Robert Kiyosaki is an American investor, entrepreneur, businessman, self-help author, motivational speaker and financial literacy advocate.
Robert Kiyosaki is very popular for his book called ‘Rich Dad Poor Dad’ (one of the best books on money ever written.) In this book, he gives some excellent advice on how to get rich .
He is the founder of the Rich Dad Company and he has an estimated net worth of 80 million US dollars.
WarningMost people would want to at least earn enough to not have to worry about meeting their bills every month. And then there are those who go to school to find a safe, reliable job, with benefits and a promotional structure, save their money little by little, pay their bills, and then spend what they have left over last.
Many people work very hard, but they never seem to earn enough.
They repeat this cycle for the rest of their working lives, but this ultimately never allows them to get ahead or become financially independent.
Our education system is the number one cause of why so many people struggle financially.
ImportantSchools teach people how to work for money, but they do not teach them how money can work for them. This lack of financial skills taught in school means that even highly educated people generally do not know how to handle money .
The result is that the majority of people get trapped in work to pay their bills and are chasing paychecks all their life.
This is the sad conclusion Robert Kiyosaki draws in his bestselling book Rich Dad, Poor Dad. If you do not know how money works, you can never have enough . Money alone will not solve anything, it will even get most people into more debt. Luckily, he also offers a way out. A way to get ahead.
He explains how to escape this “rat race” and achieve financial independence.
Robert Kiyosaki deserves the greatest respect for his business prosperity and his books in financial education. Do you want to build wealth and change your money mindset? If you use the following lessons from this businessman on practice, you will lead a successful life.
Don't Work For Money
Don’t work for money, instead make your money work for you . One of the major differences between poor, middle class and rich is that the poor and middle class work for money, but the rich have their money work for them .
This lesson has become such a cliché that many consider it to be a myth. But it’s absolutely true.
The rich learn the virtue of becoming business owners early . And running a business is, more than anything else, about learning how to leverage resources and people to earn more money than you ever could by exchanging your own labor for a wage.
As your business becomes more profitable, you invest some of those profits into building your business and increasing your income.
ImportantTo be rich, people need to control two emotions: fear and desire. They fear not having money, so they work harder. However, when they get paid, greed kicks in, which causes them to think of all the things they could buy.
Stop thinking about a salary and start thinking about how you can generate money for yourself.
WarningMost people miss out on opportunities because they chase after money and security , but once you get rid of this, you’re able to view the world in a different way. Stop trading your time for money.
Let the dollar be your obedient servant.
Financial talent is no exception when you consider the sphere of business. Every person has a dormant talent for handling money that he is able to develop without any restrictions.
Pay Yourself First
It’s not how much money you make that matters — it’s how much money you keep. One of the behaviors that most separates the rich — especially the self-made rich — from others is the emphasis on saving money.
One of the fundamental obstacles for most people is that budgetary priority goes to spending. Saving gets only what’s left over.
The situation is very different among the rich, particularly among those who aspire to become wealthy. Though financial planners may recommend saving and investing 10% of your income, the aspiring rich may save 40%, and even 50% or more of their income.
Just pay yourself first, not last.
Each month, invest a certain amount of money into an income-generating asset before you pay your bills . And if you come up short? Use this pressure to inspire you to come up with innovative ways to get enough money to pay the bills.
Keep your expenses low and reduce your liabilities.
ImportantThe little money you have with you, you can use it to start something and live sparingly on the profit. With time, it would become big. While you are spending the money with you, you should know you are eating your seed and also eating your harvest.
Mind Your Own Business
A lot of people use their life to grown someone else’s business. You have to take control of your own financial future , and be more conscious of minding your own business, and not killing yourself for someone else’s dream.
Working all your life for someone else can lead to financial struggle.
ImportantThe fundamental limiting factor with being an employee is that you’re always trading time for money . And since you only have so much time to give to your employer, it creates an absolute limit to how much you can earn .
When you’re self-employed, there is no ceiling on what you can earn. The more you can earn, the more you can save and invest to gain real wealth.
You’re also free to take your business in any direction. That means taking on more challenging — and profitable — business directions, and even creating additional income streams.
Not only does self-employment remove any income ceilings, but it also creates the ability to build up your assets faster than you can as an employee.
Robert Kiyosaki advises that you try to figure out different legitimate ways to build wealth, look for opportunities or invest in businesses to build more assets and generate a strong flow of income. And then use this income to generate more returns or wealth so that it leads you to financial freedom.
You can’t change the direction of a car that is parked, you have to start moving before you take the car in the direction you want.
It is time you stopped ruminating about the business idea, it is time you started it. Venture into it, you don’t gain anything staring at the idea while some are waiting to poach the idea from you.
Know the difference between an asset and a liability . An asset is something that puts money in your pocket. A liability is something that takes money out of your pocket.
Rich people acquire assets. The poor and middle class acquire liabilities.
WarningEmbracing the consumer mindset of the advertising culture, many people “invest” their money in possessions they believe to be assets . Probably the best example is the family home.
Even while a house can build value over time, it’s not an income-generating asset. It costs you money to keep it.
Other non-income generating “assets” include cars, recreation equipment , furniture and entertainment equipment, and vacation homes. All may feel good to own, but none generate any income. Typical assets acquired by the rich include stocks, bonds, investment funds , income-generating real estate, real estate investment trusts, and businesses.
If you want to be rich, simply spend your life buying assets. If you want to be poor or middle class, spend your life buying liabilities.
Over time, the growth in income-generating assets results in a higher income . Eventually, the income being produced by those assets may be sufficient for the owner to live comfortably without having to work anymore.
Know a little about a lot.
ImportantLearn something about accounting, investing, markets, the law, sales, marketing, leadership, writing, speaking, and negotiating. An investment in knowledge pays the best interest .
Failure is not the opposite of Success, Failure is part of Success . Failure is what you see when you’re short-sighted. When things don’t work your way, you call it failure, actually it is not, it’s only part of success.
The moment you start to see failure as a wrong thing, the moment you are derailing from the road to success.
WarningPeople that complain or moan about their downfall don’t go far in life. The first step to solving a problem is identifying the problem and believing that whatever goes wrong is your fault. If you tried to avoid failure in what you do, then you are unknowingly avoiding the success associated with it.
Life is like a bicycle, you only move when you keep cycling, and it is only when you keep moving that you are standing.
In life, we have our falls, we have our setbacks, the things that push us down, the tantrums, discouragements that do not want us to start or continue; however, the secret to succeeding in all of this is to continue moving .
Often in the real world, it’s not the smart who get ahead, but the bold.
ImportantAccording to Robert Kiyosaki, the word FOCUS stands for ‘Follow One Course Until Successful.’ Once you set out on the path of entrepreneurship, you must stay the course and always remain focused on your goals .
Winning means being unafraid to lose.
Every rich person has lost money at some point, but many poor people have never lost a dime. Playing not to lose money means you will never make money .
Be in control over your emotions. Do not let fear or opinions of the general public dictate your actions.
WarningWhen stock prices decline, people run away. However, when the local supermarket has a sale, people buy as much as they can. Taking a calculated risk can help you to build wealth . And you become smarter with each experience.
Whether it’s a son of a friend who needs $250,000 to find a product and develop it, or an entrepreneur with a prospectus and alarm who needs $400k for 10 days, or a business with which you have a standing order, they all need one thing. @TheSharkDaymondhttps://t.co/MHAmN0W7Yv pic.twitter.com/PL866mQdpJ— therealkiyosaki (@theRealKiyosaki) February 20, 2020
Having money does not make your rich, because you can always lose money. What makes you rich is knowledge . Ultimately, it is your financial intelligence that makes you rich. You can be a genius when it comes to academic intelligence, but a moron when it comes to financial intelligence.
Financial intelligence has nothing to do with academic intelligence.
ImportantThe concept of money is created by humanity, it is an illusion to which we all contribute . This might help you to create a little more distance between you and money. Many people are too attached to money to create maximum wealth.
The most successful people in life are the ones who ask questions. They’re always learning. They’re always rising. They’re always pushing.
If your brain is well trained, they can create enormous wealth for you! Never stop learning, always keep growing as a person and your wealth will grow with it!
Your brain is your strongest asset.
WarningThese lessons from Robert Kiyosaki aren’t meant to make you feel your situation is hopeless if you’ve been handling your finances the way the majority of people do. Rather, it’s to give you an insight as to how rich people become rich.
That involves major behavioral changes.
But if you can embrace them as part of your financial routine, the entire monetary dynamic in your life will change for the better .
The rich have already figured that out. You can become one of them by doing what they do.
All these things are practicable, make sure you learn and adhere to them. If you need any help, requests or counseling, you can reach us via our contact page. We will be willing to help. Thanks for reading, leave a comment and don’t forget to share with your friends.