First, People think Investment will make the Rich in no time but actually, they are just gambling with there money. They start investing in a rumor that Mr.A, Mr.B, and others became rich by investing without having Knowledge.
Then, People say that investing is risky. The three main reasons are
First, they have not been trained to be investors.
If you have read CASHFLOW Quadrant, the sequel to Rich Dad Poor Dad, you will recall that most people go to school to be trained for the left side of the CASHFLOW Quadrant rather than for the right side.
Without financial knowledge. They just invest and pray for good returns like gambling but Investment is different. Many people with financial knowledge have got good returns.
Second, most investors lack control or are out of control
In life, Risk is everywhere. As an example, there is some risk just driving a car, but driving the car with your hands off the steering wheel is really risky. When it comes to investing, most people are driving with their hands the steering wheel. By having a financial plan, we can control. If you don't have a plan, a little discipline, and some determination, the other investor controls will not mean much.
Third, people say investing is risky because most people invest from outside, rather than from the inside.
Most of us know intuitively that if you want a real deal, you have to be on the inside. You often hear someone say, "I have a friend in the business." It does not matter what the business is. It could be to buy a car, tickets to play, or a new dress. We all know that "on the inside" is where the deals are made. The investment is no different. As Gordon Gekko, the villainous character played by Michael Douglas in the movie Wall Street said, "if you're not on the inside, you're outside."
Invest from the inside means Making invest by receiving and analyzing inside information. Focus is on their own financial needs and a personalized long-term strategy designed to meet those needs. Their buy/sell decisions are made based on what's required to make sure their financial holdings are in accord with the game plan. Invest from outside meansMaking invest by receiving and analyzing outside information like a rumor. If one popular investor is going to on A stock than, Everybody invests in it. The people who are investing from outside are just gambling with there money by thinking they are investing. Invest from the inside means Making invest by receiving and analyzing inside information. Focus is on their own financial needs and a personalized long-term strategy designed to meet those needs. Their buy/sell decisions are made based on what's required to make sure their financial holdings are in accord with the game plan. Invest from outside meansMaking invest by receiving and analyzing outside information like a rumor. If one popular investor is going to on A stock than, Everybody invests in it. The people who are investing from outside are just gambling with there money by thinking they are investing.
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