Liquidity. It’s not just a term for Wall street.

Liquidity. After our McMinnville house sold in 2009 we experienced something we had never experienced in our life. A savings account which actually had something more than “meager” in it; and a debt column containing a single digit – 0. We relished the idea knowing  is was only temporary, and that soon the 30 year monster would be on our backs again.

Ray Boshara: For too long, we’ve focused simply on income. We didn’t focus on savings and assets. You don’t have to go to the check casher or the payday lender if you need some cash. You can open up a mainstream banking account. You can start a business, you also can make a down payment on a home.

With the choice to forgo mortgage signing, it’s been wonderful to have resources in the bank that we can draw upon when things get strange. And things did get strange in the latter half of 2011 – as in strangely quiet. A series of unrelated events came together that made the office phone quiet. Fortunately, things have picked up again, and fortunately we had a savings account that we could draw upon during it.

Had we been house rich, (which is debatable during these times), and cash poor, we would have quickly gone into major debt to keep it, or maybe even lost it.

APM Marketplace had a story on yesterday that we resonated with much.

Here’s the link to the story.