Why the Cheap Won't Get Rich

There’s a Chinese proverb, “Cheap isn’t cheap, and expensive isn’t really expensive.” It’s a saying that refers to how cheap things often have hidden headaches.

Enter Robert Kiyosaki, author of Rich Dad Poor Dad, an entrepreneur and an organizer of financial seminars, who argues,"Only cheap people buy on price."

What sparked his article was a kind, good friend who was excited that she could now afford to buy a foreclosed home from a bank at $215,000 rather than its price before the housing crash of $780,000. What a steal! Invigorated that she didn't have to pay much down, she didn’t notice a deteriorating neighborhood, the city's most dangerous high school and just a bad investment of a house.

Kiyosaki thinks that this poor lady will probably never be rich as to material things. According to Kiyosaki, here are three bad habits that prevent the cheap from ever getting rich.

1. Zero financial education and not willing to pay to learn. “As my rich dad often said, ‘What you don't know keeps you poor.’"

2. Too emotional in deciding to invest. “In the world of money and investing, you must learn to control your emotions. . . My dad often said, ‘High emotions, low intelligence.’ To be rich, you need to see the good and the bad, the short- and long-term consequences of your decisions. Obviously, this is easier said than done, but it's key to building wealth.”

3. Doesn’t know the difference between advice from rich people and advice from sales people. Most people are persuaded from the latter -- people who profit even if you lose.  - Yahoo! Personal Finance