M1 Money Supply: Overview and How to Calculate

By Kristi Waterworth – Updated Oct 3, 2025 at 9:49 PM EST | Fact-checked by Frank Bass

Key Points

M1 money supply includes cash and highly liquid deposits, reflecting liquid assets in circulation.
M1 is continuously tracked by the Federal Reserve, providing clear data without the need for personal calculation.
Investors monitor M1 trends to assess consumer liquidity and potential economic activity, shaping investment strategies.

When it comes down to it, there are several different categories that our money supply fits into, including the M1 money supply. These categories help economists and policymakers decide how to move forward with monetary policy and give everyone a little more of a finger on the pulse of the economy. Here's how to better understand this measurement.

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A person is sleeping contentedly while holding lots of cash money. — Image source: Getty Images.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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