financial reserves

USAGE SUMMARY

The phrase "financial reserves" is correct and usable in written English.
It refers to a sum of money that a company, organization, or individual sets aside for future use, such as for emergencies or investments. Example: "The company's financial reserves have allowed them to weather the economic downturn without having to lay off any employees."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

The increases often depleted financial reserves.

The New York Times

"We have amassed significant financial reserves," he said.

The New York Times

"This reinforces our financial reserves at a moment when the global economy is stressed," he said.

The Guardian

Invariably, the abruptness and severity of the crisis test the emotional and financial reserves of investors.

The New York Times

It had run up a £3m loss on income of £30m, and drained its financial reserves.

The Guardian

Ryanair is counting on its greater financial reserves to help it outlast Go on the route.

The New York Times

Superior claimed that Health Net made misleading statements about Business Insurance's financial reserves.

The New York Times

HIP fell below the required level for financial reserves four years ago.

The New York Times

Technology companies keep massive financial reserves to show potential competitors that they won't back down in a fight.

The New York Times - Magazine

He has spent the past 30 years helping Bayern Munich build up financial reserves rarely seen in European club soccer.

The New York Times - Sports

It can't be poverty; Russia is not rich, but it has eighty-five binlits dollars in its financial reserves.

The New Yorker

Expert writing Tips

Best practice

Use "financial reserves" when referring to funds specifically set aside for future use, differentiating them from general operating capital.

Common error

Avoid using "financial reserves" interchangeably with general capital or operating funds. "Financial reserves" imply a deliberate allocation for specific, often future, purposes, rather than day-to-day operational money.

Linguistic Context

The phrase "financial reserves" functions primarily as a noun phrase, typically serving as the subject or object of a sentence. As evidenced by Ludwig, it refers to a specific sum of money allocated for future or unexpected needs, a concept supported by examples across various sources.

Expression frequency: Very common

Frequent in

News & Media

60%

Formal & Business

20%

Wiki

8%

Less common in

Science

5%

Reference

4%

Social Media

3%

Ludwig's WRAP-UP

In summary, "financial reserves" is a grammatically correct and widely used noun phrase that denotes money set aside for future use. Ludwig AI confirms its validity and prevalence across various contexts. It's most frequently encountered in news and business publications, signifying the financial stability and preparedness of entities. To enhance your writing, ensure you use "financial reserves" to describe funds specifically allocated for future needs, distinguishing them from general capital. Remember, according to Ludwig, using suitable alternatives such as "monetary resources" or "capital holdings" can add nuance to your expression.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

monetary resources

Focuses on the monetary aspect rather than the specific setting aside for future use.

capital holdings

Emphasizes the capital aspect of the reserves, relevant in business contexts.

available funds

Highlights the accessibility of the money for immediate use.

cash surplus

Indicates an excess of cash beyond immediate needs.

liquid assets

Refers to assets easily convertible to cash.

funding pool

Suggests a collection of funds designated for a specific purpose.

economic backup

Highlights the safety net aspect of the reserves.

fiscal cushion

Implies a buffer against financial difficulties.

rainy day fund

Informal term for money saved for unexpected expenses.

nest egg

Colloquial term for savings accumulated over time.

FAQs

How are "financial reserves" used in business?

"Financial reserves" are typically used to cover unexpected expenses, fund future investments, or weather economic downturns. Maintaining adequate reserves demonstrates financial stability and resilience.

What's the difference between "financial reserves" and "available funds"?

"Financial reserves" specifically refers to funds set aside for future or unexpected needs. "Available funds" is a broader term that includes all accessible money, including operating capital.

What can companies do to build their "financial reserves"?

Companies can increase their "financial reserves" by increasing profitability, reducing expenses, and allocating a portion of their profits to savings or investment accounts.

Why are "financial reserves" important for non-profit organizations?

For non-profits, "financial reserves" provide a crucial safety net, allowing them to continue providing services even during periods of reduced funding or increased demand. They demonstrate responsible financial management to donors and stakeholders.