'Rich Dad Poor Dad' Author Robert Kiyosaki Shares 6 Tips To Survive Economic Depression And 'Get Rich'

An economic depression could be looming large and it has me worried. These kinds of economic events lead to a lower standard of living, forcing people to choose between expenses they wouldn't have given a thought to earlier.

Even "Rich Dad Poor Dad" author Robert Kiyosaki is worried and he says he is preparing to battle it out.

"For years I could see this crisis coming… which is why I wrote Rich Dad Poor Dad, own my business, use debt as money to buy cash-flowing assets such as rental properties, save real gold and silver, and today, Bitcoin," says Kiyosaki.

But before we go ahead and learn how to survive and win through an economic depression, let's understand what this phenomenon actually is.

What Is An Economic Depression?

Representational image of an economic depression | Image credit: Pixabay

An economic depression is a severe and extended downturn in economic activity. Some common ways to identify it are a decline in the gross domestic product (GDP), employment, and wages, among other factors.

But Kiyosaki thinks an economic depression is the "perfect time to get rich." If that has left you puzzled, here are six tips that can help you not only prepare for and survive an economic depression but also thrive.

1. Build Your Emergency Funds

Build an emergency fund | Image generated using Dall-E

Emergency funds are always important – be it an economic depression or boom. However, money is scarce during a depression, so it's more important than ever to build a war chest to tide over the gloomy days.

2. Pay Off High-Interest Debt

Repay debt that costs too much | Image generated using Dall-E

Debt can quickly eat into your savings if you cannot manage it properly. If you have high-interest debt, such as one on credit cards, the best thing you can do to prepare for an economic downturn is to pay off this kind of debt first.

3. Organize Your Investments

Best time to organize investments | Image generated using Dall-E

Economic depressions test the resolve of almost everyone. Such times test people's patience and the ability to withstand significant declines.

The best part is, as Kiyosaki says, depression is indeed the "perfect time to get rich."

How, you ask? You can pick up stocks when the prices have declined – it's an opportunity that rarely presents itself, but when it does, make sure you're there to grab it with both hands.

4. Live Within Your Means

Don’t splurge too much | Image generated using Dall-E

An economic downturn is the most important time to follow this age-old adage: live within your means. As it suggests, spend only on what is required and what you can afford. Don't leverage yourself only to spend on things that can be avoided.

5. Upskill And Update Your Resume

Work on your skills and be ready for the inevitable economic boom | Image generated using Dall-E

Upskilling is an important aspect of every professional's life, but economic depressions make this an essential practice. Make sure you use this time of lower economic activity to update and upskill yourself, dust off your resume, and be ready for the inevitable economic boom.

6. Keep Your Credit Score High

Keep your credit good and scores high | Image credit: Pixabay

Last but not least, keeping your credit score high is extremely important if you are planning to apply for a loan in the future. A high credit score not only makes you eligible for higher loan amounts but also lower interest rates than those whose scores are bad.

Image from Shutterstock

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Posted In: Macro Economic EventsNewsEconomicsPersonal FinanceGeneralBZ BuzzEconomic DepressionRecessionRobert Kiyosaki
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