According to financial expert Suze Orman, there’s a big difference between money you spend, money you invest and money you save. “Money you know you need or want to spend in the next few years is savings. Money you keep handy for an emergency belongs in savings. Money you hope to use soon for a down payment on a house belongs in savings. And all savings belong in a low-risk bank savings account or money market account. The goal is to keep your money safe so that when you go to use it, it will be there.” In other words, it’s OK to take money out of your savings account for emergencies and for big purchases that you have been planning for (i.e. a down payment on a home, a car, a home renovation etc.)

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