Amid his numerous warnings of an upcoming financial crash, famous investor and author of the best-selling personal finance book ‘Rich Dad Poor Dad’ Robert Kiyosaki has now shifted the narrative, stating that the crash has already begun and listing his rules to remember during this time.
As it happens, Kiyosaki specified that the bad news was that this crash “will be a bad one,” but the good news was that “crashes are the best time to get rich,” as “bargains will float to the surface,” according to the X post that the popular finance educator published on May 3.
On top of that, he offered the six main rules to remember in a crash, which include:
Picks for you
#1 Don’t catch falling knives
According to Kiyosaki, patience is a virtue, and greediness is a flaw during a crash, even when there are bargains are dropping left and right, therefore he advises “just because prices are falling, do not get greedy,” and “wait until prices have bottomed and no one wants the asset you want.”
For instance, in late March, Kiyosaki highlighted that the price of silver at the time was still well below its all-time high (ATH), praising it as the best bargain as it was “not only a precious metal” but also “an industrial metal and a strategic metal” with soaring demand due to wars erupting all over the world.
#2 Study
As someone who has always touted the importance of financial education, Kiyosaki believes it is particularly important during a crisis, recommending YouTube as a “great source for real and fake teachers” and to “invest time to get into the heads of the teacher.”
Indeed, he earlier warned that fiscal stupidity and lack of financial education in the United States were the biggest threats to the country, referring to traditional teachers as bureaucrats who lack the competence to teach their students about finances and the economy.
#3 New friends
Furthermore, Kiyosaki urges his followers to “seek new friends who are on the same path you are on.” In other words, he advises staying away from victims – “people who blame others for their problems,” and Marxists – “people who expect the government to solve their problems.”
Specifically, he has earlier slammed the current government in the US, headed by President Joe Biden, as ‘Marxist,’ arguing that they “took over the US in the 2020 election [and]will raise property taxes, impose rent controls, as rising interest rates decrease property values.”
#4 Start a side hustle
Also, he praises self-sufficiency, which involves owning “your own business,” particularly as artificial intelligence (AI) “is going to wipe out millions of jobs.” Hence, he recommends starting a small business and becoming an entrepreneur instead of being an “employee afraid of losing their job.”
Indeed, Kiyosaki has argued that a side hustle may “provide you income (…) as the economy crashes, stock markets go bust, pensions crash and unemployment rises” and might even “grow into the next Amazon (NASDAQ: AMZN) or Bitcoin (BTC),” as Finbold reported in late 2022.
#5 Choose great teachers
Closely connected to his rule #2, Kiyosaki believes that “YouTube has an abundance of teachers, some good, many bad,” telling his followers to choose his own teachers, including Ken McElroy for real estate, Tom Wheelwright for tax strategy, John MacGregor for stocks, and Mike Mauceli for oil, adding:
“Be careful who influences your brain, your attitude, and your spirit.”
As a reminder, he has earlier admitted that his whole family were school teachers, arguing that this is how he knew that “they’re all basically bureaucrats [and financially] stupid,” and that, as such, no one should trust school teachers or take financial advice from them.
#6 Don’t save money
Finally, he argues against saving “fake money” or fiat currencies like the US dollar, Euro, Yen, or Peso, as it “goes down in value,” suggesting instead to “save gold, silver, [and] Bitcoin,” in other words, “real money that goes up in value, especially in a market crash.”
In fact, Kiyosaki has previously pointed out that “the rich save gold, silver, Bitcoin” while “the poor and middle class want jobs that promise a steady paycheck but offer no job security,” and “fake $,” which they invest in stocks, bonds, mutual funds, & [exchange-traded funds (ETFs)].”
Conclusion
All things considered, Robert Kiyosaki has long warned about the looming threat of a worldwide financial collapse, particularly in the US, where the “fake” dollar is eroding the global dominance and pushing the American empire to its end.” However, only time will tell if and just how correct he was in his predictions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
