+1. Unless your landlord will cut you a good deal by paying your rent a quarter or half year in advance, just pay by the month. Same with your insurance. Food is usually better fresh so I wouldn't do that in advance either.

I try to keep a month's worth of money ready-to-go in my Credit Union checking account which pays 2.05%, almost covering inflation. The rest is in a handful of stocks, one with a 4% annual dividend and another with 5% dividends and some in a mutual fund which has been a roller coaster of late, of course, but about 7% over the 10 years I've had it.