You start investing after you've paid off all credit cards and personal loans, build a budget, and save up money in an emergency fund for the unexpected. This money, that you may need instantly, should be put in a Money Market Account or a Money Market Fund; the former are issued by banks (with FDIC insurance) and the latter by investment firms. They provide a better return than a conventional savings account from a bank. And don't limit yourself to Money Markets in your city -- those offered elsewhere often have higher interest rates, and depositing and withdrawing from them is a cinch, with online access and your bank account linked to the Money Market for easy, one-day transfers.
Where To Put Your Emergency Fund Money
by Ernesto R. Martin