Investing money is a concern for many of us. We all know that investing money means one of two things: having to take a risk in order to make a profit in a short amount of time, or putting your money aside for a long time and letting it grow over a couple of decades. Depending on what you plan to do with the money and what kind of person you are, those two options are always up for consideration in your head.
If you have a steady income and financial security, you might consider thinking about short-term investments in order to get a profit that can be used for something more substantial. Whatever your motivations are, the right thing to do is not something that will present itself to you out of nowhere. There are a lot of variables in play when it comes to investment. People who analyze the market on a daily basis will tell you that nuances are key to a successful investment. Getting out there and investing in whatever seems attractive at the moment can easily be described as gambling. Sure, you may have some lucky hits on one or two occasions, but this kind of thing can be very dangerous if you’re not ready to put some work into analyzing the market.
Companies come and go. The market constantly fluctuates and can almost be described as a living organism with its ups and downs. This analogy is not just something laymen say in order to explain the different “moods” of the economy; it is something even experts consider as being closer to the truth than any other description used for the global market.
Like with anything else in life, you have to get a feeling for the market and then wisely consider all your possibilities. Long-term investments are great if you’re looking for a tiny profit that comes in a steady flow, but short-term investments are really where the money’s at.
However, as we’ve mentioned before, this doesn’t mean you should dive right into the market and start spending your savings on attractive opportunities without considering all your options. There are many ways to invest your money. The key is to find which way is best suited for your character, financial status and life philosophy. We will list a few of the best short-term investments you should check out before making your decision. If you’re eager to invest your money, you shouldn’t rush into a decision. The market won’t disappear any time soon, so take your time and make an informed decision.
We’ve all heard about shares and stocks, and naturally there’s no way around them if we’re going to talk about investments. The reason why we don’t list them first here is the fact that they can be viewed both as short-term and long-term investments. Dividend stocks, for example, are not something short-term investors might consider if they want to make a profit quickly. Even standard shares and stocks are often described as long-term investments rather than short-term deals, depending on the type of shares and stocks of course.
Options trading is a whole different ball game. When buying an option, you basically buy a legal document that binds the seller of shares or stocks to sell you the asset for an agreed upon price. You can then sell this option to someone else and make a profit. If the share you have the option to buy grows in worth, your option grows too. Of course, you can still make the use of options you own and buy the stock yourself, but if it is something you’re not particularly interested in following up with, it is better to just make a profit from selling the option and move on.
Expiration dates on options can stretch to 9 months, so thinking about them as short-term investments may be a stretch. But when compared to investments like savings accounts, which takes a decade or two to grow, options are fairly short term.
Investing in land, houses and other kinds of real estate can be risky at times, but if you know the market and location value, these kinds of investments can pay off in a short amount of time. Although it comes across as a risky market, real estate is something that has been growing over decades. Just look at the prices of some of the buildings and houses in your city. Statistically, the worth of real estate has doubled over the last 20 years, depending on the location of course.
But wait, aren’t we talking about short-term investments here? Yes, we are. That’s why you need to know that even long-term investments like real estate can yield short-term profits if you dedicate yourself to analyzing the market and the location. Doubling your investment in 20 years is something entirely possible, but there’s more cases than one in which real estate brought the investors 10-15% profit over the course of just 6 months, which is not bad at all.
High interest rate savings account
This is something that may not be very profitable, but should still be mentioned here on this list. High interest savings accounts can make you a bigger profit than regular savings accounts with nearly the same low risk. The reason why it’s a bigger interest rate is because the banks do investments for you and thus pay you a part of their profits.
As the name suggests, these stocks are quite risky in comparison to regular stocks and dividend shares, but their return rate is very high. On the other side, these stocks have a substantially smaller share price, and thus can be acquired by a wider spectrum of potential investors.
Knowing the current market while buying these stocks is extremely important. Sure, knowing the market is always important when you’re about to invest in it, but this is a particularly distinct situation because of the high risk speculative stocks inherently have.
There are many types of short-term investments. It’s simply a matter of deciding which is best for your personality and financial situation and then following through with the details.