Have you read about the master financial plan? In case you have not, the said plan was penned by Robert Kiyosaki, the well-renowned author of the best-selling book, “Rich Dad Poor Dad.” Mr. Kiyosaki was credited to have changed the mindset of millions around the world about personal finance. Financial and wealth managers who give sound financial advice in Malaysia must have taken some pointers from this man.
The theory of Robert Kiyosaki is not about amassing wealth and being rich. He set the worldwide trend of simply putting an order in your personal finances, which is the key to obtaining wealth. Wealth is relative, and therefore you shouldn’t compare yours with others’. Creating your private financial plan is the real objective. Learn a few tips from the teachings of the so-called financial master about saving money.
The Teachings of Robert Kiyosaki On Saving Money
- Financial freedom is attainable with proper financial education. Your financial future will be determined by how well you understand the fundamentals of personal finance, especially money management. Get smart is the first instruction.
- Never be a slave to your money. Be the master of your hard-earned money. You are responsible for growing or depleting your savings and no one else. In short, you have to take control of your personal finances.
- Mr. Kiyosaki introduced the concept of paying yourself first. The idea is to set up your budget which would include paying an expense to yourself. In simple terms, it means to have some forced savings intended for future use on the purchase of assets that can provide you with cash flow.
- Preparing for a financial setback in the case of loss of job or emergency expenses is another suggested option. The essence is having a contingency plan for every untoward financial situation. Having an emergency fund is good for your emotional well-being too.
- If saving up money is important, spending it wisely is twice as valuable. You should be aiming at purchases that do not depreciate. Vacation sprees, cars or branded clothing are worthless compared to hard assets like real estate. Focus more on assets rather than liabilities.
The book “Rich Dad Poor Dad” dwells on masterful financial planning. No complicated philosophies but rather straightforward and practical recommendations based on personal experience. No wonder people are encouraged to do the same and so should you.