Robert Kiyosaki, author of the 1997 book "Rich Dad, Poor Dad," outlined eight financial principles that distinguish wealthy individuals. These rules focus on how wealth is interpreted and managed differently by those with financial success.
Kiyosaki emphasizes that traditional education prepares individuals for employment but must be supplemented with financial education. He suggests exploring cost-effective educational paths, such as community college or living at home, to avoid significant debt.
Regarding employment, Kiyosaki states that financial freedom typically comes from entrepreneurship and investments rather than traditional jobs. He recommends starting side businesses while maintaining corporate work as a transition strategy.
Kiyosaki advocates for working smart rather than just working hard, encouraging individuals to make their money work for them. He also reinterprets "living below your means" by suggesting people expand their means through creative cash flow solutions when facing budget constraints.
Current economic challenges, including inflation and stagnant wages, make this principle more difficult to follow today than when originally published. Kiyosaki challenges conventional saving advice, arguing that savers lose value due to inflation and recommending investment in cash-flow-producing assets instead.
On home ownership, Kiyosaki questions whether houses are assets if they drain finances, noting that real estate's value depends on market conditions. He suggests generating income through rentals to create cash flow.
Kiyosaki views debt as a tool for wealth building when used to purchase income-generating assets, contrasting with typical debt-avoidance advice. He also recommends diversifying beyond traditional stocks and bonds into real estate, commodities, and businesses.
Market corrections since the book's publication support this diversification approach. Overall, Kiyosaki's principles remain largely relevant with minor adjustments for contemporary economic conditions.