Investing is for Long-Term goals, i.e., money you do not need to touch for 5+ years. We also know there are situations where you might want to save, but you will need to use the money in less than 5 years. For example, if you’re saving money to buy a house in the next few years, or for grad school next year. In those situations, you want to find an investment that offers little volatility (i.e. lower returns and lower risk). There are two great options for this scenario: 1. Invest in a Money Market Fund. These are highly liquid mutual funds. For a list of Money Market Funds at Vanguard, click here. 2. Keep the money in a High Yield Savings Account. If you’re highly risk averse and plan to use the money in a very short time, this can be a viable alternative. For a list of High Yield Savings Account, refer back to your workbook from Step 5.
https://investor.vanguard.com/investment-products/money-markets