Setting our financial life straight with Robert Kiyosaki
LPM Financial Special. January-February 2016. The first month of the year is a key factor in all aspects of our lives. It means a new beginning, a new opportunity to thrive and succeed. But, sometimes, it also makes us face the reality of our current financial situation, and it may not be the reality we want.
Many people in this country live paycheck to paycheck and don’t have the opportunity to save enough for their children’s education, for that dream vacation with the family, for buying a home, or for that big step of starting their own business. They have to face the reality of postponing their dreams or choosing one thing over another.
But there is hope. We just need to learn a new set of financial rules instead of the outdated concept we have been learning and has been passed from generation to generation of working hard for the money instead of the money working hard for you.
To learn a little more, Panorama Online had an exclusive interview with renowned entrepreneur, investor, motivational speaker, author and also a financial knowledge activist, Robert Kiyosaki, a truly multi-talented personality. He is very popular for his series of books called ‘Rich Dad Poor Dad’.
Kiyosaki is a Japanese American who was born in Hilo, Hawaii. In the beginning of the 1980s Kiyosaki tried his luck in a business that certified Heavy metal rock band T-shirts. He sold this business in 1985. Nearly a decade later after struggling to achieve success Kiyosaki decided to retire at the age of 47. However he rose once again in 1997 when he established Cashflow Technologies, Inc. This company incorporates and runs two of his brands namely, Rich Dad and Cashflow.
Apart from running Rich Dad and Cashflow Technologies Inc. Kiyosaki has also invested in several other business ventures. In 2002 he purchased a silver mine in South America and took a gold mine public in China. In his book ‘Conspiracy of the Rich’ he has mentioned that he intends to take a copper mine public as soon as the copper price and value will increase.
Even as a teenager Robert Kiyosaki worked with gold and silver coins. He has a theory that with a few dollars you can buy precious metal coins and that will actually get you ready for the ‘biggest crashes in world history’. He calls himself a ‘gold bug’ because he has several commodities like silver and gold so he can save himself from any losses against the misprinting of the U.S dollar.
Here we share the exclusive interview with Robert Kiyosaki by Panorama Online, which we hope will be very useful for your financial and personal success in 2016 and help you overcome obstacles and fears and give real meaning to your life in general through a stable economic life:
Panorama Online: With the New Year, many people have the resolution of reaching financial stability, but many of them have no savings and live paycheck to paycheck. How can they start from the ground up and become financially independent?
Robert Kiyosaki: True financial freedom comes when we don’t need to rely on a “paycheck”—and when income from our assets surpasses our expenses. That starts with buying or creating assets that generate cash flow – such as real estate, stocks or commodities like gold and silver. Once the monthly cash flow from your assets is equal to or greater than your monthly living expenses then you are financially free. That’s having your money work hard for you—instead of you working hard for money all your life.
PO: Many people fear failure when starting their own business. What advice can you give them on how to accomplish their dream of being business owners?
RK: Fear can be motivating and energizing—or it can be paralyzing and crippling. When you start a business, be prepared to make a few mistakes. Mistakes are how we learn things. The key is to use your mistakes to make your business better and stronger. Ask yourself: What can I learn from this setback? What can I do differently in the future? Remember, the product or service you build your business around is often the least important piece of the “business success” equation. Have you surrounded yourself with a great team? Marketers, accountants, mentors and coaches? My rich dad told me many times, “If you’re the smartest person on your team, your team’s in trouble.”
PO: How can we teach the value of money to our kids, and how soon should we introduce that concept to them?
RK: It’s my experience that kids have a sense of “money” from a very early age. And since most schools teach our children little to nothing about money, it’s up to the parents to educate them when they’re young. I created a game called CASHFLOW® for Kids, which teaches them core principles of cash flow, capital gains, assets and liabilities in a fun, interactive, and easy-to-understand way.
PO: Latinos are a hard working community, but they face many challenges being a minority. What advice would you give to a Latino business owner on how to overcome those challenges and achieve success?
RK: Every business owner, no matter his or her heritage, should be able to rely on their community as a support system. I recommend finding a mentor who has been successful doing what you want to do. My rich dad taught me about teams and systems and how to be a leader of people, not a manager of people. Leaders must inspire and lead people who, in many cases, are smarter than they are. I’d encourage all business owners to reach out within their communities and share their vision and their mission. And I believe that we get rich by being generous. I’d ask myself how I — and my new business — can contribute to the community I serve.
PO: What is your financial forecast in the next 5 years in the U.S.?
RK: I wish I had a crystal ball, and while I do have some thoughts on what the future will hold, predicting the future based upon the past and trends. However, the job of a prophet is to be wrong. One thing is certain: we’re headed for some rough times. The best thing that any of us can do is to be prepared. And one way to become better prepared for whatever the future holds is to invest in yourself; learn all you can about news and economic issues that affect you and your family and learn new ways to get smarter with your money and make the best decisions you can related to your financial future.
PO: What advice can you give parents on how to pay for their children’s college without becoming a financial burden for life?
RK: Most people go to college to get a good job—to become employees. However, parents have to break the cycle and invest in financial education, which can be cheaper than traditional education and can provide a much higher return. By raising kids who know how money works—and how to make it work for them—parents will raise kids who can break out of the high costs of education and spend more money on buying assets, building wealth, and having fun doing what they love.