As an insurer, you’ve heard of short-term investments. Even the word “Short” catches our attention because it lets us know we won’t have to wait long to enjoy the benefits. This time I want to talk a little more about this type of investment.
Although as entrepreneurs we have to aim for big projects. Which usually takes time to produce results. We cannot overlook what they are investments in the short term. So let’s start with the basics: what is this type of investment?
What are short-term investments?
They are also given the name of temporary investments. It is these investments that do not take much time to reap the rewards and pay back the investment. It is even stipulated that all this will happen in a maximum of one year. In other words, when we talk about investing in a short-term business, it’s because we strive to get results within months.
That’s all I can tell you if we talk about the concept as such. However, there are other points related to the topic that are important to address. And we’ll start with some short-term investing tips.
1- The money to invest
It doesn’t always have to be like this. However, it is recommended that what is invested is extra money. That means it is not money that you will need to continue your daily life. One of the reasons is that short-term companies usually have some of them with some degree of risk, and it’s best not to rely on them. Borrowing for investment is prohibited.
2- You need to diversify
We’ll see some examples of short-term investing later, but you should already know that it’s best to invest in more than one option. Having all your money in one deal is dangerous, your finances become totally dependent on it, remember what we said about the risk level.
3- Analyze the proposal and/or the deal well
Short-term deals bring results, but all that glitters is not gold. You will find many proposals just aiming to get money and scam you. So be vigilant and analyze carefully before investing anywhere.
4- Invest until the end, you must seize the time!
You have to understand that static money does nothing while it generates more money when you have it on the move. Likewise, you should know that the money that is spent does not generate money, but that that is invested does. So my advice is that you do not spend the first earnings, but reinvest them at least for this year. If not, at least make sure you don’t eat the capital.
5- Short term is not Now!
As we have already said, the short-term speech can go up to a year. So if that time hasn’t passed yet, you can sit back and relax. A big mistake in short-term investing is thinking that “short” means now!
Examples of short-term investments
Here are some examples, and if you want to call them short-term investing examples. Take note and invest.
Buying and selling stocks is a business that can bring you good results in the short term. However, it is for people who take risks. If you’re one of those who prefer something safe, I better not even look at this example. Although if you know how to walk in this world, you can do very well.
Currently it is not very profitable, since you can only earn a little. But for years it’s been one of the best forms of short-term investing. It’s just a matter of analyzing the bank, the rates they offer and depositing what you want to invest.
Physical companies to invest in the short term
Besides the above short-term investments, which are very common, we can implement some business ideas where we invest and get quick results:
Teaching, giving private lessons… is a good idea to get quick results. Most importantly, the investment is made in a timely manner, and the results are immediately visible as soon as you attract customers.
It’s another quick-results business, but it depends on the demand in your industry. With an average demand, there is a high probability that you will get back the money invested and even more in less than a year. This is possible with good organization and a good market analysis.
3- Sale of sweets
It’s another business that can provide quick results. And I say sweet to say the least, but it can be all you can eat. Eye! I’m not talking about a big candy store, I’m talking about making homemade candy and selling it to family, friends and acquaintances. Without a doubt, it is an investment that you will pay back immediately. Now if you want something bigger the investment is bigger and the return time the same, although it wouldn’t be a bad idea!
Do you dare to invest in one of these companies?
Whatever business you are going to invest in, I encourage you to follow our advice that we shared at the beginning. They are useful not only for short-term investments, but for any type of business. So, dear friend, I invite you to think very well, but invest now, because every day that goes by is a day that you lose in order to generate income. The day you need to take action is today, so I invite you to start writing the ideas you have in mind that I know are very good 😀
Without further ado, I can only say goodbye and wish you every success. Follow us on social networks! A hug! Until next time!
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