By Emma 
It is usually everybody’s desire to create wealth for themselves and their children. One of the best ways of doing this is by making investments.
An investment is an asset that people buy, hoping that it will increase in value over time and create some income for them.
There are two types of investments: long-term and short-term investments.
You make short-term investments to get quick returns. On the other hand, long-term investments take years to mature.
Table of Contents
1. Become a Lender
If you have more than $10,000 in savings, you can multiply that amount through peer-to-peer lending. Some online platforms and apps connect lenders to borrowers.
If you want to make money in the short-term, you can join these platforms.
As a lender, you’ll choose the most viable venture and invest in it. You’ll agree to the interest and repayment terms with the borrower.
2. Buy Blue-Chip Stocks
Not all companies are the same. Some are inconsistent while others are consistent. Blue-chip companies are consistent and make profits every year.
The firms have a good management team, and they always give dividends to their shareholders. If you want a safe long-term investment, you should buy blue-chip stocks.
The value of the stock will eventually go up, and after 15 or 20 years, you can cash out and walk away with your profit.
3. Invest in Treasury Bonds
A treasury bond or T-Bond is a debt instrument that you receive after you give a loan to the government.
The bond matures after 30 years. When you buy a treasury bond, the government pays you the interest amount semi-annually.
This long-term investment is safer than stocks because the interest amount is guaranteed.
The more money you invest in treasury bonds, the higher your returns.
Another interesting fact is that you can sell your bond to an interested investor before it matures. Therefore, it’s also a great short-term investment.
You can also invest in convertible bonds or notes. The convertible note definition is a short-term debt that you can convert to equity.
4. Invest in Land and Property Development
When you buy land today, it increases in value every year. It’s one of the surest ways to grow your money. Like treasury bonds, land can be both a short and long-term investment.
When you build residential or commercial property for rent on that land, perhaps working in conjunction with someone like AAIG, it becomes a long-term investment.
You’re going to make money as long as people continue paying rent for the property. Alternatively, you can build houses or apartments for sale. When you do that, it becomes a short-term investment.
5. Buy Gold
Gold is a measure of wealth, a unit of trade, and, most importantly, a store of value. The best thing about gold is that the value increases with time.
Even though its growth rate is slow, it is steady. This makes it the perfect long-term investment option. You can buy gold bullion from a precious metal dealer or financial institution.
It will set you back a few thousand dollars, but it will be worth it in the long term. If you want to protect your investment, put it in the bank deposit box.
Alternatively, you can invest in gold ETFs or futures. However, the second option is more susceptible to price fluctuations.
6. Mutual Funds
A mutual fund collects money from multiple investors and invests it in diverse stocks. By investing in a mutual fund, you spread your risk.
The management has a team of trained finance professionals that watch the market and find the best stocks.
Since the process is very involved, mutual funds demand a high commission. Also, there is a minimum amount that you can invest in a mutual fund.
The best mutual funds require a minimum investment of $5,000. Once you invest your money, you’ll be given a point of contact.
That’s the individual that will be in charge of your portfolio. You can call them if you have any questions about your investments. Mutual funds are great long-term investment vehicles.
7. Invest in Dividend Stocks
Publicly traded companies usually give shareholders part of the profit through dividends. Ask your financial advisor or broker to invest in companies that have a history of giving dividends.
That way, you’ll always get paid at the end of every financial year. It’s a great short-term investment.
If the company has the potential to grow even further, ask the management if you can reinvest the dividends to increase your shares.
This technique is known as a dividend reinvestment plan, and it can be a good long-term investment plan.
The most important takeaway from these investment options is that after you have undertaken the necessary action towards investing, be patient. Both short and long-term investments take some time to mature.
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