Rich Dad’s Guide to Investing

Maybe you've heard of the 80-20 rule, which states that 80 percent of our success comes from 20 percent of our efforts? Well, that might be true for overall success – but for money, the rule is 90-10, because when it comes down to it, 10 percent of people have 90 percent of the money.

The rule applies in many walks of life. Think about Hollywood stars, and then think how many actors are waiting tables between gigs. Yep, 10 percent of actors earn 90 percent of the money. The same goes for athletes, musicians and, of course, investors. A Wall Street Journal article confirmed this, noting that 10 percent of the population own 90 percent of all the shares in the United States.

Why is it that rich people can accumulate so much wealth? Well, one reason is that some investments are simply off-limits if you’re poor.

Back when he was a young man with little cash, the author asked his rich friends if he could get involved in their business deals. But, despite their friendship, the answer was always no – not because they didn't want to help him out, but because it would have been illegal.

In the United States, the US Securities and Exchange Commission restricts certain investments to accredited investors – that is, people with a net worth of $1 million, or a consistent annual income of $200,000. Anyone who is worth, or makes, less than that simply isn't allowed to get involved.

Now, there are good reasons for preventing people without much money in the bank from making potentially risky investments. But these rules also prevent poorer people from making the best investments – the investments of the rich.

So how can you break into that top 10 percent? In the following blink, we'll find out what it takes to think like a rich person.