In the investment world there is a big difference between short term and long term investments in regards to the time they take to develop. Understanding the different time frames between the two is crucial to managing several investments at once.
Long term investments include real estate and cash, these slowly develop over much longer periods. But this isn’t necessarily a bad thing. Because of the amount of time that long term investments occupy, they often leave room for many short term investments. Examples of short term investments include individual stocks and mutual funds. If you know you need the money back in the short term, the stock market is a good place to be.
It’s important to remember that the long term investment account differs largely from the short term investment account in that short term investments will most likely be sold, where as long term investments may never be sold.