4 of the Best Money Management Tips from Kiyosaki

According to Robert Kiyosaki, author of “Rich Dad Poor Dad’, a bestseller on personal finance, people cannot become rich through a conventional nine-to-five job. Proper management is the starting point for anyone looking to save, invest, and get wealthy. The journey is not as easy as it sounds. Most people quickly lose focus and get waylaid by things such as impulse buying, spending on luxuries, and borrowing money at exorbitant interest rates. KreditBee is an ally for people looking to grow wealth. You can quickly get an instant loan at super-competitive rates. Let’s take a look at some of the best money management tips from Kiyosaki that you may want to know.

1. Get Financial Education

According to Kiyosaki, learning how to manage your finances and getting smarter with your money helps you prepare for the future. Money management strategies help you cope with all the unexpected and sudden bumps on the road towards financial freedom. Kiyosaki created a Cashflow board game designed to simulate real-life financial scenarios and strategies to teach people money management skills. Players need to start the cashflow game with a personal financial statement, and try different ways to improve their cash flow pattern while covering monthly expenses and passive income.

2. Spend on Assets

Kiyosaki encourages people to invest in assets that can generate wealth and increase their net worth, such as real estate. He recommends avoiding spending unnecessarily on things that depreciate and don’t pay you back, such as cars, vacations, or clothes. Kiyosaki also advises people not to consider their homes as assets even if paid off, as they still demand money every month for taxes, utilities, insurance, and maintenance.

3. Pay Yourself

Another point stressed by Kiyosaki is that budgeting isn’t only limited to paying monthly bills. It also involves paying yourself by saving money regularly. For instance, you can commit to set aside a percentage of your salary for yourself every month and use that money to buy assets that can provide an instant cash flow. A good bank balance not only increases your net worth but also boosts your reputation in the market. It can help you get an instant loan from any financial institution easily during emergencies based on your goodwill and savings.

4. Understand the Difference Between Bad and Good Debt

Although one might think of debt as a never-ending headache, not all debt is bad. While learning about money management, you must understand the difference between good and bad debt and how good debt can increase your wealth. For instance, getting a mortgage to buy a property that can generate income is good debt. It is essential to avoid accumulating bad debts such as overspending on credit cards, taking loans for vacation, vehicles, or other things that depreciate with time.

Wrap

UpKiyosaki emphasizes the importance of having a contingent money management plan to help you deal with unexpected scenarios. These include becoming jobless, experiencing a decrease in income, or facing medical emergencies. It would help if you stuck to habits that help you make the right financial decisions and manage your financial health. For instance, never opt for a high-interest loan that forces you to pay significantly more than what you borrowed. You can seek financial assistance from personal loan companies that offer lower interest rates. To get a personal loan with attractive interest rates, look no further than KreditBee. Their online loan application platform is characterized by a quick and easy loan disbursal process. Just download the app, register, or submit your application to get an instant loan, and we’ll take it from there.

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