According to financial guru Robert T. Kiyosaki, wealth really has more to do with what you know than how much you earn.
“I am concerned that too many people are focused too much on money and not on their greatest wealth, which is their education,” he says in his fan-favorite personal finance book, Rich Dad Poor Dad.
“If people are prepared to be flexible, keep an open mind and learn, they will grow richer and richer through the changes. If they think money will solve the problems, I am afraid those people will have a rough ride. Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.”
One of the reasons Kiyosaki’s book became and remained a best-seller is that it offers generally evergreen advice that’s also generally accessible to individuals at all income levels. A few takeaways to save:
🤑 Any budget should allocate funds to assets—investments that generate income or appreciate, such as real estate, stocks, and bonds. Most people plan their budgets around things that only cost money (groceries, vacations, cars, etc.). Those things are necessary of course, but Kiyosaki would have people budget for things that generate money: assets. Reallocating funds may mean temporarily downsizing or delaying the acquisition of desired goods for the sake of growing long-term wealth.
❌ Make a no-exceptions rule to “pay yourself” first. That means setting aside 10-20% of your income before spending it on anything else, even bills.
💡 Instead of avoiding risks, learn how to manage them. Every wealth-building strategy incurs risk. Avoiding risk only bars you from fulfilling your financial potential. Research investments to quantify and demystify risks. If things don’t go as you’d hoped, use that experience to better understand how the markets work and be more prepared next time.
🚀 Focus on possibilities instead of limitations. Instead of resting on a realization that you can’t afford to buy a new car or open up a business, brainstorm actions and approaches that might enable you to afford those things, one day.