personal finance

Here's How to Invest Your Money If You Need to Spend It in Less Than 5 Years

Getty Images

Investing is often a longterm game.

Your plans, however, may require you to move a little faster. Whether it's your next vacation or a down payment on a house, you most likely have something you want to pay for in the near future.

If your goal is in the next five years, parking your cash in a standard savings accounts is a safe and liquid option, but it will offer little in the way of returns.

Upgrading to a high-yield savings account can equal 10 times the return on your money and offer the same benefits.

If you are able tolerate a little risk, you could deposit the money in a brokerage account and invest 5% to 10% for a chance to bulk up your returns, according to Winnie Sun, a managing partner of Sun Group Wealth Partners.

Check out this video for a full breakdown of how to invest your money for 5 years to 10 years and beyond.

More from Invest in You:
What your FICO score means and why you should pay attention
Josh Brown: How I explain the stock market vs. the economy
How insurance premiums and deductibles work

SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox.

CHECK OUT: Grow with Acorns+CNBC.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

Copyright CNBC
Contact Us