Most people have heard of Suze Orman and Dave Ramsey when it comes to financial advice. Their names are synonymous with personal finance tips in the U.S. Ramsey tells people to live debt-free and cut up their credit cards, while Orman urges cautious saving and building an emergency fund. But what if the wealthiest individuals don't follow the strategies they preach? According to Rich Dad Poor Dad author Robert Kiyosaki, there's a different playbook for the rich.
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In a YouTube interview with bestselling personal finance author Garrett Gunderson, Kiyosaki claimed that financial advice isn't one-size-fits-all. He argued that while the poor tend to follow Suze Orman and the middle class listens to Dave Ramsey, the rich have a vastly different approach. Here's a breakdown of what he means – and why the wealthy often ignore the popular financial advice most people are familiar with.
Kiyosaki believes there are distinct "levels" of financial advice, tailored to different economic classes. He explains that people in poverty often turn to Suze Orman's advice, which revolves around strict budgeting, cutting expenses and saving whatever you can. Meanwhile, those in the middle class lean toward Dave Ramsey's approach – living debt-free, minimizing expenses and saving for retirement in traditional ways. Ramsey's famous for encouraging people to "cut up your credit cards" and pay off all debt immediately.
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But according to Kiyosaki, the wealthy play a different game entirely. Instead of avoiding debt, they embrace it. Rather than focusing on saving, they invest in assets that generate cash flow and minimize taxes. In Kiyosaki's view, the advice that helps the poor and middle class might hinder those aiming for wealth.
Unlike Ramsey, who preaches a debt-free life, Kiyosaki argues that debt can be a tool for wealth. He talks about using "good debt" – loans that are invested in assets like real estate that produce income and appreciate in value. For example, he mentions how he refinanced $300 million in debt from 5% to 2.5%, a move that's difficult for someone following a debt-free philosophy.
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"The more debt you have, the more real estate you can buy and the less tax you pay," Kiyosaki explains. In his opinion, debt doesn't have to be a liability. It can be a powerful lever for the rich to grow wealth, especially when paired with tax strategies that help reduce liability to the IRS. "I don't want to get out of debt. I love debt," Kiyosaki explains.
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Another area where Kiyosaki sees a clear difference between the wealthy and everyone else is taxes. He argues that wealthy people work hard to legally reduce their tax burdens, often by working with accountants, attorneys and tax experts to structure their income and assets to minimize taxes. "If you're a coward and you're afraid of the IRS, then you're middle class and poor," Kiyosaki said, adding that the wealthy are willing to work within tax laws to their advantage.
Kiyosaki also emphasizes that the rich don't do it all alone. During the interview, he discusses the importance of assembling a team of experts – bankers, attorneys and accountants – who can advise on every financial move.
Robert Kiyosaki's advice might sound radical compared to the familiar teachings of Dave Ramsey and Suze Orman, but he's unapologetic. His take is that the wealthy operate on a different financial philosophy that uses debt and prioritizes investment over saving.
Kiyosaki's approach isn't for everyone, but it reminds us that financial advice isn't universal and what works for one group might not be the best path for another. Whether you follow Ramsey orman or Kiyosaki, understanding your own financial goals and limitations is essential in deciding whose advice to follow.
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