Being poor is not a coincidence: The Unseen Reality of Wealth Creation

(𝘽𝒆𝙞𝒏𝙜 𝙥𝒐𝙤𝒓 𝒉𝙪𝒓𝙩𝒔. 𝙊𝒏𝙚 𝙤𝒇 𝒕𝙝𝒆 𝒎𝙤𝒔𝙩 𝙞𝒎𝙥𝒐𝙧𝒕𝙖𝒏𝙩 𝙢𝒆𝙨𝒔𝙖𝒈𝙚𝒔 𝑰 𝒉𝙖𝒗𝙚 𝙛𝒐𝙧 𝙚𝒏𝙩𝒓𝙚𝒑𝙧𝒆𝙣𝒆𝙪𝒓𝙨 𝙞𝒔 𝒕𝙝𝒂𝙩 𝙛𝒂𝙞𝒍𝙪𝒓𝙚 𝙨𝒉𝙤𝒖𝙡𝒅 𝒆𝙣𝒄𝙤𝒖𝙧𝒂𝙜𝒆 𝒚𝙤𝒖 𝒕𝙤 𝙜𝒆𝙩 𝙨𝒎𝙖𝒓𝙩𝒆𝙧 𝙖𝒏𝙙 𝙩𝒉𝙖𝒕 𝒚𝙤𝒖 𝒔𝙝𝒐𝙪𝒍𝙙 𝙡𝒆𝙖𝒓𝙣 𝙛𝒓𝙤𝒎 𝒐𝙪𝒓 𝒇𝙖𝒊𝙡𝒖𝙧𝒆𝙨. 𝑰 𝒎𝙚𝒂𝙣, 𝑰 𝒅𝙤𝒏’𝒕 𝒍𝙞𝒌𝙚 𝙞𝒕 𝒂𝙣𝒅 𝑰 𝒅𝙤𝒏’𝒕 𝒍𝙞𝒌𝙚 𝙩𝒉𝙖𝒕 𝒐𝙪𝒓 𝒆𝙙𝒖𝙘𝒂𝙩𝒊𝙤𝒏𝙖𝒍 𝒔𝙮𝒔𝙩𝒆𝙢 𝙞𝒔 𝒔𝙤 𝙧𝒐𝙩𝒕𝙚𝒏. 𝙀𝒓𝙧𝒐𝙧𝒔 𝒂𝙧𝒆 𝒍𝙚𝒂𝙧𝒏𝙞𝒏𝙜 𝙚𝒙𝙥𝒆𝙧𝒊𝙚𝒏𝙘𝒆𝙨, 𝒔𝙤 𝙗𝒆 𝒉𝙪𝒎𝙗𝒍𝙚!) 𝘽𝒚 𝑹𝙤𝒃𝙚𝒓𝙩 𝙆𝒊𝙮𝒐𝙨𝒂𝙠𝒊

Many of you are familiar with Robert Kiyosaki as an investor or best-selling author. We may learn from our mistakes, but what does Rich Dad Poor Dad mean when he says that our educational system is corrupt? The answer may surprise some of you. will likely shock you!

I’ve done some research on Kiyosaki and have come to the conclusion that his dad poverty wasn’t an accident. In his book, he recounts the story of his experience with two fathers, his biological father, who had a PhD, and his friend’s father, who had never finished college and was a self-made millionaire. He wanted to know what made his friend’s dad so successful and why couldn’t his dad, who was so much more educated and regarded, have the same.

1. Cash Flow Quadrant

(𝙊𝒏𝙚 𝙤𝒇 𝒕𝙝𝒆 𝒎𝙤𝒔𝙩 𝙞𝒎𝙥𝒐𝙧𝒕𝙖𝒏𝙩 𝙩𝒉𝙞𝒏𝙜𝒔 𝑴𝙮 𝙍𝒊𝙘𝒉 𝑫𝙖𝒅 𝒆𝙫𝒆𝙧 𝙩𝒂𝙪𝒈𝙝𝒕 𝒎𝙚 𝙬𝒂𝙨 𝙩𝒉𝙖𝒕 𝒕𝙝𝒆𝙧𝒆 𝒂𝙧𝒆 𝒇𝙤𝒖𝙧 𝙙𝒊𝙛𝒇𝙚𝒓𝙚𝒏𝙩 𝙩𝒚𝙥𝒆𝙨 𝙤𝒇 𝒑𝙚𝒐𝙥𝒍𝙚 𝙞𝒏 𝒕𝙝𝒆 𝒘𝙤𝒓𝙡𝒅 𝒐𝙛 𝙗𝒖𝙨𝒊𝙣𝒆𝙨𝒔 𝒐𝙧 𝙢𝒐𝙣𝒆𝙮, 𝒏𝙤 𝙢𝒂𝙩𝒕𝙚𝒓 𝒘𝙝𝒂𝙩 𝙮𝒐𝙪 𝙬𝒂𝙣𝒕 𝒕𝙤 𝙘𝒂𝙡𝒍 𝒊𝙩. 𝑯𝙚 𝙘𝒂𝙡𝒍𝙚𝒅 𝒕𝙝𝒊𝙨 𝙩𝒉𝙚 “𝒄𝙖𝒔𝙝 𝙛𝒍𝙤𝒘 𝒒𝙪𝒂𝙙𝒓𝙖𝒏𝙩,” 𝙬𝒉𝙚𝒓𝙚 “𝒆” 𝙨𝒕𝙖𝒏𝙙𝒔 𝒇𝙤𝒓 “𝙚𝒎𝙥𝒍𝙤𝒚𝙚𝒆,” “𝙨” 𝒔𝙩𝒂𝙣𝒅𝙨 𝙛𝒐𝙧 “𝒔𝙚𝒍𝙛-𝙚𝒎𝙥𝒍𝙤𝒚𝙚𝒅 𝒐𝙧 𝙨𝒎𝙖𝒍𝙡 𝙗𝒖𝙨𝒊𝙣𝒆𝙨𝒔, 𝙖𝒏𝙙 “𝒃” 𝙨𝒕𝙖𝒏𝙙𝒔 𝒇𝙤𝒓 “𝙗𝒊𝙜 𝙗𝒖𝙨𝒊𝙣𝒆𝙨𝒔” 𝙬𝒊𝙩𝒉 𝒂𝙩 𝙡𝒆𝙖𝒔𝙩 500 𝙚𝒎𝙥𝒍𝙤𝒚𝙚𝒆𝙨. “𝙄” 𝒔𝙩𝒂𝙣𝒅𝙨 𝙛𝒐𝙧 “𝒊𝙣𝒗𝙚𝒔𝙩𝒐𝙧,” )

This is one of Robert Kiyosaki’s most famous graphs that he frequently discusses, and for good reason because it divides the general population very simply and easily into how they make money. However, there is more to this chart than it may first appear, and while all of these people have the same goal of making money and living comfortably, they aren’t all treated equally. The main factor that affects how easy it is to build wealth depending on that category depends on how much taxes you pay.

For Robert Kiyosaki, his father encouraged him to attend college so that he could work, which falls under the category of employment. The worst aspect is that tax rules are by far the worst for employees. Robert’s mother wanted him to become a doctor, which is a self-employed or specialized profession, but he was just not intelligent enough to do so.

Having little alternatives his Rich Dad gave him a lead that would alter the course of his life and help him to see that poverty isn’t a result of chance. His Rich Dad advised him to either launch a successful company or turn into an investor. Being an investor is a lot simpler, and it’s also by far the tax-efficient route.

Many of you presumably played the board game Monopoly as children. It is frequently cited by Robert Kiyosaki as an illustration of how he studied finances. Before I go any further, it’s important to recognize that while anyone can become wealthy regardless of their quadrant, real wealth creation favors certain quadrants.

(𝙒𝒉𝙚𝒏 𝒎𝙮 𝙥𝒐𝙤𝒓 𝒅𝙖𝒅 𝒕𝙤𝒍𝙙 𝙢𝒆 𝒕𝙤 𝙬𝒐𝙧𝒌 𝒉𝙖𝒓𝙙, 𝒎𝙮 𝙧𝒊𝙘𝒉 𝒅𝙖𝒅 𝒄𝙤𝒖𝙣𝒕𝙚𝒓𝙚𝒅, “𝑾𝙝𝒚 𝒘𝙤𝒖𝙡𝒅 𝒚𝙤𝒖 𝒘𝙤𝒓𝙠 𝙝𝒂𝙧𝒅 𝒇𝙤𝒓 𝒔𝙤𝒎𝙚𝒕𝙝𝒊𝙣𝒈 𝒚𝙤𝒖’𝒍𝙡 𝙣𝒆𝙫𝒆𝙧 𝙤𝒘𝙣 𝙖𝒏𝙙 𝙘𝒂𝙣 𝙜𝒆𝙩 𝙛𝒊𝙧𝒆𝙙 𝙛𝒓𝙤𝒎 𝒓𝙞𝒈𝙝𝒕 𝒂𝙬𝒂𝙮? 𝑨𝙜𝒂𝙞𝒏, 𝙩𝒉𝙖𝒕 𝒘𝙖𝒔 𝒕𝙝𝒆 𝒅𝙞𝒇𝙛𝒆𝙧𝒆𝙣𝒄𝙚 𝙞𝒏 𝒗𝙖𝒍𝙪𝒆𝙨,” 𝙨𝒂𝙮𝒊𝙣𝒈, “𝑰𝙛 𝙮𝒐𝙪 𝙧𝒆𝙖𝒍𝙡𝒚 𝒘𝙖𝒏𝙩 𝙩𝒐 𝒃𝙚 𝙧𝒊𝙘𝒉, 𝙡𝒆𝙖𝒓𝙣 𝙩𝒐 𝒃𝙪𝒊𝙡𝒅 𝒃𝙪𝒔𝙞𝒏𝙚𝒔𝙨𝒆𝙨.” 𝙄𝒕 𝒎𝙖𝒅𝙚 𝙢𝒐𝙧𝒆 𝒔𝙚𝒏𝙨𝒆 𝒕𝙤 𝙝𝒊𝙢 𝙩𝒐 𝒘𝙤𝒓𝙠 𝙝𝒂𝙧𝒅 𝒕𝙤 𝙗𝒖𝙞𝒍𝙙 𝙖 𝙗𝒖𝙨𝒊𝙣𝒆𝙨𝒔 𝒔𝙤𝒎𝙚𝒕𝙝𝒊𝙣𝒈 𝒚𝙤𝒖 𝒐𝙬𝒏𝙚𝒅 𝒂𝙣𝒅 𝒔𝙤𝒎𝙚𝒕𝙝𝒊𝙣𝒈 𝒚𝙤𝒖 𝒄𝙤𝒖𝙡𝒅 𝒑𝙖𝒔𝙨 𝙤𝒏 𝒇𝙤𝒓 𝑮𝙚𝒏𝙚𝒓𝙖𝒕𝙞𝒐𝙣 𝙩𝒐 𝑮𝙚𝒏𝙚𝒓𝙖𝒕𝙞𝒐𝙣 𝙩𝒐 𝒚𝙤𝒖𝙧 𝙠𝒊𝙙𝒔.)

It makes reasonable, doesn’t it? After all, having a job requires a lot of time and effort, and the security is only temporary because you could lose your position at any time. Have you noticed the layoffs taking place in the tech sector? If you’re going to put in the effort, why not do it for a cause that is truly important to you?

According to Robert Kiyosaki, who summarizes how the left and right quadrants choose to build wealth, the left side, which includes employees and the self-employed, works for security, whereas the right side, which includes investors and big business owners, works for freedom. They don’t want to be bound to a job for the rest of their lives, so they’ll work hard for a few years in exchange for the chance to be free for the rest of their lives while still earning money. You’ve undoubtedly recognized by now that all of this material is new and that nothing similar to it has ever been taught to you over the many years that you spent in school, but why?

(𝑻𝙝𝒆 𝑹𝙞𝒄𝙝 𝙚𝒅𝙪𝒄𝙖𝒕𝙚 𝙩𝒉𝙚𝒊𝙧 𝙘𝒉𝙞𝒍𝙙𝒓𝙚𝒏 𝒂𝙗𝒐𝙪𝒕 𝒎𝙤𝒏𝙚𝒚, 𝙩𝒉𝙚 𝙥𝒐𝙤𝒓𝙚𝒓 𝒄𝙡𝒂𝙨𝒔𝙚𝒔 𝒅𝙤 𝙣𝒐𝙩.)

The unfortunate truth is that they don’t teach it so the wealthy may continue to be wealthy, but Kiyosaki wants to alter that and assist individuals like you in beginning to build wealth right away.

2. Debt

(𝑫𝙚𝒃𝙩 𝙞𝒔 𝒂 𝒇𝙤𝒖𝙧-𝙡𝒆𝙩𝒕𝙚𝒓 𝒘𝙤𝒓𝙙 𝙛𝒐𝙧 𝙢𝒐𝙨𝒕 𝒑𝙚𝒐𝙥𝒍𝙚. 𝑻𝙝𝒆𝙧𝒆 𝒂𝙧𝒆 𝒎𝙖𝒏𝙮 𝙥𝒆𝙤𝒑𝙡𝒆 𝒊𝙣 𝙢𝒚 𝒑𝙤𝒔𝙞𝒕𝙞𝒐𝙣 𝙨𝒐-𝒄𝙖𝒍𝙡𝒆𝙙 𝙁𝒊𝙣𝒂𝙣𝒄𝙞𝒂𝙡 𝙜𝒖𝙧𝒖𝙨.)

Yes, Robert Kiyosaki is a financial expert, and he concluded by saying that people like him live debt-free, but how is that possible? In fact, he uses debt to his advantage because most people feel like getting rid of all of their debt.

For most people, that’s very sound advice, and even Robert Kiyosaki is clear that debt is a liability or something that deducts money from your income, expenses, assets, and liabilities, so debt. Here’s where things start to get interesting, so drop in.

Do you know how you’re told a house you bought to live in is a good asset turns out it’s not, it’s actually a liability? Let me explain. When you get a mortgage for your house, you have to pay the bank money to live in your home, which is like taking money out of your pocket. Even if your home is fully paid off, you still have to pay expenses like maintenance and property taxes.

He does a great job of summarizing it here. The average person needs a job to earn money, which they use to pay for their home and deposit into a bank. However, there is one type of loan you should specifically avoid, and it is the one that most Americans experience. If you think it is credit card debt, you’re mistaken; the worst kind of debt you can have is student loan debt. The saddest part is that so many of us are forced to study despite the financial consequences, proving once more that poverty is not an accident. This is because student debt is a type of debt that you can’t go bankrupt on and must pay off no matter what, which can really hinder you from becoming wealthy.

However, there is a way to use debt to your advantage. Let’s go back to the house example this time and buy a house to rent out to someone else. You do have to use debt to buy the home, but you’re constantly making money from someone paying you for the home. This pays the mortgage and the expenses, and you make a profit each month. As a result, the money starts flowing to you instead.

Thankfully for us Robert Kiyosaki illustrates the distinction between the two in a straightforward manner.

(𝙄𝒕 𝒉𝙖𝒔 𝒕𝙤 𝙙𝒐 𝒘𝙞𝒕𝙝 𝙩𝒉𝙚𝒔𝙚 𝙩𝒘𝙤 𝙬𝒐𝙧𝒅𝙨: 𝒈𝙤𝒐𝙙 𝙙𝒆𝙗𝒕 𝒊𝙨 𝙬𝒉𝙚𝒏 𝒎𝙤𝒏𝙚𝒚 𝒊𝙨 𝙛𝒍𝙤𝒘𝙞𝒏𝙜 𝙞𝒏𝙩𝒐 𝒚𝙤𝒖𝙧 𝙥𝒐𝙘𝒌𝙚𝒕 𝒇𝙧𝒐𝙢 𝙮𝒐𝙪𝒓 𝒊𝙣𝒄𝙤𝒎𝙚 𝙨𝒕𝙖𝒕𝙚𝒎𝙚𝒏𝙩; 𝒃𝙖𝒅 𝒅𝙚𝒃𝙩 𝙞𝒔 𝒘𝙝𝒆𝙣 𝙢𝒐𝙣𝒆𝙮 𝙞𝒔 𝒃𝙚𝒊𝙣𝒈 𝒕𝙖𝒌𝙚𝒏 𝒐𝙪𝒕 𝒐𝙛 𝙮𝒐𝙪𝒓 𝒘𝙖𝒍𝙡𝒆𝙩.)

You’re now ready to get wealthy, right? Not yet, there’s still something else to consider before continuing, and that is this.

3. Find A Mentor

(𝙖𝒔 𝒔𝙝𝒆 𝒔𝙖𝒚𝙨 𝙞𝒇 𝒚𝙤𝒖’𝒓𝙚 𝙜𝒐𝙞𝒏𝙜 𝙩𝒐 𝒃𝙚 𝙖 𝙨𝒖𝙘𝒄𝙚𝒔𝙨𝒇𝙪𝒍 𝒊𝙣 𝙮𝒐𝙪𝒓 𝒍𝙞𝒇𝙚 𝙮𝒐𝙪’𝙫𝒆 𝒈𝙤𝒕 𝒕𝙤 𝙛𝒊𝙣𝒅 𝒕𝙝𝒆 𝒃𝙚𝒔𝙩 𝙩𝒆𝙖𝒄𝙝𝒆𝙧𝒔) 𝘽𝒚 𝑲𝙞𝒚𝙤𝒔𝙖𝒌𝙞

Finding someone who can support your development and enable you to realize your aspirations can make all the difference. I recognize that it might be quite difficult to find someone without any connections, but there are many ways to do so. The key is to make sure your mentors are qualified.

“the other guys who actually are came from the inside just like you from inside the machine and they know what’s going on and they inform the world of what’s going on so ever since then, I’ve had a habit or a policy if I find out there’s a great teacher and a great teacher is somebody who comes from the inside not the outside.” As Robert says here, you should look for people who have experience first-hand rather than those who only claim to know but have never actually participated. If you know any knowledgeable insiders nearby, make a quick connection with them so you can start learning from them, but the majority of you will need to rely on a different approach.

Keep reading articles like this to get started. You can also access a ton of books written by outstanding people who have achieved enormous wealth, like Robert Kiyosaki, who teaches you everything you need to know about financial education and how to become truly wealthy, as I detailed in this article. Even when you have a fantastic mentor, there is still one factor that will determine whether you become wealthy or not.

(𝙔𝒆𝙨 𝙄 𝙬𝒂𝙣𝒕 𝒋𝙤𝒃 𝒔𝙚𝒄𝙪𝒓𝙞𝒕𝙮, 𝑰 𝒘𝙖𝒏𝙣𝒂 𝑰 𝒘𝙖𝒏𝙩 𝙖 𝙜𝒐𝙤𝒅 𝒑𝙚𝒏𝙨𝒊𝙤𝒏, 𝙙𝒐𝙚𝒔 𝒕𝙝𝒂𝙩 𝙝𝒂𝙫𝒆 𝒎𝙚𝒅𝙞𝒄𝙖𝒍 𝒃𝙚𝒏𝙚𝒇𝙞𝒕𝙨 𝙩𝒉𝙖𝒕’𝒔 𝒕𝙝𝒆𝙞𝒓 𝒃𝙧𝒂𝙞𝒏.)

(𝙄𝒇 𝒚𝙤𝒖 𝒓𝙚𝒂𝙡𝒍𝙮 𝙞𝒇 𝒚𝙤𝒖’𝒓𝙚 𝙧𝒆𝙖𝒍𝙡𝒚 𝒈𝙤𝒏𝙣𝒂 𝒍𝙚𝒂𝙧𝒏 𝒕𝙤 𝙗𝒆 𝒓𝙞𝒄𝙝 𝙮𝒐𝙪 𝙝𝒂𝙫𝒆 𝒕𝙤 𝙡𝒆𝙖𝒓𝙣 𝙝𝒐𝙬 𝙩𝒐 𝒔𝙚𝒍𝙡 𝙝𝒐𝙬 𝙩𝒐 𝒖𝙨𝒆 𝒅𝙚𝒃𝙩 𝙖𝒏𝙙 𝙝𝒐𝙬 𝙣𝒐𝙩 𝙩𝒐 𝒑𝙖𝒚 𝒕𝙖𝒙𝙚𝒔 𝒕𝙝𝒂𝙩’𝙨 𝙩𝒉𝙚 𝙜𝒂𝙢𝒆.) 𝑾𝙤𝒓𝙙𝒔 𝑭𝙧𝒐𝙢 𝙆𝒊𝙮𝒐𝙨𝒂𝙠𝒊

Identify it from these two lines if you can. If you couldn’t guess it, it’s you – you are by far your biggest obstacle. Earlier in the article I mentioned how Robert Kiyosaki’s real dad was highly educated but still poor, and on the other side his Rich Dad was a self-made millionaire with no college at all. By fusing these two dads together, he realized that schools taught a lot except about one subject – the subject of money.

The terrible thing is that financial education is the key to being affluent, but it is completely ignored in almost all schools since it keeps the wealthy wealthy. The game that the wealthy play is completely different from the one that the underprivileged and middle class play.

(𝙏𝒐𝙙𝒂𝙮 𝙞𝒏 𝒕𝙝𝒆 𝒘𝙤𝒓𝙡𝒅 𝑨𝙢𝒆𝙧𝒊𝙘𝒂 𝒆𝙨𝒑𝙚𝒄𝙞𝒂𝙡𝒍𝙮 𝙞𝒔 𝒕𝙝𝒊𝙨 𝙜𝒂𝙥 𝙗𝒆𝙩𝒘𝙚𝒆𝙣 𝙩𝒉𝙚 𝙧𝒊𝙘𝒉 𝒂𝙣𝒅 𝒆𝙫𝒆𝙧𝒚𝙗𝒐𝙙𝒚 𝒆𝙡𝒔𝙚 𝙖𝒏𝙙 𝙄 𝙠𝒏𝙤𝒘 𝒕𝙝𝒆 𝒈𝙖𝒎𝙚 𝙤𝒇 𝒕𝙝𝒆 𝒓𝙞𝒄𝙝. 𝒀𝙤𝒖 𝒌𝙣𝒐𝙬 𝙢𝒚 𝒓𝙞𝒄𝙝 𝙙𝒂𝙙 𝙩𝒂𝙪𝒈𝙝𝒕 𝒎𝙚 𝙮𝒐𝙪 𝙠𝒏𝙤𝒘 𝒊𝙩 𝙗𝒆𝙘𝒂𝙪𝒔𝙚 𝙮𝒐𝙪’𝙧𝒆 𝒕𝙝𝒆 𝒃𝙖𝒏𝙠𝒆𝙧, 𝒕𝙝𝒆 𝒈𝙖𝒎𝙚 𝙩𝒉𝙚 𝙗𝒂𝙣𝒌𝙚𝒓𝙨 𝙖𝒏𝙙 𝙩𝒉𝙚 𝙧𝒊𝙘𝒉 𝒑𝙡𝒂𝙮 𝙞𝒔 𝒅𝙞𝒇𝙛𝒆𝙧𝒆𝙣𝒕 𝒕𝙝𝒂𝙣 𝙬𝒉𝙖𝒕 𝒕𝙝𝒆𝙮 𝙩𝒆𝙖𝒄𝙝 𝙮𝒐𝙪 𝙞𝒏 𝒔𝙘𝒉𝙤𝒐𝙡.) 𝑾𝙤𝒓𝙙𝒔 𝒃𝙮 𝙆𝒊𝙮𝒐𝙨𝒂𝙠𝒊

There are many ways to become wealthy, but some are easier than others, as Robert Kiyosaki’s wealthy father taught him choosing the path of an investor is a Surefire way to become wealthy. It becomes an endless cycle of the uneducated and finance teaching more and more uneducated people in finance while those who never finish school end up becoming extremely wealthy.

Now that you’ve studied Robert Kiyosaki’s advice on how to become wealthy, you can start putting it into practice. As you do, tell me in the comments below how you learned about financial education so you may spread the word about it to the rest of the world.