Investing is the process of putting your money into assets such as stocks, bonds, or real estate with the aim of growing its value over time. Instead of just saving, investing allows your money to work for you—helping you build wealth, reach financial goals, and protect your future.

The main risk of investing is that the value of your investments can go down as well as up, meaning you could lose money. Different types of investments carry different levels of risk—stocks can be more volatile, while bonds may be steadier but offer lower returns. Other risks include market fluctuations, inflation reducing your purchasing power, and not reaching your financial goals if investments don’t perform as expected. That’s why it’s important to invest with a clear strategy and the right level of risk for your situation.

You can start investing today by first setting clear financial goals—whether that’s saving for retirement, buying a home, or building long-term wealth. Next, decide how much money you’re comfortable setting aside regularly. Then, choose an investment account, such as a brokerage or retirement account, and explore options like stocks, bonds, or diversified funds. Many people also seek professional guidance to create a strategy that matches their risk level and goals. The most important step is simply to begin, even with a small amount, and stay consistent over time.

A robo-advisor is an online investment platform that uses technology to build and manage a portfolio for you. Instead of choosing individual investments yourself, you answer a few questions about your goals and risk tolerance, and the robo-advisor automatically invests your money in a diversified mix of assets. It’s a simple, low-cost way for beginners and busy investors to get started with investing without needing to actively manage their portfolios.

Taxes can have a significant impact on your investments because they reduce the amount of money you keep from your gains. When you sell an investment for more than you paid, you may owe capital gains tax—short-term gains (on investments held less than a year) are usually taxed at a higher rate than long-term gains. Dividends and interest income may also be taxable. On the other hand, certain accounts, like retirement accounts or ISAs (depending on where you live), can offer tax advantages such as tax-deferred growth or even tax-free withdrawals. Understanding how taxes affect different types of investments helps you make smarter decisions and keep more of your returns over time.