You have put in a few years of hard work and have some savings in the bank.The bank interest is very low and you want to build up a comfortable retirement nest.Investment is the logical choice for growing your money.But where to invest?

First, consider where your money comes from.Are you a salaried employee?Are you an entrepreneur?Are you a small business owner?Are you a homemaker with some income from freelance assignments?

Next, consider the industry you are in.Are you in the construction industry?Are you in the banking sector?Are you a civil servant?

Last, consider your hobby.Are you a lover of cars?Do you like to read investment books?Do you like to paint or write in your free time?

Let us assume that you are a salaried employee, working in the construction industry and photography is your hobby.

The first rule of investment is:Invest in what you know.

As a salaried employee, can you invest in your company?Do you have enough confidence that the management is competent and ethical enough to grow the company for the forseeable future?

If your company is listed in the stock exchange and you are confident in the management, you may consider investing in the company.If your company is a private company, but you are familiar with the industry, you will be able to analyze the listed companies in the industry and pick up the best company to invest in.

Through your work and your contacts in the industry, you will likely have the insider knowledge of real estate.If you are confident enough of your knowledge and the knowledge of your contacts, investing in real estate is a logical choice.

Your hobby is photography.Are you able to earn from your hobby?If you are, then the logical investment is to invest in the best photography equipments.Invest in some upgrading courses to learn more about professional photography.Join the photography societies in your areas, network with all other professional or freelance photographers.You can command more in freelance assignment when your skills improve and your reputation spreads.

Investment brings rewards as well as risk.The rule of investment is to maximise rewards and minimise risk.Always invest in what you know.Please do not invest in companies in an industry that you have no knowledge.

Diversification prevents you from losing all your money in one bad investment.In the example above, your money goes into stock market, real estate and your hobby.In the long run, your investments should pay off and build up a nice retirement nests for you.