I was reading a book of Robert Kiyosaki, and came across this interesting excerpt – how true:
“Many a man has been suckered because he did not know the facts. Everyday we hear horror stories of someone who lost all their money because they thought an opinion was a fact. It’s OK to use an opinion when making a financial decision… but you’d best know the difference. Millions upon millions of people have made life decisions based upon opinions handed down from generation to generation… and then they wonder why they struggle financially.
Well, here are few common opinions we all have heard:
- You should marry him. He’ll make a good husband.
- Find a secure job and stay there all your life.
- Doctors make a lot of money.
- They have a big house. They must be rich.
- He has big muscles. He must be healthy.
- This is a nice car, only driven by a little old lady.
- There is not enough money for everyone to be rich.
- The earth is flat.
- Humans will never fly.
- He’s smarter than his sister.
- Bonds are safer than stocks.
- People who make mistakes are stupid.
- He’ll never sell for such a low price.
- She’ll never go out with me.
- Investing is risky.
- I’ll never be rich.
- I didn’t go to college so I’ll never get ahead.
- You should diversify your investments.
- You shouldn’t diversify your investments.
The point is most people’s lives are determined by their opinions, rather than the facts. For a person’s life to change, they first need to change their opinions… then start looking at the facts. If you can read financial statements, you will be able to see the facts not only of a company’s financial success… if you can read financial statements you can tell immediately how an individual is doing… rather than going by yours or somebody else’s opinions. One is not better than the other. To be successful in life, especially financially, you must know the difference. If you cannot verify something is a fact, then it is an opinion.”
