Robert Kiyosaki, renowned author of Rich Dad Poor Dad and advocate for financial education, has long endorsed the power of passive income. Kiyosaki has preached the value of acquiring assets that generate steady cash flow with little active work through his teachings, books, games, and seminars. In 2023, he advises assets like real estate, dividend stocks, royalties, and businesses for their income potential. Each can generate steady cash flow now with the right strategy, requiring minimal effort.
This article will explore Kiyosaki’s latest recommendations for the best passive income generators in the year ahead. His teachings provide a roadmap for boosting cash flow this year. The assets covered can pave the path to financial freedom when utilized wisely.
Whether you hope to quit the 9-to-5, gain more control of your time, or generate peace of mind through diversified income streams, these strategies can help. Keep reading for which specific assets Kiyosaki advocates in 2023 and how to leverage them through his time-tested passive income principles.
As 2023 comes to an end, here are some of Kiyosaki’s top recommended passive income generators to leverage right now based on his principles:
- Rental Real Estate
- Dividend Stocks
- Royalties
- Businesses
- Intellectual Property
Rental Real Estate
One of the prime passive income assets Kiyosaki has advocated for decades is rental real estate. He sees rental properties as generating relatively steady and predictable monthly cash flow.
Kiyosaki stresses the importance of doing thorough due diligence before purchasing any property. Look at metrics like the price-to-rent ratio, expected rate of return, and cash-on-cash return. Run the numbers to determine if the rental income positively exceeds all expenses and cash flows.
Also, assess location, demand and growth potential, and property taxes. Kiyosaki recommends hiring experts to inspect any property comprehensively before buying. Leverage property managers to handle day-to-day management if you want entirely passive ownership.
According to Kiyosaki, real estate tends to appreciate steadily, and rents rise with inflation over time. This makes rental property a wise long-term asset. With the right financing, you can leverage other people’s money to grow your portfolio faster. But never overextend yourself financially.
Rental Real Estate Tax Advantages
One key benefit Kiyosaki highlights is the tax advantages of owning rental real estate. Costs like mortgage interest, property taxes, insurance, maintenance, and depreciation can be deducted against rental income.
This helps lower your taxable rental profits. Depreciation deductions provide a substantial tax shield in the early years of rental property ownership. Over time, rents pay down the mortgage and increase monthly cash flow.
Kiyosaki views the combination of rising rents, ever-lower financing costs, and tax benefits as a formula to build wealth through rental properties.
Dividend Stocks
In addition to real estate, Kiyosaki touts dividend stocks as an intelligent passive income asset. He recommends selecting stocks of companies with proven, stable, long-term businesses that regularly pay increasing dividends over time.
The key is identifying established, financially sound companies in industries positioned for growth. The stocks can then provide a quarterly or annual income stream through dividends.
Kiyosaki cautions against chasing high dividend yields alone, as that can mask underlying problems with the business. He advises balancing both work and consistent dividend growth when selecting stocks.
Build a diversified portfolio across many stocks and sectors to mitigate risk. Reinvest dividends to compound your earnings over long periods. Kiyosaki sees dividend stocks as more accessible to acquire than whole businesses or rental properties. However, he says this is a low-return strategy as it is simple and requires much less effort than other cash-flowing assets. This is not one of his favorite strategies; he rarely uses it, but it’s one his Rich Dad company teaches.
Royalties
An often overlooked asset Kiyosaki strongly advocates for is royalties. Royalties provide payment for work you do once that can continue generating income indefinitely.
Examples he gives include books, music, patents, franchises, and online courses or publications. Kiyosaki has earned substantial royalty income from the various books he has authored over the years. This was his breakout cash-flowing asset after the success of his book “Rich Dad, Poor Dad.” Done right, royalties can provide an impressive passive income stream for life.
Businesses
According to Kiyosaki, owning all or part of a business can be another intelligent cash flow asset. He prefers informational, educational, real estate, and direct selling types of businesses. His Rich Dad company is an excellent example of many of these categories.
Kiyosaki likes these models because they allow owning part of a system while relying less on personal effort or employees for income. He advocates for businesses with great designs, training programs, and existing products.
Finding a suitable business model and partners is crucial to making this a more passive ownership role. Kiyosaki says the key is building or buying a turnkey business positioned for long-term, scalable success.
Intellectual Property
Tying into royalties, Kiyosaki strongly encourages individuals to generate intellectual property and content that can produce royalties. This ranges from books, songs, and courses to patents, franchises, and licensing content.
Once created, intellectual property can provide passive licensing or royalty payments for decades. The internet makes it easier to self-publish and find paying audiences globally. Kiyosaki urges taking advantage of this to create IP income streams.
Of course, the challenge is creating compelling, high-demand IP and content worth paying for repeatedly. But done right, the lifetime passive earnings can be significant. He encourages budding entrepreneurs and experts to create intellectual property, content, or products people will pay for over the long term.
Key Takeaways
- Invest in rental properties that generate positive monthly cash flow, carefully vetting each deal. Real estate provides stable passive income that typically appreciates over time.
- Purchase shares of established, dividend-paying companies in growing industries. Reinvest the dividends to compound earnings. Diversify across sectors to lower risk.
- Create intellectual property or products that generate royalty income indefinitely, such as books, courses, websites, music, and patents. Leverage the internet to find paying audiences.
- Acquire all or part of a proven business system focused on long-term scalability and leveraging other people’s efforts. Optimize for turnkey, passive ownership.
- Provide capital to peer-to-peer lending platforms to earn interest across many small loans. Mitigate risk through broad diversification.
Conclusion
Robert Kiyosaki advocates pursuing assets like real estate, dividend stocks, royalties, businesses, and intellectual property that can produce consistent cash flow with minimal time and effort over the long term. You can reap years of passive income by putting in the hard work upfront to acquire quality assets and fine-tune them. Always perform due diligence, diversify, and partner with proven operators or platforms. Implemented wisely, Kiyosaki’s strategies can pave the path to financial independence from a job through steady cash flow.
There you have it – six of Robert Kiyosaki’s top recommended passive income cash flow assets for 2023. Each has the potential to generate consistent income with the right approach. As with any investment, evaluate risks and perform due diligence before jumping in. But utilized strategically, these assets can help create financial freedom.