Before you start an investment program, you should ensure liquidity by having money in financial institutions or in money market securities.

Question

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Having liquidity, which means having access to cash or assets that can be quickly converted to cash, is important before starting an investment program. This ensures that you have funds available for emergencies or short-term needs without having to sell off investments, potentially at a loss. Money in financial institutions or in money market securities are examples of liquid assets.

Before You Start an Investment Program, You Should Ensure Liquidity