Many farriers’ idea of “saving” money is to hoard just enough to buy the new forge that they can’t live without. If they would only properly invest a few dollars a month, this type of paycheck-to-paycheck living would be a thing of the past. How do you properly invest money? Here are a few smart ways to invest.

Savings Accounts: Think Of Them As Your Piggy Bank

Savings accounts are wonderful places to keep money that is very liquid or easy to get to if you need it. Money in these accounts earns a small rate of return with very little risk. That makes them great places to store emergency funds, which is a fundamental part of any personal finance strategy. An emergency fund is a buffer or fall back in the event of a personal crisis, such as an injury, loss of customers, buying a new furnace for the home, etc.

Savings accounts have advantages. You can get to your money at your convenience. Your money — in the right account with the right bank — can give you a nice return at very little risk, as the accounts are insured for up to $100,000 per person by the Federal Deposit Insurance Corp (FDIC).

Your savings account should have enough emergency funds to cover 2 to 4 months worth of your expenses. This should be enough of a buffer to cover most any personal crisis.

Once your savings account reaches a point where it holds more than what you…