How to Plan for Short Term Investments

January 22, 2014

Finance

How to Plan for Short Term InvestmentsPlanning! What a great idea! How many times have you met someone who allows their money to dictate what happens in their life? How many times have you allowed it to happen to you? What can you do about it?

Plan.

That’s what.

Here are some steps which can help you to plan for short term investments.

The first thing to understand is that short term doesn’t mean that you’re going to pull your money out of the investment in a month or two. Short term investments usually take between one and three years depending on which type of investments you choose.

Your first step when considering investing is to sit down with your spouse or significant other and write out a budget. The easiest way to do this is to keep track of how much money you spend in a month. There are many computer programs which can help you to do just that. Keep track of all of your expenses. How much are your bills? What about your car payment and car insurance payment? How much are you spending on groceries? Clothing? Subscriptions? Medical bills? Credit cards and other payments?

Keeping track for a month is the best way to determine how much money you are spending each month because you won’t be able to “fudge the numbers.” (We often deceive ourselves when it comes to money.)

After you have budgeted for a month, you’ll be able to see how much money is flowing through your household.

Here are the questions you need to ask yourself:

Do I have enough money to invest?

If not, where can I make cuts in my budget so that I can invest? Am I spending money on lunch when I could bring lunch to work? Am I purchasing subscriptions to things that I don’t use? Is there any way that I could pay off, or reduce the amount I owe on credit cards and other bills?

Once you determine how much money you have to invest, you will be able to search out places to invest. There are several. CDs, Money Market Accounts, some stocks, gold and other precious metals. Search out places that have a short maturity for the investment and that don’t have fees (or maybe just have small fees) for early withdrawal.

If you are still confused, or if you need help navigating the world of investments there are people who are ready and willing to help. Money & Markets Investment Newsletter is an excellent source for investors how just need a little more help deciding what they should do with their money. The extensive research has allowed them to keep their finger on the pulse of the world of investing and their knowledge can help you determine what is best for your family.

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