Blog | Cryptocurrency, Entrepreneurship, Personal Finance, Real Estate
Robert Kiyosaki’s Top Blogs of 2022
And just like that, another year has come and gone. These are the top posts I wrote for our blog in 2022
January 03, 2023
We started to see the aftermath and recovery of the COVID-19 pandemic; and on a global scale, everyone began resuming their lives and readjusting to normalcy. At Rich Dad, our advice to navigate the world with financially literacy remained a top priority, with advice that has remained true and timeless for decades.
As we venture into 2023, I encourage you to read the posts below. I’m confident they’ll support your journey to financial freedom.
Personal Finance
In everything you do, it’s important to know that you have a choice. Likewise, being rich - and being poor - is a choice. As you’ll come to find, most people choose to be poor, because learning how to make the decisions that make them rich is too much of a hassle. My rich dad taught me to think like the rich. In short, the rich choose to invest in assets and not waste their money on liabilities. I made the choice to be rich as a young boy, and learned to acquire assets in order to do so.
Here’s the difference between an asset and a liability as my rich dad put it: “An asset puts money into your pocket, a liability takes money out of your pocket.”
Many people believe in the conventional dream they were sold as kids: “Go to a good school, get a good job, save money, buy a house, and invest in a balanced portfolio of stocks, bonds, and mutual funds.” But here’s the truth: your house is not an asset, savers are losers, and the rich do not work for money.
The simple definition of a fake asset is one that promises to make you richer but in actuality robs you blind.
One of the top things to consider when starting your journey to financial freedom, is how to budget strategically and away from said fake assets. In this blog, we’ll go over fundamental budgeting tips that the rich follow in order to get rich - and stay rich. One thing to always keep in mind: My poor dad said “Live below your means.” But my rich dad said “Expand your means.”
Instead of focusing on cutting expenses, focus on increasing income.
The CASHFLOW Quadrant is the beginning of changing your mindset about money. It identifies four types of people, two in each category, and explores each stage of the financial journey. In this blog, you’ll be able to identify where you stand, and how your outlook on making money determines your path to financial freedom.
Here’s a quick summary:
On the left side of the quadrant are Es and Ss. They pay the most in taxes and trade their time for money. And each has a different mindset.
On the right side of the quadrant are Bs and Is. They pay the least in taxes and create or invest in assets that produce cash flow for them even when they’re sleeping.
Real Estate
One thing to remember when investing, is that history repeats itself. The economy is a continual cycle of booms and busts, and those with high financial intelligence can spot the warning signs of each cycle well in advance. Of course, these signs are a trigger to act accordingly. The rich know how to play the game of markets, and use their financial literacy to inform their decisions when investing, especially in real estate.
While many people think the real estate market is volatile, the true problem is the fundamental lack of financial education in America. People don’t understand the difference between an asset and a liability, and therefore, truly don’t understand how money works. This is why we experience such massive booms and busts in our economy; and we won’t see any changes until there is comprehensive financial education in our schools to educate future generations.
I’ve always said that it’s important to understand good debt and how to put it to work for you - this is called using Other People’s Money, or OPM.
Most people are on board with the idea of OPM, but soon become intimidated when exploring how to find and use OPM. In this blog, we’ll talk through the six different types of OPM for real estate investing, and four ways to profit.
Crypto
If you're truly serious about getting rich, now is the time. Entering the crypto market with a financial education might be the best thing you can do. The most money I’ve ever made was in the real estate bear market, but remember I was financially educated. While you should always make your own decisions when considering your investments, in this blog, we’ll go over my success in the crypto market.
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Although Bitcoin is now adopted by several financial institutions and centralized exchanges, decentralized finance (or DeFi) is still in its early stages of development, even though its potential is promising. It’s expected to transform financial services the same way that communication was enhanced by the internet. In this blog, we’ll discuss the advantages - and risks - of DeFi.
Cryptocurrencies were originally intended to replace the existing financial system. However, they were not as easy to use as traditional fiat currency and payment structures. By securing cryptocurrencies to physical assets, like gold, they are much closer to providing a financial system rooted in something with real value instead of being rooted in debt - like cash. By saving and keeping fiat dollars in our bank accounts, we are essentially holding onto debt notes.
Take a look at these blogs and prepare yourself for another year of financial education. And remember, we’ve got everything you need to get started.
Original publish date:
January 03, 2023