As financial educators, we love learning from great mentors who already succeeded in their chosen fields.
One mentor we admire is Mr. Robert Kiyosaki. He is famous for establishing the “Rich Dad”.
Rich Dad is a brand established by Robert Kiyosaki for a series of educational books and games about personal finance. The trademark is owned by Cashflow Technologies, a corporation established in 1997 by Robert and Kim Kiyosaki to market these books and games.
As a financial educator, I get tips and information by reading his books and his emails (Yes, I am subscribed to his newsletters, too).
I also have a folder in my inbox allocated for his emails, and emails from other personal finance gurus, too.
From time to time, I will be sharing such emails, advice and tips I read and get from great mentors here in our website.
Now, let’s get back to Rich Dad’s first new rule of money.
As per Robert Kiyosaki, here is a really awful truth…
There is one set of rules for the rich and another set for ordinary people.
The people who are most worried about money are those playing by the old set of rules. If you want to feel more secure about your future, you need to know the new set of rules. First, here’s the first old rule of money.
Old Rule #1: Save Money
After 1971 (when the dollar was no longer backed by gold), the U.S. dollar was no longer money, but rather a currency. As a consequence, savers became losers. The U.S. government was allowed to print money faster than it could be saved.
When a banker raves about the power of compounding interest, what he or she fails to also tell you about is the power of compounding inflation—or in today’s crisis, the power of compounding deflation.
Saving money is a stealth way the government takes your money.
New Rule #1: Spend, Don’t Save
In the new rules, it is more important that you know how to spend your money, not just earn or save it.
In other words, people who spend their money wisely will always be more prosperous than those who save their money wisely.
Of course, by spend I mean invest or convert your money into long-lasting value.
The rich understand that in today’s economy you cannot become wealthy by sticking your money under a mattress—or even worse, in a bank. They know that the key to wealth is investing in cash-flowing assets.
Today, you need to know how to spend your money on assets that retain their value, provide income, adjust for inflation, and go up in value—not down.
P.S. Now before you invest, get educated or you (and your money) will be taken for a fool.
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