As a financial adviser, I often come across clients who are solely focused on increasing their income. While earning a higher income is undoubtedly important, it's not the only factor that determines financial success. In fact, as Robert Kiyosaki rightly said, "It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."
Let's break down this quote and evaluate each component:
- "How much money you keep"
The first part of the quote emphasises the importance of saving money. While it's essential to earn a good income, it's equally crucial to control expenses and save a portion of your earnings. Saving money provides a financial cushion for emergencies, helps achieve long-term goals, and reduces financial stress.
As a financial adviser, I recommend that my clients aim to save at least 20% of their income. This savings can be invested in different assets like stocks, bonds, and real estate, depending on their financial goals and risk tolerance.
- "How hard it works for you"
The second part of the quote highlights the importance of investing money. Simply saving money in a bank account is not enough to achieve financial security or independence. Investing allows your money to grow over time, and compounding returns can significantly increase your wealth.
As a financial adviser, I encourage my clients to invest in a diversified portfolio of assets that align with their financial goals and risk tolerance. A diversified portfolio can help manage risk and increase returns over the long term.
- "How many generations you keep it for"
The final part of the quote emphasises the importance of creating a legacy of wealth that can benefit future generations. Many people are so focused on their current financial situation that they forget to plan for the future. It's essential to consider how you can preserve and grow your wealth to benefit future generations.
As a financial adviser, I encourage my clients to create a comprehensive estate plan that includes strategies to minimize taxes and transfer wealth to their heirs. A well-planned estate can help protect assets, ensure a smooth transfer of wealth, and provide financial security for future generations.
In conclusion, Robert Kiyosaki's quote emphasises the importance of a holistic approach to financial planning. While earning a good income is crucial, it's equally important to save, invest wisely, and plan for the future. By following these principles, you can achieve financial security, independence, and create a lasting legacy of wealth for future generations.
FAQs
Kiyosaki's quote, "It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for," emphasizes the importance of financial management and building long-term wealth.
What was Robert T. Kiyosaki's famous quote? ›
The size of your success is measured by the strength of your desire; the size of your dream; and how you handle disappointment along the way.
What did Robert Kiyosaki say about money? ›
“Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.” “Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.”
What is Robert Kiyosaki trying to say? ›
Robert Kiyosaki's Financial Philosophy
Kiyosaki's philosophy about money is simple: You don't need to have a high income to become rich. Instead, he says, the key to building wealth lies in two things: Building a portfolio of passive income-generating assets. Minimizing debt5.
What is Kiyosaki's definition of financial intelligence? ›
It is the so-called technical knowledge about money, accounting, finance, investing and business. The other 50% of financial intelligence is knowing when you are thinking rationally and when you are thinking emotionally. To simply say, 'Play it safe.
What is the best quote of money? ›
A rich man is nothing but a poor man with money. A penny saved is a penny earned. The lack of money is the root of all evil. When I was young I thought that money was the most important thing in life; now that I am old I know that it is.
What is the money quote from Rich Dad Poor Dad? ›
The love of money is the root of all evil." The lack of money is the root of all evil. Robert Kiyosaki, Rich Dad Poor Dad: What the Rich Teach Their Kids About Money - That the Poor and the Middle Class Do Not!
What assets does Robert Kiyosaki recommend? ›
For Kiyosaki, silver and other precious metals are better to hold on to because they are scarce, real, usable assets that don't get devalued due to inflation as the dollar does.
Why was Robert Kiyosaki criticised? ›
Robert Kiyosaki, the Bernie Madoff of Real Estate seminars scams. He never made a PENNY in realty: just on books and seminars telling people they can get RICH off of it— but with plausible deniability of telling people dumb stories and vague anecdotes, instead of any actual straight answers and proven methods.
How did Robert Kiyosaki make most of his money? ›
His primary income sources are book sales, speaking engagements, real estate, precious metals, cryptocurrency investments, financial education programs, and business ventures. He founded Rich Global LLC in 1977, a conglomerate specializing in manufacturing, retail operations, and financial education.
This time, Kiyosaki warned investors that the stock market crash tied to the COVID-19 pandemic was only beginning. The only problem was he posted this warning on Twitter just after the S&P 500 reached its 2020 lows. In the year following this warning, the S&P 500 gained a staggering 53.4%.
What is a poor dad mentality? ›
The “Poor dad”, a stereotype for the regular salary man, believes that one should work for money as an employee at a stable job.
Who is Kiyosaki's wife? ›
What does Robert Kiyosaki believe? ›
He believes that leveraging debt is a key driver of his wealth because of the tax advantages it provides. Kiyosaki goes on to critique the common financial advice of living debt-free, as popularized by financial expert Dave Ramsey, saying, “And my friend Dave Ramsey says 'live debt free.
What are the three types of money Robert Kiyosaki? ›
Robert Kiyosaki says there are 3 types of income:
- Earned Income = Income from a job.
- Portfolio Income = Income from paper assets or capital gains.
- Passive Income = Income comes in on a regular basis.
Best known as the author of Rich Dad Poor Dad—the #1 personal finance book of all time—Robert Kiyosaki has challenged and changed the way tens of millions of people around the world think about money. He is an entrepreneur, educator, and investor who believes the world needs more entrepreneurs who will create jobs.
What is the first lesson that Kiyosaki's Rich Dad taught him? ›
Rich dad taught Kiyosaki that assets put money in your pocket, while liabilities take money out of your pocket. This is a key concept in the book that shapes Kiyosaki's financial philosophy.
What is Elon Musk's most famous quote? ›
“When something is important enough, you do it even if the odds are not in your favor.”
What did Rich Dad tell the boys was the most important thing to remember? ›
What did Rich Dad tell the boys was the most important thing to remember? How to read the stock market.
