Investment vs. saving: Which to do first?

Yes and no.

The safest option is to put the money in a savings account where you can easily access it when the time comes.

The more rewarding but riskier option is to invest the money. Yes, you stand to make more. But, there are risks should the value of your investment fall.

It is critical to always start to save first.

This provides you with a safety net should you lose your job, get sick, or endure some other personal tragedy.

Yes, interest rates are pitiful, but with enough due diligence, you could perhaps find a savings account that exceeds typical returns in this market.

Once you have a cushion saved up, such as six months' worth of expenses, then you can begin to invest your money.

Now, where you want to invest all depends on your goals, investment knowledge, and how much you can afford to lose.

Ultimately, if you are a long-term investor, you want to hold index funds and invest in a couple of stocks that pay a nice monthly or quarterly dividend.