Jake Falcon Discusses Why Liquid Net Worth Matters with WSJ Buy Side
By Luke Sullivan on September 2, 2026
What is liquid net worth?
Your total net worth can tell you a lot about your overall financial picture. But when it comes to funding your lifestyle, handling unexpected expenses, or preparing for retirement, another number may deserve attention: your liquid net worth.
Jake Falcon, CRPC™, Founder and CEO of Falcon Wealth Advisors, was recently featured in a WSJ Buy Side article exploring what liquid net worth is, how it differs from total net worth, and why liquidity can be an important part of financial planning. WSJ Buy Side is The Wall Street Journal’s research and commerce team, separate from its newsroom coverage.
Liquid net worth generally looks at the assets you can readily access or convert to cash, less your liabilities. That distinction can become particularly important for people whose wealth is concentrated in assets such as real estate, retirement accounts, or other investments that may not be immediately accessible.
As Jake explained in the article, “When it comes to cash flow, liquid net worth is what counts.”
That can become especially relevant around retirement. Having significant wealth on paper does not necessarily mean all of that wealth is readily available to support spending needs. Jake noted that if someone cannot access enough capital to support their lifestyle, it can create challenges regardless of their overall net worth.
The article also discusses ways to improve liquidity over time. Jake shared his preference for “reverse budgeting”—prioritizing savings first and spending what remains. Automating contributions to savings or investment accounts can help make that discipline part of an ongoing financial routine.
Understanding both your total wealth and how much of it is actually accessible can provide a more complete picture when evaluating your financial plan.
