How To Invest Without Being an Investor

Cashflow Quadrant by Robert T. Kiyosaki is not just a quadrant but is able to distinguish some of the ways a person earns money. One quadrant that usually will be taken by all individuals is quadrant I (Investor). But how to invest without being an investor? Let's see how Robert T. Kiyosaki invests without having to move to quadrant I.

Compulsory Taking Risks

Changes in defined benefit pension plans into a defined contribution force many people to become investors. The majority of people are forced to undergo the stage as investors when arriving at retirement age. Similarly, individuals in the E quadrant (employee) and S (casual worker) are generally more concerned with security than taking risks. Unfortunately, quadrant I (investor) requires all individuals to release their sense of security and play with risk factors. However, my finances will explain the solution to investing like an expert investor without having to be an investor.

Economic Revolution

When there is a revolution or major changes in the economy, there are two characteristics, namely moving forward or maintaining the old idea. However, to anticipate the revolution, you need to see everything from both sides. No one ever knows how the future of financial circumstances will affect your financial condition. You need to keep developing yourself in anticipation of change and can not force yourself to stick to old ideas. You need to think about long-term financial security and take full responsibility for the financial security of yourself.

For example is a change in pension plan into a defined contribution, where you must be responsible for investing for your future. You who are initially in the E quadrant (employee) and S (casual worker) need to learn to be a wiser and more cautious investor. Learn to invest even if you are not an investor with the following tips:



# 1 Diversification

Individuals in the E quadrant (employee) and S (casual worker) who usually seek safety often use a diversification strategy to invest. Why is that? Because this strategy is known as a "no loss" investment strategy. The standard diversification strategy allows you to invest without the high risk that investors generally have. However, this step is not a step favored by successful investors.

Successful investors will not focus on standard diversification dogma but prefer to increase the concentration of the portfolio or concentrate some investments only for better results. Good investors also dare to take risks rather than rely solely on ancient safe ways, with great risks, the likelihood of success being greater. Some individuals who are forced to plunge into quadrant I will hate risk and instability, but different from true investors. As the world's largest investor, Warren Buffett says, "In fact, true investors welcome instability."

# 2 Blue Chip

Have you ever tried to play stock? If you are just starting a stock game, which one do you choose: stocks from high or low-value companies? If you choose a high-value share, then you may be included in quadrant E (employee) and S (casual worker). Because individuals of this type usually consider companies with high-value shares safer and less likely to fall. But even if the possibility of a small company fall, then remember that in the stock market is not so. Taking risks by planting a stake in a small company has a high risk, but a high probability of success.

# 3 Relying on Shared Funds

Individuals who avoid risk will feel safer if they hand over their money and rely on an expert in managing their investments with the assumption that financial experts will work better than themselves. Again these impromptu investors are looking for a sense of security in investing, this is commonly done by people who do not want to be professional investors, and assume investment is just an obligation. But to keep in mind is not to say that mutual funds have no risk at all. If the stock market plummets, something will happen that can be called a mutual fund leak that has huge losses.

Moving Quadrant

Sometimes circumstances force you, individuals, to move quadrants. As your quadrant moves, some of the characteristics you have been forced to change, for example, you should lose the sense of security you normally have in the E (employee) and S (freelancer) quadrants as you move to quadrant I (investor). It is important for you to learn some basic steps in entering this quadrant so that in the end it will not be a disaster for your retirement. You can choose not to be an investor in investing, but do not forget some of the above tips to avoid big losses.