rainy days
short term
long term
speculation
compound interest
timeframe

Another mayor point everyone will have to consider : what is your time horizon.
How long can you wait for the use of the money, should your investments turn sour? (And are you actually capable to toughing it out?)

What plans do you have for the riches you are amassing?

The time frame has a mayor impact on the types of investments you should consider.

Putting money aside for the next dentists bill, or in case you have to quit you job rather sooner than expected emergency funds
Are you saving for your next car, or a big holiday in the Caribbean: you are probably looking at something between 1 and 5 years, until you will need the money short term
Are you planning for the university education of your children, or for your own retirement: you time frame is more likely measured in decades than in years long term
Do you need money shortly, and are lured into hoping there might be some quick cash in the market? Are you hoping to strike some good deals, outsmarting the market speculating


There might be an unexpected ally that you haven’t considered before, especially when you are looking at a long time horizon: compounding interest might just about have a nice surprise for you, but also message to start early with saving.

Just as a side note: it will certainly be easier if you save for a goal instead of just saving for saving’s sake. Loosing all enjoyment of live because you are living so frugal that it hurts might make you rich fairly quickly, but then again, you wont be able to take it along into the big beyond (or where ever you might be expecting to go)

Hence the emphasis we put on actually clarifying your goals, and with them the time horizons considered.