Trump and I Both Want You to Be Rich. Here’s How…
President Donald Trump and I share the same concerns, and we want you to be rich.
This is the opposite of what we are hearing from some of his opponents. They really want everyone to be poor. You see it with the “Robin Hood” mentality they are pushing. Take from the rich and give to the poor.
All that creates is a lot of poor people.
When he and I started writing our book together, we met one day, in his office in New York. Donald simply said, “I invest to win. Don’t you?”
With that statement, the defining difference appeared.
He and I invest to win, while others invest not to lose.
I’ve talked about the advice, “Save money, get out of debt, invest for the long term (generally in mutual funds) and diversify.” Late that afternoon, Donald and I discussed how we did not focus on saving money. In fact, we are both millions of dollars in debt—good debt. We do not diversify… at least not in the context that most people use the word diversify. And while we are definitely long-term investors, we do not invest in mutual funds, at least as a primary investment vehicle. Why? Because we invest to Win.
Donald and I started talking about how our books were different and more popular than those of other financial authors. Again, the obvious became more obvious. “Most financial authors tell their readers to live below their means,” I said. “One author recommends not having that daily cappuccino and saving the cappuccino money in mutual funds instead, so that later in life you will become rich. You and I do not live below our means. We like being rich. We expand our means. When we write or teach, we encourage others to be rich and enjoy the good life.”
Pausing for a moment, Donald smiled and said, “You know, you’re right. I don’t know anyone who likes to live below their means, at least not amongst my friends. The people I know want to enjoy life, and we do enjoy life. We play to win, and we do win. You win, and you enjoy life. That’s why you and I sell more books and draw bigger crowds when we teach. People like winners.”
“Most other financial experts are telling people to play it safe, to live below their means. They’re telling people that investing is risky and that they need to save and avoid losing. These experts aren’t focusing on winning. They’re focusing on not losing.” I added.
“There’s a very big difference.” said Donald.
All I did was nod. For years, ever since Rich Dad Poor Dad came out, many people, including journalists, often said that what I talked about was too risky. Yet to me, what most people were doing was far riskier.
In a world of less and less job security, it seemed foolish to count on job security. With the stock market booming and busting, taking trillions of dollars from unsuspecting investors, it seemed foolish to count on the stock market for financial security. And with our school systems teaching students little to nothing about money, it seemed risky to simply count on a good education as being adequate.
It made me reflect back upon my life, to the defining moments in my life when I decided that I would play the game of money to win, rather than play the game not to lose.
“You know, we don’t invest in the same investments most people invest in,” said Donald. “Isn’t it ironic that the investments most people think are safe are really risky?”
I simply nodded.
“There’s something else,” said Donald. “You and I look at making money as a game. We have fun. We enjoy the game. Sometimes we lose, but mainly we win. We have fun.”
“It is fun,” I said. “I love the game.”
“But most people don’t see making money as a game,” said Donald. “They think of it as life and death, winners and losers.”
“Survival,” I said. “A struggle for life itself, which is why they are terrified of losing money. That’s why they look at investing as risky.”
“And wind up in risky investments,” Donald added, gently slapping his desk. “It’s a financial tragedy.”
“Their loss of money?” I asked.
“No, the fun they miss out on. Making money is fun. Life is supposed to be fun. And millions of people are living in fear instead of having fun. That’s the tragedy.”
“That’s why they play it safe, invest in ‘safe’ investments, cling to job security and live below their means,” I added. “On top of that, millions are deeply in debt, because they want to have fun but haven’t learned how to invest to win. They really do want to live the good life but are punished by excessive debt.”
“And that’s no fun,” said Donald. “You and I love the game. We created educational games. Games are fun. If you have fun, you learn more, you want to win, even though sometimes you lose. I haven’t seen a popular game called Save Money or Live Below Your Means. Have you? There may be such games, but I don’t think they’re as popular as our games. We play hard. We play to win. We have fun. That’s what life’s about.”
My Mind Was Racing
The meeting was over. There was a lot to think about. As I got into the elevator and pressed the button for the lobby of Trump Tower, my mind was racing.
Why do most investors play it safe or invest not to lose?
And why do others invest to win?
As the elevator door opened to the lobby, a question came to mind, what is the difference between a person who plays to win and a gambler? And what about risk?
As I reached the sidewalk on Fifth Avenue and hailed a cab, I realized the reason most people invest not to lose is because most people think investing is risky or that investing is gambling. Many also believe that to get higher returns means you have to take on more risk. Nothing could be further from the truth.
The Path To True Financial Freedom Means Financial Education
In today’s economy, it’s much riskier to rely on your employer for your well-being than it is to become financially educated and to invest your money wisely. It’s also risky to put your money in the bank and collect interest that barely covers inflation…and if inflation really takes off, you’ll actually lose money. As many people learned over the last decade, it’s risky to consider your personal home as your primary investment. And it’s risky to put all your hope in a broker and a 401(k) for your retirement investments.
Today, if you want to be financially secure and free, you must learn to invest.
5 Things that Happen to People When They Don’t Invest
Learning to invest is important because it’s the key to financial freedom. Five things happen to those who don’t know how to invest, who do not invest, and who invest poorly.
- They work hard all their lives
- They worry about money all their lives
- They depend on others, such as family, a company pension, or the government to take care of them
- The boundaries of their lives are defined by money
- They don’t know what true freedom is
My rich dad said, “You will never know true freedom until you achieve financial freedom.” By this he meant that learning to invest is more important than learning a profession. Unfortunately, learning a profession is what most education in our schools is built to do. Our schools are good at training employees but not investors who understand how money works. The result is an army of people who are afraid of money and investing, and who, for their living, rely on those who understand money and investing, like their employer or their landlord.
Rich dad also said, “When you learn a profession, let’s say to be a doctor, you learn how to work for money. Learning to invest is learning how to have money work for you. The moment you have money work for you, you have your ticket to freedom.”
Valuable Investing Lessons from My Rich Dad
My rich dad played Monopoly® in real life, and he often took his son and me to see his real-life houses and hotels. Watching my rich dad, I learned many valuable lessons about investing, some of which are:
- Investing is not risky
- Investing is fun
- Investing can make you very, very rich
- Investing can set you free from the struggle of earning for a living and worrying about money
In other words, if you are financially educated, you can build a pipeline of cash flow for life by investing—a pipeline that produces cash in good times and bad times, in markets that both boom and bust.
Don’t risk your future by believing the lie that investing is risky. It’s not, and you can be free. Today, I encourage you to begin your financial education and to move from the risky life of an employee to the financially free life of an investor.
Editor, Rich Dad Poor Dad Daily