Robert Kiyosaki's vision of coming out richer from a crash, based on his investment philosophy.
Robert Kiyosaki is an American entrepreneur, investor, bestselling author of motivational books, and financial educator, best known for the series "Rich
Dad, Poor Dad." His teachings focus on the importance of financial education,
investing in assets, and striving for financial freedom.
Robert Kiyosaki views financial crashes as opportunities to build wealth
for those prepared and possessing the right financial knowledge.
Rich vs wealthy.
Kiyosaki explains the fundamental difference between being rich and wealthy by stating that wealth is measured in dollars deposited in a bank account, giving the example "I have a million dollars" while wealth is measured by time "if I stopped working today, my passive income would cover all expenses for 7 months" this approach focuses on financial sustainability, not temporary gains.
Key Principles:
Financial education is fundamental: The most important investment is financial knowledge, understanding the difference between assets (something that puts money in your pocket) and liabilities (something that takes money out of your pocket) is crucial.
Investing in assets not liabilities: Instead of saving cash (which loses value due to inflation), one should invest in income-generating assets
such as real estate, giving the example of renting them, businesses, commodities, and securities.Using debt (wisely): Kiyosaki believes there is "good debt," which is
money borrowed to purchase assets that generate cash flow exceeding the cost of the debt, while avoiding "bad consumer debt."Investing in precious metals and cryptocurrencies: In the face of instability of fiat currencies and recession threats, Kiyosaki recommends securing wealth in hard assets like gold, silver, Bitcoin, and Ethereum.
Readiness for real estate: He predicts a collapse in the real estate market, which will create rare opportunities to purchase valuable assets at low prices. Investors should be ready to seize these opportunities.
Building multiple streams of income: He warns that relying solely on a salaried job (quadrant E in his "Cash Flow Quadrant") is risky, especially during mass layoffs, encouraging
the creation of new income sources.Action, not panic: A crash is a time for action and restructuring your investment portfolio. Those who prepare can significantly enrich themselves, while others will lose.
Summary:
The key lesson is a proactive approach to finances, continuous learning and
investing in assets that protect the purchasing power of money and
generate income, rather than relying on traditional methods
of saving or employment.
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