An Investor don’t have to be the game changers like Buffet, Kiyosaki, Ray Dalio and many more. A working class who is a low income earner, middle and high income earner who sets aside certain amount monthly for investing monthly can be classified as an Investor, so the same goes for Consumer but what differentiates them is their spending habit. What they do with their monthly earning in respective of who they are is what really matters from my research. These are the six differences between them
(1.) Investors pay themselves first but Consumers pay bills first
As an Investor that gets paid monthly, they dedicate certain percentage to pay themselves which help them plan for the future. They are dedicated and disciplined because they do not know what can happen in the future so they create their future by paying themselves to acquire assets that will make them financially better but the Consumer pays their bills first, they list all their expenses and the already accumulated one to settle for current and coming days ahead but after sharing everything they have nothing left to pay themselves even if little is left, they settle more bills leaving them broke.
(2.) Investor buy investment but Consumers pay debts
Investors pay themselves by investing that portion into investment of their choices to plan for their financial furure but Consumer is paying off their debts which keep them struggling financially. Most times, it take close to the end of the year before paying the debt off and they take another debt to keep their life debt-stable.
(3.)Investors buy into quality companies but Consumers buy quality luxury.
After doing their due diligence, or through their expert, they search for the best company to invest a portion of their savings into. They study a lot of companies, they compare and contrast to choose. They take that portion of their money and invest into the business of their choice that will grow their earning and make them more richer while the consumer sets their eyes on quality luxury to buy.They buy the latest trends to show off to their pair and be able to stand among their pairs.
(4.) Investors plan for the future but Consumers plan for Now
As they pay themselves, they plan for the future by proper budgeting and allocating money to their different needs and have good financial plan for the future. They project five to ten year plan for financial stability but the Consumer only interested in the present moment and how they can make themselves comfortable now and struggle in the near future
(5) Investors improve on their skills but Consumers believe it’s expensive.
They create time to improve more on their investing skills, they work more on themselves in their leisure time that will give them more opportunities to increase their earning and networth while the Consumer habits look at it as expensive and exorbitant to waste time and resources on such things. They prefer to procrastinate and wait till they are financially comfortable which never become reality.
(6.)Investors are frugal but Consumers spend to enjoy their lives.
Investors are frugal with their money because they value their money and the effort in getting it, they look for ways to make the money add more value and increase. The Consumer behaviour is just now, they believe money is meant for spending alone and enjoying their lives and having a nice time.
With these few listed points above, you know how the Investors plan with the little in their hands to become richer and how the Consumer behaviour lives you in the paycheck to paycheck lifestyle and struggling to make a living.