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.
A giant stock-market crash is coming, but the market crash is not the problem. Predicting a market crash is not a big deal. All financial markets go up, and all financial markets come down. Market cycles are a part of life. The issue is that the next market crash will reveal big problems. The next crash will be especially hard because three generations have pushed a bigger problem forward—the problem of how people support themselves once their working days are over. That is an unprecedented problem that grows bigger every day.
During the 50s and 60s, my poor dad and my rich dad were savers. Saving money was safer than the stock market because, after the 1944 Bretton Woods Agreement, the U.S. dollar was backed by gold. The U.S. dollar became the reserve currency of the world, or “good as gold.” In 1971, Nixon put the ﬁnal nail in the coﬃn of the gold standard. The dollar and all government money became debt. Gamblers took over the government casino. Debtors became winners and savers became losers. My poor dad continued to save. He did not change. My rich dad, on the other hand, did change. Because he had to.
My rich dad solved his financial problems by asking for help from people smarter than he was. My rich dad was cooperative. Remember, the opposite of cheating is cooperation. And cooperation means you don’t have to be the smartest person to be rich. It’s better to have a smart team.
Go to school, get a job, work hard, save money, buy a house, get out of debt and invest in a long term and a well-diversified portfolio of stocks, bonds, mutual funds, and ETFs. Anyone following that advice is now suffering because this whole thing is going down, like the Hindenburg.
Starting a business can be a rocky endeavor, with a lot of risk and instability. Yet, successful entrepreneurs are able to take chaos and make it into a thriving business that provides stability for many working families. Read on for the 10 rules for success that I learned from my friend and President of the United States, Donald Trump.
One of the reasons so few people attain great wealth is because, when people get into financial trouble, they do not know how to get out of trouble. No one has ever taught them the basics of how to diagnose the particular financial problem they may be in. As a result, although people may know they are in financial trouble, they do not know how to read a financial statement or how to keep accurate financial records, so they do not know how serious their financial problems are or how to fix them.
The entrepreneur’s ability to dream, win, lose, and win again and again is often called an entrepreneurial spirit. It is what separates the entrepreneur from everyone else in business. It is also what separates those who want to be entrepreneurs from those who can be entrepreneurs.
The reason most people believe saving is smart and a 10 percent return in the stock market is worth it is simply due to a lack of financial education. Your best ROI is not a return on your investment, but a return on your information. This is why financial education is essential, especially for the uncertainty of the world ahead.