Five tips from Robert Kiyosaki to improve your finances

The author of the book Rich Dad Poor Dad, the best selling personal finance book, gives some tips and skills you must develop to change your finances.  

Robert Kiyosaki, the American businessman, investor, and writer, believes that we can all be financially prosperous if we want to be.

However, since we were little, nobody taught us what money is and how to handle it properly. However, don’t worry, there is still time to learn.

The tips below are a practical guide to start improving your finances. 

Get out of the rat race

Today’s society’s life is based on studying, working, and having a family. Often, we get used to being slaves to money, waiting for the next payment to fulfill our obligations. We spend all the money we earn. As our income increases, we increase our expenses, putting savings aside. In this endless circle, we are trapped in debts that don’t allow us to have financial freedom.

Every day we have certain expenses and needs that we must pay. Still, the most important thing is that you avoid increasing your standard of living every time your income increases. This way, you will be able to save and invest that money to create your wealth.

Invest in assets

According to Kiyosaki, it is essential to acquire assets to start generating wealth. Meanwhile, we must keep our liabilities low. One of the objectives we must achieve is that money works for us and not the other way around. 

We must spend money when our list of assets generates more income than necessary to cover expenses. The rest is reinvested in assets.

Even with financial knowledge, there may be certain obstacles preventing us from achieving financial freedom.

If you know about finances, you will be able to manage money effectively. By knowing about financial products, rates, how, when, and in what to invest, you will be able to identify opportunities and know how to act against them, creating your own luck.

Run your own business

Your profession is different from your business. We generally become our profession. When this happens, we forget about our own business. However, only by attending to our business will we acquire more assets to increase our wealth more and more.

Kiyosaki’s advice is to keep your job but start acquiring real assets, not liabilities that have no real value once you are home. 

Kiyosaki suggests businesses that do not require your presence to function, shares of other companies, real estate, etc.

Overcome obstacles

Regardless of financial knowledge, certain obstacles may prevent us from achieving financial freedom. We may fear losing money, be lazy, or have bad habits. It would be best if you learned how to overcome these obstacles to start building your finances.