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Robert Kiyosaki has No Fear By Justin Hunter

Investing your money is a risk. No matter how much or how safe you believe an investment to be, risk is involved. In order to really be able to make as much money as possible from investing, you need to let go of your notion of fear.
Fear often clouds the vision of what investments will make you rich. Just because you fear something does not mean it is negative. Once you can overcome you financial fears, you will be able to unleash your moneymaking potential.

Robert Kiyosaki’s article, “Fear Can Cost You Money,’ written January 9, 2007 and posted on Yahoo! Finance, provides confidence to everyone who has tried investing but is afraid to really make money.

“Wall Street recently paid out billions in bonuses to its employees. Those bonuses came from investors who believe investing is risky. In other words, there's a giant industry built around investor fears. The more fear, the bigger the bonuses.”

Kiyosaki sites a Time magazine article called "How Americans Are Living Dangerously." The first topic discussed is in Time article is illusory control, in the sense that we (Americans) believe there is less risk involved in a situation if we have control over it.
The common example is illustrated that people have a greater fear of flying than they do of driving a car even though only a few hundred people are killed per year from flying, compared to over 44,000 that are killed in car accidents.

This same situation can be applied to the fact that people feel safer with money in the bank than in investments, hence the saying, “It’s as safe as money in the bank.”
“Between 1996 and 2006, the purchasing power of the dollar dropped by 50 percent compared to gold. In 1996, gold was approximately $275 an ounce; by 2006 it was over $600 an ounce. In 1996, oil was approximately $10 a barrel; in 2006 it was over $60 dollars a barrel. Compare the price of real estate in your area between the same 10 years and you'll notice that the purchasing power of your dollar has slipped.”

People feel investments such as gold, oil and real estate are risky just because they do not have much control over them, similar to flying in a plane. Then why are fatal accidents so prevalent when we do have control, such as driving an automobile?
Fear also tends to make people place a higher value on their emotions rather than statistical data.

“Of the 2.5 million deaths annually in the United States, the No. 1 killer is heart disease. In 2003, there were 685,089 deaths due to heart attack. Auto accidents caused 44,000 deaths. Only 17,732 deaths by murder and 1 death by shark attack occurred in the same year.”

Yet, people are still much more afraid of murderers and sharks than fast food chains. People have so much anxiety and are apprehensive about entering the water at the beach after one singled-out shark or stingray attack that they may even cancel their family vacation, but have no problem waiting in long drive-through lines at just about every fast food chain on the corner of just about every intersection.

This scenario can be applied to the investment world. Many people believe investing is too risky so they put their money in safer outlets such as mutual funds.

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