People say, “Investing is risky” for three main reasons:
- They have not been trained to be investors. If you read CASH FLOW Quadrant, the sequel to Rich Dad Poor Dad, you will recall that most people go to school to be trained for the left side of the Quadrant rather than the right side of the Quadrant.
- Secondly, most investors lack control or are out of control. For example, “There is risk driving a car. But driving the car with your hands off the steering wheel is really risky.” “When it comes to investing, most people are driving with their hands off the steering wheel.”So, taking control of yourself before investing. If you didn’t have a plan, a little discipline, and some determination, the other investor controls would not mean much.
- Thirdly, many people who have never invested before, regard investing as just another form of gambling. This widely-held, but misinformed view, has kept too many from enjoying the financial rewards of judicious investment, which generally, over the long run, has been profitable.A standard dictionary defines “invest,” as follows: to put (money) to use, by purchase or expenditure, in something offering profitable returns, especially interest or income. The same dictionary defines “gamble” as follows: To play at any game of chance for stakes. To stake or risk money, or anything of value, on the outcome of something involving chance; bet; wager.