Robert Kiyosaki, author of Rich Dad Poor Dad, makes a compelling case for financial literacy, which separates the rich from the rest. His key principle is that wealthy people don't work for money in the traditional sense. Instead, it focuses on acquiring assets and building wealth through strategic investments and business activities.
In a December 2022 TikTok post, Kiyosaki emphasized this concept in an interview, saying: He went on to say, “It's the poor middle class who are working for money who are suffering the worst today.”
He said he believes wealthy people are better at navigating economic challenges and see them as opportunities to acquire undervalued assets and invest in innovation. In contrast, people in poverty often worsen their situation by taking on more debt.
Kiyosaki's philosophy centers around the idea of working to learn, not just to earn. He argues that true financial success comes by developing financial intelligence, the mindset that helped him transition from employee to entrepreneur. Shifting your focus from earning a paycheck to acquiring knowledge and skills is critical to achieving financial freedom.
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One of Kiyosaki's notable quotes is, “If you're an entrepreneur and you're going to become a big entrepreneur, leadership skills and communication skills are more important than a law degree.” This statement emphasizes his belief that success as an entrepreneur is more important. He values personal skills such as leadership and communication over formal education.
Another important aspect of Kiyosaki's teachings is the emphasis on cash flow rather than salary. He advocates building stable income-generating assets, such as real estate, which provide more financial stability and control over your income. This approach contrasts with the traditional model of trading time for money at work.
Kiyosaki also highlights the tax benefits of owning a business and investing in real estate. He explains how entrepreneurs can take advantage of deductions and depreciation to lower their taxable income, and how real estate investing can provide additional tax savings.
His philosophy encourages a shift from the traditional mindset of working for money to a focus on building a business, acquiring assets, and leveraging financial and tax strategies. This approach breaks the cycle of dependence on pay and job security and leads to true financial freedom and stability, he said. The underlying message is to cultivate an entrepreneurial spirit and focus on making your money work for you rather than the other way around.
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Image: Screenshot from the Rich Dad Radio Show on YouTube
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Robert Kiyosaki, author of Rich Dad, Poor Dad, says: “Rich people don't work for money – it's the poor middle class who are screwed today.” Originally published on Benzinga.com.
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