Saving money is an agenda that is widely pushed but not explained enough. There are many different situations out there that warrant different saving styles and vehicles to use. Examples include saving for your emergencies, saving for retirement, and saving for a home. All of these utilize saving, but what many fail to describe are some of the best ways to save for that particular situation. Throughout this article, we will go over a few situations and what an ideal course of action would look like.
First, we will dive into saving for an emergency fund and how that may look. For emergencies, you want your funds to be as liquid as possible. You are not looking to make any sort of return with this sum of money. The goal is to have this money accessible 24/7 essentially. An effective way to store these funds is in a traditional savings account, where you can withdraw from any branch or even an ATM. You could even go as far as putting it into a money market, but you would have to ensure that is just as liquid as a checking account. Again, the goal is to have this money ready to go and not locked away.