In a world where conventional wisdom often encourages us to ‘do what we love,’ an influential financial advisor takes a different stance. He advocates for an alternative, yet compelling, viewpoint: ‘Invest in what you love.’ This shift in perspective proposes a more direct path towards financial freedom, combining passion with economic sense. By delving into various investment strategies, the concept of ‘good’ and ‘bad’ debts, the role of spiritual intelligence in our financial journey, and the importance of education, he offers a holistic blueprint for those seeking to build their wealth. Intriguingly, his experience in the military and encounters with spiritual leaders have also shaped his unique financial philosophy. His lessons could redefine how you perceive your relationship with money, potentially transforming your financial future. Let’s see what he has to say.
Robert Kiyosaki Explains Investing In What You Love
Interviewer question: “So now, people are leaning in and saying, ‘Oh my goodness, I see what he’s saying. What should my next moves be? I have some excess capital beyond what my means to live with are, and maybe I’m currently spending money on stupid things I don’t need. What could my first step be toward trying to create some semblance of financial freedom for myself?’
Robert Kiyosaki answers: “Well, as I said, education is more important than ever before. But you’re going to choose your education. I wouldn’t go back to school personally, and you know, people say, ‘Do what you love.’ I say, ‘Invest in what you love.’
“There’s four basic asset classes you can invest in. Number one is a business, like McDonald’s for example. Number two is real estate. Number three are papers — stocks, bonds, mutual funds, ETFs, and savings. Number four, commodities.”
“I don’t touch paper at all. I don’t have stocks, bonds, mutual funds, or savings because I can’t control them. I can control my businesses, I control my real estate, and I control my gold and oil. That’s what I do. I’m a control freak. But most people don’t have the skill set or training to control their assets.”
“So, when people ask me what they should do, I say, ‘Well, what do you love?’ If they say real estate, I suggest they take a real estate course. Then, usually, the response is, ‘That takes money, I don’t have any money.’ This shows a lack of spiritual intelligence.”
The interview says, “If you can say out loud, ‘That takes money. I don’t have money,’ it’s almost like a negative affirmation. Spiritually, you’re poor. Not broke, but poor. It’s a mindset.”
“You’re spiritually poor. Someone took your heart and soul out of you, your willpower,” Kiyosaki confirms.
The interviewer adds, “The entrepreneur says, ‘Hey, if I lost it all today, I wake up tomorrow morning with my mind, I get back my energy, and I can make it back.’
Kiyosaki replies, “I’m a Marine. I did horrible things in Vietnam as a pilot. And yet, I wear this here. This was a gift from His Holiness the Dalai Lama. I’m not Buddhist or a Christian. I just believe there’s a spirit beyond all of this.”
“The Marine Corps is a very spiritual organization. We gave our lives so others could live. I’m alive today because dead men kept fighting. We had to do horrible things. It’s wrong, but it’s very spiritual. Most people don’t have the spirit. They’re emotional. Their emotions are so, ‘What if I fail? What if I don’t have money?’ Your spirit’s been ripped out of you.”
The interviewer interjects, “The doubt almost is like a poison to their soul. This doubt of ‘what if’ and these fears…”
Kiyosaki adds, ‘Don’t make mistakes, you’re stupid, you got to have money.’ The reason I love real estate is I don’t use my money. I use my bank’s money. It’s called debt. All I have to do is show the bankers how I’m going to make money with the bank’s money. That’s all I have to do.”
“And what I’ve said is there’s good debt and bad debt. Most people have bad debt. That is debt you pay for, like credit card debt, your mortgage, car payments. Good debt is when somebody else pays for you.”
“So, I have six thousand seven hundred apartments. That’s six thousand seven hundred people paying my mortgage for me. That’s heaven.”
“An interesting thing is that I pay no taxes. I took a real estate course when I came back from Vietnam; it cost me $385. That $385 has made me a multimillionaire over and over again. Whereas my friends who got their MBAs they’re still fearing they’re afraid of getting fired, they’re trying to figure out how to pay for their student loans.”
- Understanding the principle of control in investments is critical: Investing in stocks, bonds, or mutual funds is largely beyond our control; investors that want more control over their investment outcomes can focus on business, real estate, and products that they can manage and oversee directly.
- Emphasize education and investment in your passions: Acquiring knowledge and skills in areas you are genuinely passionate about is the key to success. This brings more enjoyment to your endeavors and enables us to make more informed and efficient decisions.
- Distinguish between good and bad debts: Bad debts, such as credit cards, mortgages, and car payments, are those we pay for ourselves. In contrast, good debts are those that others pay for us, for example, tenants in rental properties.
- Incorporate positive intelligence into your financial strategy: Recognizing the role of mindset in financial success is essential. Negative affirmations can limit our potential and damage our financial progress.
- Leverage other people’s money (banks) for investments: Effective use of debt can significantly enhance our ability to create wealth. It involves showing banks how their money can be used profitably, such as in real estate investment.
Financial freedom requires more than just understanding basic financial principles; it necessitates a comprehensive approach that merges emotional, spiritual, and intellectual capacities. The significance of education, particularly in areas of passion, can’t be understated as it paves the way for informed decisions and productive actions. Moreover, grasping the essence of debt and its potential uses can unlock doors to new investment opportunities, while the principle of control in investments ensures active participation and management. Lastly, embodying a positive mindset and strong willpower fosters resilience and perseverance in pursuing wealth creation. Integrating these principles into your financial strategy makes you more likely to attain a sustainable and rewarding financial future.