This thesis has a goal to show the value of personal finances in everyday life and significance of financial planning when one makes decisions about investing in financial instruments. Every person's goal is to achieve lifetime success which is very often measured by assets value or a person's net worth created through their entire life. If money would just stood still and it would not be possible to achieve increased value by investing, its purpose would not be investing, but insurement. However, if money is not invested, it is assumed that it is losing value, while invested money creates value and helps keeping your step up with the inflation rate. There are many investing possibilities, from low riks instruments like savings or bonds, to high risk instruments like stocks. Diversification, which decreases risk, is very important investment strategy. When investing, the most important elements considered by investors are income and risk. Therefore, depending on the amount of risk they are willing to take, there are conservative, moderate and aggressive investors. The thesis is a projection of an investor with moderate risk approach, and is showing investor's portfolio possibilities, with his risk aversion changes during investment period. The investor analyses financial markets and chooses between investment options.