7 Money Lessons from Robert Kiyosaki

Robert Kiyosaki is one of the most recognisable figures in the world of personal finance and wealth building.

He is the author of the famous “Rich Dad Poor Dad”, and responsible for helping millions achieving financial freedom.

Don’t know his secrets to financial success? You will soon.

Here are Robert Kiyosaki’s 7 money rules for financial success.

Prioritise Your Education

Financial literacy is key to growing your wealth. But, unfortunately, it’s rarely taught in schools.

Kiyosaki says “your best bet is to supplement your formal education with financial literacy.”

If you were to receive a lot of cash tomorrow, but had no financial education, you’re bound to spend the money in a way that won’t leave you with much down the line.

Kiyosaki says to learn as much as you can about money.

So, as you earn more, you know exactly how to invest it to grow your wealth throughout your life.

Buy Assets, Not Liabilities

“An asset is something that puts money in your pocket. A liability is something that takes money out of your pocket.”

Kiyosaki defines assets as “shares and property investments”. Liabilities are “commitments and obligations.”

Focus on adding assets to your portfolio, like ETFs or real estate.

Liabilities include items that you own that you can’t actually afford. Things like a luxury car or boat you’ll be paying off for many years to come.

Try to only add assets to your financial portfolio rather than take on a bunch of liabilities.

Know A Little About A Lot

Kiyosaki writes that the more skills and areas of expertise you have, the more opportunities there will be to grow.

When new technologies are introduced, or new trends emerge, learn about them so you know when you can become part of the next big thing.

A great example of this is artificial intelligence. The more you know on growing industries, the opportunities you can take advantage of.

Winners Aren’t Afraid to Lose

Failure is part of the process of success.

People who avoid failure also avoid success.

The key to making more money in Kiyosaki’s eyes isn’t by playing it safe.

He emphasises that growing your wealth means you’re going to take on risk, and sometimes, that risk will not pay off.

The trick is to not let those mistakes or failures get you down, as that’s a part of learning.

The more comfortable you get with risk, and the more you learn from mistakes, the better you will be at making money.

Have A Reason to Do Things

“Everyone wants to be rich, but many of us don’t want to struggle.”

Kiyosaki tells us we must have a clear purpose in mind.

Why do you want to earn more passive income?

For many people, it’s because they don’t want to work all their life.

They want to have control over how they spend their time.

Others want to support their children financially. Others want to give to the community or charity.

Write down your “why” because it will keep you motivated.

If you don’t have a reason, then it is difficult to stay on the path to wealth.

Don’t Act With Emotions

“Be in control over your emotions”, says Kiyosaki.

Do not let fear, or the opinions of the general public, or the media dictate your actions.

Kiyosaki reminds us that when share prices decline, people get scared, run away or sell.

But, when the local supermarket has a sale, people buy as much as they can.

Most people’s lives are controlled by the two emotions of fear and greed.

Fear keeps people in this trap of working hard and earning money, and hoping that it will reduce their fear.

They’re scared of investing or taking a leap of faith and opening up a business.

Many people are driven by the greed of wanting to get rich quickly. When deep down, a lot of people know that these things never work.

Financial Education is Your Greatest Asset

According to Robert, money isn’t your greatest asset.

The single most powerful asset we all have is our mind.

If it is trained well, it can create enormous wealth, says Kiyosaki.

He believes that if people are prepared to be flexible, have an open mind, and learn, they tend to get richer.

Intelligence solves problems and produces money. But, money without financial intelligence is quickly lost,” says Kiyosaki.

Sure, some people get a raise or a financial windfall. But, unless you’re the type of person that can handle that amount of money or income, the money will soon disappear.

You could be successful in your profession, but you could still be financially illiterate.

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