Warning: This Might Shake Your Comfort Zone
“You might want to sit down for this one,” as Robert Kiyosaki, the maverick behind Rich Dad Poor Dad, revealed a flaw that could be holding back an entire generation. It’s a mistake so deeply ingrained in our society that most people don’t even recognize it as a problem. But make no mistake, this error could mean the difference between a life of financial freedom and a lifetime of struggle. Are you brave enough to confront this harsh reality and take control of your destiny? Because once you read this, there’s no going back.
In this post we’re breaking down the five biggest financial slip-ups young folks make according to Robert Kiyosaki, starting with mistake number one.
Mistake #1: “I’m Still Young” Syndrome
Don’t let “I’m still young” hold you back financially. Heard it before, right? “You’re young, enjoy life, don’t sweat money now.” But here’s the kicker: that mindset is costing you big time. Think on it. When you’re young, you’ve got energy, time, and usually fewer responsibilities. It’s the perfect time to hustle, learn, and start building your financial foundation. Instead, what do most young folks do? They party, they spend, they rack up debt on stuff that won’t matter in five years. And before they know it, they’re 30, broke, and wondering where all the time went.
Now, don’t get it twisted. Having fun is important, but so is setting yourself up for the future. It’s about balance. Quick question: What would your 40-year-old self thank you for doing right now? Buying that new iPhone or investing in your first stock? Robert Kiyosaki always says, “The best time to plant a tree was 20 years ago. The second best time is now.” And that applies to your finances too.
How to Shake Off the “I’m Still Young” Mindset
Start small. Set a goal to save 10% of your income. Open a retirement account. Read one financial book a month. These small steps add up, and before you know it, you’re miles ahead of your peers who are still using the “I’m young” excuse. Remember, every money choice you make today is shaping your future, so make them count.
Mistake #2: Ignoring Financial Education
Here’s a wild stat: only 16% of Americans between 18 and 26 are considered financially literate. That’s less than one in five! Yet, we’re expected to make major money moves every day. But here’s the deal: financial know-how isn’t something you’re born with; it’s something you learn. And the sooner you start, the better off you’ll be.
Robert Kiyosaki always emphasizes this point. He says, “The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.” So, how do you train your mind when it comes to cash? Start with the basics. Learn the difference between assets and liabilities. Understand how compound interest works. Get to grips with different types of investments. You don’t need a finance degree for this. There are tons of free resources out there—books, podcasts, and YouTube videos. The information is out there; you just need to seek it out.
Challenge Yourself
Commit to spending 30 minutes a day learning about money. That’s less time than most people spend scrolling through social media, but those 30 minutes could change your financial future. And remember, it’s not just about learning; it’s about applying what you learn. Start small. Maybe it’s creating your first budget, opening a savings account, or buying your first share of stock. The key is to start because the more you learn, the more confident you’ll become. And that confidence? It’s what will drive you to make smart financial decisions in the future.
Mistake #3: Not Investing in Assets
This one’s a doozy, and it ties back to what we were saying earlier about the “I’m young” mindset. Because here’s the truth: the earlier you start acquiring assets, the better off you’ll be. But let’s clear something up. What exactly is an asset? Robert Kiyosaki defines it simply: “An asset is something that puts money in your pocket. A liability, on the other hand, takes money out of your pocket.”
So, what about that new car you just bought? Unless you’re using it to make money, like for ride-sharing, it’s possibly a liability. That stock that pays dividends? That’s an asset. The problem is that most young people focus on buying liabilities. They think they’re building wealth, but they’re actually digging themselves into a hole.
Investing in Your Future
Now, here’s a quick question for you: what percentage of your income goes into buying assets? If you’re like most young folks, the answer is probably close to zero. But imagine if you started putting just 10% of your income into assets—stocks, bonds, real estate, and even a side hustle that generates passive income. Over time, those assets start working for you. They generate more income, which you can use to buy more assets. This is how the rich get richer; they focus on acquiring assets, not liabilities.
Mistake #4: Focusing Too Much on Passion
Whoa, hold up! Isn’t following your passion supposed to be a good thing? Well, yes and no. And this is where Robert Kiyosaki’s advice might ruffle some feathers. No doubt, passion is important. It can drive you, motivate you, and make work feel like less, well, work. But here’s the cold hard truth: passion doesn’t always pay the bills.
Kiyosaki puts it bluntly: “Too many people are too lazy to think. Instead of learning something new, they think the same thought day in, day out.” The problem with “follow your passion” advice is that it often leads people to ignore the realities of the market. They pursue careers in oversaturated fields or start businesses without considering if there’s actually any demand for their product or service.
Finding the Balance
Kiyosaki suggests a different approach: find a way to make money and then use that money to fund your passions. Think about it this way: if you’re constantly stressed about money, how much are you really going to enjoy your passion anyway? But if you have a solid financial foundation, you have the freedom to pursue your passions without the pressure of needing them to pay your rent.
Mistake #5: Avoiding the Hard Stuff
This ties in closely with what we just talked about because here’s the truth: success often requires doing things you don’t particularly enjoy. Robert Kiyosaki puts it this way: “Workers work hard enough to not be fired, and owners pay just enough so that the workers won’t quit.” Now, that might sound harsh, but there’s a valuable lesson here: sometimes, to reach your goals, you need to be willing to do the hard, uncomfortable things.
Maybe it’s working a job you don’t love to save money for your business. Maybe it’s spending your weekend studying instead of partying. Or maybe it’s taking on extra responsibilities at work to position yourself for a promotion. The point is that success often requires sacrifice, and that sacrifice isn’t always fun or easy.
Embrace the Discomfort
Think about any successful person you admire. Chances are, they didn’t get where they are by only doing things they enjoyed. They pushed through discomfort; they did the hard things, and that’s what set them apart. So, here’s a question for you: what’s something you’ve been avoiding because it’s uncomfortable or unpleasant? How might tackling that thing head-on benefit you in the long run?
Your youth is your superpower in the world of finance. Don’t waste it. Start investing now, even if it’s just a few bucks. Learn about money like your future depends on it, because guess what? It does. Focus on building assets, not collecting stuff. Find that sweet spot between your passion and what pays the bills. And yeah, sometimes you’ll have to grind through the things you don’t love. Well, that’s the price of admission to the millionaires’ club.
Remember, every financial decision you make today is shaping your tomorrow. So, are you going to follow the crowd and make these mistakes, or are you ready to break the mold and set yourself up for lasting wealth? The choice is yours. Now, get out there and start building your empire.
