When a Savvy Miss member asked the following question, we turned to Amy Domini for her expert opinion.

I'm 25 and I'm saving for a down payment on a home. I'm interested in finding out the best way to make my savings grow. Is it financially wiser for me to take my money and invest in the stock market, or should I keep it in my bank savings account?

Whenever you are considering any investment, the first thing to look at is your immediate financial stability. Calculate how much you would need to survive for a six-month period in case you are unable to earn a living. Let's say that you need $1,500 a month to survive. For six months you would need $9,000 to keep as a "rainy day" fund in a savings account or money market fund. You may also want to consider keeping this cash in a local bank or credit union that lends to the community. Smaller banks are less likely to be involved in financing large projects that may be more likely to have negative environmental impacts, such as the destruction of the rainforests.

If you want to buy a home in the next few years, you should save for a down payment in the same kind of low-risk account. When you will need your money is another critical factor to consider. The longer you can wait to withdraw your investment, the more risk you may be willing to consider. Once your savings plan is on track, you may want to consider longer-term, higher-risk investments like stocks, bonds, and mutual funds.