In our pursuit of financial success, we often find ourselves locked into the 9-to-5 grind, convinced that there’s no other realistic path to wealth. But what if some alternative strategies and tools could open up a new dimension to wealth creation? Enter the wisdom of Robert Kiyosaki, acclaimed author of “Rich Dad, Poor Dad.”
Read Next: 4 Secrets of the Truly Wealthy, According To Dave Ramsey
Learn More: These 10 Used Cars Will Last Longer Than an Average New Vehicle
“Rich Dad, Poor Dad” was first published over 20 years ago but has been updated regularly since. In it, Kiyosaki contrasts the financial philosophies of his biological “poor dad,” an academic and teacher, with those of his “rich dad,” his best friend’s father who was an entrepreneur focused on building wealth through various assets.
While his father was an academic superstar, Kiyosaki struggled in school, calling himself a “D, F, and C student on a good day.” Kiyosaki’s “poor dad” was a teacher with a Ph.D. and impeccable credentials from Stanford, the University of Chicago and other prestigious academic institutions. He emphasized the importance of education and traditional career paths.
Kiyosaki began questioning this conventional wisdom early in life. At the age of 9, he asked his fourth-grade teacher, “When do we learn about money?” and was told that schools don’t teach students about finances.
This left Kiyosaki baffled. Why go to school if it’s not preparing you for the real world by teaching you about money? Kiyosaki argues that schools don’t teach financial literacy and instead prepare people for jobs where they work for money rather than building assets that generate significant cash flow and pave the way to wealth.
Kiyosaki continually challenges the traditional outlook on employment and introduces us to different ways of thinking that prime us for financial independence. Keep reading for a look at some of Kiyosaki’s alternative wealth-building strategies that you can use to discover paths to income beyond your day job.
Unlike Kiyosaki’s father, his “rich dad” was a wealthy entrepreneur who had never completed a formal education and had a completely different outlook on life.
Through the lessons learned from his “rich dad,” Kiyosaki began forming a financial philosophy that emphasizes the importance of building assets that generate cash flow, such as businesses and real estate, instead of relying on a paycheck from an employer.
The traditional option, Kiyosaki says, is “to be a slave for money and work for idiots like me.”
When it comes to Kiyosaki’s views on debt, he makes a distinction between good and bad debt. He sees good debt as something that helps amplify wealth, like taking out loans for income-generating assets such as real estate, businesses or investments.
Kiyosaki himself carries a great deal of debt — over $1.2 billion — as part of his financial strategy. In his view, if he goes under, it’s the bank’s problem, not his.
For You: 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth
Kiyosaki hasn’t accumulated debt haphazardly. He used the borrowed money to purchase more tangible assets like gold and silver.
While traditional financial advice often tells people to avoid debt, Kiyosaki argues that it’s wiser to leverage these assets as collateral for loans in other investments, particularly real estate. In Kiyosaki’s view, debt can be a powerful tool for acquiring assets if used strategically to generate cash flow and tax advantages.
Instead of trying to decrease your expenses, you should try to increase your income. This can help you meet your financial goals more efficiently. Unlike the usual practice of budgeting for expenses first, Kiyosaki says to focus on your income until you can meet your expenses without stressful methods like dividend payments, rental income, side businesses or selling products and services online.
Kiyosaki puts a clear emphasis on buying assets, not liabilities. Good debt can help generate passive income, and it includes things such as stocks, bonds, real estate and intellectual property.
In Kiyosaki’s view, understanding the difference between an asset and a liability is the key to getting rich. Kiyosaki defines an asset as something that puts money in your pocket, while a liability is something that simply reduces your wealth.
Don’t skimp on building your money management skills and extending the boundaries of your financial knowledge, Kiyosaki advises. Financial literacy is non-negotiable.
Becoming wealthy is not just about conventional education — it’s about gaining an in-depth understanding of finances. Equip yourself with knowledge about money management, investment strategies and how to make your money work smarter for you.
Kiyosaki emphasizes the fact that the ball is in your court. Wealth isn’t randomly bestowed on individuals. It’s accrued through conscious decisions accompanied by the bravery to take risks. Financial abundance begins with an unwavering commitment to becoming rich.
Pour energy into nurturing your own business dreams rather than fueling someone else’s ambitions. Your path to wealth is paved by your dedication to creating something of your own that you’re passionate about.
The fear of failure and the avoidance of challenges can be significant roadblocks on your journey toward wealth. This fear often prevents us from stepping out of our comfort zones and trying new things. Kiyosaki says that to embrace this fear, one must understand that failure is not a sign of permanent defeat but simply a temporary setback.
He says to see these as opportunities for learning and growth, knowing that every disappointment or misstep offers insights that can inform and improve your future decisions. In Kiyosaki’s mindset, risks are not something to avoid but to carefully calculate and wholeheartedly embrace.
Kiyosaki stresses pushing boundaries and pursuing a path that challenges the status quo. Staying within the confines of comfort and routine could mean missing out on opportunities for wealth creation. Failures become a necessary stepping stone to greater rewards.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Robert Kiyosaki: 7 Ways To Become Wealthy Beyond the 9-to-5
