instead long-term. An example of this might be your long-term retirement fund. If you convert your assets to cash before your retirement account has a significant balance, you’ll be ready to start taking advantage of the funds once it is available.

Another advantage of liquidating your assets quickly is that it eliminates the need to tap your emergency fund. With your emergency fund, you could be putting off a rainy day. In addition, liquidating your liquid assets helps you keep the cash value of your accounts consistent – after all, you won’t have to wait until the money is in use to know its value. This consistency will benefit your bottom line, allowing you to invest the money you’d otherwise invest elsewhere.


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