Robert Kiyosaki has been hugely successful as an author and giver of financial advice. This time he is just plain wrong. A CNBC piece quotes the author as saying –
“You cannot follow your parents’ rules of money,” said Robert Kiyosaki. The old rules were you go to school, you get a job, you work hard, you save money and you invest for the long term in the stock market.” But now, he says, the rules are now reversed.
“Savers are losers. And many parents are still telling their kids to save money,” he told CNBC. “Why would you save money when every central bank is printing money?”
He gears his advice to the millennial generation who I think are greatly misunderstood for their financial responsibility.
First of all, you can’t market a new book without selling it with sensationalism. This of course is PR for his new book, “ Second Chance: For Your Money, Your Life and Our World. “ That is book marketing 101. So, it is pretty sensationalized and somewhat irresponsible to call savers losers. The habit of saving is critical to future financial success.
Railroad magnet James J Hill once said, “If you want to know whether you are destined to be a success or a failure in life, you can easily find out. The test is simple and it is infallible. Are you able to save money? If not, drop out. You will lose…You will lose, as sure as you live. The seed of success is not in you.”
There is a lot of wisdom in that quote. Savings is a basic and important habit. Kiyosaki and his pop culture finance tagline delivers the wrong message to millennials. The only point that I would agree with his book grabbing sensationalized headline is that saving without a strategy is a no win situation. This is the problem with Pop Culture Finance. “They” want you to believe that saving in and of itself is the key to retirement success. When in reality, it is 1 of 4 key principles. It comes down to saving, investing, managing for risk, and tracking your results against your goals.
So, Mr. Kiyosaki, when thinking of these headlines just remember you have a responsibility because people listen to you. Saving is an important habit and by the way not everyone is geared to be an entrepreneur like yourself.