Robert Kiyosaki touched down in Johannesburg South Africa on Thursday night in preparation for his almost annual conference taking place this year on the 28th and 29th of July 2018 at the Sandton Convention Centre. The summit includes international speakers like Robin Banks, Sandy Jadeja; Chief Market Strategist and Trading Educator, as well as Tom Wheelwright; author of Tax-Free Wealth, CEO of ProVision and one of eight rich dad advisors.
Robert speaks all over the world to millions and millions of people worldwide. Here are some tips we can learn from Mr Rich Dad Poor Dad:
Assets vs Liabilities
It’s vitally important especially as South Africans to understand the value of good assets and liabilities. A good asset is something that puts money in your pocket if you live in the house you buy then it takes money out of your pocket. If you buy a house via a bank (bond) in fact that house is actually owned by the bank and not you, until it is fully paid up with interest. Banks assets are not helpful to you at all, you are working for them, but it’s not earning you anything. Only if you have a house that you rent out to tenants, can it be called an asset. Understanding if your investments are an asset or a liability will allow you to make the right investment every time.
Our School System Needs To Change
“We punish failing at school yet failing and getting up again is what happens every single day when an entrepreneur wants to become really successful.” Robert emphasized the fact that the system is too traditional, it doesn’t take into consideration the technological changes in society. He believes we need to teach practical lessons when it comes to entrepreneurship from a foundation phase level.
Good Debt vs Debt Debt
The rich carry debt. They actually take on a lot of debt. The extremely wealthy use debt to make more money. They own large value of assets that manage to be more than the actual debt amount. They use good debt to have acquire more assets while others pay it up for them. The difference between the rich and poor when it comes to debt is understanding the difference between good debt and bad debt.
Investing Is The New Saving
Your parents or your grandparents might have done just that, and it worked. But today, banks pay much lower interest rates on your savings than the inflation rate. Why put your money in the bank where it will lose value when you can put it to work for you in assets?
If, like an business or an investor, you put that dollar to work for you, then you have a chance of a return that is much higher than inflation. You have an opportunity to make money instead of losing it
But Real Assets Before You Buy Cars
Unfortunately in South Africa many have the mindset of buying a R2.3 Mil car while living in a 300k apartment with no additional assets or property. Cars depreciate. They lose value the minute to drive off with them. Be financially savvy when you make these decisions as over a long term it could be the difference between living the life you always wanted or still dreaming about it.