Having a dream will get you far, but having a good wealth plan will get you rich.
American investor and self-help guru Robert Kiyosaki went from being homeless for a short period of time to controlling a US$80 million empire, according to Celebrity Net Worth. His insanely-successful book titled Rich Dad Poor Dad helped the businessman build the empire and spread knowledge.
Robert Kiyosaki offers people the financial education they need to build their own empires. He defines wealth as freedom from work and asks in his book Second Chance: For Your Money, Your Life, And Our World “If you stopped working, how long could you survive?” If you don’t know the answer to this question, here are six steps that may help you find your way financially speaking.
- “You have to make a surplus an expense”
No matter how much you fantasize about being wealthy and how many people you intend to help after you’ve made your first million, giving to charity or accumulating wealth can only be done after you’ve paid your bills. You have to treat your financial goals seriously and follow in Kiyosaki’s footsteps. “My budget is a plan to become rich. You have to make a surplus an expense.”
- Create cash-flowing assets, NOT a limited pile of money
You cannot know how the markets will behave or at what rate inflation will rise and you surely cannot control the number of years you will be able to work, so here’s a safety net: create cash-flowing assets.
You need a pipeline which produces money in both good and bad times.
- Products are nothing without a stellar business system
Robert Kiyosaki once wrote on his site that “most of us can cook a better hamburger than McDonald’s, but few of us can build a better business system.” What he meant is that even if you have a million-dollar idea, it is nothing without a business system to back it up.
This is also the reason why he rarely invests in products, even if they are revolutionary: because they lack a sturdy business system.
- Invest with your mind, NOT with your money
The author of Rich Dad Poor Dad says that you do not need money to invest, because wealthy people will buy into your ideas if you develop and articulate them correctly. Kiyosaki wrote in a Facebook post that “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.”
- Use brokers as tools
Some people “carefully track the performance of their investments and direct their broker to buy and sell appropriately,” the self-help guru wrote on his site. Relying on brokers to know when to buy and sell is “foolish.” Instead, use the broker as a tool which you direct both into and out of transactions.
- Control your finances and expenses
Robert Kiyosaki’s entire success formula is based on control –of finances, expenses and life. The control should be extended [as much as possible] further into your financial life and should ultimately allow you to hold the reins of your investments. If you can control the terms which bind you to your investments, you are on the right track.
The self-help guru believes that “the most successful people in life are the ones who ask questions. They’re always learning. They’re always growing. They’re always pushing.” Working for knowledge, not for money is the key to a plentiful life.