At this point, you’re maxing all of your retirement accounts, have your emergency fund fully funded and utilize your HSA and 529 plans appropriately. It is only now that you should start saving for non-tax advantaged accounts. This includes buying personal stocks to add to your tax advantaged account, paying for college that won’t have in immediate return on investment, (Ex. “I’ve always wanted to learn about Egyptian history. If I get a degree, I can spend a year volunteering in Egypt) and that luxury car that you always wanted.

One final tip that I will leave you with is this: Use save investments to fund risky investments, and take your profits in risky investments as you can. Using save investments to offset risk works like this. You take $1,000 and invest it into a bank CD for five years at a rate of 3%, you will profit $159.27 over five years. Right now, you can take your next $159.27 and invest it in whatever stock/business you believe in. Now, if your stock/business becomes worthless, you know that in five years you will have your money back. You then feel confident moving into your next safe/risky investment.

Taking your profits in a risky investment works like this: When your risky investment shows a serious gain, you withdraw your initial investments and allow the remaining investment to continue to grow on its own. If you buy a stock for $10, reinvest the dividends for a year straight and end up with three shares of the stock valued at $12 each, you sell one of the shares (Returning your initial investment to you) and allow the two “free” stocks to continue to grow. This allows the stock to grow on its own without feeling the need to check your account regularly to see if the investment is up or down.