subject: Figuring Out How To Create A Short Term Investment Plan That Works For You [print this page] It can be hard to save enough money for an expensive purchase such as buying a new car or home, but short term investment strategies can help you make your savings grow. Short term investments may not be as complicated as their long term equivalents, but that does not mean that they should be taken lightly. Performing research into your options is important, as is having a clear vision of your goals and expectations related to your investments.
Before you get going with any investment, it is best to analyze your current financial situation. What quantity of money are you able to put towards investments and savings plans? What risk level are you OK with putting your money into? Do you have to have total access to your funds in case of an emergency? How soon do you need to see a full return on your investment? By asking yourself these and other related questions, you will develop a clear idea of how you should invest.
Long term investments are based on high risk investments that offer high returns; short term plans, on the other hand, rely on safer investing methods. You need to stick with safe investments if you want to use your invested funds in a brief period of time, otherwise you may lose money on unstable investments.
Consider the example of investing in order to save money to buy a home; if you were to put your money in stocks, you could lose a lot quickly and not have time to wait for your investment to build itself up again. Playing it safe with certificates of deposit (CD's), savings accounts, and bonds is your best bet. These investment plans grant you easy access to your funds should you need to withdraw them. You should not expect extremely high returns on your money, but you will not have to worry about big losses either.
Short term investments are perfect for individuals who want to build their savings. Take a look at your current finances and think about your goals before you go ahead with short or long term investment plans. When you take time to set up a well prepared strategy, you will ensure that you will get to your financial goals as quickly as possible.
