worldtrending24710 Things Robert Kiyosaki Said About Money
Robert Kiyosaki is an American businessman and author well known for his bestselling book Rich Dad Poor Dad that offers unique and intelligent insights on matters of finance and wealth.
Among the things he said about money include:
1. Financial Education
Money lessons should be taught in schools as well as in homes. What you don’t know, you cannot have control over. Parents should not shun discussing the subject of money like his poor dad.
He proposed that the school system should incorporate money lessons in the syllabus.
He notes that there are people who make a lot of money at some point in their lives, for example, athletes, but soon end in poverty because of financial illiteracy.
Because money without financial intelligence is money soon gone.
2. Financial self-reliance
In case of a need, someone should not say, “I can’t afford it.” Instead, one should ask, “How can I afford it?”
The former makes the mind ‘lazy’ but the latter puts the mind to the task, to come up with possible solutions to the problem at hand.
He says that true freedom is financial freedom. The idea of having breadwinners and bread eaters is impoverishing. Take control of your finances.
3. Money is power
People who have the gold make the rules. They make laws that favor them. It helps them pay fewer taxes.
However, the poor and the middle class are the ones who pay more taxes because they earn income, which is more tax.
4. Money is an illusion
Money is not real, ideas are. Mind and time are two great gifts. It’s what is in your head that determines what is in your hands soon enough.
If you don’t have money but you have money-making ideas, and you take action, you will get the money.
He says that money will not solve your problems but ideas will, because there is gold everywhere, but few people are trained to see it!
He says that broke is temporary, poor is eternal, meaning one can change his/her financial situation.
5. The rich invent money
The rich do not know everything. In fact, they might be knowing less than most poor people. The difference is that they are bold risk-takers. They see opportunities, raise the money and organize smart people to work for them.
Self-doubt is the obstacle of most poor people. To make it worse, they gamble with their money because they don’t know what they are doing. On the other hand, the rich take calculated risks and go on to make more money.
6. The rich don’t work for money. The poor and middle class do
The rich invest their money and set up systems to bring them money, even if they are not working, even in their absence.
The poor and middle class have to work to make a living, basically from hand to mouth.
They spend and save what is left, which is always almost nothing, so they can’t invest, and the poverty cycle continues.
7. Rich people acquire assets. The poor and middle class acquire liabilities they think are assets.
Assets put money into your pocket. Liabilities take money from your pocket.
The poor and middle class buy houses, cars and other consumables from their earnings, thinking they are assets. Instead, it makes them spend more to be sustainable.
The rich overcome obstacles, which are fear, cynism, laziness, bad habits and arrogance, and create more wealth.
8. Mind your own business
If you work for money, you give them the power to your employer. If money works for you, you keep the power and control it.
Working for others or the government all your life because you await retirement benefits and other incentives is a good way to be poor.
Kiyosaki says it is wise to have other sources such as passive income other than fully depending on salary.
9. Work to Learn, Don’t Work For Money
Begin as early as possible to work to learn. In the process, you make mistakes and learn from them. You learn business systems. You learn how to sell.
He advises that one should avoid the temptation to specialize because it is limiting. In his own story, he and Mike began working while still young, and the experience and lessons have helped them make a lot of money.
He says it is better to begin early, make mistakes and learn from them other than beginning late with no experience at all.
10. Give and you shall receive
Giving money is the secret to most great wealthy families, e.g., the Rockefeller foundations.
If you want money, give money. If you want mercy, show mercy. If you want to be loved, love. If you want a lot of it, give a lot of it.
Poor people receive less, or nothing at all, because they have nothing to give! And that’s how the poor dad was because he had nothing left to give to others, even his own family, after spending his earnings.
This is why the rich get richer and the poor get poorer.
However, he also advises you to pay yourself first, for that will give you the momentum and motivation to work smarter so as to pay for other expenses and due debts.
I find his insights invaluable for all of us to put to good use.
