Rich Dad Poor Dad Chapter 7 Quiz & Flashcards

Overcoming Fear in Financial Literacy

The primary difference between a rich person and a poor person is how they manage fear, not the absence of fear.
Financially literate people may still not develop abundant asset columns due to five main reasons: fear, cynicism, laziness, bad habits, and arrogance.
Fear of losing money is a universal feeling, even among rich people, but it's how they handle fear that makes the difference.

Managing Fear and Phobias

It's okay to be fearful or a coward when it comes to money; it's how you handle fear that matters.
Rich people have phobias about money, just like others have phobias about snakes.
A solution to the phobia of losing money is to start investing early, as it's easier to be rich if you start young.

Importance of Early Investing

There is a staggering difference between a person who starts investing at age 20 versus age 30.
Starting early can help overcome fear and achieve financial independence.- The Purchase of Manhattan Island and the Concept of Risk*
The purchase of Manhattan Island for $24 in trinkets and beads is considered one of the greatest bargains of all time.
If that 24hadbeeninvestedatan824 had been invested at an 8% annual rate, it would be worth over 24hadbeeninvestedatan828 trillion by 1995.
This example illustrates the importance of taking calculated risks and having a long-term perspective.
The Texas Attitude towards Risk and Failure*
Rich Dad recommended thinking like a Texan, who takes big risks and sees failures as opportunities to learn and grow.
The Texan attitude is to be proud of wins and losses, and to not be afraid of taking risks.
Fran Tarkenton, a former NFL quarterback, also emphasized the importance of being unafraid to lose in order to win.
The Biggest Secret of Winners*
Failure inspires winners, while failure defeats losers.
The greatest secret of winners is that they are not afraid of losing, and they know how to turn failures into opportunities.
The Japanese Admiral who led the attack on Pearl Harbor said, "I fear all we have done is to awaken a sleeping giant."
Overcoming Cynicism*
Cynicism and doubt can paralyze people and prevent them from taking action.
The "sky is falling" mentality can cause people to play it safe and miss out on opportunities.
Peter Lynch, a successful investor, referred to warnings about the sky falling as "noise."
Real Estate as a Vehicle for Financial Freedom*
Real estate can be a powerful tool for achieving financial independence.
However, many people let their doubts and fears hold them back from investing in real estate.
A key to success in real estate is finding a good property manager.
The Stock Market and Investing*
Many people are afraid to invest in the stock market because they are afraid of losing money.
However, this fear can cause them to miss out on opportunities for growth and financial freedom.
Overcoming Laziness*
Laziness can be a major obstacle to achieving financial freedom.
The cure for laziness is a little greed, or the desire to have a better life.
Asking oneself "what's in it for me" can be a powerful motivator.
Overcoming Bad Habits*
Our lives are a reflection of our habits, more than our education.
Rich Dad paid himself first, even if he didn't have enough money, and then paid his creditors.
This habit forced him to think and work harder to make more money.
Overcoming Arrogance*
Arrogance can be a major obstacle to achieving financial freedom.
When we are arrogant, we may not listen to others or seek out new knowledge, which can lead to financial losses.
Humility and a willingness to learn are essential for financial success.

Overcoming Fear in Financial Literacy

The primary difference between a rich person and a poor person is how they manage fear, not the absence of fear.
Financially literate people may still not develop abundant asset columns due to five main reasons: fear, cynicism, laziness, bad habits, and arrogance.
Fear of losing money is a universal feeling, even among rich people, but it's how they handle fear that makes the difference.

Managing Fear and Phobias

It's okay to be fearful or a coward when it comes to money; it's how you handle fear that matters.
Rich people have phobias about money, just like others have phobias about snakes.
A solution to the phobia of losing money is to start investing early, as it's easier to be rich if you start young.

Importance of Early Investing

There is a staggering difference between a person who starts investing at age 20 versus age 30.
Starting early can help overcome fear and achieve financial independence.- The Purchase of Manhattan Island and the Concept of Risk*
The purchase of Manhattan Island for $24 in trinkets and beads is considered one of the greatest bargains of all time.
If that 24hadbeeninvestedatan824 had been invested at an 8% annual rate, it would be worth over 24hadbeeninvestedatan828 trillion by 1995.
This example illustrates the importance of taking calculated risks and having a long-term perspective.
The Texas Attitude towards Risk and Failure*
Rich Dad recommended thinking like a Texan, who takes big risks and sees failures as opportunities to learn and grow.
The Texan attitude is to be proud of wins and losses, and to not be afraid of taking risks.
Fran Tarkenton, a former NFL quarterback, also emphasized the importance of being unafraid to lose in order to win.
The Biggest Secret of Winners*
Failure inspires winners, while failure defeats losers.
The greatest secret of winners is that they are not afraid of losing, and they know how to turn failures into opportunities.
The Japanese Admiral who led the attack on Pearl Harbor said, "I fear all we have done is to awaken a sleeping giant."
Overcoming Cynicism*
Cynicism and doubt can paralyze people and prevent them from taking action.
The "sky is falling" mentality can cause people to play it safe and miss out on opportunities.
Peter Lynch, a successful investor, referred to warnings about the sky falling as "noise."
Real Estate as a Vehicle for Financial Freedom*
Real estate can be a powerful tool for achieving financial independence.
However, many people let their doubts and fears hold them back from investing in real estate.
A key to success in real estate is finding a good property manager.
The Stock Market and Investing*
Many people are afraid to invest in the stock market because they are afraid of losing money.
However, this fear can cause them to miss out on opportunities for growth and financial freedom.
Overcoming Laziness*
Laziness can be a major obstacle to achieving financial freedom.
The cure for laziness is a little greed, or the desire to have a better life.
Asking oneself "what's in it for me" can be a powerful motivator.
Overcoming Bad Habits*
Our lives are a reflection of our habits, more than our education.
Rich Dad paid himself first, even if he didn't have enough money, and then paid his creditors.
This habit forced him to think and work harder to make more money.
Overcoming Arrogance*
Arrogance can be a major obstacle to achieving financial freedom.
When we are arrogant, we may not listen to others or seek out new knowledge, which can lead to financial losses.
Humility and a willingness to learn are essential for financial success.