Should I Keep Money Saved In Savings Account Or Put It Into A Mutual Fund

Should I save all of my money in a savings account and when the next recession hits invest?

No.Start investing now.It doesn’t matter if the economy is good or the economy is bad.By investing now now in low-cost index funds, you’re investing for the future.We can’t predict the future, but we do know two things:No one has any concrete knowledge of a particular day/week/month where the stock market is going to be down enough that it’s “hit bottom” and you should buy.Over the course of its existence, the US stock market has continued to grow and provide wealth to Americans investing in the economy.Think about this.On September 16, 2008, I tweeted this:That day, the stock market closed at 11,059.02.The economy was falling apart.People were losing jobs left and right (I lost mine in early 2009).No one knew if we were at rock bottom (we weren’t).I had people reach out to me and say it was a bad idea to encourage investing in the stock market at that point.Really. They said that things were really bad … why invest in the economy?I was buying; you see, I’m an automatic investor. I don’t time the market — I buy automatically on pre-determined dates with pre-determined amounts of money.Two months later, the stock market was down to 7,552.29.I continued to buy. Because I don’t time the market.On March 6, 2009, the market hit its bottom at 6,443.27.I continued to buy. Because I don’t time the market.Today, the Dow Jones Industrial average is over 20,600.And guess whose investments have been growing this whole time?That’s right.Now look …I know you may read this and say, “Well, obviously I should wait until the economy crashes to buy … that’s what you just gloated about!”No. That’s not the point.The point is that through good times (now) and bad times (then), investing in the economy has always been a good, long-term decision to make.I invested before the stock market crash (when it was in the 14,000s), when it was crashing, and at the bottom.All of those purchases I made have grown exponentially today because, in the long-term, the economy continues to grow.That’s why you shouldn’t wait to invest.Just do it.

How much money should I keep in my savings account vs my brokerage account?

The answer you hear everywhere is to have 6 months of expenses in savings. I'm not going to say this is wrong, but it's an answer that lacks nuance and any consideration for your individual circumstances. For instance, if you are single and a freelancer with highly variable income you probably want to keep more in a high yield savings account to tide you over in lean times. If you're married, both of you have stable jobs, and a savings rate over 50%, you probably just want enough in the bank to cover 1–2 months expenses just to avoid an overdraft.Since I don't know how risk adverse you are, your income, or your expenses I will be broad. First, if you have a brokerage fund, you should be able to access most of that money within a couple weeks. This can provide a good buffer for the unexpected, but market crashes and unemployment go hand in hand, so your stocks might be at their lowest when you need them most. Bonds are another option, they yield more than savings and are less volatile than stocks, so you get at least some returns on your money. High credit limits are fantastic for sudden expenses such as home repairs, vehicle replacement, and medical bills. With credit you get a short term interest-free loan (assuming you don't carry a balance) that you can then pay off with your next paycheck or stock/bond sales.Here is what I do as a single person with stable income and no mitigating circumstances:I keep 3 months normal expenses in savings.My credit limit covers my full car and health insurance deductible plus a month’s expenses.I have enough cash on hand to pay for food and gas for two weeks (just in case a storm disrupts power/internet/phones)I’m building up 6 months worth of expenses in bonds to cover potential unemployment and take advantage of a market crash.Everything else goes to index funds.For more information and ideas check out: Springy Debt instead of a Cash Cushion

How much money can I keep in my savings account?

There isn’t a maximum limit with the amount of money held in a savings account. You can deposit any amount of money in a saving account, provided you link your account with the PAN Number and complete all the KYC formalities. If you fulfil all the rules set by the RBI to hold money in your savings account, you must not face any issues with holding a very big amount in the regular savings account. The general practice actually is not hoarding such a big amount of money in the savings account as it has low rates of returns. There are many investment options like shares, mutual funds, fixed deposits and SIP’s where a person could keep high amount of money safe and secure and also earn good rate of returns on his main amount.

Should I just save my money in a bank savings account or invest it in stocks, mutual funds, etc.?

‘SAVING' money in bank is actually 'LOOSING' money.HOW??So first you need to understand how people loose money when they are getting 6–7 % (approx.)compounded half yearly. What happen, when you save money in fixed deposit they give you 6–7% annually but there is an inflation which is eating your interest by 4% approximately and fixed deposits are tax bounded. So you get 0.5%-1% actually.Inflation :- Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.You get appreciation of 2% approx. after letting your money with bank for one whole year. So how this thing going to help you in long term,I don't think so.My advice for everyone who is reading this, never consider fixed deposit as an investment. I know they highly liquid,means you can get your money whenever you want but still it’s not investment.If you just wants to save(to withdraw any time) then banks are the safest place but investment..a big NO.For investment you can invest in Direct Mutual funds(open ended) through SIP, liquid funds and undervalued stocks.Investing in stock market is risky, everybody knows that but investing in good funds and stocks for long period of time can give you good refund which you won't be able to achieve in fixed deposit or other bank products.For example,If you invest Rs 5000 through SIP in direct mutual fund giving 15% return annually for 25 years can make Rs 1.38 cr.You can refer to an YouTube channel' VALUERESEARCHONLINE' Where you can get some detailed informations about MF investment.Do some research on this and then do whatever suits you.These are just suggestion which works for me,so better for you do your research before starting anything new.Vikram

Is it better to put $3000 in a high-yield savings account or mutual fund for a few years?

I am a millionaire and let me tell you the secret to saving money and investments.If you want to buy a car and have a job to afford monthly payments, I suggest you get a car loan at a credit union. The rates are 1.4% where I live assuming you have excellent credit. Assuming inflation continues to increase at 2% per year, you will be saving money and building credit. Credit is valuable. I can argue that you are actually making extra money by lowering your future loan rates. In that regard, you could be potentially saving thousands of dollars when you get a mortgage for real estate. A return of investment no mutual fund can provide at such low risk levels. High yield savings is BS. You are actually losing the value of your money if you attempt to save it in those investments since the rates are under 2%.  I only use savings accounts for emergency money. Mutual funds have high fees and do not guarantee a return. I would avoid taking risk with them unless you fully understand the investments.However, you should also realize that maintaining the car is another issue. Depreciation also cuts in heavily if you are buying new. Consider you can pay off your car loan and maintain it by driving extra for Uber or Lyft. A lot of people I know get paid on their way to commute to work and can easily pay off their car loans with the earnings. You can make up to $35/hr and a $750 bonus using this referral code: https://www.lyft.com/drivers/ESA...You can also drive for Uber as well and get a bonus: http://ubr.to/1WsaeXKAssuming you are buying a reasonable used car, you can get a loan right now and pay it off fairly quickly!