Liquid vs illiquid assets
Liquidity is how fast something becomes spendable cash without a discount. Indian households tend to be asset-rich and liquidity-poor, which is comfortable right up until it is not.
A working definition
Liquid means you can turn it into spendable money within a few days, at close to its stated value. A savings balance, a liquid fund, a sweep FD and listed shares qualify. Property, land and provident fund do not, whatever they are worth.
The Indian household pattern
Property and gold dominate, liquid assets are thin, and the gap is bridged with a credit card or a gold loan when something goes wrong. It works until two things go wrong at once.
The right proportion
Three to six months of expenses in genuinely liquid form, more if income is variable or there is only one earner. Beyond that, illiquidity is a fair price for a return — it is the first tranche that is non-negotiable.
Where FamTally comes in
FamTally does this for you: every asset and loan in one place, tagged to the family member who holds it, valued at today's figures, with net worth tracked as a running number the whole family can see. Add the AI assistant and you can simply ask what changed and why. Free to use.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
Start freeQuestions people ask
Why does this matter for a family?
Because household money is held across several people and several instruments, and the only way to make a good decision is to see all of it at once.
How often should we review it?
Quarterly for the full picture, monthly for anything market-linked. More often than that is entertainment rather than planning.
Do we need an app for this?
A spreadsheet works if someone maintains it. An app helps when more than one person needs to see it, when live values matter, and when you want the history without keeping it by hand.