Top 10 Rich Dad Poor Dad Rules from Robert Kiyosaki
Robert Toru Kiyosaki is a fourth-generation Japanese American who was born in 1947 in Hawaii, USA. He was the eldest of four children whose father is an academic and educator, and whose mother is a registered nurse. Robert graduated in 1969 with a Bachelor of Science degree from the US Merchant Marine Academy, and a commission as 2nd lieutenant at the Marine Corps. He served as a helicopter gunship pilot during the Vietnam War in 1972, and earned an Air Medal. He was honorably discharged in 1974.
While working in sales for Xerox, he attended an EST seminar which he stated changed his life. He started several businesses, and some of them went bankrupt. In 1997, he started Cashflow Technologies, Inc., a financial education company that owns and operates the Rich Dad and Cashflow Brands. The company’s sales of its board and software games, the franchises of the Rich Dad seminars, investments in real estate, oil, and other business ventures are the source of his main earnings.
The Top 10 Rules
Robert Kiyosaki has authored/co-authored over 25 books. His best-selling Rich Dad Poor Dad series of books has been translated in over 50 languages, available in more than 100 countries, and has registered a combined sales of over 27 million copies sold. His net worth is estimated to be $80 million, according to the website Celebrity Net Worth. And here is his top 10 rules for success, as summarized from this YouTube video.
1. Experience Makes You Smarter
When Robert Kiyosaki bought his first real-estate property for business, he used his credit card for the down payment. Financial experts told him it was an unwise move. The investment generated only a small monthly income. However, since then, every time he makes an investment, whether in real estate or in other business ventures, he believed he became smarter because of the actual experience of going through the deal.
2. The More You Give, The More You Receive
Robert believed that the more a person gives, the more he will receive. For him, this is an attitude that can encourage opportunities for the financial wellbeing of a person. He stated that the people he meet that do not have money are usually those who want more money, but do not really want to give more. Giving can be in terms of giving more effort to work, or wanting to share their blessings with others.
3. Change The Way You Think
Kiyosaki, in a TV show interview, shared that even during the times when he has little money, when he receives an income, he pays himself first, before his other obligations. He tries to invest or buy properties. When bill collectors come for him, instead of getting depressed, he looks at them as motivation. This prompts him to go out, and figure more and better ways to generate income so that he can pay them when they get back.
Robert Kiyosaki believes that it is better to focus than to diversify. He developed an acronym as a personal rule for success: F.O.C.U.S. This stands for “Follow One Course Until Successful.” When he started investing in real estate, he stayed with it and kept repeating until he has figured out what works and what does not. Only then did he started with another venture, this time in oil. He also FOCUS’d on it, until he learned enough.
5. Hard Times Bring New Opportunities
During an interview, Robert stated that economies in the world go up and go down as time goes on. But even during hard times, new opportunities present themselves that when recognized and grabbed, can turn out to be great investments. During the recent property crisis in America, he relayed that he was able to buy 5 golf courses from a bank at a bargain price. The same property was being offered to him at a very expensive $260 million before the crisis.
6. Design The Business Properly
Kiyosaki recalled that in one of his early business ventures, he was successfully selling a new kind of wallet. However, the company kept running out of money, because of the bad design of the business. He therefore points out that it is not just about having a good product, but more importantly, it is designing a good business that does not constantly need someone to raise capital. A business should be designed to keep raising money automatically.
7. Know What You Are Working Hard For
Robert Kiyosaki explained that today, there are new ways to receive income, but people should try to do research and know more about how. For example, he explained that in the US, employee salaries are being taxed as high as 50 percent. For him, this is an inefficient way to achieve wealth. Portfolio income, such as in buying and selling stocks, are taxed at 20 percent, which is better. But he explained that the best type of income is passive income, which may not be taxed at all.
8. Don’t Be Afraid Of Losses
Successful entrepreneurs have had their share of losses, according to Robert. He mentioned Henry Ford, Steve Jobs, Bill Gates, and Donald Trump. He admitted that he has lost a million himself, but he advised that people should not be afraid to experience it. He laments about the school system that punishes people for failing. In an analogy, he explained that a baby learns to walk by standing and falling down several times until they are able to do it properly.
9. Aim To Acquire Assets
A well-designed business aims to acquire assets regularly. Robert Kiyosaki explained that companies that acquire assets performs better, and more people invest in them. As an example, he states that his Rich Dad company is adding franchising, coming out with another book, and so on, to add assets. Doing these regularly helps increase income to the company.
10. Stop Saving Money, Hedge It
Robert stated that saving money is an old rule that is not practical in these modern times. It is because when money becomes currency, the normal process is for it to lose value as more of it are printed by the banks. Interest is also relatively smaller compared to inflation, so the value continues to decrease. Kiyosaki alternatively advises hedging money instead of saving it. By hedging or putting a limit to its decreasing value, people can invest their money on other things such as oil or gold. Their prices more often increase than not, whereas or because the value of currency is regularly falling.
Robert Kiyosaki has experienced his share of loses, bankruptcies, and other criticisms. However, he believes that people can have better financial status if they are willing to study, learn, work hard and work around obstacles that stop them from achieving their success.