Should I be
saving more
or investing?

As you can see, savings and investments tend to do different jobs over time. And many people choose to use a balance of both to manage their money, rather than an all-or-nothing approach.

Next, here’s a simple way to think about ‘risk’ — and how to choose a level you feel comfortable with.

Investment risk

When people talk about “investment risk”, they mainly mean this: your investment value can go down as well as up.

In general, options that take more risk can move up and down more — and may offer more growth over time, but also bigger drops. Lower-risk options tend to be steadier but usually grow more slowly.

So, it helps to choose an approach that you can stick with, even when markets have a wobbly week or month.