Rules for Success by the Master of Personal Finance
In this article, we will cover the top business 10 lessons from Robert Kiyosaki, best selling author of books such as “Rich Dad, Poor Dad.”
1. Experience Makes you Smarter
Robert says we should be setting out for new experience, all the time. There are no failures in business, just experience opportunities. I can attest to this as well, I have had about a dozen business ventures, some successful, some less successful, but I learned something from them all. In fact, I learned more from the less successful ones. There is a limit to what you can learn by reading. Instead, we should be doing, and by doing, we will learn.
2. The More you Give, the More you Receive
This is sound business principle that many miss. We often think first about our gain, but instead we should be about giving value to our customers, first. In fact, our mindset should be that we focus on helping other people reach their goals, and in return they will help us reach ours. Robert discusses the difference between his rich dad, who would give and give, and believed that he would then receive more and more and his poor dad, who would not give, and would not receive.
3. Change the Way you Think
If you are going to keep thinking what you have been thinking, you will keep getting what you have been getting… What we think about ourselves, drives what we live out in our lives. Some of us need to change our minds about our future success potential, and start living it out. We need to plan our work, then work our plan.
4. Focus is the Key
This is a key principle, a confused buyer does not buy and a confused seller does not sell. Robert said, before we diversify into new ventures, we should master what we are working on. It is better to be a master of one than mediocre in many things. This is particularly true in online business. There are so many shiny objects out there, to distract us, we should focus on the one ahead of us and master it, before moving on.
5. Hard Times Bring New Opportunities
The rich get richer in hard times. For example, during recessions, the rich scoop up real estate at bargain prices, then they hold it until the economy recovers and the values increase. Robert has mastered this and says that when the economy is down, property is on sale. The key is to have a reserve of capital that can be put into action when times turn hard. Robert stresses the need for a proper education on finances, so one could spot the opportunities in down times and reap the reward in good times.
6. Design the Business Properly
Passive income is key. A business that relies on your continual presence and involvement is not a business, it is a job. In fact, he says a person that is self employed is just that, employed. He further explains that there are four categories of work, employee, self-employed, business, and investor. Robert stresses building assets as an investor, that make money even when you sleep.
7. Know what you are Looking For
What is more valuable, money or time? Robert would argue, time is more valuable. We should put our efforts into building assets that bring returns, so we can spend our time doing what we want to do. You can always earn more money, but you cannot buy more time.
8. Don’t be Afraid of Losses
Robert says we will need to get over our fear of failure. We are taught fear of failure in school and to overcome it, we need to learn to fail fast and fail forward. All great leaders and successful business figures have failed on their way to the top.
9. Aim to Acquire Assets
We often start as employees, but we should not stay there, instead we should start a business (self employed), then strive to have a real business (leveraging others time), then we don’t stop there, we should seek to build and acquire assets, that throw off passive income, then we can diversify into other ventures. The aim of every business venture should be the ultimate goal of acquiring passive income generating assets.
10. Stop Saving Money, Hedge it
Robert explains that the cost of inflation will always outpace the interest of savings. We simply can’t count on the fluctuating value of currency for our future. Instead, we should hedge agains inflation through assets, such as real estate, which always goes up in value, over the long term. He continues, if we must save, it should be in gold or silver, which is much more stable in value than currency. This allows you to quickly exchange it for cash when buying opportunities arise, such as in down times of the economy.
By taking these top business 10 lessons from Robert Kiyosaki to heart, we can maximize our businesses and financial future.
I have applied the principles described in this article and it has changed my life. No longer am I trapped in a job, I have financial freedom and wealth. I would love to share more of this information with you and help you achieve that level of freedom.
If you want to learn more about this subject, I would love to share with you the source of my knowledge, including the 15 day challenge that changed my life, check it out here.
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Dr. Allen Harper
Financial Freedom Hacker
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Any income claims, or claims of success are not necessarily true for everyone. Just like any other career or business venture, hard work and persistence is required. Many people succeed…and many fail as well. It is up to YOU to determine your fate.