Savings accounts don’t make sense for a vast majority of people today.

You’re most likely better off putting your “savings” directly into investments, unless you’re setting money aside for some specific short-term goals like:

• an emergency fund
• retirement (your near-term spending account)
• a large purchase (down payment, vacation, etc)

I hear so many people talk about how the market is too volatile and risky to invest now. They’re scared of losing money and purchasing power. But the alternative of keeping money in cash (in a savings account) is more of a sure way of losing purchasing power over time.

Investing allows your money to grow over time, outpacing inflation and preserving your purchasing power. While market fluctuations may seem daunting, a well-diversified portfolio (at the very least some low cost total market etfs) can provide steady growth over the long-term.

And you don’t have to pour a lot of money all at once into investments. Regular contributions, even in small amounts, can significantly enhance your financial stability and help achieve your future goals. It’s about time in the market, not timing the market.