Robert Kiyosaki is the author of the best-selling book titled, “Rich Dad, Poor Dad” and he has transformed the business industry through his passion in sharing his contributions to financial literacy. His award-winning book, “Rich Dad, Poor Dad” enumerates the significance of financial education and has gone a long way in getting millions of copies in over 50 languages across the universe. For more than 6 years ago, it’s been featured on top of the bestsellers list of New York Times.
Aside from that, Robert went ahead and published several other related books in similar series, part of which included: “Retire Rich, Retire Young”, “Unfair Advantage”, and “You Can Choose to Be Rich”. He has equally written some books together with Donald Trump. He’s popularly recognized for his financial ideas and he’s the founder of Cashflow Board Game.
In this tutorial, you’re going to learn the best 10 principles of success from Robert himself.
1. Start to Acquire Experience
Robert set out his financial career with little money, exactly like anyone else. And he got the conviction that he had made his success today as a result of his own experience. When he secured his first investment property costing him $18,000 in Hawaii, he was only able to make a deposit of $2,000 out of that using his credit card.
So, he came to realize that it wasn’t a sensible move for him, but that little experience was all that turned him a prosperous investor in real estate today.
Therefore, he started to acquire experience more and more. While it makes sense that you can acquire knowledge from reading, learning from others. as well as attending webinars and seminars; you can’t acquire experience just through reading.
Robert gave an awesome illustration of cycling; emphasizing that it isn’t possible to learn to be a bicyclist simply through reading. The only feasible way to learn it is simply to flit on the bicycle and start to learn the riding.
2. The More You Give Away, the More You Get
Robert Kiyosaki is someone who strongly believes in the theory, “The more you give out, the more you get”. He made an illustration in his book using his own biological father. He emphasized that his father just wants to get, but doesn’t ever want to give away. His poor father has a strong belief in the other side of the theory that the more he gives away, the more he gets poorer. And that was why he doesn’t want to continue working, but just desires to continue receiving more and more.
Conversely, his rich father has the strong belief that the more he gives away and the more he works, the more he’ll continue to get. However, in the business environment, the more worth you give to your clients, the more clients you’ll continue to have. Some people always miss it simply by thinking that if they must continue to receive more; they’ll have to squash every penny out of their businesses and customers, whereas that’s a wrong thought.
As stated by Robert Kiyosaki, your major goal is to come up with more worth for your clients through the business you do with them. You create an awesome product or offer specialist service to your clients so they can decide to continue buying or having business dealings with you.
Sad to say, a lot of people are so selfish and are only concerned about how they can extort a lot from their clients, whereas, this won’t continue to be a long-lasting deal.
Therefore, love to give out. Learn to be a problem solver and create more value. Robert stated that no matter what your financial status is today, it depends on your attitude to money. He made it known that he makes a great deal of money, but gives lots of money in return to the world. You don’t become poor by giving others.
3. Your Imagination Determines How Successful You’ll Be
How you imagine will greatly determine how prosperous you’ll be, and like other successful ones, Robert has a strong belief that the way we imagine determines the outcome we get in our financial lives. And like most people out there, he was financially poor before he made his success.
Most people always think that hardship will lower and prevent them from making progress, but Robert stated that he would rather imagine in a different way and leveraged that hardship as his stepping stone to making more success.
Tracy Brian equally stated that you’ll become what you often imagine about yourself. Highly prosperous people imagined themselves and think in a different way. Instead of seeing difficulty in everything, they see problems as an opportunity to learn one thing or the other and move on. And this is exactly the way you should live too.
Robert further stated that “You” are your biggest asset. And how you imagine is the most significant key to revolutionizing your life.
4. Focus is Major
In a seminar organized by him, he shared his viewpoint on the term, “Focus”. He stated that focus means “Pursue a course until you become prosperous”. This is precisely what he practiced when he first started out.
He made it known that in 1997, he became part of a real estate investment seminar and he applied exactly what he learned from the investment seminar until he was able to master that prior to becoming an online entrepreneur.
The issue with most people out there is that they don’t realize they should stay focused on a course. People attend seminars, set goals, and learn how to be prosperous in what they engage in, be it in investment or in any other business, but when it comes to following through, they miss the road.
Don’t let this happen to you. But rather focus on a course and be successful in that first before trying other plans out.
5. Hard Situations Lead to Fresh Opportunities
Robert explained that he earned more money when economy is extremely bad. He believes that hard times are the best opportunity for him to have windows of opportunities opened.
During hard times, most people are afraid of coping and they would want to sell what they have, including strong businesses that are already fetching some money.
Hill Napoleon emphasized, “Every hardship, every disappointment, every failure, and every frustration goes along with some more benefits. Highly prosperous people believe that hard times, failures, Hard ship and drawbacks are excellent ways to learn more and they bring numerous opportunities to make money and become great.
6. Don’t Be Scared of Losing
Every successful being has failed at one time in the past or the other. Ford Henry got completely broke about 5 times before he became financially buoyant in his business.
Robert Kiyosaki also declared that he failed times without number in his business. And he made it known that Donald Trump, his friend, who also authored a number of books together with him also had some failures several times and he was indebted to the tune of over a billion dollar before he got balanced and became even more prosperous. Thus, don’t be scared of losing.
This is the issue with most people. They are scared to make mistakes and eventually, they let the fear of losing prevent them from growing bigger. Henceforth, see your failures and frustrations as feedback to move further in whatever you engage yourself in.
7. Be Financially Literate
Robert shared so many ideas on the topic of business finance. He’s an exponent and has the belief that for someone to be successful, he needs to load himself with the required financial literacy. ]
A great way to change your financial status is getting to understand what you engaged in. In some of his publications, he split careers and jobs into four main groups, and they are the self-employed, the employee, the investor, and the businessman. And if you want to be successful, you need to figure out which group you belong.
As stated by Robert Kiyosaki, the majority of the employed ones live from earned income that is regularly taxed. And he further stated that a huge part of the earned income will have been deducted from source in respect of the tax before the net pay even gets to the employee’s bank account. He talked about three types of income.
A lot of people can actually work hard just for earned income, which is the first income type as clarified by Robert. The second income type is described as the portfolio income in which most of it is generated from capital profits.
What really makes people succeed financially is what we call, “Passive income”. Robert gave the suggestion that his readers should learn to grow passive income rather than being hardworking over earned income.
8. Grow Your Assets
A significant success lesson all should particularly learn from Robert is growing and building their assets. People perceived wrongly about assets and liabilities. They have a perception that a building is an asset.
When you finish building a personal house and you move in, you realize it’s not generating you passive income. Instead of that, you’ll be the one to start buying things such as gadgets, home furniture, and renovations.
As stated by Robert, assets are belongings that generate money. When you buy some property for investment, things will surely be different. When property is rented out, you’ll start receiving house rent from your tenants. And the rent you receive is regarded as passive income.
If you also own a car, it’s a liability, not an asset. Robert considers it a liability as well. It doesn’t bring passive income for you, but rather takes money away from you.
9. Saving Money is Outdated
As far as gaining financial independence is concerned, saving money isn’t a wise step as you’ll not be able to keep up with the currency value fluctuation, which reduces the purchasing power.
The rate of inflation too may be higher than what you receive as interest for keeping money with the bank.
When inflation occurs, prices of things go up. And it means the buying power seriously declines as time rolls by. So, when you deposit money in the bank, you’re not investing, but only losing greatly.
10. The Wealthy Don’t Work for Money
Another great idea from Robert’s book is that the wealthy don’t work for money, but instead, they let their money work for them. Kiyosaki frequently emphasizes that money works for him. This is another great concept to learn from Robert Kiyosaki for anyone that wants to become financially free in a lifetime.
When you ask most people the reason they are putting in all the energy, they’ll simply answer you that they’re working solely for the money. The barricade of this technique is that you’re spending your time in exchange for money.
And for you to earn much more, you’ll need to exhaust much more of your time spending energy and time working. That’s the lifestyle of most people out there. They keep working for money until their useful lifetime is exhausted working for other people.
In other words, the wealthy and highly-successful ones don’t work for money in their own way of life. They rather grow businesses and spend a lot on investment in order to keep earning income passively with little or no extra work at all on their own part. Instead of spending a nasty lot of time working for money, the wealthy maximizes their money to ensure it works for them.
But, never think that the wealthy don’t work at all. Based on Robert’s beliefs, the wealthy actually work but they do in a different way completely from that of others who work for money. They try to obtain more assets which in turn will start bringing passive income to them. And this is the only proven way to gain financial freedom if you so desire.
Thus, work hard and set goals to obtain more assets. Never continue to sell your time in exchange for money as you know you only have a temporary life here. That’s why you need to change your “Work for money” orientation and begin to let money for you rather.
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