Bridging The Gap In Financial Education Worldwide: Robert Kiyosaki's Vision

In the world of personal finance, Robert Kiyosaki stands as a beacon of wisdom and insight. Renowned as the author of the iconic book ‘Rich Dad Poor Dad’, Kiyosaki has not only reshaped the way many think about money but has also founded the Rich Dad Company, a private financial education entity that empowers individuals through books and videos. His journey from financial struggle to success has made him a sought-after mentor for those yearning to achieve financial freedom.

In this exclusive interview, Kiyosaki sheds light on how to escape the cycle of financial mediocrity, strike the right balance between risk and security, and the vital role of financial education. Excerpts:
 
Many people struggle with financial freedom. What steps can someone take to break free from this cycle and start building wealth?
 
If I were to take a macro perspective, there are a million ways to get rich, but there are also a billion ways to go poor. It's up to each person to determine how they want to get rich. Personally, I have a fondness for real estate but not for stocks. As a result, I don't hold any stocks, bonds, or mutual funds. The only stocks I own are those of my own company because I'm an entrepreneur and have taken it public.

When I was a young man, I made the decision to become a real estate investor. This determination stemmed from my rich dad teaching me to play Monopoly, where the goal was to acquire four greenhouses and upgrade to a red hotel. Today, I own Red Hotels. However, everyone must find their own path. There are countless other ways to achieve success, such as becoming someone like Ratan Tata, who owns numerous hotels and businesses.

I also have investments in oil wells because, as a young person, I recognised the value of oil. I own oil wells in various locations, including Texas, Louisiana, and North Dakota. My preference leans toward commodities; I have little interest in stocks. Nevertheless, if stocks are your passion, feel free to pursue them. 

Furthermore, I own gold mines. Gold is a precious metal placed on Earth by a higher power, not man-made. That's why I appreciate gold and have invested in gold mines. In essence, there are countless paths to wealth, and the key is to discover the one that resonates most with you. You could even become a successful soccer player, although that wasn't a path for me as I wouldn't be a good soccer player.

How can someone strike the right balance between taking risk and financial security? 

I take risks constantly. What you're asking is, "What if you make a mistake?" That's the very reason most people end up in poverty. In school, teachers often punish students for making mistakes. This creates a mindset in a child's mind that making a mistake means they're stupid. In our educational system, students are sometimes labeled as "stupid" because they make errors. However, in the real world, a baby learns to walk by falling down, just as we learn to ride a bicycle by falling off or to drive a car by making mistakes. Ironically, our schools inadvertently keep people in a state of ignorance and poverty by penalising mistakes.

The key is to find a great mentor or teacher. Making small mistakes is crucial, as each mistake becomes a valuable learning experience. That's why I travelled all over the world in search of gold mines. Eventually, I found the largest gold mine in America. Along the way, I made numerous mistakes, but those mistakes in places like China, Mongolia, and South America ultimately led me to discover the gold mine in America.

So, yes, I traveled across the globe in pursuit of gold. It's important to note that this journey is not about calculated risks; it's about making mistakes and learning from them. Most people make mistakes but then pretend they didn't make any. This tendency to deny mistakes is what keeps many individuals from progressing. Once again, the crucial lesson is that making small mistakes and learning from them is the path to growth and success. The topic of education and its impact on individuals keeps resurfacing, as you mentioned earlier.

Financial education is not typically taught in schools. What role do you see formal education playing in preparing individuals for financial success, and what can be done to bridge this gap?
 
Formal education is essential for professions like medicine, accounting, and law, but I never aspired to be in those fields. Some vocations require specialised schools, such as aviation. I pursued my dream of becoming a pilot by attending flight school. Additionally, there are alternative paths like attending seminars, which I was drawn to when I was younger. As a young man, I frequented various seminars and sought different teachers, like Robert Allen, who I had the privilege of listening to. Despite being older than Robert Allen, I sat in his seminar and learned about real estate. Today, I own 15,000 rental apartments, generating approximately USD 20 million in monthly income, all with minimal tax liability. It's a testament to the value of attending quality seminars. However, it's crucial to carefully select your teachers and ensure they are genuine, not impostors.
 
Do you want to talk about your current projects and initiatives that are aimed at helping people improve their financial well-being?
 
I wanted to explore the slums of Mumbai, primarily because I see a similar situation unfolding in America today. Despite being one of the most beautiful countries, cities like San Francisco and Hollywood are grappling with rampant homelessness.

So, what we witness in Mumbai is happening in the United States, and it's due to the failure of our education system. There's a lack of financial education, and the issue is exacerbated by the prevalence of drug abuse. People turn to drugs when they experience depression or distress, which only worsens the situation.

That’s why I ventured into the slums of Mumbai, driven by a quest for knowledge and a desire to understand a different culture. And also, this is where Prime Minister Narendra Modi, whom I deeply respect, comes into the picture. He announced the establishment of 14,500 new schools, but the crucial missing element is financial education. Until we incorporate financial education into the curriculum, students won't learn about money. 

Therefore, the key is to seek out valuable teachers outside the traditional system and beyond the influence of banks. These teachers can impart genuine financial knowledge. In the words of Warren Buffett, never ask an insurance salesman if you should buy insurance. Similarly, if you ask a stockbroker whether you should invest more in stocks or a real estate agent if you should purchase more real estate, their answers will always be "yes". So, it's essential to look for answers beyond those who might have a vested interest.