Rich Dad’s Guide to Investing
By Robert T. Kiyosaki

Sample Pages

Chapter 3
Investor Lesson #1:
The Choice

Rich dad’s lessons on investing began. “When it comes to money and investing, people have three fundamental reasons or choices for investing. They are:

1. To be secure,
2. To be comfortable, or
3. To be rich.”

Rich dad went on to say, “All three choices are important. The difference in one’s life occurs when the choices are prioritized.” He continued by saying that most people make their money and investment choices in that exact order. In other words, 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.

That day in 1973, rich dad said, “Most people dream of becoming rich, but it is not their first choice.” He went on to say, “Only three out of a hundred people in America are rich because of this priority of choices. For most people, if becoming rich disturbs their comfort or makes them feel insecure, they will forsake becoming rich. That is why so many people want that one hot investment tip. People who make security and comfort their first and second choices look for ways to get rich quick that are easy, risk free, and comfortable. A few people do get rich on one lucky investment, but all too often they lose it all again.” 

Rich or Happy

I often hear people say, “I’d rather be happy than be rich.” That comment has always sounded very strange to me since I have been both rich and poor. And in both financial positions, I have been both happy and unhappy. I wonder why people think they have to choose between happiness and being rich.

When I reflect upon this lesson, it occurs to me that what people are really saying is that “I’d rather feel secure and comfortable than be rich.” That is because if they felt insecure or uncomfortable, they were not happy. For me, I was willing to feel insecure and uncomfortable in order to be rich. I have been rich and poor as well as happy and unhappy. But I assure you that when I was poor and unhappy, I was much unhappier than when I was rich and unhappy.

I have also never understood the statement “Money does not make you happy.” While there is some truth in it, I have always noticed that when I have money, I feel pretty good. The other day, I found a $10 bill in my jeans pocket. Even though it was only $10, it felt great finding it. Receiving money has always felt better than receiving a bill for money I owe. At least that is my experience with money. I feel happy when it comes in and sad when it leaves me.

Back in 1973, I put my priorities in this order:

1. To be rich
2. To be comfortable
3. To be secure

As stated earlier, when it comes to money and investing, all three priorities are important. Which order you put them in is a very personal decision that should be made before beginning to invest. My poor dad put “to be secure” as priority one, and rich dad put “to be rich” as priority one. Before beginning to invest, it is important to decide what your priorities are.

Mental Attitude Quiz

To be rich, comfortable, and secure are really personal core values. One is not better than the other. I do know, however, that making the choice of which core values are most important to you often has a significant long-term impact upon the kind of life you choose. That is why it is important to know which core values are most important to you, especially when it comes to the subject of money and financial planning.

So the mental attitude quiz is:

List in order of importance which core values are most important to you:

1.
2.
3.

Some of you may need to work through your true feelings. Talk seriously with your spouse or mentor. Make “pro” and “con” lists. Knowing what your personal priorities are will save you many agonizing decisions and sleepless nights later. One of the reasons the 90/10 rule of money applies may be because 90% of the people choose comfort and security over being rich.