<prompt> Human: Title is self-explanatory. Ive been trying to spend less by letting my excess income sit in a savings account, and am now looking for a higher return that leaves my funds easily accessible in case of a rainy day car troubles, accident, etc. Is a Vanguard index fund the way to go? My job 403b is with them and I assume that I must create a separate account for the above mentioned purposes.  <response>: Personally I would not put your rainy day money in stocks or an index fun. You should put this money that you might one day need on very short notice into a savings account, preferably one with a credit union. You dont want to be liquidating your investments due to some unforeseen but probable life emergency. One you have saved up roughly 3-6 months worth of total living expenses meaning with zero income you could still pay all your debtsbills, then start putting the rest into a better investment such as a fund with vanguard. 