<prompt> Human: I am in my mid twenties, finished my masters two years ago and have had a well paying, stable job since then. Ive been doing a good job of living below my means and saving money usually at least 1000mo, but Id like to start helping those savings grow. My company has generous benefits so I am not concerned with my retirement fund right now. I have a few questions about what my next steps are. My first questionscenario is where to keep my money while saving for a new used but new to me car. Im looking to buy a new car next December when my current lease runs out, and I already have enough money saved up for what Im looking for. However, this money is just sitting in my savings account. Are there any safe options for storing this money with better interest rates than a savings account? Ive read about money market accounts, maybe that is a good option. Im also concerned about a lack of liquidity or penalties if I withdraw from the account after only 15 or so months. Question 2: Student loans are a significant expense for me. I can currently pay off my highest interest loan 6.5, but is this the best decision? Could I reasonably find a safe investment with a higher interest rate? Question 3: What are good starting places for investing to grow a passive income? Any recommended stock brokerage websites?Thank you for your responses. Sorry if my investment vocabulary isnt great; this is not an area I am very knowledgeable in. Investopedia should be required reading for me.  <response>: Re Question 1: For a short timeline like buying a new car in a few months, just keep it stashed in savings.Re Question 2: Its a hard comparison because its guaranteed versus non-guaranteed returns. The 6.5 interest on the student loans is a guaranteed return on investment. While historically the stock market can return 7 on average, past performance does not predict the future. Could I reasonably find a safe investment with a higher interest rate?The short answer is no. Anything that has the potential to pace, or beat, the loan rates would be higher risk stock equities. Bonds or other safer investments return much lower.Re Question 3: You should be focusing on a growth oriented mindset of reinvesting dividends and take advantage of the magic of compounding interest. Building passive income is a long game, and it certainly doesnt happen by haphazardly throwing your money at volatile blue chip stocks. Read up on passively managed index funds that track a broader market, ala SP500. Edit: The big 3 brokerages we recommend are Vanguard, Fidelity, and Schwab. 