If I could save no more than $200 a month, I would probably save my money in Mutual Funds. Money Market Mutual Funds are these funds that are sold by companies that sell stocks, Bonds, and other types of investments. The funds' managers lead money to businesses and Governments for short periods of time. For every dollar put in such a fund, an investor can expect to get back a dollar plus interest.

Although the federal government does not insure money market mutual funds, they are low- risk investments. Interest rates are usually higher than on bank accounts but lower than for stocks and bonds bought and held for the long term. Investors can get their money at any time; they even write checks on the account.

Now we have Stock Mutual Funds, these funds invest in stocks. The risk depends on the investment objective. Some funds invest in...