The Best Ways to Invest Your Money in 2010 and Beyond

You may be discouraged in looking for the best ways to invest your money in these recessionary times. After all, everything in the economy appears to be a sinking ship especially in the financial investment sector as evidenced by stock prices going down, big investment houses going bust and notable investment personalities being busted.

Then again, the recession is the best time to invest simply because there is nowhere to go but up! It is only a matter of time when the economy becomes better and the investments you made will appreciate in value. Or to put it in stock trading terms, you will be buying low and selling high, thus, your potential profits.

Now that the appropriateness to invest in the recession has been established, your next question will be about the best ways to invest your money. Your ultimate goal, of course, is that potentially big profits can be yours when the economy goes up.

Well, one of the best answers would be to look at long-term and short-term investments so as to ensure that indeed you portfolio is a balanced one. Besides, it does not pay to place all your eggs in one basket, as the saying goes.

For long-term investments lasting 10 years or more, you should start looking at your real estate property specifically your home and your retirement fund. If your home has escaped foreclosure and you still have a job to pay for its mortgage, you must look into a fixed-rate mortgage preferably with a 15 year term or less.

If you cannot afford the mortgage because of financial difficulties, negotiate with the bank for a short sale. Then rent an apartment, save up for a new house and aim for a stronger cash position. When the housing bust is over, you can purchase a new house. You will then realize that, oftentimes, the safest and best ways to invest your money is to place it in a bank, earning interest without any effort on your part.

As for your retirement fund, you may need to look into adjusting the premiums on your 401(k). Your safe bet in many cases if you are aiming for early retirement is to place the money in safer investments like government bonds.

In the intermediate term of 5-10 years, you should pay off all your debts especially credit card and payday loans. These borrowings have significant adverse impact on your financial status because of the high, even usurious, interest rates, membership fees, late payment penalties and universal default charges. Once you stop paying these charges, you can then start to save for investments in vehicles like gold and currency exchanges.

You must also have short-term investments in terms of relatively high-yielding savings account. Your deposits must equal several months’ worth of living expenses that you can dip your hands into in cases of emergencies. Or you can treat it as a rainy day fund for when you lose your job for a few months.

The bottom line is that the best ways to invest your money is to make sure that you have investments spread out for the long-term and the short-term. Save as much money as you can, start your business when necessary and do part-time jobs.

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