Managing Your Liquidity
Liquidity is the ease of which an asset is converted to cash.
Liquid Assets are those assets like your checking and savings account that are on hand to meet your immediate wants and needs.
Money management and credit management decisions are BOTH involved in managing liquidity.
Money Management involves making decisions about how much cash or liquid assets t keep in reserve and how much to invest in less liquid assets, such as real estate.
Credit Management involves making decisions about getting credit and using credit.