Mastering the Art of Investing with Other People’s Money: Insights from Robert Kiyosaki
In the latest episode of “Millennial Money,” host Alexandra Gonzalez welcomed financial expert Robert Kiyosaki, the bestselling author of “Rich Dad, Poor Dad.” In this episode, they delved into a highly requested topic: how to invest using OPM, or other people’s money. Kiyosaki’s insights are particularly relevant for millennials looking to navigate the complexities of personal finance.
The Mindset Shift
Kiyosaki began the discussion by recalling a time when he made a bold statement: “Only lazy people use their own money.” This remark, while provocative, underscores a fundamental principle he learned early in life. “I had to learn to raise capital because I had no money,” he explained. His rich dad taught him never to say, “I can’t afford it,” but rather to ask, “How can I afford it?” This shift in mindset is crucial for anyone looking to break free from financial limitations.
Kiyosaki emphasized that many people fall into the trap of a poor mindset, often blaming their circumstances for their financial struggles. “Lazy people always say, ‘I can’t afford it,’ and that’s why they’re poor,” he stated. He believes that everyone has the power to change their financial situation if they learn how to raise money effectively.
The Importance of Raising Capital
Throughout his life, Kiyosaki has successfully raised hundreds of millions of dollars. He attributes this success to his early experiences of not having money, which forced him to think creatively and seek out opportunities. “I like not having money because it challenges me to be resourceful,” he said. He encouraged listeners to educate themselves and connect with successful individuals to learn how to raise capital.
Kiyosaki also pointed out that the current landscape offers various avenues for raising funds, such as crowdfunding. However, he cautioned against the mindset of entitlement that often accompanies financial struggles. “All the poor people say, ‘Let’s tax the rich’ or ‘Give me free education,’” he remarked, highlighting the need for a proactive approach to financial independence.
Learning from Mistakes
When discussing the potential pitfalls of using OPM, Kiyosaki shared a personal story about one of his biggest mistakes. In the mid-1970s, he ventured into a nylon and Velcro wallet business that ultimately failed. Despite raising $600,000 from investors, the product did not sell, leading to significant financial losses. However, this experience taught him valuable lessons about adaptability and innovation.
Kiyosaki recounted how he pivoted from the failing wallet business to creating a product that addressed a specific problem for joggers. This shift not only saved his business but also turned it into a success. “When that picture hit Playboy magazine, suddenly we were geniuses,” he said, illustrating how creativity and problem-solving can lead to financial success.
Advice for Millennials
As the conversation progressed, Kiyosaki offered practical advice for millennials just starting their financial journeys. “Invest in what you love,” he advised. For him, that includes business and real estate. He emphasized the importance of viewing financial statements as scorecards for success, akin to a golf scorecard. Unfortunately, he noted that traditional education often neglects to teach students about financial literacy.
Kiyosaki concluded by reiterating the importance of mindset in financial success. “Only lazy people use their own money,” he said, challenging listeners to rethink their approach to investing. “It’s harder to raise a million dollars than to say, ‘I can’t afford it,’” he added, encouraging a proactive and resourceful attitude.
Looking Ahead
As the episode wrapped up, Alexandra introduced a new show titled “Weird Money,” hosted by Derek, which will explore the unconventional aspects of financial institutions and the economy. Viewers were encouraged to subscribe and stay tuned for more engaging content.
In summary, Kiyosaki’s insights on using other people’s money to invest serve as a powerful reminder for millennials and individuals of all generations. By shifting their mindset and embracing creativity, they can unlock new opportunities for financial success.