If you are doing business. If you are learning finance. If you are dealing with other investors or if you have the plan to invest big money in any project, you should learn first the levels of investors. With this learning, you can deal better with other investors. Do good business and earn good money with lowest risk.
Following are the main levels of Investors :
Following are the main levels of Investors :
0 Level : No Money Investor
If any investor has no money to invest anywhere. He or she will be at zero level. This type of investor is called no money investor. All such people's expenses will more than incomes. So, they have no money for invest anywhere.
1st Level : Loan Taking Investor
Loan taking investors are those who try to solve their financial problems by taking more and more loan. They invest money with debt money. They are not aware of their incomes and expenses. They buy high depreciation assets with debt. They love to pay installments. All such investors' future is in dark.
2nd Level : Saving Investor
Saving investor is that investor who does not take the risk. So, he or she wants to secure his or her money through saving in bank account. All such investor can not get success in the life. Instead of becoming saving investor, you should become banker. Because banker does the business with saving fund of saving investors. If they want to invest money, they invest money in non-productive asset. For example, decoration of home, ac car and picnic in holidays. Such investment will not gain any money but only increases expenses.
3rd Level : Smart Investor
Actually, all smart investors are of 3rd level. They think, they are smart. So, we are calling them smart investors. But in reality, they are fool because they investor their hard earned money just like fool.
a) They invest money without getting knowledge of investment
b) They invest money like gamblers.
c) They do not see and estimate the future correctly for investing their money.
4th Level : Long Term Investor
They are very aware investors. So, they have reached at fourth level of investors. Their investment targets are very clear. They make the planning for long period. They take the long period capital gain and tax benefits. These are the real estate investors. All such investors do not fear from any type of short term risk. . They start from today with their small capital. They control their expenses. They leave the buying habit of luxury goods.
5th Level : Risk Taking Investor
All such investors have good knowledge and experience of investment. They understand the flow of money. So, they take the risk in investment. So, we are calling them risk taking investors. They buy in wholesale instead retail. Due to taking big risk with smart way, they earn big. They have the team of bankers, accountants, advocates, and brokers for saving tax and increasing their money fastly.
6th Level : Capitalist Investor
This the greatest level of investors which every investor should reach. Every investor should become capitalist. They are lots of passive incomes from their unlimited good investment in assets. They generate jobs. They manage risk better way. They use all advance technology. They trust in financial independence instead of financial security.
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