Where do I start.
Savings is a Joke: A savings account makes absolutely no money. It barely keeps up with inflation and in some charts loses money. So you are losing money when you put money in to a "Savings" account.
Savings is a joke, so what do I do with extra money ?
Get a brokerage account Get a brokerage account that offers free trades. Robinhood is killing e-Trade because of the zero dollar trades. I use Merrill Lynch because they partner with BofA and have tiers.
Robinhood has unlimmeted free trades and the ability to buy portions of a stock. For example Amazon is worth 3,292.23 today 1/23/2021. You can buy $100 worth on Robinhood.
The number one question is what should I buy
You should never put your eggs in one basket. That is a saying. So you must be asking yourself how do I diversiy?
This is a chart from Merril Edge that I live and die by.
Corporate Bonds and High Yield bonds outside of these symbols get way more complicated. They also require lower amounts of Liquidity. Liquidity is how fast you can sell a blah blah blah for a proffit. Actual Corporate Bonds and High Yield Bonds require larger amounts of cash and are harder to fit a percentage. You are required to buy hundreds of them and it is fit for another page or 69.
Disclamer: Patrick Handy is not a financial adviser and all of this advice is speculative. He isn't even your friend. In fact he hopes you fail.