Kim Kiyosaki’s Blueprint To Stop Living Paycheck to Paycheck
Written by
Jaime Catmull
Edited by
Amen Oyiboke
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Kim Kiyosaki is a self-made millionaire and CEO of the Rich Dad company. In an interview on the “Richer Way Podcast,” she shared her best advice for attaining financial independence and building wealth. By embracing her advice, individuals can secure their financial futures and live richer lives.
Here are Kiyosaki’s nine easy steps for those looking to break the cycle of living paycheck to paycheck and start being financially free.
1. Understand Your Financial Position
Kiyosaki’s approach to financial independence begins with understanding what you have and where it is. It’s essential to be aware of your assets and learn how to make your money work for you.
“Know your numbers and your numbers will guide you,” Kiyosaki said.
2. Educate Yourself
Financial literacy is key to financial independence. This is especially critical for women, as 80% of elderly women live in poverty.
Kiyosaki underscores the importance of being financially prepared and educated. She said, “Invest in your mind before investing in the market.”
3. Prepare for Unpredictable Events
Life is unpredictable, and events such as divorce or the death of a partner can have significant financial implications. Kiyosaki encourages everyone to familiarize themselves with their assets, titles and legal structures like LLCs.
“Preparation is not about fear, but about empowerment,” she said.
4. Explore Real Estate Investing
Real estate is a cornerstone of Kiyosaki’s wealth-building strategy. She offers practical advice on managing short-term rentals, knowing when to sell a rental property and converting liabilities into assets.
“Real estate investing is not about the property, it’s about financial intelligence,” Kiyosaki said.
5. Use the Cash Flow Game
This game simulates real-life financial scenarios and investment strategies, helping players understand how to escape the rat race.
Kiyosaki said, “Games are the most effective way to learn financial education.”
6. Leverage Your Skills
Kiyosaki encourages individuals to use their knowledge and skills to generate income. She suggests activities such as creating e-books, participating in online marketplaces or starting a part-time business.
“Don’t underestimate your potential,” she said. “Your skills can be your greatest assets.”
7. Invest in Gold and Silver
These investments can serve as a hedge against currency devaluation, offering an additional layer of financial security.
According to Kiyosaki, “Gold and silver are not investments; they are money.”
8. Utilize a Team of Financial Professionals
The importance of financial preparation and working as a team in managing finances and investments cannot be overstated.
“Money is a team sport,” Kiyosaki said.
9. Start Small
Whether you’re hiring a bookkeeper or investing in real estate, the key is to begin your journey toward financial freedom.
“Small steps lead to big results,” Kiyosaki said.
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