Rich Dad Poor Dad Series: Embracing Your Fear

I call this “facing your fear.” However, Kiyosaki calls this chapter “Overcoming Obstacles.” He lists 5 obstacles that can prevent people from becoming successful or financially independent: Fear, Cynicism, Laziness, Bad Habits, and Arrogance. Today, I’m focusing on fear because for me it’s the most dangerous and the most difficult one to overcome.

From what I’ve observed, the biggest difference between those who are successful (in a business or financial sense) and those who aren’t is how well they cope with specific fears: fear of losing money, fear of failure, fear of taking risk. The only way to overcome a fear is to face it. I am by no means recommending someone take an extreme risk or invest more than they can afford to lose. Avoiding that very fear, however, will very likely bring about the very thing you’re afraid of.

Investing, i.e. taking risks, is the only way to achieve financial independence. To take money and invest it in stocks rather than keeping it “safe” means risk. Kiyosaki actually argues that “savers are losers” and backs it up with historical rates of inflation v. historical savings rates and stock market returns over the same periods.

Am I saying you shouldn’t have an emergency fund? Or save for your kid’s college tuition? Of course not. But those financial acts are not intended to achieve financial independence. Investing is.

One of my favorites points from this chapter is when Kiyosaki says, “Everyone wants to go to heaven, but no one wants to die. Most people dream of being rich, but are terrified of losing money. So they never get to heaven.” The fact of the matter is, you will lose money if you’re investing frequently. It’s risky. But you learn from it and become a better investor along the way.

So, face your fear. Take the risk. Failure is never as bad you’re afraid it’s going to be.

Rich Dad Poor Dad is an easy read. Pick up a copy! I will be reviewing the book in more detail in the coming weeks, and I look forward to reading your comments. And as always, for more reading recommendations, or to discuss other entrepreneurial tips and tools, contact Harvard Grace Corporation at

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