Once people have studied and become financially literate, they may still face roadblocks to becoming financially independent. There are five main reasons why financially literate people may still not develop abundant asset columns that could produce a large cash flow. The five reasons are:
- Bad habits
I have never met anyone who really likes losing money. And in all my years, I have never met a rich person who has never lost money. But I have met a lot of poor people who have never lost a dime— investing, that is.
The fear of losing money is real. Everyone has it. Even the rich. But it’s not having fear that is the problem. It’s how you handle fear. It’s how you handle losing. It’s how you handle failure that makes the difference in one’s life. The primary difference between a rich person and a poor person is how they manage that fear.
It’s okay to be fearful. It’s okay to be a coward when it comes to money. You can still be rich. We’re all heroes at something, and cowards at something else. My friend’s wife is an emergency-room nurse. When she sees blood, she flies into action. When I mention investing, she runs away. When I see blood, I don’t run. I pass out.
My rich dad understood phobias about money. “Some people are terrified of snakes. Some people are terrified about losing money. Both are phobias,” he would say. So his solution to the phobia of losing money was this little rhyme: “If you hate risk and worry, start early.”