<ul><li>The more security you need, the more scarcity is in your life.</li><li>The more competitive you are the more scarcity, there is in your life. That’s why people compete for jobs and promotions at work and compete for grades in school.</li><li>People are creative cooperative and have a good financial and business skills often have lives of increasing financial abundance.</li></ul>

Causes of Scarcity & It’s Effect on people’s Attitudes

"The only reason I built businesses was so l could invest in the investments of the rich.The only reason you build a business is so that your business can buy your assets.Without my businesses, I could not afford to invest in the investments of the rich."

When it comes to money and investing, people have three fundamental reasons or choices for investing-to be:<ol><li>Secure,</li><li>Comfortable, or</li><li>Rich</li></ol>All three choices are important. The difference in one's life occurs when the choices are prioritised.Most people dream of becoming rich, but it is not their first choice. Their first choice when it comes to money decisions is security. Second is comfort and third is to be rich. That is why most people make job security, their highest priority. After they have a secure job or profession, then they focus on comfort. The last choice for most people is to be rich.

The Choice

One problem is not enough money. The other problem is too much money. Which type of money problem do you want?

Two kinds of Money Problems

A sophisticated investor knows three E's.<ul><li>Education</li><li>Experience</li><li>Excess cash</li></ul>A movie star can have excess cash but lack the first two. There are many people with right education, but they lack experience and without real life experience, they often lack the excess cash.Achieve those three items and you will a sophisticated investor.

Three E's

<ol><li>Investing means different things to different people.</li><li>One person cannot know all there is to know about the subject of investing.</li><li>One person may say an investment is good and another person may say the same investment is bad, and that both could have valid points.</li><li>Not willing to keep an open mind to the subject of investing and listen to different points of you on this subject.</li><li>Focusing on specific products and procedures may not necessarily be investing.</li><li>An investment product that is good for one person may not be good for another.</li></ol>

Why Investing is Confusing

If a person says, “Money is hard to get,” it will probably be hard to get. If a person says, “Oh, I’ll never be rich,” or “It’s really hard to get rich,” it will probably be true for that person. If a person says, “The only way to get rich is to work hard,” then that person will probably work hard. If the person says, “If I had a lot of money, I would put it in the bank because I wouldn’t know what to do with it,” then it will probably happen just that way.

Money will be anything you want it to be

Investing is a plan, not a product or procedure

The rich don't work for money. They know how to have money work for them.

Investing means different things to different people... and there is a huge difference between passive investing and becoming an active, engaged investor. Rich Dad's Guide to Investing, one of the three core titles in the Rich Dad Series, covers the basic rules of investing, how to reduce your investment risk, how to convert your earned income into passive income... plus Rich Dad's 10 Investor Controls. The Rich Dad philosophy makes a key distinction between managing your money and growing it... and understanding key principles of investing is the first step toward creating and growing wealth. This book delivers guidance, not guarantees, to help anyone begin the process of becoming an active investor on the road to financial freedom.

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Kiyosaki is best known for his book Rich Dad, Poor Dad, the #1 New York Times bestseller. Kiyosaki followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing.

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