Wealth building lessons I learned from Robert Kiyosaki’s financial education courses over the years. According to him, his real dad, I mean the one he calls poor dad, had a great strategy for building his wealth, and the strategy is, “Save a lot of your income and live below your means” As the matter of fact, this strategy is very popular. All the “financial experts” tell you to take this path. But guess what? IT DOESN’T WORK! You don’t get rich by saving money.
Listen, if you chose to live below your means and live a life below your abilities then your spirit dies while you are still living.
Robert’s rich dad taught him to do the opposite. Instead of living below your means, rich dad taught the better solution is to raise your income, and not by working harder. The better way to raise your income is through buying assets. He defined assets as things that put cash flow into your pockets. What is your cash flow?
When you use your money to buy assets, and then use the money your assets created to buy more assets, your income increases dramatically. Your income did not increase because you asked for a raise. It did not increase because you worked harder at your job, it increases because of your financial intelligence. It increases because of you.
The key to living above your means is not to merely buy assets. This is what living above your means is, “buying toys, electronic devices, designers wears, cars and other luxuries.” (liabilities) The key to living above your means is, “buy your assets first.” Then, with the money your assets have created, buy your luxury items, (your liabilities.) So, you buy assets. Your assets buy more assets and liabilities. You can have anything you want if you follow this strategy.
If you want an exotic car or vacation, then first buy the asset or assets that can pay for your car or vacation. Buy those altcoins (cryptocurrencies) that you can cash flow or flip, or buy those COINS with high dividend return.
The beauty is that after your car or vacation is paid for you still have the asset and the asset continues to cash flow into your pocket. What does that do for your spirit? You live a life of abundance. You grow bigger and experience more life. You can help others. All because you improved your financial intelligence rather than focused on saving money and living below your means.
Have a great day