Overcoming Obstacles

This is a summary of Rich Dad Poor Dad chapter 8.

In chapter 8, Robert Kiyosaki talked about the obstacles that can stop even those who are financially literate from achieving great wealth. The chapter is separated into five sections, each covering one of the following obstacles: fear, cynicism, laziness, bad habits, and arrogance.

Fear

The first obstacle is the fear of losing money. No one likes to lose money. In fact, no one likes to lose anything for that matter. However, you should not let the fear of losing paralyze you and stop you from succeeding. This is a trap that people fall into all to often.

According to Kiyosaki, "The main reason that 90 percent of the American public struggles financially is because they play not to lose. They don't play to win." The only way playing not to lose can be a successful strategy is if you start investing really early. If you don't start early, then you have no choice but to take on more risk.

In Kiyosaki's words, you should "put a lot of your eggs in a few baskets instead of putting a few of your eggs in a lot of baskets." When most people decide to invest, they cling to safety and try to keep a balanced, diverse portfolio. Though this is better than not having an investment portfolio at all, Kiyosaki mentioned that the most successful people generally have to focus and go off balance first before they are able to go anywhere.

Cynicism

Kiyosaki referred to cynicism as the "little chicken" in all of us. Cynicism is a result of unchecked fear and doubt. It creates the same problems of inaction and lack of motivation that are generated by fear.

Instead of criticizing, Kiyosaki urges you to analyze a situation before coming to your conclusion. In other words, you need to do your due diligence in every situation. If you get into the habit of analyzing instead of criticizing, you'll open yourself up to a world of opportunity that will never exist for you otherwise.

Laziness

Laziness has always been one of the most negative qualities that a person can have. However, there are times when people do not realize that laziness has taken over them. This happens when people are "too busy" to take care of important issues. People use this excuse to avoid dealing with health, marriage, finances, or any other problems that are important and deserve attention.

The key to overcoming laziness, according to Kiyosaki, is to maintain a certain level of greed or desire. Though greed is generally considered a bad thing by most people, it can motivate you to get past procrastination and laziness.

Bad habits

Humans are truly creatures of habit. Kiyosaki states that your habits are even more important in determining your success than your education. One of the most important habits that he mentioned is paying yourself first.

Paying yourself first means to invest in your own assets before paying the government, creditors, or anyone else. Kiyosaki's reasoning behind this habit is simple. Your creditors will apply much more pressure than you will if they are not paid. So, even if you're short on money, paying yourself first forces you to be creative with your finances and to come up with the money in one way or another.

Arrogance

Arrogance is often the result of someone trying to ignore their ignorance. The problem is that what you don't know can cost you a lot of money. It can also shield your eyes to opportunities that can otherwise be uncovered through study and research. So, if you don't know something, find someone who does know or research the information in a book, the internet, etc...

Note: This is just a summary of rich dad poor dad. In this short space, I cannot explain things as thoroughly as you need to understand them. I just try to give you an idea of what eye-opening information you will come across by reading the actual book. Visit Amazon.com to find Rich Dad Poor Dad for the best price.