Robert Kiyosaki is one of the more prominent influencers in contemporary discussions around personal finance, having kickstarted his rise to fame after authoring “Rich Dad Poor Dad” in 1997. In the intervening years, he has offered a treasure trove of fiscal insight to his wider audience, often surrounding the value of investment over employment, among other common topics (such as holding precious metals, considering crypto investments and more).
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In an Instagram post, Kiyosaki returned to one of his tentpole arguments, stating that it was unwise to be locked into a permanent position as an employee or someone who trades time for money instead of creating cash flow — calling it a “rat race.”
Below we’ll dive into why Kiyosaki believes you should ditch your 9-to-5 and explore entrepreneurism to build wealth.
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Employee vs. Entrepreneur Divide
Kiyosaki has often critiqued standard employment versus entrepreneurship, with the former being painted in a poor light compared to the latter by the author.
The very first lines contained within one of his books, “Before You Quit Your Job,” detail this intimately.
“When I was growing up, my poor dad often said, ‘Go to school, get good grades, so you can find a good job with good benefits.’ He was encouraging me to become an employee,” Kiyosaki wrote.
“My rich dad often said, ‘Learn to build your own business and hire good people.’ He was encouraging me to become an entrepreneur,” he added.
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Cash Flow Is King
Cash flow is vital to entrepreneurial endeavors and Kiyosaki has long had a fixation with the concept of cash flow — to the point of creating a board game titled “Cashflow” in 1996, which he has since had converted to an online game available through the “Rich Dad” website.
The description attached to Kiyosaki’s game — found on his website — makes his position clear in a concise manner, centering the value of investing as opposed to lavish discretionary spending. “How do the rich acquire assets in real life?” is the question posed.
The description essentially says wealthy individuals use the funds left over after covering their monthly bills to invest, rather than spending on unnecessary items or liabilities such as larger homes, faster cars or extravagant trips. And that the rich recognize chances that often go unnoticed by the poor and middle class — opportunities accessible to anyone, but most people simply haven’t learned how to identify them yet. It’s safe to say Kiyosaki feels deeply about his outlook.
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This article originally appeared on GOBankingRates.com: Is Your 9-to-5 a Money Trap? Robert Kiyosaki Says It Is and Here’s Why
