Rich Dad's Guide to Investing summary

Introduction: Approach Investing Like a Rich Person

Rich Dad's Guide to Investing by Robert Kiyosaki What is in it for me? Approach investing like a rich person would and become rich yourself. Which sounds better, being financially comfortable or being rich? Deep down, most people want to be filthy rich.

But they also tend to feel that the future is already decided for them. And that they will never actually be rich. But how rich you are or are not is up to you. If you make the decision to be rich and adopt the mindset of the rich, there is no reason at all why you cannot achieve that goal.

First, however, there are a few things you will need to learn as there are no get rich quick schemes that actually work. In practice, becoming rich means investing in financial education and literacy until analyzing financial statements become second nature. It also means learning how to create and grow a business. And then using the experience and money you have accumulated to make more and better investments.

The first step though is to get in the right frame of mind and go from saying, I will never be rich to I am going to be rich. And this is how this is rich dad's guide to investing by Robert Kiyosaki.

Chapter 1: The Richest Ten Percent Have Ninety Percent of the Money

the richest 10 % have 90 % of the money because they invest in a way that the poor and middle classes do not. Maybe you have heard of the 80 -20 rule which states that 80 % of our success comes from 20 % of our efforts. Well, that might be true for overall success. But for money, the rule is 90 -10 because when it comes down to it, 10 % of people have 90 % of the money.

The rule applies in many walks of life. Think about Hollywood stars and then think how many actors are waiting tables between gigs. Yep, 10 % of actors earn 90 % of the money. The same goes for athletes, musicians, and of course, investors.

A Wall Street Journal article confirmed this, noting that 10 % of the population own 90 % of all the shares in the United States. Why is it that rich people can accumulate so much wealth? Well, one reason is that some investments are simply off limits if you are poor. Back when he was a young man with little cash, the author asked his rich friends if he could get involved in their business deals.

But, despite their friendship, the answer was always no. Not because they did not want to help him out, but because it would have been illegal. In the United States, the US Securities and Exchange Commission restricts certain investments to accredited investors. That is, people with a net worth of $1 million, or a consistent annual income of $200 ,000.

Anyone who is worth or makes less than that simply is not allowed to get involved. Now, there are good reasons for preventing people without much money in the bank from making potentially risky investments. But these rules also prevent poorer people from making the best investments, the investments of the rich. So, how can you break into that top 10 percent?

In the following section, we will find out what it takes to think like a rich person.