In his popular book “Rich Dad Poor Dad,” author Robert Kiyosaki, along with co-writer Sharon L. Lecther, offers a tale of two fathers: One man, a successful businessman, uses his financial savvy to generate lasting wealth; the other, a hard-working educator, struggles to go beyond living within his means. Though both men are admirable in their love of family, only the rich dad has the resources to build a financial legacy for his loved ones.
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Kiyosaki says he’s taken valuable lessons from the real-life “rich dad” who mentored him as a youth. This wisdom is evident in his focus on building wealth that can support families for generations to come. He offers common-sense advice that can help you be the rich parent, grandparent, guardian or favorite aunt or uncle.
If knowledge is power, then financial knowledge empowers you to succeed at a variety of endeavors, from spending and saving to investing and managing your taxes. While excelling at traditional and professional education, Kiyosaki emphasizes the importance of learning about how to handle money and gaining what he calls “financial intelligence.”
You should be reading as many financial books as you can — your local library is a great free resource. Download podcasts for your walks or commutes, or follow social media content of your favorite money experts. Better yet, involve your kids, grandkids or nieces and nephews in the learning process. You can teach them as you go or invite them to read or listen along with you.
To start focusing on your financial education, Kiyosaki emphasizes mastering core concepts like income, expenses, assets, liabilities and cash flow.
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One of the biggest lessons that Kiyosaki learned from his “poor dad” is that you can be a hard worker and high performer at your regular job and still not have enough to guarantee financial comfort — let alone leave a legacy. That’s why much of his message focuses on creating passive revenue streams that can help you get paid, even in your sleep.
In particular, Kiyosaki highlights real estate and investing as two straightforward ways to generate extra income. For real estate, consider acquiring properties to rent out to businesses or residents, or explore opportunities to invest in real estate investment trusts (REITs). He’s a big believer in using leverage (borrowed capital for investment), and underscores the value of generating cash flow from rental income.
