What It Costs to Become Rich
Her question really surprised me…
“Come on, why don’t you tell us the truth? Didn’t you write your book simply to take advantage of this get-rich-quick craze that is sweeping the nation?”
It was an interview years ago about my book, Rich Dad Poor Dad. I was almost at a loss for words. I finally replied:
“You know, I never saw it that way. And I can see why you would think I would write a book just for that reason. I wish I could say I was that smart — smart enough to time my book for just this ‘get rich quick’ moment in history — but I’m afraid I’m not. I wrote this book because I wanted to tell the story of the money lessons I learned from my two dads.”
I paused and then added, “My book actually represents the exact opposite message of the game shows and lotteries that have become so popular. There is indeed a frenzy today about getting rich quickly. But while my book is about getting rich, it is not about getting rich quick.”
The commentator nodded and gave me a skeptical grin. “So if you are not part of this get-rich-quick mania, then what are you proposing? Get rich slowly?”
I could feel her sarcasm, and it challenged me. In front of millions of viewers, I had to try to keep my cool. So I forced a chuckle in response to her barbed comment and said, “No, my book is not about getting rich quickly or getting rich slowly.”
I ended the interview by saying, “Most everyone wants to get rich. But the problem is that only a few people are willing to pay the price.”
But if you’ve come this far to educate yourself, you’re probably different. You’re ready to learn what it takes and then make it happen…
What’s the Price of Becoming Rich?
Rich dad would tell me that there are many ways a person can become rich, and each one has a price.
For example, I asked rich dad what the price was for winning the lottery. All rich dad could say to that was, “It’s okay to buy a ticket now and then, but to bet your financial life on winning the lottery is a fool’s plan on becoming rich.”
Unfortunately, winning the lottery is how many Americans say they plan on becoming rich. Living your life with odds of one in a hundred million is a very high price to pay.
And even if you win, if you don’t have a plan on how to handle the problem of too much money, you will go back to being poor.
The price of being financially free requires time and dedication to gain the education and experience — not just buying a lottery ticket.
It Starts With a Plan
To be a rich investor, you must have a plan, be focused, and play to win. An average investor does not have a plan, invests in hot tips, and chases the hot investment products of the day… flitting from technology stocks to commodities to real estate to starting his or her own business.
It’s okay to invest in a hot tip now and then, but please do not delude yourself that one hot tip will make you rich forever.
Rich dad had a list of what he called the five Ds that were required to become very rich, especially when you start with nothing. They are:
Most people focus on the last two, data and dollars. Many people go to school and think that the education or data they gain there will get them the dollars.
Alternatively, if they don’t have a formal education, they say, “I can’t be rich because I don’t have a college education,” or “It takes money to make money,” or “If I work harder and make more money, then I’ll be rich.”
In other words, many people use the lack of education or the lack of money as their excuse for not being rich as investors.
Rich dad concluded his discussion on the five D’s by saying, “In reality, it’s the focus on the first three D’s that ultimately gains you the data and dollars you need to become very, very rich.” In other words, the data and the dollars are derived from having a dream, being dedicated, and having the drive to win.
I often find people who want more data before they begin doing anything, or think that first earning more money will make them rich. In most cases, exclusively trying to get more data or more dollars does not make a person rich. While data and dollars are important, it really takes just getting out there and doing it, especially if you are starting with nothing.
Money is just an idea. If you think money is hard to get and you’ll never be rich, then it will be true for you. If you think that money is abundant, then that can be true also.
To Improve Your Chances, Change Quadrants
The reason so many people play the lottery or dream of appearing on game shows in the hopes of getting rich is that most people are either in the E (employee) or the S (self-employed) quadrant. Most people who do find great wealth are primarily in the B (business owner) and I (investor) quadrants.
One of the ways a person can improve their chances of becoming rich is by changing quadrants. There are no guarantees, but at least your chances improve greatly if you operate from the B or I quadrant.
It’s estimated that less than 1% of the people who achieve great wealth comes from either the E or S quadrant. In other words, if you are serious about becoming rich in as short a time as possible, you may need to make a change in quadrants. I know that for me, personally, my chances for achieving great wealth would have been slim to none in either the E or S quadrant.
I knew my chances were best in the B and I quadrants, and that is where I made my millions.
When I ask someone, “Do you really want to be rich?” I also ask if they are willing to change quadrants. Some say yes. Most say no. Why? The answer is again found in the word “change.”
For many people, the change required to move from the E and S quadrants on the left side to the B and I quadrants on the right side is too high a price — a price greater than most are willing to pay.
What about you?
Play it smart,
Editor, Rich Dad Poor Dad Daily