Robert Kiyosaki believes young people’s biggest mistake is focusing too much on doing what they love in their careers rather than investing time and effort into acquiring assets and building wealth.
Financial guru Robert Kiyosaki has built an empire by sharing his advice and insights on money, investing, and achieving financial freedom. His renowned book “Rich Dad Poor Dad” highlights the importance of building wealth through acquiring assets rather than climbing the corporate ladder. One of Kiyosaki’s key messages is urging young people to avoid prioritizing their passions over purposeful wealth-building early on.
In this article, we’ll explore Kiyosaki’s advice on the most significant financial mistakes young people make today. We’ll cover why he believes focusing too much on “doing what you love” over acquiring assets can hinder building wealth. Kiyosaki guides young people teaching them they need to learn crucial skills like business, investing, and accounting, even if they don’t love them. He advocates for dedicating time when young to educating yourself about money management rather than putting it off.
Kiyosaki stresses having patience and keeping financial freedom as your end goal. He shares tips on investing in assets you feel passionate about while being strategic with your career. Let’s dive into Kiyosaki’s wisdom on how young people can avoid major financial pitfalls and set themselves up for long-term success.
Focusing Too Much on “Doing What You Love”
Many young people today grow up believing that the key to a fulfilling life is finding work you’re passionate about. However, according to personal finance author Robert Kiyosaki, focusing on “doing what you love” can hold you back from building real wealth and freedom. Kiyosaki argues that young people should focus first on investing, acquiring assets, and building passive income streams rather than just pursuing their career passions.
While you may enjoy your job, Kiyosaki says it’s crucial to learn skills and work outside your 9-to-5 to build financial independence. This may involve dedicating time to learning about money management, investing, and entrepreneurship instead of solely focusing on your passions. While you should still find purpose and enjoyment in your work, don’t let it distract you from the effort required to achieve financial freedom.
Not Investing Time in Acquiring Assets and Building Wealth
Kiyosaki emphasizes that the wealthiest people take the time to acquire income-generating assets outside of their day jobs. This includes assets like real estate, businesses, royalties, and investments. Too often, young people focus solely on getting a good education and climbing the corporate ladder rather than acquiring assets that can provide passive income.
Building substantial wealth requires early dedication to learn investing skills and accumulate assets like real estate. Young people should be focused on generating multiple income streams through investments, not just chasing higher salaries in the careers they’re passionate about. Financial freedom comes from owning income-producing assets, not simply making more money as an employee.
Prioritizing Passion Over Financial Freedom
Young people today tend to focus on careers they’re passionate about. But Kiyosaki warns that this passion can lead them down the wrong financial path. He highlights that sometimes you have to delay gratification and put in hard work that you may not be passionate about in the short term to build wealth for the long term.
For example, Kiyosaki wasn’t passionate about learning accounting, business law, and investing early in his career. However, he knew acquiring this knowledge would accelerate his ability to generate passive income from assets like real estate and business ownership. He prioritized long-term financial freedom over short-term passion.
Learning Skills You Don’t Love to Get Ahead Financially
To build substantial wealth, Kiyosaki emphasizes you likely need to learn complex skills outside your professional passion and comfort zone. This may involve skills like sales, investing, accounting, and entrepreneurship that can enable you to acquire income-producing assets.
Even if these skills don’t come naturally, taking the time to learn them is crucial to financial success. Developing financial intelligence should be the priority rather than solely pursuing your professional passions without learning money management skills. Expand your skills, even reluctantly, to have the assets to live on your terms.
Invest in What You Love Financially, Not Just in Your Career
Kiyosaki urges young people to “invest in what you love” rather than just pursuing careers in their areas of passion. While you may love writing or art, invest financially in assets that can grow your wealth to allow you to pursue your passion as a career. Use your career passion to supplement the assets producing your primary income.
For Kiyosaki, this meant investing heavily in real estate and business ventures he was passionate about while still building his career as an entrepreneur. Find investments and assets you genuinely enjoy, like real estate or starting a side business to produce passive income that enables you to pursue what you love.
You Sometimes Have to Do What You Hate to Get Where You Want
According to Kiyosaki, building substantial wealth seldom involves solely doing what you love. He underscores that you likely must put in hard work doing things you don’t enjoy in the short term to reach financial freedom. This may mean taking tedious accounting classes, working side jobs you dislike, or sacrificing leisure time to learn to invest.
While this isn’t easy, having the end goal of financial independence in mind can help you power through. View sacrifices and hard work as temporary obstacles on the road to freedom to pursue your dreams without worrying about money.
Don’t Let “I’m Still Young” Hold You Back Financially
Kiyosaki emphasizes that young people today often use their youth as an excuse to put off investing time and effort into building wealth. They think there will always be a time in the future once their career gets established. However, he underscores that the earlier you start acquiring assets and developing financial intelligence, the easier it is to build substantial wealth over time.
Your youth should motivate you to start investing and learning how to capitalize on the power of compound growth. Don’t fall into the trap of chasing passion without building financial assets. Take control early to live life on your terms.
Taking Time to Learn About Money and Investing
In his book “Rich Dad Poor Dad,” Kiyosaki highlights how little time most people dedicate to educating themselves about money and investing. He urges young people to take responsibility for their financial education rather than leave it in traditional schools’ hands. Dedicate consistent time to learning money management, budgeting, and smart investing to build wealth.
This applies both to those pursuing professional careers and entrepreneurship. Don’t just work hard at your job without taking time to expand your financial knowledge. Make a habit of regularly reading and learning about innovative money management to achieve true financial freedom.
Patience and Persistence Are Key to Building Wealth
Kiyosaki built his substantial real estate portfolio over decades, not overnight. He emphasizes persistence and patience are crucial to wealth building. Understand that setbacks and failures are part of the process on the path to financial freedom.
Don’t get discouraged by early mistakes when investing or starting a business. Stick with proven wealth-building strategies like investing in income-generating assets for the long term. You can achieve the wealth necessary to live on your terms with time and commitment.
Purpose Over Passion When It Comes to Money
While you should still seek passion and enjoyment in your work, Kiyosaki urges young people to ensure their overarching “purpose” is building financial freedom. Don’t just unthinkingly chase your passion career without planning for long-term wealth. Find work aligned with your professional purpose that also allows dedicating time to acquiring assets and developing financial intelligence.[1]
Key Takeaways
- Don’t just focus on your passions when you’re young – make acquiring assets and financial freedom your priority.
- Develop alternate income streams through assets like real estate and business ownership early on.
- Be willing to learn complex skills like accounting and investing even if you don’t enjoy them.
- Invest your money and time into assets that will appreciate, not just chase higher salaries.
- Have patience and persist through failures – wealth building takes years, not overnight success.
- Take control of your financial education – don’t rely solely on traditional schooling.
- Do work you may not enjoy in the short term if it aligns with your long-term goal of financial freedom.
Conclusion
Robert Kiyosaki provides invaluable advice for young people on avoiding common financial pitfalls. He highlights that while you should find purpose and enjoyment in your work, building assets and financial intelligence should be your primary focus early on. Rather than just chasing passions, dedicate time to acquiring marketable skills, learning about money management, and investing wisely. You can be free to live on your terms with commitment and patience. Kiyosaki urges young people to take control of their financial futures and prioritize building wealth with a long-term mindset.
Keep the end goal of financial independence and security as your guiding purpose. With this solid foundation, you’ll be free to pursue your passions without worrying about money later in life. Align your career with your purpose while making intelligent financial decisions.