My personal challenge was to repeatedly remind myself that another kind of world existed and that I needed to keep an open mind to see a world of both pos- sibilities for me. So the mental attitude questions are: 1. Can you see that two different worlds of money can What Kind of World Do You See? 55 exist? A world of not enough money and a world of too much money. Yes_ No_ 2. If you currently live in a world of not enough money, are you willing to see the possibility of you living in a world of too much money? Yes No _ Chapter 5 Investor Lesson #3: Why Investing Is Confusing One day, I was waiting in rich dad's office and he was speak- ing on the phone. He was saying things such as, "So you're long today?" and "If the prime drops, what will that do to the spread?" and "OK, OK, OK, now I understand why you're buy- ing an option straddle to cover that position" and "You're going to short that stock? Why not use a put option instead of a short?" After rich dad put his phone down, I said, "I have no idea what you were talking about. Investing seems so confusing." Rich dad smiled and said, "What I was talking about was not really investing." "It wasn't investing? Then what was it? It sounded like what investors on TV and in the movies sound like." Rich dad smiled and laughed, saying, "First of all, investing means different things to different people. That is why it seems so confusing. What most people call investing is not really investing. People are all talking about different things yet they often think they are talking about the same thing." "What?" I said, screwing up my face. "People are talking Why Investing Is Confusing 57 about different things yet thinking they are talking about the same thing?" Again rich dad laughed. The lesson had begun. Investing Means Different Things to Different People As rich dad began the lesson that day, he repeatedly stressed that main point. Investing means different things to different people. The following are some of the highlights of this important lesson: Different People Invest in Different Things 1. Rich dad explained some of the differences in value. a. Some people invest in large families. A large ex- tended family is a way to ensure care for the parents in their old age. b. People invest in a good education, job security, and benefits. The individual and his or her marketable skills become the assets. c. Some people invest in external assets. In America, about 45% of the population owns shares in compa- nies. This number is growing as people realize that job security and lifetime employment are less and less guaranteed. There Are Many Different Investment Products 2. Here is a sample of some of the different types of investments: a. Stocks, bonds, mutual funds, real estate, insurance, commodities, savings, collectibles, precious metals, hedge funds, etc. 58 Rich Dad's Guide to Investing b. Each one of these groups can then be broken down into different subgroups.