Last year, I had the chance to spend a week with Robert Kiyosaki, author of the bestselling personal finance book of all time – Rich Dad Poor Dad.
I’ve admired Robert since I was 21 years old. I was a business student at university when I first read his book.
So when I got the opportunity to celebrate his 70th birthday with him on a cruise around the Caribbean, I didn’t hesitate.
I wanted to understand what else I could learn from him – and ask him deeper questions about how he built his financial empire.
I’ve read every single book he’s ever published. To this day, Rich Dad Poor Dad is the number one book I recommend to anyone who wants to take control of their finances.
So you’d think there wouldn’t be much else I could squeeze out of him.
But there was…a lot.
For one, I learned that Robert is a tremendously spiritual human being.
He spends time every morning reading books about breaking free from the boundaries we set within ourselves. His life is dedicated to performing the work he believes God put him on earth to perform.
He also meditates for an hour each day and studies ancient spiritual texts.
His number one book recommendation actually turned out to be The Untethered Soul – a book about inner peace.
Secondly, I learned that Robert was fiercely dedicated to always listening to both sides of a story – in any context. He tells it this way:
“Most people think a coin has two sides. But in fact, a coin has three sides – each of the two opposite sides, and the edge. Standing on the edge and being able to see both sides is true intelligence.”
This concept applies to virtually everything we do in life – including investing.
In his view, there is no good economy or bad economy – only what you make of it.
Take, for example, the upcoming recession everybody keeps talking about. I get more questions about ‘winter is coming’ than about pretty much anything else.
Yes, a recession will happen – at some point.
But when it finally happens – whether you benefit or suffer from it is entirely up to you.
If you can stand on the edge of the coin, and see both sides of what winter really means, you could make it a rare occasion to grab market share from competitors whose funding dries up, or a once-in-a-lifetime opportunity to buy high-quality investments on the cheap.
In short - you shouldn’t fear ‘winter’. You should only fear not being prepared to deal with it.
Lastly, I got the chance to ask Robert how he really built the financial empire he oversees today.
This is what he told me:
“Build businesses that produce cash flow. Use that cash flow to buy assets that produce income and use that income to buy more assets.”
And that was it.
For the past decades, he and his wife have built several businesses that produce free cash flow which they use to buy income-producing assets.
They use the income from these assets to buy even more assets. And the cycle repeats.
That’s the system they’ve used to acquire thousands of apartments that pay them millions of dollars per month in income.
And it’s the exact same system that we use at Beyond Entrepreneurs.
Step 1: create a business that generates free cash flow (not profit – more on that later)
Step 2: invest the cash flow from your business in assets that produce income
Step 3: use that extra income to buy even more income-producing assets
Step 4: build an international network of likeminded people with whom you can invest, travel the world and enjoy life.
This framework is the foundation of what we call the Entrepreneur-Investor Lifestyle.
And that’s the secret sauce, folks. It isn’t any more complicated than that.