3 Signs It's Time to Stop Investing and Put More Money Into Savings

Do any of these financial situations apply to you?

You'll often hear that investing your money is a great way to grow it into a larger sum over time. And that's true. When you keep your money locked up in a savings account, you earn minimal interest on it. That can make it difficult to grow your savings substantially.

When you invest your money in a brokerage account, on the other hand, you might enjoy a return that's five, six, or seven times more generous than what your savings account pays you -- or more. And while there's risk involved in investing, there's also a lot of reward.

But there may come a point when it makes sense to stop investing and focus more on pumping up your savings. Here are three signs you're in that situation.

1. Your emergency fund isn't robust enough

As a general rule of thumb, your emergency fund should have enough money to cover three to six months of essential bills. Perhaps you opted for the lower end of that range based on your personal circumstances. But if those circumstances have changed, it could make sense to save more for emergencies -- and to do that, you may need to hold off on putting money into an investment account for a period of time.

Say you built a three-month emergency fund when it was just you and your spouse. If you've since had a child, you may need or want more money in savings.

Similarly, maybe you based your emergency fund calculations on your old mortgage. If you recently moved and took on more expensive housing payments, your emergency fund should reflect that -- and so it pays to make that your priority.

2. You've recently dipped into your emergency fund

The purpose of an emergency fund is to have access to cash when unplanned bills arise that your paycheck can't cover. If you recently had to take an emergency fund withdrawal for a surprise expense, that's fine -- that's what the account is there for. At the same time, though, you may want to make an effort to replenish the funds you removed from your savings. That could mean diverting some money away from your brokerage account in the coming weeks and putting it into the bank instead.

3. You're socking money away for a specific near-term goal

Your emergency fund may not be the only savings you have. If you're trying to save up for a home, a car, or a vacation, then that money should go in the bank, because if you invest it, you'll risk losing some of it. And if the goal you have in mind is one you want to achieve sooner rather than later, then it could pay to take a break from funding your brokerage account and send more money into savings.

Investing money you're not using is certainly a smart move. But sometimes, your savings might need your full attention. In these situations, you may want to focus on that.