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The Perils of Short-Term Investments

Posted by Melissa Batai on Jun 20th, 2023 · 0 Comment

Black paper with a piece rolled back to reveal the words

Three years ago, we received $8,000. We earmarked that money for an international trip to see family. However, due to the pandemic, we knew we wouldn’t make the trip for several years, so we followed the advice of our financial planner and invested it in a Silicon Valley mutual fund. Unfortunately, this money has taught us the perils of short-term investments, especially in an unstable pandemic...
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Here are some simple guidelines that will help you build wealth:

1) Do the math. Get a budget and calculate your net worth

2) Get an emergency fund. Save at least 6 months worth of expenses

3) Limit costs. Spend no more than 30% of your income on housing

4) Max your retirement. Maximize contributions to your tax-deferred retirement accounts

5) Pay yourself first. Set aside money for yourself before you take care of your other bills

6) Set goals. Goal let you get ahead faster

7) Avoid high interest debt. Avoid credit cards, title loans and other usurious loans

8) Diversify. Diversity your assets.

The Perils of Short-Term Investments

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