Welcome, everyone, to an exclusive interview with one of the most influential figures in the world of personal finance and investment, Robert Kiyosaki. Renowned as a visionary entrepreneur, bestselling author, and sought-after speaker, Kiyosaki has inspired millions with his unconventional ideas and invaluable insights into wealth creation.
Robert Kiyosaki’s journey began with the publication of his groundbreaking book, “Rich Dad Poor Dad,” which challenged conventional wisdom about money and financial literacy. His unique perspective on the subject set him apart, resonating deeply with individuals from all walks of life who were eager to escape the shackles of financial insecurity.
Kiyosaki’s teachings go beyond traditional education, advocating for financial independence through his Rich Dad philosophy – a mindset focused on building assets, embracing entrepreneurship, and attaining financial freedom. His books have sold over 40 million copies worldwide, making him a household name and earning him a spot on Time magazine’s list of 100 most influential people.
As we sit down with Robert Kiyosaki today, we embark on a journey to explore the mind of a man who has dedicated his life to empowering others financially. We will delve into his vast experience as an investor, discuss his thoughts on the ever-changing landscape of personal finance, and uncover the principles that have shaped his success.
Get ready to be enlightened and inspired by the wisdom of Robert Kiyosaki, as he shares his unique perspectives on wealth creation, entrepreneurship, and the keys to achieving financial prosperity.
Who is Robert Kiyosaki?
Robert Kiyosaki is a renowned American businessman, investor, author, and speaker who has gained worldwide recognition for his expertise in personal finance and wealth creation. Born on April 8, 1947, in Hilo, Hawaii, Kiyosaki has established himself as a leading authority in the field of financial education.
Kiyosaki is best known for his groundbreaking book, “Rich Dad Poor Dad,” which has sold millions of copies globally and has become one of the most influential personal finance books of all time. This book challenges conventional wisdom about wealth and provides valuable insights into the mindset and strategies necessary to achieve financial independence.
Drawing from his own experiences and lessons learned from his two dads (his real father, the “poor dad,” and his best friend’s father, the “rich dad”), Kiyosaki emphasizes the importance of financial literacy, investing, entrepreneurship, and developing multiple streams of income. He encourages readers to adopt a mindset focused on building assets rather than relying solely on traditional employment or job security.
Throughout his career, Kiyosaki has written several other acclaimed books, including “Cashflow Quadrant,” “Rich Dad’s Guide to Investing,” and “The Business of the 21st Century.” His works provide practical advice and strategies for individuals seeking to improve their financial intelligence and create a more prosperous future.
20 Thought-Provoking Questions with Robert Kiyosaki
1.Please show us your favorite ten quotes in Rich Dad Poor Dad.
1.Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.
2.You’re only poor if you give up. The most important thing is that you did something. Most people only talk and dream of getting rich. You’ve done something.
3.The love of money is the root of all evil.”The lack of money is the root of all evil.
4.I’d rather welcome change than cling to the past.
5.The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.
6.Workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit.
7.To know a little about a lot.
9.Learn to use your emotions to think, not think with your emotions.
10.Excessive fear and self-doubt that were the greatest detractors of personal genius.
2. Could you explain the fundamental differences between how rich people think about money compared to poor people?
Mindset: Rich people have a mindset focused on abundance and opportunities. They believe that there are endless possibilities to create wealth and are willing to take calculated risks. On the other hand, poor people often have a scarcity mindset, constantly worrying about not having enough and being trapped in a cycle of limited resources.
Financial Education: Rich people understand the importance of financial education and continuously seek to expand their knowledge. They invest time and effort in learning about money management, investing, and building businesses. In contrast, poor people tend to rely on formal education alone and often lack the financial literacy necessary to make informed decisions.
Money Management: Rich people actively manage their money by creating budgets, monitoring expenses, and diversifying their investments. They have a clear understanding of their financial situation and adapt their strategies accordingly. Poor people often lack effective money management skills, living paycheck to paycheck without a plan for saving or investing.
3. What are some misconceptions people have about wealth creation that you address in your book?
In my book, “Rich Dad Poor Dad,” I aim to address several common misconceptions people have about wealth creation. Here are a few of them:
Belief that a high income guarantees wealth: One common misconception is that earning a high salary automatically leads to financial freedom. However, I emphasize the importance of understanding the difference between working for money and having money work for you. Simply relying on a high income without proper financial education and investment strategies can often lead to excessive spending and little wealth accumulation.
Thinking that owning a house is an asset: Many individuals consider their primary residence as their biggest asset. However, in my book, I challenge this notion by explaining that an asset is something that generates cash flow or appreciates in value. Unless your home generates income, it is actually a liability as it requires ongoing expenses for maintenance, taxes, and mortgage payments.
Believing that more education equates to more wealth: While education is undoubtedly important, traditional education systems often focus primarily on academic knowledge rather than financial literacy. Many people assume that obtaining a higher degree will automatically lead to wealth. However, I encourage readers to also invest time and effort in learning about financial intelligence, which includes understanding how money works, investing, and building businesses.
4. How important is financial education for individuals on their journey towards financial independence?
I strongly believe that financial education is of utmost importance for individuals on their journey towards financial independence. Here are a few reasons why:
Understanding money: Financial education helps individuals understand how money works, including concepts such as budgeting, saving, investing, and managing debt. This knowledge is crucial in making informed decisions about personal finances.
Building wealth: Education about money empowers individuals to make better choices when it comes to growing their wealth. It provides insights into various investment vehicles and strategies that can help generate passive income and build assets over time.
Making wise financial decisions: With financial education, individuals become capable of evaluating different financial opportunities and risks. They learn to distinguish between good and bad debt, identify profitable investments, and assess the real cost of financial decisions.
5. Can you share some examples of assets and liabilities that people should be aware of when building their wealth?
I would like to provide examples of assets and liabilities that people should be aware of when building their wealth. Remember, an asset is something that puts money in your pocket, while a liability takes money out of your pocket.
Real Estate: Rental properties or income-generating real estate can provide steady cash flow and potential appreciation over time.
Stocks: Investing in stocks of well-established companies with a history of consistent growth and dividends can offer a way to build wealth through capital appreciation and regular income.
Consumer Debt: Car loans, credit card debt, or personal loans are liabilities as they require regular payments and often have high-interest rates.
Excessive Housing Expenses: A mortgage on a home that stretches your finances too thin can become a burden rather than an asset.
It’s important to evaluate each financial decision and determine whether it will contribute to your overall wealth-building goals. Distinguishing between assets and liabilities is crucial to making informed choices and creating financial independence.
6. In your book, you emphasize the importance of creating multiple streams of income. What strategies do you recommend for achieving this?
In my book, “Rich Dad Poor Dad,” I indeed emphasize the significance of developing multiple streams of income as a means to achieve financial independence. Here are some strategies that I recommend for achieving this goal:
Start with your mind: Cultivate an entrepreneurial mindset by expanding your financial education. Learn about different investment vehicles, business models, and opportunities available to you. This knowledge will be crucial in identifying and capitalizing on potential income streams.
Invest in real estate: Real estate is one of the most popular ways to create passive income. Consider investing in rental properties or real estate investment trusts (REITs) that generate regular cash flow.
Build a business: Entrepreneurship offers tremendous potential for creating multiple streams of income. Start a business or invest in an existing one. Look for opportunities that align with your interests, skills, and market demands.
7. What are your thoughts on the role of entrepreneurship in building wealth, and how can individuals get started if they don’t have a business idea yet?
I believe entrepreneurship plays a crucial role in building wealth. It allows individuals to take control of their financial future and create opportunities for themselves. Here are my thoughts on the role of entrepreneurship and some tips for getting started without a business idea yet:
Mindset shift: Developing an entrepreneurial mindset is essential. This involves thinking outside the box, being open to new ideas, embracing calculated risks, and adopting a mindset that values learning from failures.
Identify your strengths and passions: Consider what skills, knowledge, or interests you possess that could be turned into a business opportunity. Reflect on your talents, hobbies, or areas where you excel, as these can provide a solid foundation for a successful venture.
Research market trends and needs: Look for gaps or problems in the market that you could potentially solve with a product or service. Stay updated on industry trends, emerging technologies, and changing consumer preferences to identify potential opportunities.
8. Debt is often considered negative, but you suggest using it as a tool for wealth creation. Could you elaborate on this concept?
I believe that debt can be used as a tool for wealth creation when used wisely and strategically. While traditional thinking may consider all debt to be negative, my perspective is different.
I advocate for using debt to acquire assets that generate cash flow or appreciate in value over time. This type of debt is commonly referred to as “good” debt because it serves as a means to create wealth. By using debt to invest in income-generating assets such as real estate, stocks, or businesses, one can leverage their resources and potentially earn higher returns.
The key is to focus on acquiring assets that have the potential to generate more income than the cost of servicing the debt. For example, purchasing a rental property with a mortgage allows you to collect rental income that can cover the mortgage payments and expenses while potentially providing additional profit. This strategy can lead to long-term wealth accumulation through increasing cash flow and asset appreciation.
However, it’s crucial to note that not all forms of debt are beneficial. High-interest consumer debt, such as credit card debt or personal loans, should be avoided as they typically don’t contribute to wealth creation. These types of debts often come with exorbitant interest rates that can quickly become burdensome.
9. How can individuals avoid falling into the “rat race” and achieve financial freedom?
I hold the idea that achieving financial freedom requires a shift in mindset and taking action towards building assets. Here are some steps individuals can take to avoid the “rat race” and achieve financial freedom:
Educate Yourself: Invest in financial education to understand how money works, learn about different investment options, and develop a mindset focused on financial independence.
Reduce Debt: Minimize and prioritize paying off high-interest consumer debt such as credit cards and personal loans. Eliminating debt frees up cash flow to invest and build wealth.
Build Assets: Focus on acquiring income-generating assets like real estate, stocks, bonds, or businesses. These assets will work for you and generate passive income over time.
Develop Multiple Streams of Income: Relying solely on a salary can be limiting. Diversify your income streams by creating side businesses, investments, or passive income sources to increase your financial stability.
10. What are some common mindset shifts that people need to make in order to become financially successful?
There are several common mindset shifts that individuals need to make in order to become financially successful:
From Employee to Investor Mindset: Shifting from the mentality of solely relying on a job for income to becoming an investor is crucial. By focusing on creating assets that generate passive income, such as real estate or businesses, you can build wealth over time.
From Consumer to Producer Mentality: Transitioning from being a consumer who spends money on liabilities to becoming a producer who creates value is essential. Instead of buying unnecessary items, focus on developing skills, providing solutions, and creating products or services that fulfill people’s needs.
From Fear to Risk-Taking Attitude: Overcoming the fear of taking risks is vital for financial success. Understand that calculated risks are necessary to achieve higher returns. Embrace failure as a learning opportunity and adopt a mindset that views setbacks as stepping stones towards growth.
11. How does your book address the significance of investing in oneself and continuous personal development?
Investing in oneself and continuous personal development are key themes addressed in my book. I believe that true wealth comes not only from financial investments but also from investing in one’s own personal growth and development.
In my book, I emphasize the importance of acquiring knowledge and developing new skills to enhance one’s earning potential and overall success. I highlight the concept of “financial education,” which involves learning about money management, investing, and entrepreneurship. This knowledge empowers individuals to make informed financial decisions and seize opportunities that they may have otherwise missed.
I stress the significance of adopting a mindset focused on personal growth and self-improvement. By continuously expanding our knowledge and skill set, we can adapt to changing circumstances and thrive in an unpredictable world. I encourage readers to invest time and effort into self-education, seeking mentors, attending seminars, and reading extensively to stay ahead in their chosen fields.
Moreover, I discuss the importance of cultivating an entrepreneurial mindset. By nurturing creativity, resilience, and a willingness to take calculated risks, individuals can become more adaptable and open themselves up to greater opportunities. I share my own experiences and lessons learned throughout my journey as an entrepreneur to inspire and motivate readers to pursue their own dreams and aspirations.
12. What advice do you have for someone who wants to start investing but doesn’t know where to begin?
I would advise someone who wants to start investing but doesn’t know where to begin with the following steps:
Educate Yourself: Begin by educating yourself about different investment options and financial concepts. Read books, attend seminars, listen to podcasts, or enroll in courses that cover topics like stocks, real estate, mutual funds, bonds, and other investment vehicles. Knowledge is the foundation for successful investing.
Set Clear Financial Goals: Determine your financial objectives and what you want to achieve through investing. Are you looking for long-term wealth accumulation, short-term gains, or a combination of both? Setting clear goals will help guide your investment choices and strategies.
Start Small: Begin with small amounts of money that you can afford to invest without jeopardizing your financial stability. This allows you to gain practical experience and learn from any mistakes while minimizing potential losses.
13. Your book emphasizes the importance of taking risks. How can individuals differentiate between calculated risks and reckless decisions?
Differentiating between calculated risks and reckless decisions is crucial for individuals seeking financial success. While my book emphasizes the importance of taking risks, it also highlights the significance of making informed choices.
Calculated risks involve careful analysis, evaluation, and planning. They are based on gathering relevant information, understanding potential outcomes, and assessing the likelihood of success or failure. Calculated risks typically involve a thoughtful assessment of the potential rewards versus the potential losses. These risks are taken with a solid understanding of the situation, backed by research, experience, and knowledge.
On the other hand, reckless decisions are impulsive, uninformed, and not based on proper analysis. They often come from a place of emotion or a desire for quick gains without considering the potential consequences. Reckless decisions lack research, careful thought, and consideration for the downside risks.
To differentiate between the two, individuals should follow these guidelines:
Conduct thorough research: Gather relevant information about the opportunity or investment, including market conditions, industry trends, and potential risks involved.
Seek advice from experts: Consult with experienced professionals who have knowledge in the field you are considering. Their insights can provide valuable perspectives to assess the risk-reward balance.
Evaluate potential outcomes: Consider the best-case scenario, worst-case scenario, and the most likely outcome. Assess whether the potential reward justifies the potential loss.
14. What are your thoughts on the impact of technology and the digital age on wealth creation?
I agree that technology and the digital age have a profound impact on wealth creation. Technology has revolutionized the way we live, work, and conduct business, presenting numerous opportunities for individuals to create wealth.
Firstly, the digital age has significantly lowered barriers to entry in various industries. It has democratized entrepreneurship by providing easy access to information, resources, and markets. With a laptop and an internet connection, anyone can start a business from scratch, reaching a global audience at minimal cost. This level playing field allows individuals to leverage their skills, knowledge, and creativity to generate income and accumulate wealth.
Furthermore, technology enables scalability and efficiency in wealth creation endeavors. With automation, artificial intelligence, and machine learning, businesses can streamline operations, reduce costs, and reach unprecedented levels of productivity. These advancements allow entrepreneurs to scale their ventures rapidly and generate substantial profits with fewer resources.
15. Can you recommend more books which share the similar themes with Rich Dad Poor Dad ?
If you’re looking for books that share similar themes with Rich Dad Poor Dad, here are a few recommendations:
“Think and Grow Rich” by Napoleon Hill: This classic self-help book focuses on personal development and achieving financial success by changing one’s mindset.
“The Millionaire Next Door” by Thomas J. Stanley and William D. Danko: This book explores the lifestyles and habits of wealthy individuals, providing insights into how they accumulate and maintain their wealth.
“The Richest Man in Babylon” by George S. Clason: Set in ancient Babylon, this book imparts financial wisdom through parables and offers timeless lessons on saving, investing, and wealth creation.
“The 4-Hour Workweek” by Timothy Ferriss: While it approaches the topic from a different angle, this book challenges traditional notions of work and provides strategies for escaping the 9-to-5 grind to achieve financial independence.
Remember, each book offers unique perspectives and ideas, so it’s beneficial to explore various authors and their viewpoints to gain a well-rounded understanding of personal finance and wealth-building strategies.
16. How can individuals overcome fear and uncertainty when it comes to making financial decisions?
Overcoming fear and uncertainty when making financial decisions is crucial for individuals to grow financially. Here are a few strategies that can help in this process:
Diversify and Mitigate Risks: Spread your investments across different asset classes (stocks, real estate, businesses) to reduce risk. Avoid putting all your eggs in one basket. Additionally, consider having an emergency fund to handle unforeseen circumstances, which can provide peace of mind.
Seek Advice from Professionals: Consult with financial advisors or mentors who have experience in the areas you’re interested in. They can provide valuable insights and guide you through the decision-making process. However, remember to always analyze their advice critically and make informed decisions based on your own research.
Start Small and Learn from Mistakes: Begin with small investments or ventures to gain experience and confidence. Embrace failure as a learning opportunity rather than a setback. Analyze your mistakes, learn from them, and adapt your approach accordingly.
Take Action: Procrastination often stems from fear and uncertainty. To overcome them, take action. Start implementing what you’ve learned and gradually build your financial competence. Every small step forward will increase your confidence and reduce apprehension.
17. Do you believe that anyone can become financially independent, regardless of their starting point? Why or why not?
I hold that anyone can become financially independent, regardless of their starting point. I also emphasize that achieving financial independence is not determined by one’s initial circumstances, but rather by the mindset, knowledge, and actions one takes to build wealth.
Financial independence is attainable through a combination of financial education, developing the right mindset, taking calculated risks, and building multiple streams of income. He argues that it’s crucial to learn about money management, investing, and asset accumulation in order to create sustainable wealth.
I want to encourage individuals to focus on acquiring assets that generate cash flow, such as real estate, stocks, or businesses, rather than relying solely on earned income or liabilities. He believes that financial independence can be achieved by continuously improving financial literacy, making informed investment decisions, and adopting a long-term wealth-building approach.
While starting points may vary, it’s possible to overcome financial challenges through perseverance, learning from failures, and continually expanding one’s financial intelligence. By taking control of their financial journey and implementing sound strategies, individuals can strive towards financial independence and potentially achieve greater wealth and freedom.
18. What are some common mistakes or pitfalls that people tend to encounter on their path to financial success, and how can they be avoided?
One common mistake people make on their path to financial success is relying solely on a job for income. Many individuals fall into the trap of trading time for money, which limits their earning potential. To avoid this pitfall, it’s crucial to shift the mindset from being an employee to becoming financially literate and exploring opportunities for generating multiple sources of income.
Another mistake is overspending and accumulating unnecessary debt. People often succumb to the temptation of instant gratification by purchasing things they can’t afford, utilizing high-interest credit cards, or taking out loans for depreciating assets. It is essential to live below your means, create a budget, and prioritize investments that generate passive income rather than liabilities.
Lack of proper financial education is another significant obstacle. Many individuals are not adequately prepared to handle their finances or make informed investment decisions. It is crucial to invest in oneself by continuously seeking knowledge about personal finance, investing, and asset protection. This can be done through reading books, attending seminars, networking with experienced investors, or even seeking mentorship.
Fear of failure and taking risks can also hinder financial success. Many people prefer the safety of a steady paycheck and fear venturing into entrepreneurship or investing due to the possibility of failure. However, taking calculated risks is an important aspect of building wealth. By developing risk management skills, conducting thorough research, and learning from failures, individuals can overcome this pitfall.
19. How have your own experiences and lessons learned influenced your views on wealth creation and financial education?
My own experiences and lessons learned have played a significant role in shaping my views on wealth creation and financial education. Throughout my journey, I have encountered both successes and failures that have provided valuable insights.
One of the most impactful experiences was when I had two fathers – my real father and my best friend’s father. They represented two different mindsets when it came to money. My real father, highly educated and well-paid, struggled financially. In contrast, my best friend’s father, with limited formal education, became wealthy and achieved financial independence early on.
This stark contrast led me to question the traditional beliefs about money that were ingrained in society. It made me realize that financial intelligence and mindset play a vital role in achieving financial freedom, rather than relying solely on qualifications or a steady paycheck.
From these experiences, I developed the concept of the Cashflow Quadrant, which categorizes people into four groups: employees, self-employed individuals, business owners, and investors. This framework highlights the importance of transitioning from being an employee or self-employed to becoming a business owner or investor, as these are the paths to true wealth creation.
Additionally, my encounters with financial challenges and setbacks taught me important lessons. For example, during the 1990s, when I faced bankruptcy and lost everything, I learned the significance of resilience, adaptability, and constantly upgrading my financial knowledge. These experiences reinforced the idea that true wealth is not just about making money but also about managing it wisely and building assets that generate passive income.
20. What message would you like readers to take away from Rich Dad Poor Dad, and how can they apply its principles in their own lives?
The main takeaway from Rich Dad Poor Dad is the importance of financial education and developing a mindset focused on building wealth. I want readers to understand that financial success is not solely dependent on income or formal education, but rather on understanding how money works and making wise financial decisions.
To apply the principles in their own lives, readers should start by changing their mindset about money. Instead of working for money, they should strive to make money work for them. This can be achieved by adopting a business owner or investor mentality, seeking opportunities to create passive income streams, and understanding the power of assets and liabilities.
Additionally, I encourage readers to prioritize financial education. This involves expanding one’s knowledge about personal finance, investing, and building businesses. Attend seminars, read books, and surround yourself with mentors who have achieved financial success. By continuously learning and improving financial literacy, individuals can make informed decisions and take control of their financial future.
Lastly, taking action is crucial. Apply what you learn by taking small steps initially, such as saving more, budgeting wisely, and reducing unnecessary expenses. As you gain confidence and knowledge, explore investments, start a side business, or invest in real estate. Remember that mistakes and failures are part of the learning process, so embrace them as opportunities to grow and improve.