Robert Kiyosaki is the author of the popular “Rich Dad Poor Dad” book series. He also hosts the “Rich Dad Radio Show” and the “Rich Dad Channel” on YouTube, where he uses his methodology to assist others in building wealth and achieving financial freedom.
Chosen by GOBankingRates as a Top Money Expert, here Kiyosaki shares the investments he used to build his wealth, and how to navigate today’s economic state.
What is the number one thing people get wrong when it comes to building wealth?
Failing to invest in themselves first — so they have a foundation upon which to build an investment portfolio. Before we can build wealth, we need to understand what that means — in the big picture and to each of us personally — and what we need to know to be responsible stewards of the money we allocate for investments. That process starts with investing in yourself: learning the language of money, understanding the asset classes and taking a few small steps that will get you started on the path to building wealth. Remember that missteps and mistakes are a part of how we humans learn — so when you make them, ask yourself, “What did I learn from this?”
What advice would you give people today that are trying to get out of the rat race? What do they need to do? With things being so crazy and unpredictable, is it still possible?
I’d suggest looking at the various asset classes and deciding what interests you. In my opinion, I like to see income coming in from all the asset classes — business, paper assets, commodities and real estate. That’s true “diversification” of your assets, and a safety net that’s a way of hedging your “bets” in any one investment arena or sector. Business can be a small business you own and plan to grow or sell. Commodities can be silver or gold coins. Paper assets can be a few shares in a stock that interests you — because having skin in the game, even if it’s just a little bit, will heighten your awareness related to markets, trends and money. Rental real estate is a way to use debt (good debt that your tenants pay) for both leverage, cash flow and possibly capital gains. Bottom line: You need a plan. Start small. Learn along the way. Keep learning.
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Jaime Catmull contributed to the reporting for this article.