In this blog, I will share 16 lessons to help you invest successfully.

I have been a raving fan of Robert Kiyosaki’s Rich Dad products since I first read his book Rich Dad Poor Dad when I was in middle school. 

Lately, I’ve become more serious about becoming an investor, and I decided to read a book he’s written called Rich Dad’s Guide to Investing, which I will be sharing with you the sixteen lessons he shared in his book. Of course, I am giving you the very condensed version of his advice, so if you would like more detail, I would highly recommend reading the book in your spare time. 


Investor Lesson #1- The Choice

  • Before you invest, you must prioritize your reasons for investing.
  • Is it to be secure, to be comfortable, or to be rich?
  • It would be best to prioritize your reasoning for investing; however, remember that 90% of people will choose comfort and security over being rich.
  • If you want to be in the top 10%, your reasons should be to be rich first, comfortable, and financially secure.


Investor Lesson #2- What Kind of World Do You See?

  • There are two types of money problems: not having enough money or having too much money.
  • 90% of people are not living the life that they genuinely want. 
  • People who inherit or win money through gambling or the lottery will eventually lose it because they’ve trained their minds that there isn’t enough money to go around.
  • Learn how to think like the 10%, and don’t be so focused on security because the more protection you seek, the more scarcity you will draw to your life. Think about how I can get more, not that there isn’t enough. Got it?
  • Stop competing for jobs and promotions and learn how to take your competitive energy into creating a new or improved product or service.


Investor Lesson #3-Why Investing is Confusing?

  • Investing means different things to different people
  • Some people invest in creating large families.
  • Some people invest in good education to graduate and get a good job with benefits.
  • Some people invest in external assets such as Stocks, Real Estate, Mutual Funds, Insurance, Collectibles, and precious metals, to name a few.
  • Then you have to determine if you are investing for immediate, short term, or long time.
  • Whatever type of investment vehicle and style fits your personality and interest, be sure not to become a gambler, spectator, trader, saver, dreamer, or loser.
  • It’s essential to learn as much as you can about what you want to invest in, but remember, no one person knows all there is to know about investing.
  • Don’t make your investing decisions on another person because just because one person does good or bad in investment doesn’t mean that you’ll get the same results.
  • Always keep an open mind to investing and listen to different points of view on the subject.


Investor Lesson #4- Investing is a Plan, Not a Product or Procedure

  • Don’t get stuck with one investment vehicle, for instance, stocks, if Real Estate may be a better option to help you to reach your goals.
  • Sometimes it may take several investment vehicles to get you to your destination; for instance, if you fly to LA from New York, You may fly to get there and then take an Uber to your hotel; the same rules apply to investments.
  • Be sure to invest the time to find out where you are financially today and where you want to be financially in the future.
  • Put this plan into writing and have a witness sign and date it to keep you accountable.
  • Also, meet with multiple financial advisors to compare their approaches to helping you with long-term investing.


Investor Lesson #5- Are You Planning to Be Rich or Planning to Be Poor?

  • To be rich, you must first increase your financial vocabulary; this includes language in investing, finance, money, accounting, corporate law, and taxation.
  • Investing is not just an all-encompassing term. People support different needs, including retirement, college education, medical costs, and long-term health care.
  • The best time to start planning for when you are old is when you are young; the goal is to get your money to accumulate compound interest. This is when your money grows exponentially with less work on your part.
  • When creating your plan, make sure you are planning beyond retirement and planning for generational wealth.
  • Task: Every week, learn one or two new financial terms. I love If you sign up for their newsletter, they will send you new terms weekly.


Investor Lesson #6- Getting Rich Is Automatic….If you have a Good Plan and Stick to it

  • Investing is not that exciting; it is often dull.
  • It is best to keep it simple and avoid complex strategies for investing.
  • Study the history of your investment vehicle because history usually repeats itself.
  • Please invest for the long term and stick with it.


Investor Lesson #7-How Can You Find the Right Plan for You?

  • Take time to reflect on your life.
  • Ask yourself what do you want moving forward.
  • Don’t tell anyone what your plan is until you are sure of what you want
  • Make an appointment with a financial advisor
  • Start writing down realistic goals, and then act on them through education or experience.
  • Build a financial team: Financial planner, banker, accountant, lawyer, broker, bookkeeper, insurance agent, and successful mentor.


Investor Lesson #8- Decide Now What You Want to Be When You Grow Up

  • Do you want to be secure? If so, write out a plan for your financial security.
  • Do you want to be comfortable? You will need to write out two plans, one for security and one for what comfort looks like to you.
  • Do you want to be rich? You will need to write out three plans. One for what you need to be secure, one for what you need to feel comfortable, and one for what you want when you are rich


Investor Lesson #9- Each Plan Has A Price

  • The plan to be both secure and comfortable requires that you automate your money for the long-term by investing with a professional money manager or institution. You can also monitor the funds yourself but have automatic monthly withdrawals going into your account.
  • The plan to be rich requires time, not money.
  • Rich dad used the analogy of a person paying to take a bus versus taking a plane from LA to New York. The bus will be cheaper, but it will take longer to get to the destination. The aircraft is more expensive, but it will get you there less time. Rich people always value their time over money.
  • “The more secure an investment, the more time it takes to make money….if it makes money.”


Investor Lesson #10- Why Investing Isn’t Risky

  • Investing isn’t risky if you’re trained how to be an investor
  • Investing isn’t risky if you have a plan, discipline, and determination
  • Investing isn’t risky if you have “insider” information, meaning that you are willing to gain the education and experience to become a successful investor


Lesson #11- On Which Side of the Table Do You Want to Sit?

  • “Working hard and saving money is important if you want to be secure and comfortable.”
  • You can’t get rich by working hard and saving money because you’ll be in the highest tax bracket.
  • People that work hard and save money believe that investing is risky and usually avoid learning new things.
  • There are four quadrants with two sides; you have E and S, representing Employee and Self-Employed, on the left side. This side of the quadrant trades time for money and pays the highest taxes. 
  • You have B and I on the right side, representing business owners and Investors. This side trades money for time and pays the least amount of taxes.
  • Studying the I quadrant first is recommended, as this should be the final destination because it allows for complete freedom.


Lesson #12- The Basic Rules of Investing

  • Rule 1: Know what kind of income you desire? Earned income is the money you earn from a job. Portfolio income comes from paper assets such as bonds, stocks, mutual funds, etc. Passive income is the money you can make while sleeping, such as real estate, royalties, or an e-commerce business model such as Amazon.
  • Rule 2: Convert your earned income into a portfolio or passive income as effectively as possible.
  • Rule 3: After you’ve converted your earned income into a portfolio or passive income, keep it secure in an asset such as Real Estate or the right stocks that will give you cash flow or capital gains. You must know the difference between a liability and an asset to know where to keep your money.
  • Rule 4: If you lack the education, experience, and excessive cash, you are a liability, not an asset. Work on getting these three things before you begin investing.
  • Rule 5: Always be prepared for any investment opportunity, whether the market moves up or down. If you must invest, take training or courses that can train you to spot opportunities. 
  • Rule 6: Once you gain the education and experience, the money will find you, or you will find the money.
  • Rule 7: Learn how to evaluate risk and reward. If you take on significant risk, will you receive more excellent compensation?


Lesson #13- Reduce Risk Through Financial Literacy

  • Learn how to control your emotions by learning emotional intelligence. You cannot be effective in investing if you are always concerned about the ups and downs of the market.
  • Learn how to start a business that can generate money. The majority of wealthy people have businesses.
  • Learn how to sell. You need this skill for almost every area of your life.
  • Learn financial literacy; the more you understand how money works, the more you will have. The first thing is understanding the difference between a liability and an asset.


Lesson #14- Financial Literacy Made Simple

  • You need to understand that the most critical documents are income statements and balance sheets. 
  • Income statements show income and expenses, and the balance sheets show assets and liabilities.
  • “An asset puts money in your pocket.”
  • “A liability takes money from your pocket.”
  • Your expenses are someone else’s income.
  • Your income is the money that you earn from a job, business, or investment
  • A home is not an asset unless it generates income like a rental property, but a rental property is not an asset unless it is profitable.
  • Kiyosaki recommends taking accounting, finance, and investing classes before starting a business or investing.


Lesson #15- The Magic of Mistakes

  • “Mistakes are how we learn.”
  • Making mistakes is supposed to help you learn more about yourself, learn something new, or meet new people.
  • Acknowledge when you make mistakes.
  • Be accountable for your mistakes. 
  • Learn the skills or gain the experience that will help you to avoid making the same mistakes.
  • Don’t give up the first time you make a mistake.
  • When you make mistakes, practice saying, “I’m glad I failed and learned because it has granted me new wisdom.”


Lesson 16- What Is The Price of Becoming Rich?

  • You can become rich by marrying someone for their money, but you risk not having love.
  • You can become rich by engaging in illegal activities, but you risk losing your freedom when you get caught. 
  • You can become rich through inheritance, but you risk no longer having someone you love alive.
  • You can become rich by winning the lottery, but you risk losing everything if you don’t have a financial plan.
  • You can become rich by being famous, but you risk devoting your life to perfecting your craft.
  • You can become rich by being greedy, but you risk working overtime to keep it.
  • You can become rich by being cheap, but you risk enjoying the perks of being rich.
  • To become rich starts with a plan, especially when starting with nothing. It requires the five Ds: dream, dedication, drive, data, and dollars.


Those are the 16 lessons to invest successfully that Rich Dad gives that every Investor should know. Which lesson is your favorite? Before considering any investment, get the three essentials: education, experience, and excessive cash, which means losing money won’t hurt your pockets.


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