ming O

ain reasons why financially literate people may still not develop abundant asset columns. Asset columns that could produce large sums of cash

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ynic

azin

ad h

rrog

s losing money. And in all my years, I have never met a rich person who has never lost mon

e fear. It's how you handle losing. It's how you handle failure that makes the difference in one's life. That goes for any

n ; she sees blood, she flies into action. When I mention investing, she runs'j away. When I see blood, I don't run. I pass out. My rich dad understood phobias about money. "Some people are terrified

ng, it's easy to be rich. I won't go into it here, but there is a large difference

gains of all time. New York was purchased for $24 in trinkets and beads. Yet, if that $24 had been invested, at 8 percent annually, that $24 would have b

l funds, which he will convert to bonds and government securities. He'll only be 55 when he gets out, and he will have -a passive cash flow of over $300,000 a year, more than he makes from his salary. So it

eft or would like to retire early? How

simply avoided the issue, re

"I like Texas and Texans," he used to say. "In Texas, everything is big

e losing?

risk, reward and failure I'm talking about. It's how they handle life. They live it big. Not like most of the people around here, living like roache

went on t

xans have a saying, "If you're going to go broke, go big. You don't want to admit you went broke over

of financial success was because most people played it too safe

uarterback, says it still another way:

rst fell down many times. I've never met a golfer who has never lost a golf ball. I've never met people who hav

r than the joy of being rich. Another saying in Texas is, "Everyone wants to go to Heaven, but no one wan

Alamo is a great story of brave people who chose to fight, knowing there was no hope of success against overwhelming odds. They chose to die instead of surrendering. It's an inspiring story worthy

he told us this story. It gave him strength, for it reminded him that he could always turn a financial loss into a financial win. Rich dad I knew that failure would only make him stronger and smarter. It's not that! he wanted to lose; he just knew who he was and how he would take a lo

inspired by them. They take i their failures and turn them into rallying cries. Failure inspires Texans to

s. I also said that I have never met a golfer who has never lost a ball. To be a top professional golfer, losing a ball or a tournament only inspires go

I always tried to turn every d

Tora, Tom, a somber Japanese admiral says to his cheering subordinates, "I am afraid we have awakened a sleeping giant." "Remember Pearl Harbor" became a rall

aid to lose." People like Fran Tarkenton are not afraid of losing because they know who they are. They hate losing, so they know that losing will only inspire them to become better. There is a big difference between hating losing and being afraid to lose. Most people are so afraid of losing mon

h in CDs, low-yield bonds, mutual funds that can be traded within a mutual-fund family, and a few individual stocks. I

loves safely. But playing it safe and going "balanced" on your investment portfolio is not the way successful investors play the game. If you have little money and you want to be rich, you must first be "focused," not "ba

cused. George Soros is focused. George Patton did not take his tanks wide. He focused them and blew through the

lot of your eggs in a few baskets. Do not do what poor and

nvestments. If you're over 25 years old and are terrified of taking risks, don't change. Pla

ould go for it-but only maybe. If failure makes you weak or causes you to throw temper tantrums-like spoiled brats who call an attorney to file a lawsuit every time something does

t doesn't take much education. Fifth-grade math will do. But staking the asset column 'J is a high-attitude game. It takes guts, p

now the story of "Chicken Little," who ran around warning the barnyard of impending doom.

y a little chicken. We all get a little chi

ve friends or loved ones who will remind us of our shortcomings regardless of whether we ask. They often say, "What makes you think you can do that?" Or "If it's such a good idea, how come someone else hasn't done it?" Or "That will never work. You don't know what you're talking about." These words of doubt often get so lo

fund fame refers to warnings about the s

uring the 1950s when the threat of nuclear war was so prevalent in the news that people began building fallout shelters and storing food and wate

at in Washington State and the Arizona Health Department orders restaurants to have all beef cooked well-done. A drug company runs a

lling, "The sky is falling. The sky is falling." And Chicken Littles are effective because everyone of us is a litt

t we had done through stocks and real estate. The prices of real estate in Phoenix were depressed. We spent tw

ity, we called an agent who sold it to him that afternoon. The price was a mere $42,000 for a two-bedroom townho

called immediately to find out why. All he said was that he talked to his n

said "no." When I asked why he listened to him, Richard

months. The unit was worth $95,000 in 1995. All Richard had to put down was $5,000 and he would have had a start at getting out o

s remorse," and it affects all of us. It's those doubts that ge

he formula they're bought on makes them safe. They just lack liquidity. So I look at them as 2 to 7-year CDs. Almost every time I tell someone, especially if they have money in CDs, that I hold my money this way, they will tell me it's risky. They tell me why I should not do it. When I ask them wher

d is simply waiting for you to get rich. Only a person's doubts keep them poor. As I said, getting out of the

of his favorite sayings. Rich dad explained that criticism blinded while analysis opened -< eyes. Analysis allowed winners to see

ent tool. Yet, every time I mention real estate as a vehicle, I often hear, "I don't want to fix toilets." That's what

doubts and fears close their m

hey're saying a toilet is more important than what they want. I talk about freedom from the rat race, and the

the key to your succes

w goes up. But more importantly a great property manager allows me to buy a lot more real estate since I don't have to fix toilets. A great property manager is key to success in real estate

igured out how to buy more real estate and expedite my getting out of the rat race. The people who continue to say "I don't want

nk I or anyone else likes losing money? They don't make money because they chose to not lose money. I

oked up and saw that the price of oil was going up. My friend is a worry wart or a "

n though I already owned a substantial share block of an existing oil company. With that information, I immediately began looking for and found a new under

ain, the "Chicken Little" worried and complained. I smiled because in January 1997, that little oil company hit oil and those 15,000 shares we

uld be more people -investing to win instead of investing not to lose. A "stop" is simply a computer command that sells your stock automaticall

eir head must be loud. Chicken Little has taken over their brain and is yelling, "The sky is falling and toilets are

his business and began to live on his Social Security check. It wasn't enough. He went around, the country selling

e are quitting. "He was a brave and tenac

ittle afraid, just do what Col. Sanders

r his wife and children. He spends long hours at the office and brings work home on weekends. One day he comes home to an empty house. His wife has left with the kids. He k

eir health. The cause is the same. They're busy, and they stay busy as a way of avoiding something they do not want to fac

hing, playing golf or shopping. Yet, deep down they know they are avoiding someth

or laziness? The answ

e to say. Yet, we all have inside of us this yearning to have nice things, new things or exciting things. So

mom's favorites. Or "You want me to buy you what?" was a favorite of my dad. "Do you think

the angry guilt-trip that went

car in his garage. The garage is filled with toys for his kids. Those spoiled brats get everything they ask for. "I don't want them to know the feeling of want" are his everyday words. He has nothing set aside for

e the words "I

ford it?" His reasoning, the words "I can't afford it" shut down your brain. It didn't have to thi

says, "I can't afford it," a war breaks out inside you. Your spirit is angry, and your lazy mind must defend its lie. The spirit is screaming, "Come on. Let's go to the gym and work out." And the lazy mind says, "But I

s it is. I've got too much to do at work anyway. Look at what

is another word. "How can I afford it?" opens up possibilities, excitement and dreams. So rich dad , was not so conc

rocess of attaining the goal we desired that he wanted us to learn. The problem I sense today is that there are millions of people who feel guilty about their greed. It's an

ever affo

k out answers and solutions. The hardest part was fighting my real parents' dogma of "We can't afford that." Or "Stop thinking o

r had to work again?" Or "What would I do if I had all the money I needed?" Without that little greed, the desire to have something better, progress is not made. Our world progresses because we all desire a better life. New inventions are made because we desire somethi

t just remember what Michael Douglas said in the movie Wall Street. "G

d it best: "Do what you feel in your heart to be right-for you'll be c

ion. After seeing the movie Conan, starring Arnold Schwarzenegger, a friend said, "

y puny and skinny at one t

added. "I heard he has a habit of wor

ll bet he

e was born that way. Besides, let's stop

king my rich dad about the habits of the rich. Instead of answer

ad pay his bills?

of the mont

anything left

ittle,"

e struggles," said rich d

st. He pays himself last, but on

he has to pay his bills, doesn't he? Yo

ieve in paying my bills on time. I just pay my

n't have enough money?" I a

irst. Even if I'm short of money. My asset column

"Don't they

ok, I did not say not to pay. I just said I

ied. "How do

e question is 'Wh

, w

you think will complain louder if

n you," I said, responding to the obvious. "You w

motivation. I've worked extra jobs, started other companies, traded in the stock market, anything just to make sure those guys don't start yelling at me. That pressure made me w

rnment or other people you owe

bill collectors in general. Most people give into these bullies. They pay them and never p

htlifting and bodybuilding lessons

er. Others get weaker. Forcing myself to think about how to make extra money is like going to the gym and working out

o if I pay myself first, I get financ

dad n

e bosses, managers, tax collectors, bill collectors and landlords pus

"Just like the 9

I don't know loses me money. Every time I have been arrogant, I have lost money. Because when I'

heir own ignorance. It often happens when I am discussing fi

s clear to me that they don't know what they're talking ab

have absolutely no idea what they're talking about. Most people in the m

start educating yourself by finding an expe