Originally answered Aug 20, 2019

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You need to do both.


  1. In interest-paying checking, savings, and money market accounts and in money market mutual funds
  2. Money that you can’t afford to lose
  3. Funds that you may need in the short term
  4. To establish an emergency fund
  5. Through regular deposits
  6. Through direct deposits of pay checks
  7. Through automatic monthly transfers from checking to savings
  8. Through spending responsibly
  9. Through minimizing and avoiding expenses
  10. By being a wise consumer; if you save 20% on the normal price of a needed purchase, this is like getting 20% tax-free interest on savings


  1. In no-load mutual funds, Exchange Traded Funds (ETFs), and real-estate portfolios
  2. Money that you can afford to lose
  3. Funds that you won’t need in the short term
  4. For major purchases such as the down payment on a home
  5. For retirement
  6. For medical and nursing home expenses
  7. To create an estate for your heirs
  8. Through one-time purchases
  9. Through automatic monthly investments
  10. Through retirement plans such as 401K, 403B, and IRAs


Written by

Knowledge Management Author and Speaker, Founder of SIKM Leaders Community, Community Evangelist, Knowledge Manager https://sites.google.com/site/stangarfield/

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