Although we all know that money, savings, lifestyle are all relative variables and there is no one-size-fits-all about this. But a Motely Fool adviser once said, a good rule of thumb on savings account for anyone in early thirties is that their savings account balance should be equal to their annual income. Unfortunately, even at age 35 I don't have half my annual income in my savings account. I think, Magorkhe1 already gave you an excellent advice about "Put money in kids education fund, that will grow taxfree". One of the many stupid mistakes I made early in my career was that I did not contribute to a 401K or even an IRA or Roth IRA account. Hope you have taken care of that business my friend. I am not an avid investment enthusiast but I put some money on mutual funds now. Motely Fool advisers quoted "The Vanguard S&P 500 fund has outperformed over 90% of all domestic equity mutual funds over the past three and five years". But the sad story is their expense ratios and turnovers. Alright my friend, keep on rocking in the free world.