Educate Yourself Financially

One of Kiyosaki’s most important pieces of advice is that you have to educate yourself financially, especially as a beginning investor. Kiyosaki says that schools don’t teach financial education, so you need to take it on yourself. This is particularly true if you plan to use debt to generate wealth, as Kiyosaki says that he and other wealthy investors do. If you don’t understand how to use debt, it will consume you and keep you poor. Education also allows you to truly understand what you’re investing in. Otherwise, Kiyosaki says anything you invest in will simply be a speculation.

Invest for Cash Flow

Kiyosaki’s favored way to invest is for cash flow. There are many ways to do this. One of the most obvious is to invest in rental real estate. If you buy the right property at the right price, you can earn enough rental income to not only cover your costs but also provide you with positive cash flow. From there, over time, you can use that excess cash flow to buy additional assets that boost your income even more.

Another way to invest for cash flow is through building your own business. One of Kiyosaki’s principles is that you should never work a job to make others rich, you should only work to make yourself rich. So if you are an hourly worker trading your time for money, you’re not likely to get rich, in Kiyosaki’s view. But if you run your own business, others will work to generate profits for you.