Short term investments

Short term investments that can grow bigger for young investors

One of the best and most effective ways to make your money grow and prosper is to make a good investment. Having a good investment boosts the chances for it to grow eventually to help you financially.

It is a very healthy mindset especially if you are a young striving professional who wants to become financially stable and have secured future. People can choose in different types of investments in the market right now and everything is at an all-time high, and maybe at some point of your future, that might be your key to financial success.

Young investors like you who want to see a good improvement of your portfolio, this is the perfect time to venture into short-term investment options, these are the investments that usually do not see the growth for long-term investments, however, it can be specifically design and function as a safe investment involving only a small amount of finance and time in mind.

However, majority of young people nowadays are not that experienced when it comes to dealing with the stock market, while there are constant recessions happening around the world, a lot of these young people are noticing how their net worth’s growth which encourages them to invest into something even with uncertainty, but still there are still a lot of sense to invest in short-term investments.

foundation capital

To give you a great idea what kind of investment you should be having right now, here are five of the best short-term investments for a young individual like you from foundation capital.

  1. Online checking and savings account- This kind of investment is a good short-term investment for many reasons. First, it has a higher interest rate compared to conventional accounts, while it is also completely safe since this account is insured, third, you have full access to your money anytime and you are not worried about losing interest for using the money.
  2. Money market accounts- This type of investment is an online savings account that has a particular exception. This type of account is not insured, and as a result, you earn a big bigger interest rate compared to the one listed above.
  3. Certificate of deposits- When it comes to stashing money, this is probably one of the best out there as a short-term investment. Certificate of Deposits are bank products that require to store the money in the account for the term listed depending on the period of time which lasts three months to even half a decade, and in return, locking your money for that period of time, the bank will be paying you generous interest rate compared to other types of accounts.
  4. Short-term bond funds- Investment products are one of the best ways to invest your money in just like short-term bond fund which usually matures rapidly within a year, and it is safe from interest rate hikes and happenings in the stock market.
  5. Treasury inflation-protected securities (TIPS)- this is a type of government bond that merits its own part, while this is specially designed bonds that easily adjust during inflation making it very ideal for short-term investments and long-term investments because it automatically brings an increased the payout in interest-based with the current rate of inflation.