According to the renowned investor and New York Bestseller, Robert Kiyosaki, which he stated in one of his bestselling book Rich Dad Poor Dad, “If a man thinks that owning a house, a car or keeping money in a bank is an asset, he is jeopardizing his future”.
He later went on to say that having an asset means putting your time, energy and money in something that will bring double of what you initially put. Trading in money and getting more money is an investment.
Investing can mean different things to different people. While investing for some people means putting in money to achieve profit, for some others it can also mean investing time or effort for some future benefit such as investing in oneself skills or health.
Investing in assets means putting money into a financial product, shares, property, or a commercial venture with the expectation of achieving a profit from these investments.
Robert Kiyosaki went on to explain what he meant by trading in money is an investment. He used three terms of human society. The poor, The Middle man, The rich.
The poor sees an opportunity and calls it nothing. The middle man sees an opportunity, wave it to one side and follow the crowd who are saying a negative thing about it. The Rich sees an opportunity, take it very fast, make double of that opportunity and end up being great.
Unlike Robert Kiyosaki, several other renowned rich personalities have come out to tell us about how they made their wealth very easy, with little or no security and they all have one thing in common, which is investing in assets.
Warren Buffet, widely considered to be the most successful investor in history with a network of $50 billion which could accumulate to about 50 countries yearly budget put together.
Others are Philip Fisher, Benjamin Graham, Bill Gross, John Templeton, Carl Icahn and Peter Lynch who are known for having invested full time into businesses and many others.
Investing is how you take charge of your financial security. It allows you to grow your wealth but also generates an additional income stream if needed ahead of retirement.
If you don’t have your own carefully crafted suite of investing rules, now is the time to do it, and the best place to start is to ask the people who have had success in their investing careers.