Overcoming Obstacles

Hello people! A short context- the author explains five reasons why some people may still face roadblocks to becoming financially independent despite studying and becoming financially literate. In case, you missed reading the six core lessons of this book Rich Dad Poor Dad, make sure to read the blogs under the 'Recent Posts' section.

(This lesson is narrated by Robert Kiyosaki)

There are five main reasons why financially literate people may still not develop abundant asset columns that could produce a large cash flow. The five reasons are: Reason 1: Overcoming the Fear of losing money

The fear of losing money is real. But it’s not having the fear that is the problem. It’s how you handle fear. It’s how you handle losing that makes the difference in one’s life. “Some people are terrified of snakes. Some people are terrified about losing money. Both are phobias,” my rich dad would say. So his solution to the phobia of losing money was this little rhyme:

“If you hate risk and worry, start early.”

That's why banks recommend savings as a habit when you're young. There is a staggering difference between a person who starts investing at age 20 versus age 30.

If you have dreams of freedom—of getting out of the Rat Race— the first question to ask yourself is, “How do I respond to failure?”

If failure inspires you to win, maybe you should go for it—but only maybe.

If failure makes you weak or causes you to throw temper tantrums—then play it safe. Keep your daytime job. Or buy bonds or mutual funds. Reason 2: Overcoming Cynicism All of us have doubts. “I’m not smart or good enough.” “So-and-so is better than me.” We play the “What if?” game. “What if the economy crashes right after I invest?” “What if I lose control and I can’t pay the money back?” Or we have friends or loved ones who will remind us of our shortcomings. These words of doubt often get so loud that we fail to act. So we stay with what is safe, and opportunities pass us by. It’s those doubts and cynicism that keep most people poor and playing it safe. The real world is simply waiting for you to get rich. Only a person’s doubts keep them poor. “Cynics criticize, and winners analyze” was one of rich dad's favourite sayings. He explained that criticism blinds while analysis opened eyes. Reason 3: Overcoming Laziness Busy people are often the most lazy. They’re busy, and they stay busy as a way of avoiding something they do not want to face. If they aren’t busy at work or with the kids, they’re often busy watching TV, fishing, playing golf, or shopping. Yet deep down they know they are avoiding something important.

So what is the cure for laziness? The answer is—a little greed.

It’s that radio station WII-FM, which stands for “What’s In It For Me?”

A person needs to sit down and ask,

"What's in it for me if I'm healthy, sexy and good-looking?"

“What would my life be like if I never had to work again?”

“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. Reason 4: Overcoming Bad Habits Our lives are a reflection of our habits more than our education. I remember asking my rich dad about the habits of the rich. Instead of answering me outright, he wanted me to learn through example, as usual.

“When does your dad pay his bills?” rich dad asked.

“The first of the month,” I said.

“Does he have anything left over?” he asked.

“Very little,” I said.

“That’s the main reason he struggles,” said rich dad. “Pay yourself first, you'll get financially stronger, mentally and fiscally," rich dad said.

“And if you pay yourself last, or not at all, you'll get weaker.

Reason 5: Overcoming Arrogance

“What I know makes me money. What I don’t know loses me money. Every time I've been arrogant, I have lost money. Because when I’m arrogant, I truly believe that what I don’t know is not important,” rich dad would often tell me.

When you know you are ignorant in a subject, start educating yourself by finding an expert in the field or a book on the subject.

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