Robert Kiyosaki, author of bestseller Rich Dad Poor Dad as well as 25 others financial guide books, has spent his career working as a financial educator, entrepreneur, successful investor, real estate mogul, and motivational speaker, all while running the Rich Dad Company.
Most people believe that stock investing is at odds with the Rich Dad philosophy of investing for cash flow, because they think stocks are simply buying low and selling high. But an educated stock investor knows how to cash flow with the stock market, not just invest for capital gains.
Today, many people are perishing financially because they follow the old rules such as save money and get out of debt. Or they believe investing is risky, when it is the lack of financial education, experience, and bad financial advisors that actually carry more risk.
Security and freedom are not the same ideals. People who seek security are very, very different from those who seek freedom. It means having the ability to take risks and the understanding that our decisions have consequences that we must face—and rewards that we can enjoy.
As Rickards and many others point out, this “longest economic recovery in history” has not turned into the Greatest Depression in History, simply because the Fed, the Treasury, and Wall Street have kept the economy floating. As the Fed prints more and more money, the gap between the rich, middle class, and poor is growing.
Prophets of doom have always taken risks in terms of ridicule and humiliation. If you stand on a street corner holding up a sign that reads "The End Is Near," passersby will laugh and heckle. People will say you're like Chicken Little, running around telling people the sky is falling. Yet after an economic crisis like one we're experiencing now, people ask, "Why didn't someone warn us?" or "What's the government doing to save us?"
Many financial advisors will tell you that your house is an asset, but that is untrue. As such, this financial advice becomes a liability because it causes you to make bad assumptions and decisions about your personal wealth and your financial future.