Financial Tips from Robert Kiyosaki
To invest money prudently, advice should be sought from the one who is already in the field of finance. Moreover, to learn more about financing freedom, there is no better option than Robert Kiyosaki. He is an entrepreneur and investor. To be judicious in finance, doesn’t always require high qualification, like Robert Kiyosaki, who is an eighth-grade dropout from school and is one of the most popular entrepreneurs. He is great in the list of the most popular financial literary commentators and activists, today. To get advice and seek the best financial tips from Robert Kiyosaki, the investors can read his finance books. One of them is “Rich Dad Poor Dad,” which is one of the best finance books of all time. Other than these books, the best financial tips from Robert Kiyosaki are illustrated here:
Turn your budget surplus into an asset
In “Rich Dad Poor Dad” by Robert Kiyosaki, one of the essential lessons is, “You should treat surplus as an expense.” In this, he tried to convey that most people treat a surplus as an asset. People deposit their extra cash in the banks or spend it on some liabilities. In the book, rather than viewing surplus as an asset, Rich Dad perceived it as an expense in the name of investments, charity, and savings. Mostly, people prefer to give money to charity, in donations, or save the money or invest in assets, but the main problem is that they think of all this after they have paid all their taxes and other expenses.
By considering these things as expenses in the budget, the rich dad ensured that he would make them his priority by calling it paying himself first. Therefore, before paying for any other expenses, he paid his priority like charity, savings in assets, and other investments.
Acquire assets to pay for the liabilities
Many budgeting tools might seem helpful in saving and investing money. However, experience results as a better teacher in financing as well. Rich Dad illustrated that the income statements only show half picture of the financial status. Therefore, to understand the exclusive financial status, one must figure out the assets in comparison to the liabilities. The fundamental key is to acquire assets that are capable of paying for the liabilities.
As in the book, the Poor Dad simply says “We can’t afford it” if there is an insufficient amount of money to purchase something. Whereas the Rich Dad arranges for the money and purchases that item by considering it an asset. This ultimately increases wealth.
Spend, don’t save, to get rich
The way Rich Dad arranges the amount of money to purchase something is significant. He is capable of making money in hard times as well, irrespective of the circumstances. Robert suggested spending instead of saving money because in spending sometimes, there is a temporary pain which is a necessary feeling. Once the money is spent it is automatically an asset. However, this leads to an increase in wealth and achievement of financial freedom as well.
Conclusion
To be rich in life, one must follow the tips illustrated above. Financial tips from Robert Kiyosaki is helpful to moving in the right direction in terms of financing and to achieving the goal of financial freedom.
