[PODCAST] Do you understand the Five Levels of Investing?

Not all investors are created equal. 



If you want to become a successful property investor you really need to understand the five levels of investing which is a model that I’ve designed to explain how most investors progress along their path to financial freedom.



Just to be clear, this has nothing to do with your level of income. It has a lot to do with your financial fluency and financial intelligence. 



If you want to work your way up the rung of investors, you’re going to have to understand which level you’re at right now present and what you have to do to work your way up to the next level. After today’s episode, you’ll understand more about the levels and where you fit into them.



After I’ve explained the five levels of investing, I’m going to share a mindset message from one of my mentors. 



The Five Levels of Investing



Level 0 – The Spender



Those at level 0 end up with a high level of debt because they spend and borrow, living paycheck to paycheck. They aren’t really investors at all; they’re spenders and borrowers.



Level 1 – The Saver



Those at level 1 have one main investment – their home. They save money, but they save it to spend it later, not to invest it.



Savers are often unwilling to take any risks with their money and fear financial matters that look risky.



Level 2 – The Passive Investor



Those at level 2 are aware of the need to invest in order to grow wealth. However, they don’t necessarily understand the rules of money and may be hanging on to outdated ideas about finance.



Passive investors look for outside sources and “experts” to tell them what to do with their money instead of educating themselves, which can make them easy prey for get rich quick schemes.



Level 3 – The Active Investor



Those at level 3 are actively involved in their investment decision and take responsibility for their own financial futures. They focus mainly on growing their asset base.



Active investors understand that they can’t do it all themselves, so they form networks of advisors and peers or join Mastermind groups.



Level 4 – The Professional Investor



Those at level 4 have risen to a level where they have built and now manage their own investment business. They have a substantial asset base that generates enough passive income to pay for their lifestyle, and they continue to grow their portfolio whether or not they work a real job.



Professional investors retain control of their investments while employing a team to help them continue to achieve consistent results.



Where do you fall in the levels of investors?



Not everyone makes it to Level 4. In fact, few get that far.



But you can, once you understand why the rich keep getting richer.





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