Building Wealth: Robert Kiyosaki’s 5 Assets Better Than Cash

Key Takeaways 

1. Rich people believe “I create my life.” Poor people believe “Life happens to me.”
2. Rich people play the money game to win.
3. Rich people are committed to being rich.
4. Rich people think big.
5. Rich people focus on opportunities.
6. Rich people admire other rich and successful people.

Introduction 

In “Building Wealth,” Robert Kiyosaki talks about five better ways to invest your money than just leaving it in the bank. He suggests things like buying houses, investing in company shares, getting bonds, starting your own business, and buying precious metals such as gold and silver. 

Kiyosaki thinks these things can help you make more money over time, unlike keeping cash, which might lose its value because of prices going up. He wants to help people learn about these options so they can have more financial success and feel safe about their future.

The more interesting facts about the 5 assets better than cash

Robert Kiyosaki wrote about the new rules of money in his book Conspiracy of the Rich. Below are the 8 new rules that everyone needs to learn if they have any hope of thriving in today’s world:

Rule #1 – Money is knowledge

Rule #2 – Learn how to use debt

Rule #3 – Learn how to control cash flow

Rule #4 – Prepare for bad times and you will only know good times

Rule #5 – The need for speed

Rule #6 – Learn the language of money

Rule #7 – Life is a team sport; choose your team carefully

Rule #8 – Since money is becoming worth less and less, learn to print your own

Learning these new rules of money will help you navigate a drastically different world. Though you have a strong chance of becoming a successful entrepreneur, you can’t do it the old way. You can’t rely on your parents’ advice and rules.

The CASHFLOW Quadrant is divided into four types of people, each representing the four different ways to make money.

1. Employee
2. Small business/self-employment
3. Big business
4. Investing

Every person who generates income resides in at least one of the four sections (quadrants), and where you are is determined by where your cash comes from. The reference by Rich Dad Fundamentals: The CASHFLOW Quadrant

Always remember the most important thing.

Warren Buffett’s statement, “Never depend on a single income, make an investment to create a second source,” emphasizes the importance of diversification and financial security.

Robert Kiyosaki, who wrote “Rich Dad Poor Dad,” says just keeping money in the bank doesn’t make you really rich. He thinks it’s better to put your money into things that make more money and grow in value over the years.

Also Read: Money Mastery: A Deep Dive into the Psychology of Money and Happiness

Credit: Good financial cents

Why Keeping Your Money in the Bank Won’t Make You Rich: A Step-by-Step Guide to Financial Independence

“Money in the Bank will not make you rich” 5 Assets better than cash Robert Kiyosaki, The author of Rich dad poor dad, the #1 Personal Finance book of all time.

1. Real Estate

You can invest in real estate by buying properties like houses or apartments. Then, you can rent them out to people who need a place to live. They pay you rent every month, which can give you a steady income. Plus, if the value of your property goes up over time, you can sell it for more money than you bought it for.

2. Stocks

Investing in stocks means buying a small piece of a company. You can do this through the stock market. When the company does well, the value of your stock goes up. Some companies also pay their shareholders a part of their profits, called dividends. You can buy and sell stocks through a stockbroker or online platforms.

3. Bonds

Bonds are like loans you give to governments or companies. They promise to pay you back the money you lent them, plus interest, after a certain amount of time. Buying bonds can provide you with a regular income from the interest payments. You can buy bonds through brokers or directly from the issuer.

4. Business Ownership

Owning a business means you’re in charge of making money by selling products or services. You can start your own business from scratch or buy an existing one. Being a business owner can give you control over your income and the potential for big profits if your business does well.

5. Precious Metals

Investing in precious metals like gold and silver involves buying physical bars or coins made of these metals. They can be stored in a safe place like a bank vault. Precious metals are considered valuable because they’re rare and don’t lose their worth as easily as paper money. They can be a safe way to protect your wealth during uncertain times.

Also Read: The Wealth Mindset: How Rich People Think About Money?

About the Author

Robert Kiyosaki, the author of “Rich Dad Poor Dad,” is famous for his ideas about money and investing. He thinks the usual advice about getting a good job, saving money, and staying out of debt is outdated and not helpful. Instead, he believes in investing in things that make money and grow over time. 

His book has been a bestseller for a long time and has been translated into many languages. Before writing books, Kiyosaki created a game called CASHFLOW 101 to teach people about finances. He’s also been in the military and started his own businesses. Now, he shares his financial knowledge through his books, columns, and speaking engagements.

Amazon ratings: 4.7 out of 5 stars 97,079 ratings, 4.1 on Goodreads and 621,656 ratings.

Additional reference:

1. The Secret to Wealth – Buy Assets
2. Building Wealth: Key Concepts for Financial Success and Independence According to “Rich Dad Poor Dad” by Robert Kiyosaki

Conclusion

Robert Kiyosaki says don’t just keep your money in the bank. He suggests putting it into things like houses, company shares, bonds, starting your own business, or precious metals like gold. These can make you money over time and keep your finances safe. 

If you follow Kiyosaki’s advice, you can have more control over your money and work towards being more successful in the future.

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