Home » Categories » Investment

Money that should never be used for investment

Learn how to properly manage your financial safety nets, including rainy day funds, tuition payments, and down payments, by keeping them in safe, liquid, and readily accessible forms.

March 12, 2025 · 1 min · xgDebug

Table of Contents

If you don’t have the cash to pay your bills, you may be tempted to sell some of your investments before they have a chance to fully blossom.

Your Rainy Day Fund

Purpose: A 3-6 month reserve of living expenses in case you or your partner lose your jobs.
Storage: This money should be held in readily accessible cash and not invested under any circumstances.

Tuition Payments

Purpose: Money needed to pay bills or your child’s tuition.
Guidance: This money should not be invested in the markets. Ensure it is kept in a safe, liquid form.

Down Payments

Purpose: Funds for a future home purchase.
Guidance: Even if you’re planning on purchasing a home several years down the road, avoid relying on the stock market to generate enough money for a down payment. Keep these funds in a stable, low-risk account.