I learned a lot from the Rich Dad, Poor Dad book. Robert Kiyosaki is a great entrepreneur and really knows how to teach how to make money and save money. This article will teach you how to save money “Rich Dad, Poor Dad” style.
The main premise the Kiyosaki’s Rich Dad, Poor Dad book is that you need to stop thinking like an employee and start thinking like an owner. One of the first steps in this process is to make you money work for you.
To often people keep their savings in a traditional savings account. However, they could be earning higher interest on that money be investing in a high interest savings account, high yield cds, high interest money market accounts, or stock or bonds. Any of these option typically pay better than the tradition brick and mortar bank savings account.
While Kiyosaki spends most of his book talking about how to increase your earnings, he also explains how passive income and compounding interest rates really help you to save money. By developing passive income streams you can allow today’s effort to pay of big time even when you are not actively working it in the future.
Developing passive income streams is the true way to start building a business. Unlike a 9 to 5 job, a passive income stream can make you money even while you are not working.
Once you earn money however, you also have to be reinvesting that money into other stream of income. This could be a high interest savings account or high interest money market accounts.
This money could also be invested into growth stock, dividend paying stocks or bonds. This type of investment will often give you a higher return on investment than a high interest rate savings account. However, you lose the security of FDIC insurance when you invest in stocks and bonds.
So, in order to save money “Rich Dad, Poor Dad” style, you need to be focusing on earning money, developing passive income streams and growing your savings through investing it in high yield investment vehicles. This is the key to Robet Kiyosaki’s money saving system. Everyone needs to be focusing on these concepts throughout their lives. You need to start thinking like an owner not an employee.