The best way to work out a savings plan is to decide your savings goals
You need to decide what you want to save for. Usually, most of us have a mix of short, medium and long-term goals when it comes to saving. Before you decide the best way to save for what you want, you need to think about the level of risk you are willing to take.
Attitude to Investment risk
There are two main types of risk to consider when saving or investing:
1. Return Risk
2. Capital Risk