Thursday, November 30, 2006

Four Reasons… That Hold People Back from Becoming Power Investors

Last month in Rich Dad’s Community News we featured an excerpt from the newest Rich Dad book, Rich Dad’s Who Took My Money? titled ‘The Power of Power Investing.’ Your feedback and comments have been overwhelming…so here are a few Top Tips from Sharon – from Who Took My Money? – that can help to clear your path – and your thinking…

Reason #1 • The Power of the Word Can’t

So you find yourself saying “It’s easy for him to say! I can’t do that.” In Rich Dad Poor Dad Robert shared how his poor dad would always say “I can’t afford it!” His rich dad, on the other hand, forbade him from saying “I can’t afford it!” and challenged Robert to ask instead, “How can I afford it?” The word “can’t” closes your mind, while the phrase “How can I?” opens your mind.

Reason #2 • The Power of Easy

Rich dad said, “Money flows to the person who makes life easy.”
However, creating an investment that makes life easy is not easy at first. But once created, the money starts flowing.
It may sound contradictory but remember, Rich Dad also said, “When it comes to investing, the people who take the hard road find life easy. People who take the easy road usually find life hard.” If you take the time to create the investments today, your life will become much easier later.

Reason #3 • The Rich Make it Easy to be Poor

It is so much easier to get bad debt (personal debt like credit cards that you have to pay for from personal funds) than to get good debt (debt that is paid for by the income from the underlying investment). Personal debt is at an all-time high.

Reason #4 • Investing Without Guarantees

This comes back to investing for actual cash flow today versus the promise of capital gains tomorrow.

Can you see yourself controlling each of these reasons in your personal investing strategy so you can become a power investor?

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