Start thinking long term After an emergency fund, what’s next includes thinking about your expenses in the next decade. They could include anything from an investment property to a new car or even capital to start a business. For these types of savings, consider an investment account.

Most financial professionals do not recommend investing your emergency fund in the stock market because stocks, as the world just learned only too well during the coronavirus outbreak, are volatile. It would be unfortunate to have to sell an investment at a loss to access your emergency fund.

There are many different building blocks you need to establish a foundation for financial security. One of the most important is an emergency fund. An emergency fund ensures you’re prepared for unexpected expenses so you don’t find yourself in debt — or worse — because of a lack of money when you need it.

It’s why most financial experts suggest building an emergency fund. The best place to keep your emergency fund (think three to six months of living expenses) is separate from your regular checking and savings accounts so it can be earmarked for emergencies only.

Because an emergency fund is supposed to be easily accessible and liquid, the recommended vehicle for it is usually a savings account. Savings accounts don’t even keep pace with inflation, meaning that an emergency fund is a money-losing proposition over the long term.

Most financial experts end up suggesting you need a cash stash equal to six months of expenses: If you need $5,000 to survive every month, save $30,000. Personal finance guru Suze Orman advises an eight-month emergency fund because that’s about how long it takes the average person to find a job.

Now let’s look at some ideas on how to invest $10,000:

• Invest With Betterment.
• Buy Worthy Bonds.
• Invest in a 401k to Get the Company Match.
• Max out an IRA.
• Invest in a taxable account.
• Pay off high-interest credit card debt.
• Increase your emergency fund.
• Fund an HSA account.

By Gabrielle Olya. As much flack as millennials get for their bad financial habits, they actually are pretty good savers. A recent survey conducted by Bank of America found that 73% of millennials are actively saving money and more than half (59%) have $15,000 or more in savings.

Objectively, $15,000 is a lot of money. It might be half a year’s salary to a lot of people.

What was the average and median income by age in 2020?

10 Tips to Become a Millionaire This Year

1. Evaluate your current financial status. You can’t grow if you don’t know where you currently stand, so it’s time for you to put everything on paper.
2. Work on increasing your current income.
3. Think about new revenue streams.
4. Get saving.
5. Start learning new skills.
6. Seek opportunities.
7. Become more frugal.
8. Avoid debt.