Robert Kiyosaki, renowned author of Rich Dad Poor Dad, shares a radical perspective on education and personal finance. He challenges the conventional wisdom of "go to school, get a job, work hard, save money, get out of debt, and invest for the long term in the stock market." According to him, this approach is obsolete in an era where trillions of dollars are being printed.
The Economic Divide
Kiyosaki highlights the massive gap between the top 1% and the remaining 99%, asserting that it’s not just about money but about seeing the bigger picture. He encourages us to step back and consider the broader context rather than focusing solely on financial aspects.
A Triple Identity
Each of us has three identities: a poor person, a middle-class person, and a rich person. Kiyosaki explains that the educational system teaches us to be employees seeking security and a steady paycheck but does not teach us how to become rich. His own "rich dad" refused to pay him, believing that paychecks could be damaging as they trap us in an employee mindset.
The Entrepreneurial Mindset
For Kiyosaki, entrepreneurship is not just about running a business but about a mindset, skillset, and a different set of rules. The rules that apply to employees and small businesses are not the same as those for big businesses. He emphasizes that becoming an entrepreneur tests your character, rather than being merely an opportunity to make money.
The Last Paycheck
Kiyosaki recalls his last paycheck while working for Xerox. Although it was a significant moment, he realized that to succeed as an entrepreneur, he could never look back. He explains that financial insecurity can make people smarter, hungrier, and test their integrity.
A Long-Term Vision
It is crucial to see the big picture and prepare for what’s coming. Kiyosaki mentions that many people do not realize how much the world has changed since President Nixon took the U.S. off the gold standard in 1971. Money became debt, and traditional financial strategies like saving and paying off debt are becoming obsolete.
Debt and Taxes
Kiyosaki views debt and taxes as powerful tools for getting rich. Contrary to popular opinion, he uses debt to invest and lower his costs. For example, he refinanced $300 million in debt, reducing his interest rates and increasing his cash flow.
For Kiyosaki, traditional ideas about education and financial management are outdated. He encourages people to adopt an entrepreneurial mindset, understand the strategic use of debt and taxes, and always seek personal improvement. It’s not just about money but developing a vision and mindset that allow you to thrive in any economy.
For a comprehensive understanding of Robert Kiyosaki's approach, explore his books and videos, which offer valuable insights into wealth creation and financial freedom.