Where to save contacts in my Samsung 3g mobile phone?

I have bought a new Samsung 3g mobile phone and I am curious as to what method I need to select when I’m saving a new contact to my phone, here recently I have been saving new ones to my “Phone” but I have also been given the option to save to Gmail, phone, & SIM card. Do I need to be saving to phone or Gmail? If you are using the same phone then where you use to save your contacts?

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