5 Things to Buy to be Happier, According to Robert Kiyosaki
Robert Kiyosaki is a best selling author of "Rich dad and Poor Dad" and other books. Robert Kiyosaki became a household name after publishing "Rich Dad and Poor Dad" which sold millions of copies and translated to many languages. The books describes the story of 2 dads, "Rich dad" which focused on building assets,business while "Poor Dad" focused on employment and job security. He explains this through his famous teaching: “The rich buy assets. People with low incomes only have expenses. The middle class buys liabilities they think are assets.” According to Kiyosaki, an asset puts money in your pocket, while a liability takes money out of your pocket. Rather than seeking happiness through material purchases or consumption, Kiyosaki advocates for building financial freedom as the pathway to authentic life satisfaction.
8/24/20252 min read
1. Real Estate Properties: Building Wealth Through Rental Income
Real estate is the major asset class of Kiyosaki's investment portfolio. Real estate protect money against inflation through capital appreciation and it provides regular passive income through rental yields. This approach aligns with his teaching make your money work for you.
However, it has risks include market volatility, property management, maintenance costs and initial capital investment.However, achieving a consistent monthly cash flow and long-term capital gains from investment properties can make you happy.
2. Dividend-Paying Stocks: Creating Steady Income Streams
Dividend-paying stocks aligns with Kiyosaki's philosophy of generating passive income without selling appreciating assets. Dividend paying stocks offers more liquidity compared to real estate which provides accessiblity for investors at various capital levels.
3. Businesses You Don’t Work For: The Power of Passive Equity
Kiyosaki's cashflow quadrant are these categories: Employee, Self Employed, Business owner, investor. He advocates to achieve financial freedom you have to move to business owner quadrant.
Owning a good business provides advantages like profit distribution, dividend income, business value appreciation. However, business investment requires careful selection due diligence, understanding of industry dynamics, evaluation of management teams, and acceptance of risks, including potential total loss of investment. Separating your time from cash flow is a happy experience with a great business.
4. Intellectual Property: Turning Knowledge Into Royalties
Robert Kiyosaki’s Rich Dad Poor Dad is a perfect example of how intellectual property can generate long-term income. By writing books, creating courses, building blogs, or securing patents and trademarks, you can earn royalties from your knowledge and creativity.
The beauty of intellectual property is that it often requires a one-time effort—once created, it can continue to generate income for years. However, success depends on building an audience that values and subscribes to your work, which does require consistent effort in the beginning.
To maximize impact, your creations should be rooted in your skills, expertise, and real-world experience. When your knowledge provides value to others, your intellectual property becomes an asset that works for you—even while you sleep.
5. Your Financial Education: The Foundation of All Wealth Building
Kiyosaki emphazises the focus on financial education. He teaches to focus on mastering four key areas:Accounting - Understanding how money flows in and out, and how to read financial statements.
Investment - Learning how to make money work for you through assets that generate income.
Understanding markets - Recognizing trends, opportunities, and risks in the economy.
Legal knowledge - Using laws, taxes, and structures to protect and maximize wealth.
Reading financial books, attending courses, seminars is the foundation of your wealth. These practices not only build knowledge but also sharpen your mindset, preparing you to recognize opportunities that others might miss.
Robert Kiyosaki’s philosophy centers on the idea that wealth is not about material possessions, but about acquiring assets that generate lasting security, freedom, and growth. His teachings consistently stress the importance of financial education and passive income creation as the true pathway to long-term satisfaction—far beyond short-term consumption.
In his framework, the five categories of investments serve as building blocks of financial independence. These assets work for you, compounding over time and forming a solid financial foundation that supports both independence and peace of mind.
At the heart of his message lies a simple truth: money is only a tool. It should serve to unlock the freedom to focus on what truly matters—authentic happiness, meaningful relationships, and the ability to live life on your own terms.