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Overwhelmed by debt? Want to make investing a breeze? The goal of this site is to help you get out of debt and start investing for your future. If you are unsure where to start, click here to begin. I will break everything down for you in small, obtainable steps so that you can take control of your finances once and for all.

different types of investorsWhen it comes to investing, everyone has their own goals and plans. Some may be investing for retirement, while others are using their investments for income. Whatever the case may be, each investor is different. This isn’t a surprise since each one of us are unique individuals. But knowing what type of investor you are can make you become a better investor. See which type of investor you identify with most below.

Broad Classifications of Different Types of Investors

The largest classification of investors is simply active versus passive. If you are trying to beat the market, you are an active investor whereas if you simply want to earn what the market gives, you are a passive investor. I go into greater detail about these types of investors in this post.

From there, we could also put conservative and aggressive investors in a broad category as well. Conservative investors tend to take on less risk and are more prone to have a portfolio that is invested more in bonds than in stocks.

The aggressive investor on the other hand, takes on a great deal of risk and tends to invest more in stocks. A really aggressive investor will invest mainly in small cap companies and those companies in emerging markets.

Specific Classifications of Different Types of Investors

While it is easy to see us in one of these categories, they are too broad for us to learn anything about ourselves. If we could narrow in on the different types of investors, we might be able to learn where we fall short. Below are 6 additional classifications for investors along with the pro’s and con’s of each.

The Saver

The saver is someone that fears the stock market. They would rather keep their money in the bank than invest it in stocks. Many savers are like this because they lost a lot of money during the 2008 stock market crash. Their losses stung them enough that they would rather earn a low return on their money, knowing they can’t “lose” it than earn a higher return with the stock market.

  • Pro: The good side of a saver is that they are saving money. They are living within their means and are avoiding debt. Should they lose their job or have an emergency hit, they have the money to survive.
  • Con: The bad side of a saver is that they aren’t earning anything on their money and are in fact losing money. They are losing in the sense that the statement value of their savings never drops, but rather their purchasing power is declining. With inflation around 3%, savers need to earn this rate just to keep up with rising prices. If a saver is earning less than 3%, the price of goods is increasing at a faster pace than their savings. This in turn is causing them to lose money and potentially not afford to retire.

The Fix

How do you get over your fear of investing in the stock market as a saver? Some might say to just jump in, but that would cause more harm than good. Instead, savers need to take the slow and steady approach. Find a good mutual fund (you can learn the basics here) and invest $1,000. Then set up a re-occurring monthly transfer of $100 to invest more. Look at something like the Vanguard Star Fund.
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fall trees

Carnival of MoneyPros – Feels Like Fall Edition

Welcome to this week’s edition of the Carnival of MoneyPros! This week’s edition is called ‘Feels Like Fall’ because fall is definitely in the air here in the Northeast. Fall is my favorite season and I love the cool, crisp nights that it brings. It’s also a smart time to do any last minute home projects outside before the weather turns too cold. I’m currently working on a host of household projects as we speak. But that that said, during […]Read the full article...

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My Scottrade Review: One Of The Best Online Brokers

When I first started investing way back in the late 1990’s, there weren’t many options for me to choose from when it came to brokers. The world of online brokers was still in its infancy. I had to resort to a brick-and-mortar discount broker that charged me about $30 to place a trade. We have come a very long way. Now the internet is full of various online broker options for you to choose from. The question becomes, which one […]Read the full article...

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Is Auto Insurance Really Worth It? (Infographic)

You may believe that auto insurance is not worth the cost. You are a good driver, so why should you pay for something that hasn’t happened? Even excellent drivers can find themselves in an accident. Anyone can work an extra long, exhausting day and tap another parked car in the office parking lot. Anyone can get caught up with radio dials or personal worries and accidentally rear-end a driver who stops short. Anyone can make a right hand turn without […]Read the full article...


Financial Education Starts With You – ebook Giveaway

Are you someone looking to get ahead financially? Do you want to learn how to invest or pay off debt? Maybe learn new ways to save money? Maybe you want to know how to live overseas or just live a life where money is never an issue? Whatever you financial goals and dreams are, they all begin with you. You need to take the time to educate yourself to have a strong financial foundation. After all, nothing great can be […]Read the full article...

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What Does ETF Mean?

I’ve talked in depth about mutual funds on this blog – case in point is the mutual fund basics post a few weeks ago. But what I haven’t talked to you about are exchange traded funds or ETFs. Exchange traded funds have grown in popularity over the past few years. This post will walk you through what they are and why you should consider investing in them. What Is An ETF? In a broad sense, an ETF is a hybrid […]Read the full article...

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Get Rich Quick Schemes – Are Any Legit?

We all want to get rich quick. The thought of going to bed poor and waking up the next morning filthy rich has intrigued man since the beginning of time. The idea of instant riches has become even more profound recently with the various ways to make money and society’s focus on short-term gratification. As a result of this, get rich quick schemes have become more numerous. The question is, are there any legit get rich quick schemes out there? […]Read the full article...

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The Round Table – September 7, 2014

It’s football time!!! So excited to have football back. I love watching the games on Sundays and just hanging out with friends and family watching. I’m still fairly busy as I pointed out in my end of summer update post. I am checking things off my list however and slowly getting things to a more manageable level. I am also gearing up for my house project event I touched on in my update post above. Of course, I did have […]Read the full article...

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Options When Financing A New Car

Financing a new car or van used to be a straightforward affair. You’d either pay in cash, with a credit card or loan, or take the car manufacturer’s finance option. Nowadays, though, there are far more options available, particularly with some manufacturers who are well aware of the financial pressures affecting many people in Britain today. Option Outside of Traditional Financing Fiat, for example, has a number of flexible finance options available. And it’s not just their cars, either. If […]Read the full article...

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5 Online Degrees That Will Give You a Head Start on Student Debt

It’s a fact of life that furthering your education often times comes with a hefty price: student debt. Whether or not you’re left with debt after graduation depends upon a few factors. The biggest factors in student debt are the cost of tuition, the length of the degree program, and the degree program itself. Tuition cost will vary per school and per program type. With the right degree, though, paying off student debt will take no time at all to complete. […]Read the full article...