How Rich People Respond to Financial Turbulence, According to Robert Kiyosaki
Written by
Rebekah Evans
Edited by
Zuri Anderson
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In everyone’s life, a little financial stress is bound to happen. The difference between what you do and what rich people do is one of the reasons they are rich and you are not, according to money guru Robert Kiyosaki.
The best-selling author of “Rich Dad, Poor Dad” outlined in a blog post, “3 Reasons Why You Are So Stressed About Money (and How to Deal with Financial Turbulence),” how rich people respond to bad fiscal times.
During choppy periods, here is how rich people respond to financial turbulence, according to Kiyosaki.
Bad Financial Advice
Kiyosaki noted that oftentimes we can make ourselves sick, worried about doing the wrong thing with our money or not doing enough of the right thing to cultivate our wealth. Chances are that we’ve heard some wisdom that was not so sage, causing us to panic or make a hasty decision that puts our financials in jeopardy.
Rich people, however, learn to take advice, as well as start to parcel out what does not work for them. For example, Kiyosaki pointed out that lots of us are told we need high-paying jobs in order to be successful, while rich people start companies, make investments and never worry about being an employee for anyone.
Losing Control of Money
You might have access to a bank and put your paycheck into an account, but what are you doing with your money after that? Even more important: Can you do anything or is the power over your money tied up with someone else or some institution? Are you able to generate income on your own or tied to a job that gives you a salary?
Kiyosaki highlighted that rich people do not worry about losing money, let alone losing control of their finances. Instead of working a job, they make their own opportunities. Instead of putting all their financial eggs in one basket they diversify over investment opportunities. If one area of their money isn’t doing so well, they can focus on making another aspect successful.
Taxes, Taxes, Taxes
No one likes to pay taxes, yet all of us are forced to on a regular basis. You might be losing sleep over how big of a bite the local and federal government will take out of your finances, or you could learn to pay your taxes in a smarter way by generating passive income.
As Kiyosaki explained: “Business owners and investors pay the least in taxes because their income is considered passive income. Passive income is not tied to your direct work. Rather it is a result of having cash-flowing assets that generate wealth outside of your direct efforts.”
Lack of a Safety Net
Kiyosaki pointed out that it is one thing to have savings, which goes down every time you withdraw money from it, but it is another thing to have ongoing sustainable ventures and assets that provide a steady stream of income. So while you might have an emergency savings today, what happens if it is gone tomorrow?
Rich people have savings, but they also, in Kiyosaki’s words, “create assets that generate income without them working. In fact, many times these assets grow.” That means they are never without a safety net and that financial strength comes from continuous reinforcement over time.
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