Robert Kiyosaki built his Rich Dad Poor Dad empire on the shoulders of his 1997 book by the same name. It is estimated the investor has parlayed his original success into an $80 million fortune. Here are five things he thinks you should do with your money right now.
5 things you should do with your money
Cash-flowing assets, not savings, for retirement
Saving enough for retirement requires answers to unanswerable questions, including, "How long will I live?" This makes saving for retirement gambling with your future, according to Kiyosaki. Instead, develop cash-flowing assets. This means real estate rentals, stocks via dividends, bonds via interest, patents via royalties, among others.
Pay yourself first
Most people want to accumulate savings or give to charity, but they view those goals as luxuries that they can only dabble in after their bills are paid. Kiyosaki wants you to pay yourself first. When you view the accumulation of surplus as a bill that — like rent and utilities — simply must be paid, you will treat your own financial goals as seriously as you do your traditional expenses.
Invest in systems, not products
Kiyosaki is constantly bombarded with pitches from people who believe their amazing product is worth his investment. He rarely invests. Why? Kiyosaki believes that the best product is nothing without a business system to back it up. Similarly, a great system can lift an average product. "Case in point, most of us can cook a better hamburger than McDonald's, but few of us can build a better business system," he says.
Use other people's money to invest
Kiyosaki's overarching philosophy is that you don't need money to invest — you need ideas. People with money will buy into ideas if you develop them and articulate them correctly.
"No matter what the field, your biggest asset is your mind. Once you have knowledge, you find deals, find your team and use other people's money. You sell the deal and your team to get investment money."
Invest only where you can influence transactions
Use your broker as a tool, which you direct into and out of transactions.
"Sophisticated investors carefully track the performance of their investments and direct their broker to buy or sell appropriately. Many investors today rely on their brokers to know when to buy and sell. That is not sophisticated. It's foolish."
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