Everyone wants to be financially independent by the time they are in their late 40s, but millennials in particular are more concerned with this objective than anyone else because it will allow them to spend the rest of their life travelling and spending time with loved ones. If you’re trying to reach financial freedom, I’m going to share a life lesson with you about Mr. Robert Kiyosaki where he shared about how he worked on his own abilities and learned a lot from both his rich and poor father to reach his financial freedom goals.
Robert Kiyosaki’s Early life and Education:
Mr Kiyosaki’s Early life and Education: He was born into a Japanese family in Hilo, Hawaii, on April 8, 1947.His real father was a highly educated man who held a doctorate and was employed as a teacher. The family struggled financially even though his father was an accomplished scholar.
The father of Robert Kiyosaki’s childhood friend (referred to as “Rich Dad“) and his biological father (referred to as “Poor Dad“) are two significant father figures in his life. His “poor dad” followed the traditional route, which included getting an appropriate degree, getting a steady job, and earning a fixed salary. However, “rich dad” was a business magnate who gave him unusual financial advice.
Journey to Financial Education and Independence:
Inspired by his “Rich Dad’s” financial philosophy, he began investing in real estate and small businesses, where he learned important lessons about assets, cash flow, and money management. This was the beginning of his quest for financial education and independence.
Book “Rich Dad Poor Dad”: Kiyosaki released his amazing masterpiece “Rich Dad Poor Dad” in 1997. The book received wide acceptance regarding money and investing, placing a strong emphasis on the value of assets, passive income, and financial literacy. Kiyosaki rose to prominence in the personal finance and self-help industries after it became a huge blockbuster.
Author of “Rich Dad Poor Dad,” Robert Kiyosaki, highlights a number of important ideas and methods for reaching financial freedom. Today we will be going to share five crucial steps you must do to become financially independent:
Purchase Assets-According to him the value of purchasing assets like stocks, real estate, and companies not only produces passive income but also generate revenue over time contributing to wealth accumulation and financial freedom. He also emphasises the importance of distinguishing between things that “put money in your pocket and things that take money out of it”, referred to as assets and liabilities in financial terms.
Financial Education: He believed that, one should never stop learning. Learning should be continuous. It is essential to comprehend the principles of money management, including cash flow, leverage, and taxation. He advises people to make an investment in their financial literacy in order to make wise and better financial decisions. He encourages individuals to be proactive investors and to understand the risks and rewards associated with different investment opportunities by staying informed about market trends and adapting to changing economic conditions.
Entrepreneurship: In his book he also emphasizes more on starting your own business which he considers to be a good method to achieve financial freedom. One can have more control over their financial future by starting and running their own firm. But before jumping into entrepreneurship, one should have an innovative mindset, take risk and should be able to think out of tedious routine of 9 to 5 job. In developing nations like India, government is also providing various grants and subsidies for starting a startup where one can easily take advantage out of it thereby generating several employment opportunities for the masses.
Leverage Other People’s Money (OPM): Mr Kiyosaki also talks about “Other’s People Money” which in financial terms referred to financial leverage. It is an amount of money which is borrowed or acquired from outside parties such as Commercial Banks, Angle investors, partners—to support investments or commercial endeavours. However, since there’s never a guarantee that an investment will be profitable, it’s crucial to evaluate your risk tolerance before making any kind of financial commitment or using leverage. If an investment doesn’t work out, one could lose more money.
Mentality Shift: In his book, he stresses more on developing an attitude that welcomes risk, absorbs lessons from mistakes, and is receptive to unorthodox financial methods. One should never be scared to make errors; instead, accept them as an inevitable part of lifelong learning and try to develop a mindset that places a higher value on achieving financial independence rather than relying solely on job security. Creating several revenue streams and assets that generate passive income will help you reach your financial freedom goal rather than relying just on your employment to keep your finances stable.
Mr Kiyosaki’s greatest recognition comes from his work in personal finance and investing, particularly from his best-selling book “Rich Dad Poor Dad.” His courses are centred upon important concepts like asset investing, financial literacy, taxation, cash flow and achieving financial independence.
