You will become rich not just by a job, but by adopting these 7 smart financial thinking

If you are working hard day and night, but still achieving financial freedom seems to be just a dream, then perhaps the time has come to change your thinking. Robert Kiyosaki, author of the famous book Rich Dad Poor Dad, says that the real way to earn money is not just a job, but smart financial thinking. Robert Kiyosaki told 7 strategies to create wealth, through which you can create many ways of your income. You can use debt as a weapon and move towards riches by taking risks.

Things You Will Need

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Method

Effective strategy to create wealth

1. Give more importance to cashflow than salary:

Kiyosaki says that salary is received only as long as you work, but cashflow i.e. the money that comes from your assets (like real estate, business, investment), keeps coming without working. So create such assets that keep giving money every month.

2. Use debt smartly:

If debt is used wisely, it can help you increase your wealth. Like taking a loan to buy real estate, which later gives you profit through rent and increase in property value. For example, even if you have cash, buy a house by taking a home loan and invest that money in high return assets like equity gradually. This will increase the return on investment and the interest on home loan will decrease.

3. Know the difference between good debt and bad debt:

Good debt is the one that allows you to invest in things that earn you money like property or business. While bad debt is the one with which you buy things that only increase expenses – like expensive gadgets or luxury goods. Before buying any item, ask yourself this question – is it really necessary or is it just a wish?

4. Increase your financial knowledge:

To earn money, not only hard work but also understanding of money is important. Knowledge of things like investment, tax, risk management helps you in making good decisions. The more you learn, the more you will earn.

5. Make a budget like the rich:

Divide your expenses into two parts - essential (such as rent, food and bills) and non-essential (such as eating out, shopping and entertainment). Instead of just reducing expenses, you should focus on increasing income. Rich people create many sources of their income, such as investment, part-time business or rental income. This allows them to spend comfortably and also save.

6. Control your financial future yourself:

You should take control of your income yourself. It is not right to depend only on a job. Choose business, investment or any other path through which your income increases and you can become financially independent.

7. Do not be afraid of taking risks:

Robert Kiyosaki said, if you are up to 45 years of age, then do not be afraid of taking risks. Real wealth comes when you learn to take risks. Learning from failure and moving on is real success.