As Robert Kiyosaki grew up, he had the unique opportunity of having two father figures in his life who imparted financial advice. One was his actual father — aka “poor dad” — who was educated and worked for others all his life. The other was the father of his best friend — aka “rich dad” — who opted for entrepreneurship instead of formal education.
Kiyosaki’s experience with the two men led him to write several books based on money and investing. Published over two decades ago, Kiyosaki’s book “Rich Dad, Poor Dad” continues to reign as one of the top-selling personal finance books. His unique perspectives on money revealed in the book, as well as his financial success, are the result of being mentored by his rich dad.
Click through read Kiyosaki’s quotes on finances, to find out why you shouldn’t work for money and see how you can leverage Kiyosaki’s advice to grow your own wealth.
"The idea that it takes money to make money is the thinking of financially unsophisticated people."
Kiyosaki believes that to make money, you have to change how you think about money. For example, you don’t have to spend your life waiting to have a lot of money to start making money. Instead, you can start with a small investment that can help you work toward earning a substantial amount.
"I am concerned that too many people are focused too much on money and not on their greatest wealth, which is their education."
Wanting to make more money and focusing on the day you’ll have the opportunity to become rich are dead ends. You have to understand how to achieve your financial goals to experience success. The keys to true wealth are being flexible, keeping an open mind and being ready to learn, Kiyosaki said. By working toward these things, you’ll become richer and richer.
"Financial struggle is often the direct result of people working all their lives for someone else."
To become financially secure, Kiyosaki recommends that you “mind your own business,” which means you shouldn’t just focus on the income you’re making by working for someone else. That income can only get you so far. Instead, work toward utilizing part of your income to build your assets, because assets can generate additional income.
"You must know the difference between an asset and a liability, and buy assets."
Kiyosaki believes that rich people buy assets, and middle-class and poor people buy liabilities that they think are assets. Simply put, assets put money into your pocket and liabilities take it out.
When you spend money on things that will never deliver a financial return, such as new cars, expensive clothes and frequent vacations, they are considered liabilities. But when you work toward investing in real estate other than a primary residence, stocks, bonds, gold and other commodities, they are considered assets or items that can generate income for you.
"Many financial problems are caused by trying to keep up with the Joneses."
Middle-class earners usually don’t get rich, according to Kiyosaki. Instead, they go deeper into debt by buying liabilities to “keep up with the Joneses” — aka trying to imitate the lifestyles of their friends and family members. Instead of buying liabilities, work toward investing in income-earning assets.
"A new car loses nearly 25 percent of the price you pay for it the moment you drive it off the lot."
Even if you pay cash for your vehicle and you own it, it’s never worth as much as it is right before you leave the car dealership. And Kiyosaki believes that cars are not a true asset even if your banker allows you to count it as one. Instead, choose to build up your true income-earning assets first. Then, you’ve gained more financial intelligence and found a way to pay for that new car if you really want it.
"An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first."
The middle class and poor tend to buy luxuries first because of a desire to look rich. Although they look like they can afford things like the rich, the reality is that they entangle themselves deeper in debt. Rich people first build assets that will pay for the luxuries before actually buying something. Work toward building your asset portfolio before purchasing luxury items.
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"The problem with 'secure' investments is that they are often sanitized. That is, made so safe that the gains are less."
Increasing your financial intelligence by gaining a greater understanding of financial statements and investment strategies, and building familiarity with the market and the laws, is how you can stop playing it safe and get ahead financially, according to Kiyosaki. As you become more financially intelligent, you’ll also become more skilled at spotting good investment opportunities, which might eventually lead to more money.
"Great opportunities are not seen with your eyes. They are seen with your mind."
What might seem like a bad investment opportunity to someone else can be viewed as a potential gold mine to you if you hone your financial intelligence and understand how to navigate investment risks. Most people never achieve wealth because they aren’t financially trained to see the opportunities, according to Kiyosaki.
"Whenever you find yourself avoiding something you know you should be doing, then the only thing to ask yourself is, 'What's in it for me?' Be a little greedy. It's the best cure for laziness."
Kiyosaki believes that you can beat laziness with a little greed. He suggests asking yourself this question: “What would my life be like if I never had to work again?” Pay attention to your answer. The desire for something better — or a little bit of greed — can motivate you to do great things.
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"Most people simply buy investments rather than first investing in learning about investing."
The only real asset you possess is your mind, according to Kiyosaki, so you should invest in education first. He suggests going to financial seminars and listening to financial audio books to increase your financial intelligence and gain different perspectives. Then, you’ll be better prepared to invest in a way that will help you make significant financial gains.
"The rich know that savings are only used to create more money, not to pay bills."
A common bad habit of those who financially struggle is “dipping into savings,” according to Kiyosaki. When you’re under pressure to come up with money, don’t get it from your savings. Instead, force yourself to think of ways you can make more money. By doing so, you’ll have created a new source of cash flow and increased your financial intelligence.
"The sophisticated investor's first question is: 'How fast do I get my money back?'"
One way to recognize a good investment opportunity is to understand how quickly it can benefit you financially. For example, before you put money down on an investment property, you need to determine how quickly you can start making money with it. Being able to rent the property consistently can generate income that will help you pay off the property. Once it’s paid off, you can use that income to add more income-producing assets to your portfolio.
"Whenever you feel 'short' or in 'need' of something, give what you want first and it will come back in buckets."
Kiyosaki believes that you should provide the thing that you need to others first in order to receive it yourself. For example, if you need to make more sales in your business, help someone else sell something. To gain more money, donate some funds to charity. To make more contacts, help others make contacts with people in your network.
Click through to read more expert advice to help you stop worrying about money.
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