“How do I find the plan that is right for me?” is a question I am asked often.
My standard answer is that it comes in steps:
1. Take your time. Think quietly about your life up to this point. Take
days to think quietly. Take weeks if you need to.
2. Ask yourself in these moments of quiet, “What do I want from this
gift called my life?”
3. Don’t talk to anyone else for a while, at least until you are certain
you know what you think you want. All too often, people either
innocently or aggressively want to impose what they want for you
instead of what you want for yourself. The biggest killers of deep
inner dreams are your friends and family members who say, “Oh
don’t be silly,” or “You can’t do that,” or “What about me?
Remember Bill Gates was in his 20s when he started with $50,000
and became the richest man in the world with $90 billion. It’s a good
thing he did not ask too many people for their ideas on what they
thought was possible for his life.
4.Call a financial advisor. All investment plans begin with a financial
plan. If you do not like what the financial advisor says, find another
one. You would ask for a second opinion for a medical problem, so
why not ask for many opinions for financial challenges? Financial
advisors come in many forms; a reference list is provided later in
this chapter. Choose an advisor equipped to assist you in developing
a written financial plan.
Many financial advisors sell different types of products. One such
product is insurance. Insurance is a very important product and
needs to be considered as part of your financial plan, especially
when you are first starting out. For example, if you have no money
but have three children, insurance is important in case you die, are
injured, or for whatever reason are unable to complete your
investment plan. Insurance is a safety net, or a hedge against
financial liabilities and weak spots. Also, as you become rich, the
role of insurance and type of insurance in your financial plan may
change as your financial position and needs change. So keep that
part of your plan up to date.
Two years ago, a tenant in one of my apartment buildings left his
Christmas tree lights on and went out for the day. A fire broke out.
Immediately, the fire crews were there to put out the fire. I was
never so grateful to a bunch of men and women. The next people on
the scene were my insurance agent and his assistant. They were the
second most important group of people I was grateful to see that
day.
Rich dad always said, “Insurance is a very important product in
anyone’s life plan. The trouble with insurance is that you can never
buy it when you need it. So you have to anticipate what you need
and buy it hoping you’ll never need it. Insurance is simply peace of
mind.”
IMPORTANT NOTE: Some financial advisors specialize in helping
people at different financial levels. In other words, some advisors
work only with rich people. Regardless of whether or not you have
money, find an advisor you like and who is willing to work with
you. If your advisor has done a good job, you may find yourself
outgrowing your advisor. My wife Kim and I have often changed our
professional advisors, which include doctors, attorneys, accountants,
etc. If the person is professional, he or she will understand. But even
if you change advisors, be sure you stick to your plan.
So How Do You Find Your Plan?
I had a goal of being a multi-millionaire before I was 30 years old. That was
the end result of my plan. The problem was, I made it and then immediately lost
all my money. So while I found out that there were flaws in my plan, my overall
plan did not change. After losing my money after reaching my goal, I simply
needed to refine my plan by what I had learned from that experience. I then had to
reset my goal, which was to be financially free and a millionaire by age 45. It took
me to age 47 to reach the new goal.
The point is, my plan remains the same. It just gets improved upon as I learn
more andmore.
So how do you find your own plan? The answer is to begin with a financial
advisor. Ask the advisors to provide their qualifications to you and interview
several. If you have never had a financial plan done for you, it is an eye-opening
experience for most people.
Set realistic goals. I set a goal of becoming a multi-millionaire in five years
because it was realistic for me. It was realistic because I had my rich dad guiding
me. Yet, even though he guided me, it did not mean I was free from making
mistakes . . . and I made many of them, which is why I lost my money so quickly.
As I said, life would have been easier if I had just followed rich dad’s plan. Being
young, however, I had to do things my way.
So start with realistic goals, and then improve upon or add to the goals as your
education and experience increase. Always remember that it is best to start by
walking before you begin to run in a marathon.
You find your own plan first by taking action. Begin by calling an advisor, set
realistic goals, knowing the goals will change as you change…but stick to the plan.
For most people, the ultimate plan is to find a sense of financial freedom, freedom
from the day-to-day drudgery of working for money.
The second step is to realize that investing is a team sport. In this book, I will
go into the importance of my financial team. I have noticed that too many people
think they need to do things on their own. Well, there are definitely things you
need to do on your own, but sometimes you need a team. Financial intelligence
helps you know when to do things on your own and when to ask for help.
When it comes to money, many people often suffer alone and in silence.
Chances are, their parents did the same thing. As your plan evolves, you will begin
to meet the new members of your team, which will assist you in helping make
your financial dreams come true. Members of your financial team may include:
1. Financial planner
2. Banker
3. Accountant
4. Lawyer
5. Broker
6. Bookkeeper
7. Insurance agent
8. Successful mentor
You may want to hold meetings over lunch with all these people on a regular
basis. That is what rich dad did, and it was at these meetings that I learned the
most about business, investing, and the process of becoming very rich.
Remember, that finding a team member is much like finding a business
partner, because that is what team members are in many ways. They are partners
in minding the most important business of all—the business of your life. Always
remember what rich dad said: “Regardless of if you work for someone else or for
yourself, if you want to be rich, you’ve got to mind your own business.” And in
minding your own business, the plan that works best for you will slowly appear.
So take your time, yet keep taking one step a day and you will have a good chance
of getting everything you want in your life.
Mental Attitude Quiz
My plan has not really changed, yet in many ways, it has changed
dramatically. What has not changed about my plan is where I started and what
I ultimately want for my life. Through many of the mistakes, the learning
experiences, the wins, the losses, the highs, and the lows, I have grown up and
gained knowledge and wisdom along the way. Therefore, my plan is
constantly under revision because I am under revision.
As someone once said, “Life is a cruel teacher. It punishes you first, and then
gives you the lesson.” Yet like it or not, that is the process of true learning.
Most of us have said, “If I knew back then what I knew today, life would be
different.” Well, for me, that is exactly what has happened as I traveled along
my plan. So my plan is basically the same, yet it is very different since I am
different. I would not do today what I did 20 years ago. However, if I had not
done what I did 20 years ago, I would not be where I am and know what I
know today. For example, I would not run my business today the way I ran my
business 20 years ago. Yet, it was losing my first major business and digging
myself out from under the rubble and wreckage that helped me become a
better businessperson. So although I did reach my goal of becoming a
millionaire by age 30, it was losing the money that made me a millionaire
today . . . all according to plan. It just took a little longer than I wanted.
And when it comes to investing, I learned more from my bad investments,
investments where I lost money, than I learned from the investments that went
smoothly. My rich dad said, if I have ten investments, three of them will go
smoothly and be financial home runs. Five will probably be dogs and do
nothing, and two would be disasters. Yet, I would learn more from the two
financial disasters than I would from the three home runs . . . In fact, those two
disasters are what make it easier to hit the home runs the next time I am up to
bat. And that is all part of the plan.
So the mental attitude question is:
Are you willing to start with a simple plan, keep the plan simple, but
keep learning and improving as the plan reveals to you what you
need to learn along the way? In other words, the plan doesn’t really
change, but are you willing to allow the plan to change you?
Yes____ No ____
