Invest your hard earned Money wisely!

Talking to my friend the other day, I figured out that it’s a must I write about our conversation because that would be of great help to most of us. My friend is a retired man in his late sixties (of course didn’t ask his age), but he still continues to work as a part time employee instead of being already retired. He told me a story of how he lost his investments in the stock market and how he cannot afford to retire. I sympathized with him, but there is nothing I can do to help him. However, I believe that I can be wise to learn from his experience, and so I hope you too learn. On the basis of that conversation with him, I decided that I write something that would serve us well when into comes to investing our hard earned money and that is to invest wisely.
In the course of our lives, we all have different dreams that we want to achieve and if I could ask many people around, the answers would probably include, dream cars, dream houses, vacation, raising a family, education for children and even retirement. While we may all aspire to have all these dreams, very few of us will live to get anywhere close to them. Part of the constraints, will be as a result of our own poor planning, poor decisions in our investment strategies and even poor financial knowledge.
Each of us has a very different style in the wide spectrum of investment. Some people are willing to take high risk to gain high rewards, while some are risk averse, and therefore will want to invest in investments that have very low risk premiums, but with steady returns such as the T-bills.
My personal opinion is that when we choose to invest our money, let us choose to diversify. A little bit of this and that, means that we appreciate the terms of risk management. People who are also risk averse can try what we call mutual funds. With mutual funds, your money as an investor gets pooled with other people and as a result you are able to own part of the companies that ideally you wouldn’t afford the risk, in other terms you share the risk. There are many great financial managers who manage mutual funds and are ready and willing to counsel you on the art of investing. Make sure you collect as much information about the companies you wish to invest in and spread your risk. Never ignore the advantages that you can gain by making use of someone who is trained in handling investments, because they will help you make good judgment.