Ask Robert Kiyosaki

Robert Kiyosaki is an American businessman, investor, self-help author, educator, motivational speaker, financial literacy activist, financial commentator, and radio personality. Robert is the bestselling author of Rich Dad Poor Dad and the Rich Dad book series. This is one of my personal favorite book series. Rich Dad Poor Dad is the #1 personal finance book of all time. It has challenged and changed the way tens of millions of people around the world think about money. He is an educational entrepreneur, co-creator of the CASHFLOW board game, founder of the financial education-based Rich Dad Company and author of multiple New York Times Bestsellers I have browsed over a few websites where people from the audience at conferences asked Robert questions and he shared an answer. I wanted to put these all on one page.

Audience: What is the key to success?

Robert T. Kiyosaki: The key to success is education. Education can come in many forms: Mentors, coaches, books, seminars, but my favorite is through games and doing. Games are great simulators. Games are a reflection of behavior. They are also a safe way to practice and experiment. It’s why I made the CASHFLOW board game and why we are making mobile games for smart phones. Learning through doing is learning from mistakes. The ability to learn from one’s mistakes is probably the best way to learn.

Audience: What is the number one shortcut to starting a business?

Robert T. Kiyosaki: Since our schools do not teach a person much about entrepreneurship, the question is, how does a person get the education and experience to be successful as an entrepreneur? I recommend finding someone who has succeeded at your dream. Make them your mentor. I had rich dad as my coach and a mentor. Don’t worry. If you do not have a rich dad, then the second solution would be to find a business course. Be picky and make sure the course you find comes with a coach or mentor.

Audience: What do you mean when you say that debt is the fastest way to wealth?

Robert T. Kiyosaki: The more debt you use, the more assets you can buy, which make you more money.

And since dollars are taxed and debt is tax free, which makes more sense to learn to use? As inflation goes up, doesn’t it make more sense to learn to use debt to acquire assets—assets that are likely to go up in value with inflation and provide cash flow?

To me, it makes more sense to learn to use debt than to get out of debt.

Audience: You say the rich do not work for money? What do they work for?

Robert T. Kiyosaki: The poor and the middle class work for money. The rich have money work for them. The rich work to build assets. Assets make money. That money then buys more assets. That money is now working for you. You are not working for money. Your money, through buying cash flowing assets, is making you more money. Your money is working for you.

Audience: You said that entrepreneurship is the way to save the economy. Why?

Robert T. Kiyosaki: I’ve just seen a horrible statistic about the layoffs and unemployment problem. I’m not talking about the lies our governments feed us. I’m talking about the true numbers, and they are not good. I think we all know people who have lost their job and been unable to find another, or found another job but it pays far less. We all know the economy is worse off than they are saying.

If you expect the government to solve your problems, you have a problem. The problem is that the governments of the world are broke. Rather than be the problem, become part of the solution: Become a true capitalist, focusing on giving more to receive more.

Audience: Why do so many entrepreneurs fail?

Robert T. Kiyosaki: Many people say that two things stop most new entrepreneurs: The lack of capital and the lack of real-life business experience. From my own experience, I would add a third item: The lack of emotional maturity and strength of character.

The lack of emotional maturity and strength of character is the main reason why people fail as entrepreneurs. While almost everyone has the ability to become an entrepreneur, not everyone needs to become an entrepreneur. And for many there are easier ways to live life and so they quit before they give themselves a chance to succeed.

Audience: What is one final piece of wisdom for entrepreneurs?

Robert T. Kiyosaki: “You can’t do a good deal with a bad partner.” These words could be the most important words in life, not just in business. Whenever you find a struggling business, a bad marriage, or an investment gone bad, you will find a bad partner.

This does not mean the person is a bad person, although they could be. It just means they are a bad partner, the wrong person for the task at hand. If you have bad partners, whatever you touch will turn bad. And if you have great partners, everything you touch turns to gold.