Since saved money has less buying power every year due to inflation, it's best to diversify all of your assets. In other words, don't just save all of it. What $10,000 could buy you today, it won't be able to buy you a decade from now. I'd keep several months worth of pay in an emergency savings account and keep a short-term savings for vacations and large purchases that you want to make. The rest, I would spend and/or invest. When spending lots of money, its safest to have an eye for high-quality items that hold their value over time and that aren't prone to breaking or becoming obsolete when better versions come out. Computers, home entertainment, and phones are bad investments in this sense. Property always has an intrisic value even if it is worth less later than when you first bought it.