Kiyosaki says that fear can keep people in dead-end jobs, or make them afraid to start a business or even too scared of losing money to invest. His approach to finances, can be described as “failing boldly and rising rich,” and embracing that mindset can help you accumulate wealth.
Failure builds mastery
Kiyosaki criticizes the idea that mistakes should be something we’re punished for and instead says that mistakes are avenues for us to learn new things.
Failure teaches people valuable lessons that they can’t get from reading a textbook. Each mistake gives entrepreneurs and investors the chance to reflect, optimize their next effort and learn how to navigate setbacks. Obstacles are a part of life, and failing often makes you more comfortable with all of the challenges managing finances can throw at you.
Lessons for late bloomers
Kiyosaki also advocates for the idea that it’s never too late to build wealth. Whether you want to start a business or become financially independent, his thinking promotes that these opportunities are still possible, even if you’re starting later in life. At this point, you’ve likely made some mistakes and learned lessons that can help you on your journey.
You have built-in wisdom and can use those insights to finish strong in your pursuit of building a formidable nest egg.
Turning small failures into wins
Every action generates insights, even if the intended outcome is different from what actually happened. You can test financial strategies, adjust your budget and learn new lessons from your experiences. There is never a point when you can guarantee success in a new venture, but you can decrease your probability of failure with each new action you take.
You may have sold a stock right before it took off. Maybe you didn’t open a retirement account as early as you should have. It’s common for people to make mistakes on the way to their financial goals, but turning those mistakes into learning lessons can help you enhance your strategy.
Some people delay their retirement savings and investing because they’re afraid of losing money. But understanding that you may make mistakes and “fail” — and being comfortable with doing so — mean you’re also giving yourself the opportunity to build wealth.