5 Quotes From Financial Gurus: The Smartest Ways to Use Your Savings

Saving money is a smart financial habit. To get the most out of this habit, it's also important to know what to do with your savings. For example, if you leave it all in a checking account, you won't earn much interest on that money.

So, how should you use your savings? Here are great pieces of advice from five big names in the world of personal finance.

1. "Make a quick switch from a traditional savings account to a high-yield savings account." -- Vivian Tu

Vivian Tu, founder of Your Rich BFF, has a simple tip that can make a world of difference. Don't leave your money in a traditional savings account paying a rock-bottom rate. Check out the best high-yield savings accounts, pick one, and put all your savings there.

Here's why: The average savings account rate is 0.47% right now. Some big banks pay as low as 0.01%, while some high-yield savings accounts are offering 5.00% or more. On a $10,000 balance, that's over $450 more in interest per year just by choosing a better bank account.

Our Picks for the Best High-Yield Savings Accounts of 2025

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of February 16, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of February 16, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.30% Rate info The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.30% Rate info The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

2. "The one thing that every single person needs is an emergency savings account." -- Suze Orman

Everyone is going to have financial emergencies. You can't always avoid them, but as Suze Orman explains, you can prepare for them with an emergency fund.

Set aside a portion of your savings every month for this. The standard recommendation is an emergency fund with three to six months of living expenses. If your household's living expenses total $4,000 per month, your emergency fund savings goal would be $12,000 to $24,000.

3. "Invest in an index fund, because it tracks the market." -- Humphrey Yang

You can get a solid return through savings accounts and the top CDs (certificates of deposit) right now. But for long-term wealth building, nothing beats investing.

Former financial advisor Humphrey Yang recommends investing in index funds. As he explains, the stock market has historically averaged an 8% to 10% annual return. All the best stock brokers have low-cost index funds that track the market -- S&P 500 funds are a popular choice. These are simple, effective ways to start investing and growing your money.

4. "Invest in as much of yourself as you can." -- Warren Buffett

Investing legend Warren Buffett also talks about the importance of investing in index funds and saving for emergencies. In addition, he has shared the age-old wisdom of investing in yourself.

Don't be afraid to spend your money in ways that could increase your skills and earning potential. A college education is one of the most common ways people do this, but it's far from the only option. You could try other methods, such as online courses. Books are another excellent way to improve your knowledge -- they've helped me quite a bit in both my career and managing my money.

5. "Choose how you want to spend your money -- and how to live your rich life." -- Ramit Sethi

Ramit Sethi, author of I Will Teach You to Be Rich, advises people to follow a conscious spending plan. This plan provides a balance between financial security and your quality of life.

He recommends putting money toward savings goals, such as a down payment on a home or a vacation, and investing. But he also recommends spending money on the things you love, through what he calls guilt-free spending. It's an important lesson that some of the best savers forget. Success isn't about always saving as much money as possible. It's about using the money you save to build the life of your dreams.

The consensus among most experts is that you should use your savings for an emergency fund, upcoming goals, and investments. Those are all moves that can help you build financial security. Remember to reserve some of your savings to spend in ways that make you happy, so your money is also good for your quality of life.