Launching from the famous investor Robert Kiyosaki and author of the book “Rich Dad Poor Dad”, there are several financial management mistakes that are often made by young people, such as not investing existing money because they feel they are still young and have a lot of time in the future.
Here are 6 money management mistakes ala Robert Kiyosaki:
1. Focusing Too Much on a Favorite Job
Today, many young people grow up believing that the key to success and a fulfilling life is to find a job that you love. However, Robert Kiyosaki argues that if one only does what one loves, it can hinder one in building wealth and achieving financial freedom. According to him, the younger generation should focus first on investing, asset acquisition, and building passive income streams rather than just pursuing passion in their careers.
2. Not Investing Early
Kiyosaki says many conglomerates have earned their wealth from income-generating assets outside of their day jobs. The assets he refers to are real estate, businesses, royalties, and investments. According to him, often the younger generation only focuses on getting a good education and pursuing a career in a company instead of investing in suitable assets and earning passive income.
3. Prioritizing Passion Over Financial Freedom
Young people today tend to focus on a career they are passionate about. But Kiyosaki warns that this passion can lead them down the wrong financial path. You have to delay gratification and do hard work that you may not like in the short term to build wealth in the long term.
For example, Kiyosaki himself was not interested in studying accounting, business law, and investing. But he knew that acquiring this knowledge would accelerate his ability to generate passive income from assets like real estate and business ownership.
4. Depend Only on Career
Robert Kiyosaki advises young people to invest in what they love rather than just pursuing a career in their field of interest. This way, they can do the work they love while still building their entrepreneurial career.
5. Being Young
Many people use their youth as an excuse to delay investing time and effort into building wealth. Many people think there will always be time in the future once their careers are established. However, it is important to note that the earlier you start acquiring assets and developing financial intelligence, the easier it will be to build great wealth over time.
6. Not Taking Much Time to Learn
Kiyosaki highlights how little time most people spend learning about finance and investing, even though he believes these kinds of knowledge are important to start investing early. He advises the younger generation to take responsibility for their financial education rather than leaving it in the hands of traditional schools. Dedicate consistent time to learning money management, budgeting and smart investing to build wealth.
Source: Robert Kiyosaki “Rich Dad Poor Dad” - Via Detik.com
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