Differences between an investor and common man!

[mersal]

I'll give you an example of one of my rich neighbours. When he was building a house he didn't do anything and hired people for even the smallest jobs, but a day or 2 before they were supposed to come and install something, pour concrete, whatever, he studied the process, had plans ready, supervised everything. He could go read a newspaper while the workers do their thing, but he kept on standing there and watching to make sure it's all as it should be. Always be like that guy.

Supervising our work is important but if he keep supervising the building works for months then he is losing his valuable time which could be invested onto something productive,a smart man will hire one more guy to supervise all the things and invest his time into making more and more money.

On one hand, you are right, but on the other, you can never be too sure of our employees. Hiring someone to supervise the work will mean a wage for him and another employee to check and worry about. My neighbor is rich and retired, time is something he can spare. If you want something done right, do it yourself is one of my favourite quotes.

Investors never have retirement!

Sure he can cut of more wage by supervising himself but if he can spare that time into making more profits he is going to pay the wage from the part of profit and hold the remaining for him.It is okay to lose 10 dollar while we are making 100 dollars at the same time which is the mindset of true investor in my opinion.

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[SquallLeonhart]

You have clearly stated the difference between both of them mates, so I don’t think you need any further answer. If you see any investor taking loan, they are strictly taking loan to multiply their investment, and would never take loan like common man as you said. We can also not blame a common man, because taken loan is a necessity sometime, without that loan, they will not be able to meet up with the need that arises around them on that particular time of taking loan.

Imagine that I have children in school which you and I know that there is no way my salary can ever be enough to foot their school bills and at the same time foot my house bills, so we result to take loan. The only people that are lucky to leave their life off loan are people that are good at businesses or opportune to have capital to set up business, and not that they dint take loan, they just don’t take loan for person things.

[beerlover]

I think common man is not as bad as it is made to be here, when you are talking about common man you think of something like a cave man, regular common man is usually a white collar worker that makes a salary and some of them make enough to put a bit aside and blue collar which is usually too different from each other, some blue collars make not enough to live and some make a ton of money, even in the same job like a car mechanic could be super rich or super poor depending on where and how well they are doing their job.

That is why lets not bury the common man that much neither, yeah we are definitely superior in ideology because we can see how crooked the system is and we are trying to change it but they are not morons neither, everyone focuses on making more money because they know wealth gives you freedom.

[bitcoindusts]

I would rather name the two the rich and the poor (though not all) or businessman and ordinary man. The first usually don’t spend their money based on impulsion or just because they want to, there must always be objectives for their spending. They spend more on something that would give returns like investments but ordinary people just spend anyhow. As long as it pleases them or they like something even if not needed they will even take loans to be able to buy it. Businessmen are not afraid of risks while ordinary men would not even try because they are already thinking of the risks. Businessmen are more open to possibilities while ordinary people are closing their minds without even trying. (I’m not generalizing here)

[finaleshot2016]

The common man sacrifices the future for the moment.
The investor sacrifices the moment for the future

I liked it.

It's true that a common man can be easily tempted and spend all of his treasures just for a single moment of happiness. An investor will think intellectually and spend wisely for the betterment of his/her future.

So we consider ourselves as an Investor since we invest time so when the moment comes, it'll brighten up our future.

[Polar91]

A true investor IMO has these characteristics:
•Optimistic no matter what happen to the market
•Always think for his future
•Will risk what he can afford to lose for something that he thinks has a potential
•Doesn't stop learning in growing his asset
•Most likely thinks different from others

On the other hand, a common man IMO has these characteristics:
•Doing things for his needs and wants
•Somehow has a doubt for himself
•Somehow believes that you only live ones so just enjoy it
•Just go with the flow

[7788bitcoin]

What are the things differ from mindset of common man with investor,please share your thoughts.

I hope you are misunderstanding huge institutional investment firm since the normal investors are common people with who are salaried, i cannot imagine a world where only institutional investors will invest in anything and if that is the case the stock market wont be that high, the so called common man if educated enough will find opportunities to multiply his savings in safe harbor and that is where mutual funds and stock market and now the cryto market comes into place and the common man invest according to his skill level and understanding of the market or will hire someone to take care of his portfolio.

[el kaka22]

I think the main difference is the fact that the investor is not happy with how much money he has and the common man is. Right now the biggest mindset is that we all know the fact that in this life if you do not have enough money you are just another statistical living thing and you have absolutely no difference in human history then a pet dying, maybe some people mourn you after you die (though people mourn pets too) but in the end 200 years later nobody will even know you existed, how many people remember their great great grandfather right now?

Almost close to zero unless he was a known person. That is why if you want to make a name for yourself you have to be rich, you have to be powerful and that power comes from money most of the time. Hence we are not happy with what we have and we want more.

[kaya11]

I fall for the common man I guess, I immediately get what I want and it is because I loaned it, I don't have the patience of waiting and saving money for what I want. Sometimes I get the help from others including my family, (Dad and Mom), they are supportive and gives me the money whenever it is worth spending for, like in business. The nice thing is they don't charge me with interest, good deal right?

[Muffinmanlet]

The common man splurges too much and doesn't think long term. The investor tries to make financial decisions based on increasing his money over the future.

[lixer]

I fall for the common man I guess, I immediately get what I want and it is because I loaned it, I don't have the patience of waiting and saving money for what I want. Sometimes I get the help from others including my family, (Dad and Mom), they are supportive and gives me the money whenever it is worth spending for, like in business. The nice thing is they don't charge me with interest, good deal right?

This is common with many people but do you know what a wise person would really do in your position, he would have all those money that you use in buying those things because they would only be a liability to you and not an asset, I am not saying that liability is also not okay to buy sometimes, but that would be when you already have an establishment and you have investment that will always bring the money for you to continue to maintain and service those liabilities.

One thing I use to tell my younger ones is that there is always a time for everything, it is better that you suffer now and enjoy at your late time than to enjoy now and then suffer at late time, and one of the way to suffer now is to sacrifice some of those things for investment.

[TheCoinGrabber]

IMO,investors never want to take loans for their consumption like home loan,car loan,etc then just save money and will buy the things for their needs but common man like you and me will buy the things immediately when we get the desire of it using loans but we are paying 20% of interest to those kind of loans.

Not exactly. An investor knows how to leverage debt. If they know they can earn much more from what they are using the debt on, they'd take it. The "common" people get in debt for things that don't put money in their wallet.

It's like buying a $300 worth of tablet and software and using that to create art for sale versus buying $300 worth of the latest fashion items. One earns you money the other doesn't.

[Alert31]

What are the things differ from mindset of common man with investor,please share your thoughts.

IMO,investors never want to take loans for their consumption like home loan,car loan,etc then just save money and will buy the things for their needs but common man like you and me will buy the things immediately when we get the desire of it using loans but we are paying 20% of interest to those kind of loans.

You're wrong because there are many investors that also take loans for investment and other purposes. Actually in my knowledge and understanding common man that you have said and the investors are the same in some things like investing,buying and purchasing of some materials. The difference between this two are investors mostly focus on how to get money or to have a huge investment but the common man are those people that are satisfied of what they have and mostly investing are not their priority in life.

[Jating]

Most likely investors knows the risk involved and learn how to mitigate it, while casuals joes will put their money and invest without knowing the risk and then complain when they have lost so much money. The difference is education as a smart investors knows when to quit and doesn't gamble but then chase the next big investment platform, get out, rinse and repeat.

Average investors on the other hand, still thinks that he can get out with a profit, prefer to stay on an investment when obviously it is not doing good and hope that it can recover soon. But we all know that once your investment plummet, it's better to take the lost and move on.

[Betwrong]

The common man sacrifices the future for the moment.
      The investor sacrifices the moment for the future

Only if it were so simple. Indeed, a loan taker sacrifices the future for the moment, but not all investments are successful ones in the long-term. You can think that you are sacrificing the moment for the future while, in reality, you can be just throwing your money away.

However, I absolutely agree with the OP regarding taking loans for buying things (which you, probably don't need, btw) right now and paying huge interests to the banks in the future. Think twice before doing that, because it can be the road to modern slavery.

[Janation]

The common man splurges too much and doesn't think long term. The investor tries to make financial decisions based on increasing his money over the future.

Not all of them though.

There are a lot of people out there that is not even an investor but they know a lot of things they should do and not should do. To be honest, I don't even know what is the requirements or a classification of a person to achieve that kind of being an investor, can anyone explain that?

[Paulinerims]

The main difference is the financial education and how a person works and handles money. Common man views money as a spending potential while an investor sees it as growth potential. If we talk about the majority, not everyone is like that

[vintages]

Not all of them though.

There are a lot of people out there that is not even an investor but they know a lot of things they should do and not should do. To be honest, I don't even know what is the requirements or a classification of a person to achieve that kind of being an investor, can anyone explain that?

Totally agree with the bolded.
Whether one is spending or investing has to do with choice and does not require one to be a 'common man' or 'investor'.
If one choice to be poor in the years to come, its a simple choice by being lazy and spend recklessly and if they chose not to beg in the years to come, they work hard for it and learn to measure expenses. They don't go about terming themselves anything; it's all about how they live their lifestyle.

[Lanatsa]

The thing you said was right,it do really differs with peoples mindset on how they do make themselves profit in such possible ways.Investors mind will always look up for ways on accumulation and methods that would increase its holding even more not only on recent or current profiting but also they do target out for leverage too.

Emotion does plays a big factor with these investing field yet anytime it can mess out your entire plans.

Thanks, and you raise a great point as well. Equity management is a huge factor influencing profitability.

As important as controlling risk, it can be argued it's also vital to move in & capitalize your full resources when you see a strong opportunity,
including using leverage where a highly attractive reward to risk ratio would justify it...

It will matter ones decisions.It might not be easy but this will vary on persons experience towards investments.If hes already experienced enough on how things goes or works

then most probably they do have the edge compare to other man that do investing.Opportunity hunting will not be seen anytime if a certain investor doesn't know how to differentiate it.

[SquallLeonhart]

Likely I said,investors take loan only if they want to make more profitable investments but others take loans to buy things which becomes again liability to us.So we are getting more expenses by taking those loans.

For those that are taking loan not for the purpose of investment, do you think that they are really happy taking such loan? Nobody will be in his clear state of mind to just take loan to buy liability, but they have no choice than to do that because that is the only way that they can pay for those liabilities that are very necessary which their salary alone would not be able to solve.

Everyone knows that loan is best to be taking when one needs to invest in it but what can they do, that is why we have minimal loan and heavy loan in my country, and that is also why financial institutions has also classifies loan to either to be business loan or a private loan, I believe that before they give loan too, they will ensure that the person will fall into the category of their loan.