The poor and the middle class work for money. The rich have money work for them.

Understand that assets put money in your pocket, while liabilities take money out. Invest in assets like stocks, real estate, or businesses that generate income, rather than liabilities like cars or consumer goods that depreciate in value.

Differentiate between assets and liabilities

Look for investments that provide ongoing cash flow, such as rental properties, dividend-paying stocks, or royalties from intellectual property. This way, your money can work for you even when you’re not actively working.

Invest in assets that generate passive income

Continuously educate yourself about personal finance, investing, and entrepreneurship. Read books, attend seminars, and seek out mentors who can provide valuable insights and guidance.

Understand the power of financial education

"An intelligent person hires people who are more intelligent than he is"

Don’t be afraid to take risks, but make sure they’re informed and calculated. If you encounter setbacks or failures, treat them as learning experiences and use them to grow and improve your financial knowledge and decision-making skills.

Take calculated risks and learn from failures

Develop a deep understanding of financial concepts such as compound interest, tax strategies, and asset allocation. The more you know about how money works, the better equipped you’ll be to make smart financial decisions.

Focus on increasing your financial intelligence

Stay curious and open-minded, and always be on the lookout for new opportunities to expand your wealth-building knowledge and skills.

Embrace the mindset of continuous learning and growth

Look for ways to create value and generate income outside of traditional employment. This could involve starting a side business, freelancing, or investing in ventures that have the potential for high returns.

Start thinking like an entrepreneur, not just an employee

Keep track of your income and expenses, and strive to maintain a positive cash flow by maximizing income and minimizing expenses. This will help you build wealth over time and weather financial downturns more effectively.

Learn to manage your cash flow effectively

Live frugally and resist the temptation to spend money on unnecessary luxuries. Instead, focus on saving and investing your money wisely to build long-term wealth and financial security.

Avoid living above your means and prioritize saving & investing

Diversify your sources of income by building multiple streams, such as rental income, investment returns, or income from a side business. This will reduce your reliance on any single source of income and provide greater stability and security in the long run.

Create multiple streams of income

Teachings for understanding and succeeding financially.

Although we have been successful in our careers, they have not turned out quite as we expected. We both have changed positions several times-for all the right reasons-but there are no pension plans vesting on our behalf. Our retirement funds are growing only through our individual contributions. Michael and I have a wonderful marriage with three great children. As I write this, two are in college and one is just beginning high school. We have spent a fortune making sure our children have received the best education available. One day in 1996, one of my children came home disillusioned with school. He was bored and tired of studying. “Why should I put time into studying subjects I will never use in real life?” he protested. Without thinking, I responded, “Because if you don't get good grades, you won't get into college.” “Regardless of whether I go to college,” he replied, “I'm going to be rich.”

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Kiyosaki is best known for his book Rich Dad, Poor Dad, the #1 New York Times bestseller. Kiyosaki followed with Rich Dad's CASHFLOW Quadrant and Rich Dad's Guide to Investing.

Rich Dad, Poor Dad

Pol Martínez