You may be looking for tips and advice about adjusting how you deal with money and debt to create a more secure financial future. After all, it can feel overwhelming to manage finances, especially during times of rising prices and economic uncertainty.
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One expert who offers simple advice is Robert Kiyosaki, who has been sharing his financial guidance since publishing the bestseller “Rich Dad Poor Dad.” His ideas aren’t without controversy, but many people have found motivation in his approach to wealth-building. Here’s a look at four of his top pieces of advice for financial success from the Rich Dad blog.
Always Know Why
Kiyosaki is a strong supporter of comprehensive financial planning — which goes beyond budgeting to include investing, tax strategies, insurance, estate planning, and setting long-term financial goals.
According to Kiyosaki, a great place to start is to define your “why” — the reason you want to achieve financial independence. Is it to retire early, pay off your mortgage, start your own business, or build generational wealth for your family? Once you’ve set clear goals, you can reverse-engineer a plan to reach them.
He also emphasizes the importance of financial education to help cultivate a wealth-building mindset. Read books about investing, take a basic accounting course, or listen to personal finance podcasts to build a knowledge base that will help you make more confident decisions about your money.
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Simplify Your Financial Life
According to the Rich Dad blog, “Simplifying your financial life means cutting out the clutter and focusing on what truly matters.” It’s about removing complexity and distraction so your money system can run smoothly.
One way to do this is by automating as many financial tasks as you can. For example, you can set up automatic transfers to your savings or investment accounts as soon as you get paid, schedule automatic bill payments, and set up your 401(k) or IRA so your auto-contributions increase over time.
Kiyosaki also recommends against juggling too many accounts. For example, if you have an old 401(k) from a previous job and an IRA, roll the 401(k) into the IRA so you’re only managing one account.
Always Pay Yourself First
This piece of advice isn’t unique to Kiyosaki, but is a smart way to set yourself up for a secure financial future. The idea is simple: Before paying bills or discretionary expenses, allocate money toward your future.
A good example of this is contributing to your 401(k) or IRA and your emergency fund before anything else. According to Kiyosaki, even if you’re struggling with debt, you should still find a way to save or invest something — even if it’s just $20 per paycheck.
He also urges people to regularly review their financial strategies, especially around tax planning and insurance. For instance, are you taking advantage of tax deductions or credits? Do you have enough coverage to protect your income and assets if something unexpected happens?
Know How You Like To Invest
According to Kiyosaki, there are three types of investing for financial success:
- Type A: Hands-off investors who give their money to a professional or financial advisor.
- Type B: People who do some research and buy things like index funds or real estate, but don’t spend time managing their investments daily.
- Type C: Highly active investors who directly manage or build their own assets, like running a business, flipping properties, or trading stocks.
Kiyosaki emphasizes that there’s no “best” approach — the point is to know which type best fits your personality, time and risk tolerance. For example, if you can’t stand the idea of managing tenants, becoming a landlord might not be the right path for you, even if it looks the most profitable on paper.
Other pieces of advice Kiyosaki offers include pursuing investments that generate passive income — money that comes in without requiring constant effort. This could include rental properties, dividend stocks, royalties or owning part of a business.
His philosophy is that you achieve financial security not by working more hours, but by building a system and a portfolio of assets that earn money for you over time
Looking to build a legacy? Check out our Life to Legacy guide for expert advice and smart moves you can make today.
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Robert Kiyosaki’s 4 Top Pieces of Advice for a Secure Financial Future
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