What Investor Category Are You?

Investing is simple but not easy! This is not a play on words nor is it meant to simplify risk management and asset allocations in the complex world of investments.
All it takes is a sound wealth plan, discipline and a bit of financial education to yield positive results in the long term. Without a sound financial base and an “investment” mindset, the investment journey will be difficult and fruitless.
Identifying what investor category you fit in is a good starting point to commence and excel in the world of investing.

Category 1: The Spender

Do you spend all the money you earn and have nothing left over at the end of each month? Does your money run out before the end of the month? Are credit cards and store cards your life line for paying your monthly bills? 
If you fall in this category, you aren’t actually an investor as you have no money to invest and spend all your excess money each month.

Category 2:  The Borrower

Do you tend to borrow money for entertainment, big ticket items or holidays?  Do you recklessly use your credit cards and roll those high balances into your home loan? Is your level of debt higher than what’s affordable based on your income? Do you think spreading debt over a long period of time is a smart strategy?
If you fall in this category, you are far from being an investor as you’re servicing the assets you own with a mountain of debt.  

Category 3: The Saver

Do you squirrel away small amounts of money each month? Are these savings sitting in the bank account or term deposit attaining a low risk, low return? Is your home your biggest “investment” which you aim to pay off over the next 30 years? Are these savings going to help you achieve your financial goals? 
If you fall in this category, you tend to save to consume rather than invest and thus you are not an investor either. You are afraid to take risks. Your savings will eventually give you a negative return after inflation, not ideal!

Category 4: The Passive Investor

Are you aware of the number of Super fund accounts you have? That’s great if you are, but do you know that you are incurring unnecessary costs on each of them?  Do you also monitor your Super fund performances and actively manage your asset allocation percentages? Are you cynical about the investment world and find excuses to not invest strategically? Do you dabble in the stock market as a sideline “day trader” on hearing about a “top” performing stock? 
If you fall in this category, you understand the need to invest. Although, you may be reckless in picking the next “hot” stock and can’t be concerned about investment performance. Whilst you are intelligent, you are not a well educated investor. Your money usually sits idle in an investment vehicle making minimal headway in building your nest egg.

Category 5: The Active Investor

Are you actively involved in all your investment decisions to achieve your wealth goals? Are you financially educated with a sound knowledge for investment strategies? Do you have a sound wealth plan that you follow diligently? Is your money currently working for you in your chosen investment vehicles?
If you fall in this category, you are focused on growing your asset portfolio and net worth. You have a clear wealth building plan mapped out. You control your spending habits, minimise debt and live within your means. Great job!

Category 6: The Sophisticated Investor

Have you accumulated sufficient assets that pays you an income each month? Are you able to not only pay your monthly bills with this income but have excess money for luxuries and holidays? Is your investment portfolio growing whether you wake up each morning or not?
If you fall in this category, BRAVO! You have reached the pinnacle of the investment mountain. They are well educated in the world of investments. You follow sound financial strategies and have built in adequate buffers to ride out the ups and downs of the markets.
Category 6 is the Rolls-Royce of the investment journey. Only the few that are disciplined and well educated reach this category. 
We at Moksh  help you on your journey regardless of the category you’re currently in. We plan, strategise and help you navigate up the ladder to investment success and financial freedom.
The key is to start today because as Warren Buffet says “If you don’t find a way to make money while you sleep, you will work until you die.”
Contact us for a free 15 min consultation to get started.