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STOP Investing UnlessYou Use These 8 Proven Investing Secrets

STOP Investing Unless


You Use These 8 Proven Investing Secrets
To learn more about Rich
So you want to be an investor? Good for you. As long as you have money at your dis- Dad Coaching and how
posal (whether it is yours or other peoples), you can become an investor. a coach can help you
achieve success faster than
In fact, the world is filled with investors. Theyre in the news a lot, and you can read
you can on your own, visit
about them every day. For instance, heres a recent headline from CNN Money:
www.RichDadCoaching.com
Nearly 70% of investors lost money in 2015 or call 1-800-240-0434 and
mention extension 7906.

So if youre ready to join the investment pool, jump right in!

Oh, wait a minuteyou say you want to make moneyyou want to make a profit
and not just invest for investings sake. Well, thats a different matter entirely. In that
case, you have a lot to learn.

So wed better get started. Well let you in on a little secret. Eight secrets, actually. We
call them 8 Proven Investing Secrets Every Successful Investor Knows.

Of course, these eight secrets wont teach you everything you need to know in order to
become a successful investor. Far from it. But theyll start you down the down the right
path.

The rest is up to you.

Secret No. 1. You Invest with Your Mind


Lets begin with Robert Kiyosaki himself. Robert offered a group of investors this insight
online, and it set off a firestorm across the Internet, evoking a wide array of thoughts
from people around the globe.

Most people who responded were intrigued. Many were encouraged. And a few others
were even infuriated. But thats OK. The truth often hurtsespecially for people whove
ignored the truth and failed.

Heres what Robert said: Im often asked how to start investing with little or no money.
Please hear this, as this is the hardest thing for people to understand: you do NOT
invest with money! You invest with your mind!

Your mind? Really? Truth.

Robert went on, explaining that, No matter what the field, your biggest asset is your
mind. Once you have knowledge, you find deals, find your team, and use other peo-
ples money. You sell the deal and your team to get investment money.

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STOP Investing UnlessYou Use These 8 Proven Investing Secrets

So thats rule number one in investing: before you even think about starting to invest,
use your mind. Specifically, acquire the knowledge you need in order to become a
successful investor. Never invest a dime if you dont know exactly what youre doing.
Because its a lot easier to keep the money you have than to get it back after youve To learn more about Rich
lost it.
Dad Coaching and how

But how do you acquire that knowledge? The best advice is to get yourself into a good a coach can help you
coaching program, right away. As you can probably guess, there are literally millions achieve success faster than
of pages of advice out there where you can read about investingthe problem is that you can on your own, visit
most of it is for people who only aspire to be middle-class not rich. A good coaching www.RichDadCoaching.com
program can give you the background you need so that sifting through the good and or call 1-800-240-0434 and
the bad becomes second nature to you. mention extension 7906.

So thats where to start: invest with your mind.

Secret No. 2. Invest Only in Assets


So you want to make money, right? If thats the case, the second secret to successful
investing is a no-brainer. Invest only in those things that will make you money.

Just plain common sense, right? Except that its a piece of common sense that the
vast majority of people who call themselves investors dont follow.

Not so common, after all.

Robert wrote a book called Rich Dad, Poor Dad. Perhaps youve heard of it. Maybe
youve even read it. If you have, then youll probably remember the main lesson he
taught in that book: buy assets.

Thats it. If youre going to invest, invest in assets.

But whats an asset? Drill this into your mind: an asset is anything that makes you
money.

Its that simple.

But not to most people. If you ask the average personeven the average investorto
list their assets, youll probably hear assets like their home, their car, jewelry locked
up in a safe, a savings account, maybe even shares in a mutual fund.

Assets. Really? And how much money have those things made for you lately?

Most of what people call assetslike their personal residence or their carsactually
cost money, not make it. And when you take inflation and periodic losses into account,
even so-called assets that theoretically make money, like savings accounts and mu-
tual funds, actually wind up losing rather than making money.

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STOP Investing UnlessYou Use These 8 Proven Investing Secrets

Thats one of the main reasons most investors wind up losing money. They dont invest
in assets.

Again, its that simple. To learn more about Rich


Dad Coaching and how
a coach can help you
Secret No. 3. Invest for Control achieve success faster than
Naturally, once youre encouraged to invest in assets, the next questions come in a
you can on your own, visit
flurry. How do I know somethings an asset? Which assets should I invest in? How can I
www.RichDadCoaching.com
be sure a given asset will make me money?
or call 1-800-240-0434 and
And then the granddaddy of all the questions. How can I find an asset to invest in that mention extension 7906.
isnt risky?

While investing is risky, most investment risk doesnt come from the investment itself.
It comes from the investor. One of the first principles youll learn in a good investment-
coaching program is this: there are effective ways to minimize your risk. It is called
financial education. In other words, while investing may be risky, you dont have to be
risky as an investor.

Its not the Securities and Guarantees Commission.

Investing is risky, period. But one of the first principles youll learn in a good investment-
coaching program is this: there are effective ways to minimize your risk. In other words,
investing may be risky, but you dont have to be risky as an investor.

Heres an insightful quote from Robert that a lot of people find befuddling. Investing is
less risky, he says, than being an employee. Thats right. Not only are sedentary desk
jobs hazardous to your health. They can also be hazardous to your wealth as well.

Heres why. No matter what job you haveunless youre a single proprietor or the head
of the companyyou dont control your fate. Typically, you can be fired or let go at any
time.

Dont believe it? Just ask the fellow down the street you got downsized last month?
Or your friend whose job was just outsourced to India.

But wait a minute. Why are we talking about jobs when youre here to read about in-
vesting? One reason: the same principle holds for most types of investing as well.

Take a buy and hold strategy when it comes to stocks, for instance. Now theres an
example of a really risky investment. Why? Because you have very little control over the
earning power of your stocks. The value of stocks sway in the stock market like palm
trees in a hurricane.

Sometimes, its possible to make a profit with investments like that. A lot of people do,
at least for a time. But usually, any profits they make are as much the result of luckof-
ten, more soas they are skill.

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STOP Investing UnlessYou Use These 8 Proven Investing Secrets

If you like to gamble like that, fine. But if so, you might want to just head to Vegas. At
least theres great entertainment to make up for the money youll probably lose.

On the other hand, if you dont want to gamble, remember this advice: invest for con- To learn more about Rich
trol before you invest for profit. That controlfound in an ability to make money when
Dad Coaching and how
stocks are going up OR going downwill give you the profits youre seeking more
often than not. a coach can help you
achieve success faster than
Also, consider real estateRoberts favorite type of investment. Say you purchase an you can on your own, visit
apartment building downtown. Now, you own the building. You control the pricing. You www.RichDadCoaching.com
write the lease agreements. You manage the repairs. You do the marketing and find the or call 1-800-240-0434 and
tenants. Even the growth of the market is fairly predictable. mention extension 7906.

Thats the kind of control were talking about.

Secret No. 4. Use Other Peoples Money


Theres one step above all others that can minimize your investing risk. And this is it:
invest using other peoples money.

Yes, you heard right. Dont invest your own money if you can help. Invest other
peoples money.

Other peoples money? you might ask, thinking weve gone just a little crazy. How can I
get other people to give me their money to invest?

Actually, its not really that hard.

Professional investors understand that there are four types of money:


Your money
The banks money
The tax collectors money
The houses money

Like professional gamblers, professional investors want to quickly get to the point
where theyre playing the game with house moneyother peoples money (OPM)as
soon as possible.

Spelled out in more detail, the OPM investing process works like this:
1. Invest your own money into an asset
2. Get your money back
3. Keep control of the asset
4. Move your reclaimed money into a new asset
5. Get your money back again
6. Repeat the process as often as you can

Robert refers to the speed with which this recycling process takes place as the
velocity of money. Having a high velocity of money is one reason why the rich
get richerwhile the average investor usually gets nowhere.

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STOP Investing UnlessYou Use These 8 Proven Investing Secrets

Secret No. 5. Be Able to Evaluate Risk & Reward


Another important way to minimize your investment risk is to become skilled at evalu-
ating your potential risk and reward. This is another area where knowledge and ex-
periencelike that gained from training and coaching programsare vital, because To learn more about Rich
evaluating risks and rewards is not always easy to do. Dad Coaching and how
a coach can help you
The first step in properly evaluating potential risks and rewards is taking your emotions
achieve success faster than
out of the equation. Money doesnt have feelings. Investments dont have good-hair
you can on your own, visit
days or bad-hair days. Ultimately, money and investments are just numbers.
www.RichDadCoaching.com
Numbers can be calculated and assessed. You can compare numbers with one or call 1-800-240-0434 and
another, and then you can choose the numbers that are most likely to be favorable to mention extension 7906.
your financial position.

But you can do that accurately only if you give your emotions the day off.

The rewards are the area where emotions often play the greatest role. For instance,
many investors like to jump on a bandwagon. If a particular stock is cool or has been
performing well, then why not join the crowd?

Theres a very good reason for not following the crowds in this way. If a stock is well-
known or has made a lot of money recently, the party is often already over, the cake is
gone, and all that remains are scraps. No matter how good the investment sounds.
You dont get rich off scraps.

Or if you see a property that has so much charm you wish you could move in your-
selfnever mind that its sat unoccupied for the last year.

So the first step you need to follow when investing is to take a cold, hard, realistic look
at your potential rewards. And then, once youve done that, ramp down your expecta-
tions even further. Make sure that only the cream of the investments float to the top.

The same principle applies when evaluating risk. For one thing, especially when youre
just starting, never invest more than you can afford to lose. Never. Because no invest-
mentseven the most seemingly attractive onesare sure things.

And then, turn a cold, hard eye to the potential risks as well. Dont just ask what the
upside is. Ask what the downside is, too. When you determine the downside, how does
it make you feel? If it sends shivers down your spine, its probably best to move on.

Yes, its sometimes fine to take on more risky investments, especially if the realistic
return is high enough. Sometimes, risky investments can turn out to be the most profit-
able. But even then, follow that course only if you can afford to lose everything youre
investing.

On the other hand, dont let your fears take over either. If a realistic analysis shows that
the chances of winning are much greater than losing, then youve probably found a
good investmenteven if the risk is relatively high.

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STOP Investing UnlessYou Use These 8 Proven Investing Secrets

Secret No. 6. Be Prepared for Whatever Happens


How many times have you heard a story like this one? An investor says, I could have
bought that land for $500 an acre 20 years ago. Now look at it. Someone built a shop-
ping center right next to it, and now that same land is worth $500,000 an acre. To learn more about Rich
Dad Coaching and how
Weve all heard such stories. Theyre unfortunate, yes. But more than that, they repre- a coach can help you
sent cases of people who werent prepared.
achieve success faster than
you can on your own, visit
The fact is, most investments that will make you rich are available for only a brief period
of time. And if you arent prepared with education and experienceand also with the www.RichDadCoaching.com
cash in handgreat opportunities like this will pass you by. or call 1-800-240-0434 and
mention extension 7906.
So how do you prepare? Just as in any field of endeavor, you need to learn what to
focus on and then actually focus on those things.

For instance, if you want to buy stocks, attend classes on how to spot bargains in
stocks and how to take advantage of them. If you want to invest in real estate, same
thing: attend classes on how to spot bargains in real estate and how to take advantage
of them.

Success in investing all begins with training your brain to know what to look for, and
being prepared for the moment the investment is presented to you.

Thought of in this way, investing is a lot like the sport of soccer. You practice and prac-
tice, and play and play, and thenall of a suddenthe winning kick at the goal pres-
ents itself. Youre either prepared, or youre not. Youre either in position, or youre not.

But even if you miss a shot in soccer or a great investment opportunity in the market,
theres always another shot at the goal or another investment opportunity of a lifetime
right around the corner. Great investments are like buseseven if you miss one, theres
already another one on the way.

But if youre not at a bus stop, or if you dont even know what a bus looks like, then
youll probably never climb aboard.

So short and simple: if you want to succeed in investing, be prepared.

Secret No. 7. If Youre Prepared, the Money Will Find You


Why do successful investors always seem to find the best deals? Part of the answer is
that theyre prepared. But theres more to it than that.

If youre preparedmeaning that you have the education and experience you need,
and you know what to look forand a good deal appears, either the money will find
you or you will find the money.

Its law of nature: good deals attract cash, almost always. But if a deal is bad, then
raising money is going to be really hard.

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STOP Investing UnlessYou Use These 8 Proven Investing Secrets

Of course, not all good deals find the cash they need, but theres a reason for that as
well. Sometimes, even if a deal itself is great, the people controlling the deal arent.

Imagine this: youve just spent a million dollars for a world-ranked racecar. But the car To learn more about Rich
comes with a mediocre driver. How many races are you going to win? Probably not
Dad Coaching and how
very many. But that isnt the cars fault. You just chose a car with the wrong driver.
a coach can help you
In real estate, people often say that the key to success is location, location, location. achieve success faster than
But thats only partly true. In reality, in the world of investingwhether its real estate, you can on your own, visit
businesses, or paper assetsthe real key to success is people, people, people. www.RichDadCoaching.com
or call 1-800-240-0434 and
Some of the best business ideas have failed because the wrong people were in charge. mention extension 7906.
And some of the best real estate locations have often lost money for the same reason:
the wrong people were in charge.

Whats the lesson here? When youre investing, be educated and experienced enough
that you can look not just for great deals, but for great people behind the deals as well.

And if you can do thatif youve truly got a great deal and great people behind itthe
money will find you. You can take that one to the bank.

Secret No. 8. Understand That You Are the Asset or Liability


We mentioned a moment ago that many potential investors are scared off because
investing is risky. But its not so much that investing is risky. More often than not, its the
investor whos risky.

If youre unprepared, if you dont really understand the basics of investing, if youre just
blindly listening to the advice of people you dont even know, then, yes, your invest-
ments will be very risky.

But if youre prepared, if youve acquired the foundation of knowledge and experience
you need, if youre in control of your investments, and if youre committed to continuing
to learn for the rest of your investing career, then investing can become almost a sure
thing.

These principles are borne out in practice every day. Many so-called investors are
continually losing money while others are becoming rich. Profitable businesses are sold
to a new owner, and almost immediately they start going downhill. Certain people buy a
money-making piece of real estate, and in a few years, that same piece of real estate is
running at a loss and falling apart.

But lets not be too hard on risky investorsbecause risky investors often produce the
best investment bargains. They messed up, and they want out. So you go in, find out
what they did wrong, and the fix it. Big profits almost always follow.

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STOP Investing UnlessYou Use These 8 Proven Investing Secrets

But doing that takes discernmentthats the key. You need to be able to see not just
whats before your eyes, but what a given investment can be like, a few years from
now.
To learn more about Rich
Being able to do that will make you an asset as an investor instead of a liability.
Dad Coaching and how
On the other hand, not every bargain is really a bargain. An investment will turn out to
be worthwhile only if it can be fixed and only if other investors want it fixed. If a busi- a coach can help you
ness cant be turned around with the right managerial skill, or if a real estate property achieve success faster than
cant be rehabilitated, or if no one would want them even if these things happened, you can on your own, visit
then you dont want them either. www.RichDadCoaching.com
or call 1-800-240-0434 and
Being able to correctly make that kind of judgment will also turn you into you an asset mention extension 7906.
as an investor instead of a liability.

And hear this: if youre an asset as an investor, then your investments will very likely
become assets as well.

The Bottom Line


As the investing experiences of Robert and the rich have demonstrated time and again,
the ideas outlined here are truly proven secrets to successful investing. But as written,
theyre just that: ideas. The only way these ideas can transform both your investing
career and your life in the way weve described is if you put them into practice.

And the only way to truly put these ideas into practice is to learn everything you can so
that you can master the fundamentalsand then build on those fundamentals every
day of your life.

So dont delay getting started. A lifetime of successful investing awaits, beginning now.

Take Control of your Financial Destiny and Increase Your Cash Flow
by Working with a Certified Rich Dad Coach.

Discover the power of working one-on-one with your own certified Rich Dad Coach
to help you invest smarter, build and protect your wealth, and create the cash flow
you need to live the life you desire. Remember, Roberts Rich Dad was his first coach
and helped him become successful by teaching him how to make his money work for
him whos helping you? Get your free introduction to Rich Dad Coaching and learn
how a Rich Dad Coach can help you do the same.

To learn more about Rich Dad Coaching, visit www.RichDadCoaching.com or


call 1-800-240-0434 and mention extension 7906.

9 2017 Professional Education Institute COACHING

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