People can invest their money in many different ways and in different things. Various apps and platforms have made it easy to do.
Crucially, the value of investments can go up and down. Invest £100 and there is no guarantee that the investment is still worth £100 after a month, a year, or 10 years.
But, in general, long-term investments can be lucrative. The rise of the FTSE 100 is evidence of that. Shareholders may also receive dividends, which they could take as income or reinvest.
For years, the advice has been to treat investments as a long-term strategy. Give it time, and your pot of money will grow much bigger than if it was in a savings account.
In contrast, cash savings are much more steady and safe. The amount of interest varies between account providers, but savers know what returns will be. Savings rates have held up quite well over the last year, but interest rates are generally thought to be on the way down.
Savings accounts are popular when putting money aside for emergencies, or for holidays, a wedding or a car – for one predominant reason: you can usually withdraw the money quickly and easily.
“It is important that everyone has savings. It gives you access when you need it,” says Anna Bowes, savings expert at financial advisers The Private Office (TPO).
“It means you do not need to cash out your investments at the wrong time.”