Thinking about retirement is enough to make some people break out into cold sweats. For that reason, some people refuse to think about it at all. Perhaps they assume that "something" will come along if they just wait long enough. Maybe they will win the lottery or get a job that pays an insane amount of money. Or maybe they are in denial that their lives will ever change. Perhaps they can't really conceive of a life in which they are not able to work, or in which their health has begun to fail.

The fact about retirement is, at their present rate, most people will simply not be able to save enough money to take care of themselves in their old age. They will certainly not be able to maintain the quality of life they presently enjoy. Yet, because most people simply do not understand how money works, they do not have a viable plan for the future.

Most people will not win the lottery. Most people will not stumble upon a job that pays ridiculous amounts of money or discover they are the recipient of a dead aunt's fortune. Most people should seriously consider investing in real estate.

In his Rich Dad, Poor Dad book series, Robert Kiyosaki went into great detail about how money works for the individual (or fails to do so) as a result of that individual's financial philosophy. Everyone has a financial philosophy, whether or not they realize it.

If a person's philosophy is that they should find security above all else, chances are he will try to get a good job and settle in with it. He will be very concerned about benefits and retirement packages. If a person values independence, then he may eventually become self-employed. Working long hours can't dampen his spirits because he is a free man.

Though they may look very different at the outset, those two types of people actually look at money in much the same way. They think that they have to trade hour for dollar. Of course, they recognize that one person gets more dollars for each hour. What they fail to realize is that there is a natural limit to the number of hours an individual can work, and a limit to how much he can get for each hour.

Then there is the individual who realizes that he doesn't have to trade his time hour for dollar. He realizes that it is possible to earn money exponentially. This person realizes that he can create a system that can make money without his even being present.

This person has realized how to make his money work for him, instead of having to work for his money. This is the type of person the individual who wishes to retire well needs to become.

The person who understands the idea of building a system of making money understands investing. When an individual invests in real estate, he has the potential to gain incredible returns on the money he spends. He sets up a system that, if handled properly, garners more and more income without his lifting a finger. This is good news, considering that most people reach a time when they are no longer able to work.

Visit Minnesota Realty to Learn More About Minnesota Real Estate Planning

People want to be mystified. Art mystifies them, so they gasp with pleasure and congratulate the creator on his skill. They see science as a mystery, so they aren't even interested in what researchers are actually doing. Real estate investment mystifies them, so they make the assumption that it's just a lottery and that some people are either extremely lucky, or that they have an inborn gift.

They are unwilling to accept that succeeding in these three disciplines and most others is simply contingent on breaking a process down into steps and following through. Anyone who reads the Rich Dad, Poor Dad book series by Kiyosaki will realize that, in the real estate investing game, there are 5 important steps the serious real estate investor should follow . He or she must:

1.Learn the language of real estate investment. That means that you should take in the basics of {finance and accounting and know how to read financial statements. This knowledge help you to determine whether a property is assets and potential drains. Also, it's vital to learn about real estate and tax law, not onlyin order to avoid making mistakes, but in addition to know where the best deductions for real estate are. Understanding the basics of these subjects will also make it possible for the investor to know what questions to ask his accountant and lawyers when he hires them, and to grasp the implications of what they tell him.

2.Keep experts close at hand. This means networking and studying the people who he may choose on the real estate investing team of experts who will assist him in the location and evaluation of properties. The investor should familiarize himself with the community of real estate experts in the city in which he is looking to invest his money, and thereby get to know the city.

3.Study the markets consistently. The investor should read up on various cities and see what the experts say about them, but also take a look at them himself. He should do this double-time in his own city, if that is the city in which he is planning to invest his money. He should get to know the economy and which areas are more and less profitable. He should learn what the market rents are and decide if a property in that area would assist him in reaching his financial goals. The investor should personally visit and walk through as many pieces of property as possible with his team of experts, regardless of whether or not he is actually prepared to buy.

4.He should learn how to negotiate, and how not to negotiate . Many simply have misconceptions about dealing with sellers. These people think the object of each and every negotiation is reach a closing by any means necessary, and to strong-arm the seller into make sure all of the information regarding the piece of property is out in the open. If it turns out that the purchaser can work the numbers to his advantage, and the seller will accommodate his terms of sale, that is the point at which the investor should proceed with the purchase of the property. If this is not true, the investor should walk away. According to Ken McElroy, writer of "The ABCs of Real Estate Investing," the investor should go into every negotiation assuming he will walk away in the end.

5. Nurture your properties. This comprises just what you would think. Conduct the necessary repairs and improvements on the property and get the vacant units filled. Make sure the tenants' needs are taken care of.

This description represents a simplification of the long road to real estate investment success, however these five simple steps show that anyone can learn to succeed in the real estate business. There is really nothing mystical or magical about it.

It's true that nearly everyone dreams of becoming fabulously wealthy at some point in their lives. Why is it then, that hardly anyone actually goes out and makes their fortune? The difference between those who become rich and those who do not is that the rich learn how money is made, and how they can make money work for them.

This may sound like an intimidatingly difficult undertaking, but it really isn't as hard as it sounds. With all of the literature and educational materials on the market for budding real estate investors, there's no reason you shouldn't be able to learn the ropes, provided that you put in the necessary hours of study. In fact, simply reading this article is a great start to the learning process that will ultimately transform you into a successful investor.

With each real estate book or article you read, you come one step closer to having the tools you need to become rich. The most important lessons you'll learn from your studies, however, aren't about the minute details of the real estate business - that's what you hire other people to handle. The real lesson is that in order to become a successful investor, you've got to think like one.

That's it. The fact of the matter is, you only have to get out of the habit of thinking like an employee and start thinking like an investor.

I'll give you a moment to digest that one. It's such a simple concept, it can take you by surprise. But it's true. Just think about the kinds of conversations you and your fellow employees tend to have when you're talking about your jobs: "If only the boss would let me do this." Or how about, "I can't do that; I'd lose my 401K!" The employee mindset is a fearful one, dependent on the system to take care of them. Oh sure, they put in the hours so they can have a roof over their head. And that's exactly what they get-a roof over their head. Maybe a two-week vacation once a year if they're lucky.

If you want more than that- to be rich, for example- you have to start thinking like the people who control the money. Think like the people who work smart, not hard. With a little thought, you can figure out how to make your money work for you.

Who are these people who are financially in control? Corporations hold a great deal of power in our society, but a corporation is an abstract concept; the money and therefore the power are really held by the businessmen who make the decisions for the corporations.

That's right- the businesspeople. But they are only near the top of the food chain. If you go to the very top, what you find is...investors.

Investors are at the top of the food chain because they know how to make their money work for them, instead of slaving for their money. And they are laughing all the way to the bank because they know what a simple concept it is. They know that anyone could do it. And they know that most people won't because they are stuck thinking like employees. The sad thing for most people is that they will never break that habit. You don't have to be one of them.

All you have to do to become one of the big fish is invest. It's that simple. Investing in real estate is a good bet because it's a stable investment. It's so stable, in fact, that the bank will actually lend you money to purchase it. No kidding.

This is the message at the heart of all of the thousands and thousand of books and articles available to prospective investors: think like an investor, not like an employee. If you were to read it all, that's the most important lesson you'd learn. It really is that simple.

Realtor and Author Alexandria P. Anderson uses the Plymouth Real Estate Listings to help her MN realty clients find Plymouth Condos in Minnesota.