How Short-Term Investments Can Aid Your New Business

You invest for your future — whether it's your dream home, your child's education, or your retirement. Each of these events occurs at different times in your life, and as a result, need to be planned

"Short-term" can mean anything from several months to several years. Investors use a general rule of thumb of three years, and anything under that is considered a short-term investment. Short-term investments have either low yields or high risks, depending on where you put your money, but are important as a way of making more profit from your cash savings or liquid assets.

Whether it's setting up a savings fund for next Christmas, accruing the down payment on a home that you hope to buy in the next year or two, or putting the money together for a franchise business, short-term investments are about making the most of your money in a small amount of time with the least amount of risk and penalties. Short-term investments can be turned into cash or rolled over into other short-term or long-term investments.