Be The Rich Dad (Or Mum): 5 Pieces Of Wealth Advice From Robert Kiyosaki

I believe that one of the merits of good advice is that it’s timeless, and Robert Kiyosaki’s book “Rich dad, poor dad” is definitely the case. First published in 1997, it still has a lot of wisdom that is relevant today – especially with the crypto values going up, then down then up again, and the pandemic hitting the economy hard.

Get financial education

One of the main reasons why people have money problems, Kiyosaki believes, is that the vast majority of us never get any financial education. This is also why those who wake up rich often end up poor again.

Ignorance is the biggest risk we can take. Even a basic understanding of the way money works helps us rise above the “rat race” of living from salary to salary, and make the right financial decisions.

Remember that money is never the solution

“Money only accentuates the cash flow pattern running in your head”, says Robert. If you struggle financially, getting more money won’t solve your problems. Understanding where your money goes, learning about cash flows, getting investing experience, and picking the difference between liabilities and assets will.

Tell assets from liabilities

Very often, people think that their house, savings, or retirement are their assets, while in fact, these are liabilities. So how to tell one from the other? It’s simple: assets bring you income, while liabilities don’t.

Earn, reinvest, then spend

It doesn’t mean you shouldn’t buy liabilities at all – just do it mindfully. For a start, Robert advises buying assets that will generate the cash flow. With time, profit from them will cover your expenses and make you financially independent. Reinvest the excess cash flow to increase your fortune; and if you choose to spend more, then get more assets first.

Learn to take risks

And lastly, there is no “get rich quick” solution where you don’t risk losing it all. But it doesn’t mean you should always play safe – safe is never a way to wealth. So learn from seasoned investors: armed with their knowledge and experience, they know when to take risks and can afford to do so.

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