Short term investment tips

One of the reasons people put their money in savings is the possibility of getting it back at any time. However, we from News Report we can assure you that you will get much more benefits by doing short term investments.

The advantages of making short-term investments

When you decide to take your savings out of your savings account to invest them in some way, you manage to maintain your purchasing power.

That's because, in savings, your money is devalued when inflation rises. However, this does not happen when you make some types of investments. In that case, your income ends up being much higher.

Best of all, there are very good investment options that have high liquidity. That is, the accumulated capital can be redeemed in a very short time.

Of course, the chances of you having a better income are greater when you leave your money invested for a long term.

Still, if the situation tightens and you need an emergency reserve, you can redeem that amount without incurring any losses.

Where can you invest your money?

One of our tips short term investments is the application of money in the Selic Treasury. When you buy this security, you have the possibility to redeem the invested amount at any time without losing money because of it.

It is important that you know that this is a safe type of investment. The government would have to go bankrupt for him not to be able to pay his debt. Since this does not happen easily, you can rest assured that you are not at great risk of losing your money.

It is also possible to invest in the Stock Exchange. This is because there are stocks that have high liquidity. Therefore, you can dispose of them easily and still not lose out. Know, however, that stock prices fluctuate a lot, so this is not a very safe investment.

In addition, there is the possibility for you to buy fixed income securities issued by banks. This type of investment is called CDB (Bank Deposit Certificates). Normally, its liquidity is daily and, therefore, you can easily redeem the accumulated value.

Another benefit of investing your money in CDBs is the guarantee that you will receive your money even if the bank fails. This is because the Credit Guarantee Fund guarantees amounts that do not exceed two hundred and fifty thousand reais. Then take advantage of this option.

Final considerations

As you can see, leaving your savings in the passbook can be a bad deal for you. That's because your money can be devalued, causing you to be harmed.

The high liquidity of short term investments makes it simple to withdraw your money with ease and even accumulate more capital. Still, be aware of the risks of each option so that you don't end up at a loss.