In his book Why the Rich Are Getting Richer, Robert T. Kiyosaki advocates for a new form of financial education that he believes holds the solution for the increasing income inequality gap in the United States. He offers a three-step process to becoming wealthy and outlines the four main enemies of success, warning readers to stay away from them if they want to build wealth. He also examines why many become financially successful while others can’t seem to catch a break and offers advice on turning college debt into an opportunity.
Kiyosaki’s purpose in writing Why the Rich Are Getting Richer is to provide readers with a new way to financial success. He states that, in order to succeed, one must move away from traditional jobs in the “rat race,” which he claims will leave a person financially dependent and living paycheck to paycheck. Instead, Kiyosaki encourages people to learn to become entrepreneurs, challenge themselves, and become your own boss. Kiyosaki believes that self-education is the key to becoming a successful entrepreneur and that economic education in our society needs to be completely overhauled. Developing relationships with mentors who know more than you and engaging with new information and people helps build success, and Kiyosaki emphasizes this.
Kiyosaki provides a three-step process to his readers that can help them become wealthy. He states that the first step is to best utilize the resources you have. You don’t have to have a lot of money to become wealthy, but you do have to be smart with the money you have. Kiyosaki then encourages readers to use Debt to their advantage, by using “O.P.M.” (Other People’s Money) to buy investments. This could include real estate, stocks, or businesses. Lastly, Kiyosaki recommends diversifying your investments across multiple sources and not to put “all your eggs in one basket.”
Kiyosaki also warns readers of the four enemies of success. He states that these enemies are taxes, inflation, deflation, and debt. To combat these enemies, Kiyosaki recommends taking advantage of tax deductions, taking advantage of deflation by investing in stock when prices are low, and masking debt by transferring to other means of repayment. Additionally, he encourages people to use debt as an opportunity to make money by borrowing to invest in assets, such as real estate.
Lastly, Kiyosaki offers advice on turning college debt into an opportunity. He states that paying off student loan debt can be a long and daunting process. He suggests that if the debt is over your capability to repay, the next steps would be to move it to a different lender, consolidate loans, reduce interest rates, and even start a business with the debt money. Kiyosaki emphasizes that the key is to realize that this debt is an investment and with the right actions, you can use it to your advantage. All these tools, Kiyosaki argues, help create financial success.
Overall, Why the Rich Are Getting Richer offers readers a road map to financial prosperity. Through entrepreneurship, Kiyosaki provides his readers with a way to create their own financial independence. He offers practical advice on how to best use limited resources and seeks to turn debt into opportunity. Additionally, Kiyosaki provides insight into why people become successful and how to avoid the pitfalls that many often fall in. Ultimately, Kiyosaki’s message is clear: create financial success through self-education and taking advantage of opportunities that are presented.
