I would suggest online for purchases and small amounts and cold storage (offline wallet) for savings. you should check out paper wallet. here is guide for paper wallet:
http://www.btcguys.us/blog/how-to-create-bitcoin-paper-wallet-tutorialRemember not to print your private keys on a printer that keeps data in memory. So use a dumb printer for paper wallets.
thanks for the link. gonna try that one too. Now, where can I find a dumb printer now?

My guide seems a little rushed.. if you could provide some feedback, it would be great!