Too much greed, however, as anything in excess can be, is not good. But just remember what Michael Douglas said in the movie Wall Street. "Greed is good." Rich dad said it differently: "Guilt is worse than greed.
For guilt robs the body of its soul." And to me, Eleanor Roosevelt said it best: "Do what you feel in your heart to be right-for you'll be criticized anyway. You'll be damned if you do, and damned if you don't."
Reason No. 4. Habits. Our lives are a reflection of our habits more than our education. After seeing the movie Conan, starring Arnold Schwarzenegger, a friend said, "I'd love to have a body like Schwarzenegger." Most of the guys nodded in agreement.
"I even heard he was really puny and skinny at one time," another friend added.
"Yeah, I heard that too," another one added. "I heard he has a habit of working out almost every day in the gym."
"Yeah, I'll bet he has to."
"Nah," said the group cynic. "I'll bet he was born that way. Besides, let's stop talking about Arnold and get some beers."
This is an example of habits controlling behavior. 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. "He has bad habits."
"Your dad pays everyone else first. He pays himself last, but only if he has anything left over."
"Which he usually doesn't," I said. "But he has to pay his bills, doesn't he? You're saying he shouldn't pay his bills?"
"Of course not," said rich dad. "I firmly believe in paying my bills on time. I just pay myself first. Before I pay even the government."
"But what happens if you don't have enough money?" I asked. "What do you do then?"
"The same," said rich dad. "I still pay myself first. Even if I'm short of money. My asset column is far more important to me than the government."
"But," I said. "Don't they come after you?"
"Yes, if you don't pay," said rich dad. "Look, I did not say not to pay. I just said I pay myself first, even if I'm short of money."
"But," I replied. "How do you do that'"
"It's not how. The question is 'Why,'" rich dad said.
"OK, why?"
"Motivation," said rich dad "Who do you think will complain louder if I don't pay them-me or my creditors?"
"Your creditors will definitely scream louder than you," I said, responding to the obvious. "You wouldn't say anything if you didn't pay yourself."
"So you see, after paying myself, the pressure to pay my taxes and the other creditors is so great that it forces me to seek other forms of income. The pressure to pay becomes my motivation. I've worked extra jobs, started other companies, traded in the stock market, anything just to make sure those guys don't start yelling at me. That pressure made me work harder, forced me to think, and all in all made me smarter and more active when it comes to money. If I had paid myself last, I would have felt no pressure, but I'd be broke."
"So it is the fear of the government or other people you owe money I to that motivates you?"
"That's right," said rich dad. "You see, government bill collectors are big bullies. So are bill collectors in general. Most people give into these bullies. They pay them and never pay themselves. You know the story of the 96-pound weakling who gets sand kicked in his face?"
I nodded. "I see that ad for weightlifting and bodybuilding lessons in the comic books all the time."
"Well, most people let the bullies kick sand in their faces. I decided to use the fear of the bully to make me stronger. Others get weaker. Forcing myself to think about how to make extra money is like going to the gym and working out with weights. The more I work my mental money muscles out, the stronger I get. Now, I'm not afraid of those bullies.
I liked what rich dad was saying. "So if I pay myself first, I get financially stronger, mentally and fiscally."
Rich dad nodded.
"And if I pay myself last, or not at all, I get weaker. So people like bosses, managers, tax collectors, bill collectors and landlords push me around all my life. Just because I don't have good money habits."
Rich dad nodded. "Just like the 96-pound weakling."
Reason No. 5. Arrogance. Arrogance is ego plus ignorance. I "What I know makes me money. What I don't know loses me money. Every time I have 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.
I have found that many people use arrogance to try to hide their own ignorance. It often happens when I am discussing financial statements with accountants or even other investors.
They try to bluster their way through the discussion. It is clear to me that they don't know what they're talking about. They're not lying, but they are not telling the truth.
There are many people in the world of money, finances and investments who have absolutely no idea what they're talking about. Most people in the money industry are just spouting off sales pitches like used-car salesmen.
When you know you are ignorant in a subject, start educating yourself by finding an expert in the field or find a book on the subject.
CHAPTER NINE
Getting Started
I wish I could say acquiring wealth was easy for me, but it wasn't.
So in response to the question "How do I start?" I offer the thought process I go through on a day-by-day basis. It really is easy to find great deals. I promise you that. It's just like riding a bike. After a little wobbling, it's a piece of cake. But when it comes to money, it's the determination to get through the wobbling that's a personal thing.
To find million-dollar "deals of a lifetime" requires us to call on our financial genius. I believe that each of us has a financial genius within us. The problem is, our financial genius lies asleep, waiting to be called upon. It lies asleep because our culture has educated us into believing that the love of money is the root of all evil. It has encouraged us to learn a profession so we can work for money, but failed to teach us how to have money work for us. It taught us not to worry about our financial future, our company or the government would take care of us when our working days are over. However, it is our children, educated in the same school system, who will end up paying for it. The message is still to work hard, earn money and spend it, and when we run short, we can always borrow more.
Unfortunately, 90 percent of the Western world subscribes to the above dogma, simply because it's easier to find a job and work for money. If you are not one of the masses, I offer you the following ten steps to awaken your financial genius. I simply offer you the steps I have personally followed. If you want to follow some of them, great. If you don't, make up your own. Your financial genius is smart enough to develop its own list.
While in Peru, with a gold miner of 45 years, I asked him how he was so confident about finding a gold mine. He replied, "There is gold everywhere. Most people are not trained to see it."