Businessman and author Robert Kiyosaki is best known for his book Rich Dad Poor Dad. With decades of experience, Kiyosaki is a strong advocate for financial education and real estate investing. He created an educational board game called CASHFLOW 101 to teach investment strategies. Here are 10 of Kiyosaki’s best financial tips.
Real Estate Investments
One of the best ways to build wealth and earn passive income is by investing in real estate. Kiyosaki highlights the industry as key. It can involve buying properties and finding renters or flipping a fixer-upper for profit. Buy a cheap home that needs drastic updates and sell it for more than the cost of the renovations—that’s your revenue.
Rental Properties
Along the same lines, buying and renting out a property can be especially lucrative. Charge renters enough money so that you can cover the building’s monthly mortgage. Anything over this will be your profit. Factor in emergencies, such as when the air conditioning fails or the water supply stops. Rental properties, according to Kiyosaki, are a great way to earn passive income.
Dividend Stocks
Another way to earn passive income is by investing in dividend stocks. Now that may sound intimidating if you’re not a seasoned investor. Many apps make it super easy. When you invest in a company, it regularly pays out dividends. That means you can earn money just by tapping a few buttons on your smartphone.
Online Publishing
Robert Kiyosaki suggests generating passive income by selling digital products, such as e-books or online courses. Find the time to write that book you’ve always wanted. Advertise a special skill and teach others through videos. The great thing about this is that there is usually some upfront work involved in creating the product, but after that, you can sit back and watch your bank account accumulate revenue.
Peer-to-Peer Lending
Think of it as small-time investing. When you engage in peer-to-peer lending, you give money to individuals and businesses through an online platform or an app. Kiyosaki believes it can be an easy revenue stream. You’ll collect interest on the investments over time and make a profit. Earning passive income doesn’t have to be hard, and peer-to-peer lending can prove it.
Commodities
Kiyosaki views investing in commodities such as gold and silver as a way to diversify your investment portfolio and help generate passive income. Market swings can make commodities extremely profitable. Investing in commodities can also be risky, though. The price is driven by demand and production disruptions. An advanced understanding of investing and market trends can be helpful.
Building a Business
Ever dream about owning your own business? Well, now is the time. Kiyosaki believes building a business is a way to earn money with little involvement. However, it will require a significant amount of time and energy upfront, depending on the industry you choose to pursue. If you put the right systems in place and manage an effective business, you can earn money without much effort.
Investing in Yourself
An often overlooked aspect of earning passive income, Kiyosaki stresses the importance of financial education and continuous learning. The more educated you become, the smarter investment decisions you’ll make. You need to know the difference between an asset and a liability, and develop an optimistic mindset to influence your financial decisions.
Focusing on Cash Flow
Capturing and keeping a consistent cash flow is worth pursuing if you’d like to generate additional, passive income. Kiyosaki advises against letting your money accrue interest in a savings account. Take a calculated risk on investments that offer higher returns. However, understanding investing and market trends will help you make informed decisions.
Leveraging Other People’s Money
Depending on how you angle this, Kiyosaki suggests using other people’s money to build wealth. Educate yourself on strategies like using bank loans for real estate, attracting angel investors for a business, or securing lines of credit to fund ventures. Invest that money wisely and repay the loan with interest. Kiyosaki has offered great ways to earn passive income. Which one will you pursue?
