Each of us must decide how to build and invest our savings. Each of us knows that some investments are far riskier than others, and that putting all our eggs in one basket is likely to be a mistake. We also know that spending too much and not saving enough is probably going to turn out badly. But how exactly should these simple concepts inform how we think about investing? In this paper we link these concepts to the notion of “living standard risk”, which we argue should be the ultimate concern of investors.