Robert Kiyosaki has long been a respected name in regards to his personal finance opinions. He believes that investing in real estate and other business investments is the way to achieve personal success in the financial realms. By generating passive income from investments that will bring you income over the years, you will be saving yourself from the fees and charges that come with investing in other retirement avenues such as 401K plans.
In Roberts book, Rich Dad, Poor Dad, he explains the difference in earning an income by starting at the bottom as an employee and working your way up and by starting the process as a business owner and reaping the rewards of a secure investment from the beginning. He does this by telling a story of how he grew up and how his dad approached financial freedom in a different way that the dad of one of his friends.
Robert believes that the education that you receive in higher education schools simply sets you up to be an employee for someone, not to be your own boss. For many people, the dream is to make an investment that will bring them in a great deal of income while they enjoy the things in life that they have always dreamed about. This can only happen if you generate that income by making good investments. You will not need to be on the job or managing the process on a daily basis.
When you make an investment and then simply watch the income come in from your investment, you are making smart decisions that will lead to financial freedom. Having a successful business means that your income is greater than the expenses that you have to generate it. If you can make an investment, such as purchasing a piece of real estate, and generate monthly income just for doing it, once you have made back your investment then you are officially successful. The income that comes after that point is simply that, income from your business investment.
Robert believes that are four different ways that income can be generated. You can be an employee and spend your time as an employee for someone else. You can be self employed or own a small business but you would have to work daily to achieve any income. You can be an business owner and have enough income to hire employees which would allow you to be less present during normal operations. Or you can be an investor. This choice allows you to invest money so that you will realize a larger income down the road after your income has surpassed your original investment.
The choice to be an investor is the best one as you will have a sustainable income that will last you years down the road. Your decision to make the investment today will change the level of success you have in the future. You will find that you can spend years working for someone else to enjoy a retirement once you are much older or you can make smart investments now and be able to live off of the income from those investments for many years to come. The choice is yours but consider your efforts carefully as it could mean the difference between long term richness and eventually begin just alright with your finance.