Matching your investments to your spending time frame is crucial.
The key to sensible investment is to divide up your money based on when you expect to spend it, then spread and store it in the type of investment most suited to your spending timetable.
Short term spending money, medium term spending money and long term spending money are all invested differently.
Growth investments are expected to rise in value over the long term but in the short term their value will fluctuate. Fluctuations in value don’t matter – unless you need to take your money out at a time when values are down.
You allow for these fluctuations by keeping enough of your capital in Defensive investments, (which don’t fluctuate much) to cover your spending needs during these down periods.