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Yahoo
2 days ago
- Business
- Yahoo
‘Rich Dad' Robert Kiyosaki: Follow These 2 Steps To Stay Out of Debt
As the author of the bestselling book series 'Rich Dad Poor Dad,' Robert Kiyosaki believes that money management should be a top priority for everyone. He's dedicated his career to helping people achieve financial freedom and avoid destructive debt. Find Out: For You: Debt can creep up on anyone, too. Whether it's a high-interest rate credit card balance or student loans, the debt cycle can seem inescapable — especially for those living paycheck to paycheck. In an article on the Rich Dad website, Kiyosaki shared two 'rules of thumb' to help you avoid it. In the era of tap-to-pay purchases, carrying cash seems like a radical notion. Almost 70% of Americans used cash for 'few (if any)' purchases in the past year, according to Capital One Shopping Research. Going cashless may be convenient, but it leads to thoughtless purchases, especially on a smaller scale. It's easy to hand over your credit card or tap your phone to buy a $3 soda or a $10 sandwich. The problem is that those purchases add up. One $10 sandwich three times a week adds up to $120 a month, and a $3 bottle of water every workday is $60 a month. With cashless spending, it's easy to miss how those micro-spends pile up. That's why Kiyosaki recommends using cash for anything under $20. You become more aware of your spending and have to plan for it. If you don't have the cash in hand, don't make that purchase. Trending Now: 'Credit keeps charging,' the Urban Institute said to participants in a study on avoiding credit card debt. 'It adds approximately 20% to the total.' That 20% comes from compounding interest, Kiyosaki explained. If you carry a $1,000 balance from one year to the next, a card with a 20% interest rate would charge you $200. So now, your balance is $1,200. If you carry that balance for another year, you'll accrue another $240 in interest, bringing your total to $1,440. By considering that extra 20% upfront, you become more aware of what your credit truly costs and can take better financial steps moving forward. Kiyosaki acknowledged that living without a credit card isn't practical for most people, especially if you don't have a lot of extra money or cash lying around. However, if you pay off your balance in full every month instead of minimum payments, you can avoid the traps of compounding interest, overwhelming debt, or the need to borrow money. For that strategy to work, you need to charge only what you can afford. In other words, imagine that your credit card is a debit card. If the money isn't in your bank account today, hold off on that purchase. This strategy can help you avoid debt consolidation, debt settlement or the highest interest rates imaginable. Just a few moments of consideration per purchase can save you from significant amounts of stress and high interest charges down the road. The bottom line is that credit card debt is what many money experts call 'bad debt.' Missing your monthly payments can wreak havoc on your long-term savings goals. It also damages your personal finances by letting you buy things that don't increase in value, leaving you with a balance and interest charges to pay, and no one is less forgiving than the credit card companies or debt collectors. Caitlyn Moorhead contributed to the reporting for this article. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 These Cars May Seem Expensive, but They Rarely Need Repairs The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on 'Rich Dad' Robert Kiyosaki: Follow These 2 Steps To Stay Out of Debt Sign in to access your portfolio
Yahoo
25-05-2025
- Business
- Yahoo
Robert Kiyosaki's 4 Top Pieces of Advice for a Secure Financial Future
You may be looking for tips and advice about adjusting how you deal with money and debt to create a more secure financial future. After all, it can feel overwhelming to manage finances, especially during times of rising prices and economic uncertainty. Learn More: Check Out: One expert who offers simple advice is Robert Kiyosaki, who has been sharing his financial guidance since publishing the bestseller 'Rich Dad Poor Dad.' His ideas aren't without controversy, but many people have found motivation in his approach to wealth-building. Here's a look at four of his top pieces of advice for financial success from the Rich Dad blog. Kiyosaki is a strong supporter of comprehensive financial planning — which goes beyond budgeting to include investing, tax strategies, insurance, estate planning, and setting long-term financial goals. According to Kiyosaki, a great place to start is to define your 'why' — the reason you want to achieve financial independence. Is it to retire early, pay off your mortgage, start your own business, or build generational wealth for your family? Once you've set clear goals, you can reverse-engineer a plan to reach them. He also emphasizes the importance of financial education to help cultivate a wealth-building mindset. Read books about investing, take a basic accounting course, or listen to personal finance podcasts to build a knowledge base that will help you make more confident decisions about your money. Explore More: According to the Rich Dad blog, 'Simplifying your financial life means cutting out the clutter and focusing on what truly matters.' It's about removing complexity and distraction so your money system can run smoothly. One way to do this is by automating as many financial tasks as you can. For example, you can set up automatic transfers to your savings or investment accounts as soon as you get paid, schedule automatic bill payments, and set up your 401(k) or IRA so your auto-contributions increase over time. Kiyosaki also recommends against juggling too many accounts. For example, if you have an old 401(k) from a previous job and an IRA, roll the 401(k) into the IRA so you're only managing one account. This piece of advice isn't unique to Kiyosaki, but is a smart way to set yourself up for a secure financial future. The idea is simple: Before paying bills or discretionary expenses, allocate money toward your future. A good example of this is contributing to your 401(k) or IRA and your emergency fund before anything else. According to Kiyosaki, even if you're struggling with debt, you should still find a way to save or invest something — even if it's just $20 per paycheck. He also urges people to regularly review their financial strategies, especially around tax planning and insurance. For instance, are you taking advantage of tax deductions or credits? Do you have enough coverage to protect your income and assets if something unexpected happens? According to Kiyosaki, there are three types of investing for financial success: Type A: Hands-off investors who give their money to a professional or financial advisor. Type B: People who do some research and buy things like index funds or real estate, but don't spend time managing their investments daily. Type C: Highly active investors who directly manage or build their own assets, like running a business, flipping properties, or trading stocks. Kiyosaki emphasizes that there's no 'best' approach — the point is to know which type best fits your personality, time and risk tolerance. For example, if you can't stand the idea of managing tenants, becoming a landlord might not be the right path for you, even if it looks the most profitable on paper. Other pieces of advice Kiyosaki offers include pursuing investments that generate passive income — money that comes in without requiring constant effort. This could include rental properties, dividend stocks, royalties or owning part of a business. His philosophy is that you achieve financial security not by working more hours, but by building a system and a portfolio of assets that earn money for you over timeMore From GOBankingRates 4 Things You Should Do When Your Salary Hits $100K If a Financial Advisor Doesn't Ask These 5 Questions in Your Consult, Keep Shopping 5 Steps to Take if You Want To Create Generational Wealth Robert Kiyosaki: 5 Money Habits of People Who Retire Early This article originally appeared on Robert Kiyosaki's 4 Top Pieces of Advice for a Secure Financial Future Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
Robert Kiyosaki's 4 Top Pieces of Advice for a Secure Financial Future
You may be looking for tips and advice about adjusting how you deal with money and debt to create a more secure financial future. After all, it can feel overwhelming to manage finances, especially during times of rising prices and economic uncertainty. Learn More: Check Out: One expert who offers simple advice is Robert Kiyosaki, who has been sharing his financial guidance since publishing the bestseller 'Rich Dad Poor Dad.' His ideas aren't without controversy, but many people have found motivation in his approach to wealth-building. Here's a look at four of his top pieces of advice for financial success from the Rich Dad blog. Kiyosaki is a strong supporter of comprehensive financial planning — which goes beyond budgeting to include investing, tax strategies, insurance, estate planning, and setting long-term financial goals. According to Kiyosaki, a great place to start is to define your 'why' — the reason you want to achieve financial independence. Is it to retire early, pay off your mortgage, start your own business, or build generational wealth for your family? Once you've set clear goals, you can reverse-engineer a plan to reach them. He also emphasizes the importance of financial education to help cultivate a wealth-building mindset. Read books about investing, take a basic accounting course, or listen to personal finance podcasts to build a knowledge base that will help you make more confident decisions about your money. Explore More: According to the Rich Dad blog, 'Simplifying your financial life means cutting out the clutter and focusing on what truly matters.' It's about removing complexity and distraction so your money system can run smoothly. One way to do this is by automating as many financial tasks as you can. For example, you can set up automatic transfers to your savings or investment accounts as soon as you get paid, schedule automatic bill payments, and set up your 401(k) or IRA so your auto-contributions increase over time. Kiyosaki also recommends against juggling too many accounts. For example, if you have an old 401(k) from a previous job and an IRA, roll the 401(k) into the IRA so you're only managing one account. This piece of advice isn't unique to Kiyosaki, but is a smart way to set yourself up for a secure financial future. The idea is simple: Before paying bills or discretionary expenses, allocate money toward your future. A good example of this is contributing to your 401(k) or IRA and your emergency fund before anything else. According to Kiyosaki, even if you're struggling with debt, you should still find a way to save or invest something — even if it's just $20 per paycheck. He also urges people to regularly review their financial strategies, especially around tax planning and insurance. For instance, are you taking advantage of tax deductions or credits? Do you have enough coverage to protect your income and assets if something unexpected happens? According to Kiyosaki, there are three types of investing for financial success: Type A: Hands-off investors who give their money to a professional or financial advisor. Type B: People who do some research and buy things like index funds or real estate, but don't spend time managing their investments daily. Type C: Highly active investors who directly manage or build their own assets, like running a business, flipping properties, or trading stocks. Kiyosaki emphasizes that there's no 'best' approach — the point is to know which type best fits your personality, time and risk tolerance. For example, if you can't stand the idea of managing tenants, becoming a landlord might not be the right path for you, even if it looks the most profitable on paper. Other pieces of advice Kiyosaki offers include pursuing investments that generate passive income — money that comes in without requiring constant effort. This could include rental properties, dividend stocks, royalties or owning part of a business. His philosophy is that you achieve financial security not by working more hours, but by building a system and a portfolio of assets that earn money for you over timeMore From GOBankingRates 4 Things You Should Do When Your Salary Hits $100K If a Financial Advisor Doesn't Ask These 5 Questions in Your Consult, Keep Shopping 5 Steps to Take if You Want To Create Generational Wealth Robert Kiyosaki: 5 Money Habits of People Who Retire Early This article originally appeared on Robert Kiyosaki's 4 Top Pieces of Advice for a Secure Financial Future Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
‘Rich Dad' Robert Kiyosaki: 7 Reasons To Use the Stock Market To Generate Passive Income
The stock market has been especially volatile lately, and investors might be shying away from putting money in the market. However, some advisors are still saying the stock market can be a lucrative game if played right. Recently, on 'Rich Dad, Poor Dad' author Robert Kiyosaki's website, his team detailed why people should still be putting their cash into the stock market. Read on to find out how to make stocks work for you in 2025. Check Out: Learn More: To invest in real estate, someone would need to have a significant amount of capital. However, a person could get started in the stock market with any amount. Apps like Robinhood even make it possible to invest in partial shares, so those looking to invest have more options now than ever. Once an investor does accumulate more money, the stock market will pay off even more. Be Aware: Though there's some research involved beforehand, the act of putting money into the stock market takes a few minutes. It's something you can easily do as a full-time employee, so you don't have to worry about it taking up too much of your time. Some finance careers require a degree, a certification or sales expertise. Investing in the stock market just requires 'a desire to learn,' as the 'Rich Dad' article points out. The more research you do, the better stocks you'll pick and the more money you'll make. With the right picks, you'll always be gaining money no matter what the market is doing, and it's easy to cash out stocks when you decide to liquidate. Option contracts give the investor the ability to control when they sell their stocks. They can set a certain threshold to sell within a specific timeframe, which 'allow you to control large amounts of stock positions for pennies on the dollar,' according to the article. No matter what happens, usually there will be a stock that's going up. This means that there will always be a chance to make a profit with savvy investment choices. The article advised that many brokerage firms offer accounts with 'pretend money,' where new investors can test out buys without suffering any consequences. This way, they don't have to take a big risk with their savings. They can try out the market and get a feel for what investments do best. More From GOBankingRates What $1 Million in Retirement Savings Looks Like in Monthly Spending 5 Cities You Need To Consider If You're Retiring in 2025 5 Little-Known Ways to Make Summer Travel More Affordable How Much Money Is Needed To Be Considered Middle Class in Every State? Source 7 Reasons to Generate Passive Income With Stocks This article originally appeared on 'Rich Dad' Robert Kiyosaki: 7 Reasons To Use the Stock Market To Generate Passive Income Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
‘Rich Dad' Robert Kiyosaki: 7 Reasons To Use the Stock Market To Generate Passive Income
The stock market has been especially volatile lately, and investors might be shying away from putting money in the market. However, some advisors are still saying the stock market can be a lucrative game if played right. Recently, on 'Rich Dad, Poor Dad' author Robert Kiyosaki's website, his team detailed why people should still be putting their cash into the stock market. Read on to find out how to make stocks work for you in 2025. Check Out: Learn More: To invest in real estate, someone would need to have a significant amount of capital. However, a person could get started in the stock market with any amount. Apps like Robinhood even make it possible to invest in partial shares, so those looking to invest have more options now than ever. Once an investor does accumulate more money, the stock market will pay off even more. Be Aware: Though there's some research involved beforehand, the act of putting money into the stock market takes a few minutes. It's something you can easily do as a full-time employee, so you don't have to worry about it taking up too much of your time. Some finance careers require a degree, a certification or sales expertise. Investing in the stock market just requires 'a desire to learn,' as the 'Rich Dad' article points out. The more research you do, the better stocks you'll pick and the more money you'll make. With the right picks, you'll always be gaining money no matter what the market is doing, and it's easy to cash out stocks when you decide to liquidate. Option contracts give the investor the ability to control when they sell their stocks. They can set a certain threshold to sell within a specific timeframe, which 'allow you to control large amounts of stock positions for pennies on the dollar,' according to the article. No matter what happens, usually there will be a stock that's going up. This means that there will always be a chance to make a profit with savvy investment choices. The article advised that many brokerage firms offer accounts with 'pretend money,' where new investors can test out buys without suffering any consequences. This way, they don't have to take a big risk with their savings. They can try out the market and get a feel for what investments do best. More From GOBankingRates What $1 Million in Retirement Savings Looks Like in Monthly Spending Warren Buffett: 10 Things Poor People Waste Money On 5 Little-Known Ways to Make Summer Travel More Affordable 10 Cars That Outlast the Average Vehicle Source 7 Reasons to Generate Passive Income With Stocks This article originally appeared on 'Rich Dad' Robert Kiyosaki: 7 Reasons To Use the Stock Market To Generate Passive Income Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
