Robert Kiyosaki: The Worst Mistake Millennials Make With Their Money
Robert Kiyosaki, author of the best-selling book Rich Dad Poor Dad, has long shared his views on money, investing, and career choices. He says there’s one big mistake young people tend to make that could negatively impact their ability to accumulate wealth.
One controversial stance he has discussed is his belief that young people shouldn’t pursue a career solely based on passion. This goes against the common advice that young people should “follow their dreams” and find a job they love. Here’s what Kiyosaki had to say about choosing a job you don’t like.
The Biggest Mistake Millennials Make
Kiyosaki says being young is great, but it can also be a liability. That’s because, according to him, many young people think they have a lot of time. Consequently, they miss out on wealth-building opportunities. “When you’re young, you’re just having a lot of fun. Life is exciting; it’s new,” said Kiyosaki during a segment on his YouTube channel.
“The mistake young people make is they want to do what they love,” Kiyosaki added. “In real life, sometimes you have to do what you hate. People think I like to write books. I hate writing books, but it fills my purpose in life. It’s not my passion; it’s my purpose in life.”
Kiyosaki says a lot of people get “trapped” by doing what they love. He says it’s best to focus on becoming an entrepreneur or a professional investor. According to him, those who remain employees or specialists usually pay the most taxes.
Passion vs. Practicality
Kiyosaki’s views stem from a broader perspective on financial education and sustainability. While passion can drive your career, it doesn’t always lead to financial stability. There are many examples of individuals who pursued their passions but struggled to make ends meet, while others in less “passionate” careers have built significant wealth.
Just because you’re passionate about something doesn’t mean it’s a lucrative endeavor. For Kiyosaki, the end goal of a career is to generate enough income to invest and achieve financial freedom.
The Dangers of Focusing on Passion
Following a passion without considering the financial implications can lead to several issues:
- Limited income potential. Not all passions can be monetized effectively. An individual passionate about a niche art form, for instance, might find limited opportunities to sell their work or gain a substantial audience.
- Lack of diversification. Relying solely on one’s passion can lead to a lack of diversification in income streams. In the case of economic downturns or changes in industry demand, individuals could find themselves financially vulnerable.
- Overlooking other opportunities. Being too focused on a passion could mean missing out on other lucrative opportunities that could lead to financial independence more quickly.
Robert Kiyosaki’s Perspective on Financial Education
Kiyosaki believes in the importance of financial education. He suggests that instead of diving headfirst into a passion-driven career, millennials should first educate themselves about money, investing, and wealth building.
If you’re a millennial, this doesn’t mean you should abandon your passions entirely. Instead, you could pursue them on the side while working in a job that provides stable income and the ability to invest.
Once you’ve achieved a certain level of financial stability and education, you can decide if you want to transition your passion into a full-time career or continue it as a hobby or side gig. The key is to ensure you’re not negatively affected by following a dream without considering the monetary aspect.
Achieving Balance
Not pursuing a passion can sound disheartening. However, Kiyosaki’s advice doesn’t mean you should forsake your dreams entirely. Instead, it’s about finding a balance between passion and practicality.
If you’re passionate about music, for instance, you could work in a stable job while producing music on the side, perhaps even making some income from it. Over time, if you see potential in monetizing your passion more significantly, you can take the leap. However, it’s important to have a safety net — the investments and savings you’ve built while working.
The Bottom Line
Kiyosaki’s views on money, careers, and passion are not universally accepted, but they offer a perspective worth considering. By emphasizing the importance of financial education and making informed decisions, Kiyosaki challenges millennials to think critically about their career choices and the long-term implications of those choices on their financial futures. The dream is not to abandon passion but to pursue it with eyes wide open.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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