In this section, Robert Kiyosaki explains how leveraging money intelligently can produce far greater returns than traditional saving.
Yes, he shares an example of a second real estate transaction in which, after reselling a property, he could have pocketed $2,000 and re-extended the loan for another 30 years. He reflects on the power of earning money from money, questioning what the true ROI would be if one gets paid to make money in the first place.
Robert contrasts this approach with the conventional idea of saving $100 a month for 40 years, emphasizing how taxes and low interest rates erode real gains. To him, that method might be safe, but it’s far from smart.
As the Phoenix real estate market grew stronger, Robert notes that the houses once sold for $60,000 eventually rose to $110,000. While foreclosure opportunities still existed, they became scarce and time-consuming to find. Recognizing that time itself is a valuable asset, he shifted his focus to new opportunities that could go into his “asset column.”
Kiyosaki also highlights the skepticism he often encounters - people saying, “You can’t do that here” or “That’s against the law,” instead of asking how it’s done. He reminds readers that the math is simple, and professionals like escrow companies handle the legal and payment details.
He enjoys the benefits of investing without the hassles of property maintenance, since the buyers are responsible for their own homes. Even when payments fall through, he sees it as another opportunity - through late fees or resale, all managed by the court system.
Robert emphasizes that while this strategy might not work everywhere due to different market conditions, it clearly shows how a simple financial process can generate hundreds of thousands of dollars with minimal money and low risk. He points out that money is essentially just an agreement, and anyone with a basic education can understand and apply this method.
Despite this, most people stick to traditional advice like “work hard and save money,” missing opportunities to grow real wealth. In his example, about 30 hours of effort resulted in roughly $190,000 added to the asset column, and without paying taxes.
Robert reminds readers that time is one of their most valuable assets. He points out that if someone chooses the traditional route of saving money, they should consider how long it would take to save $190,000 - emphasizing that time matters just as much as money.
He also questions the common belief that a good education alone guarantees success. While academic achievements are valuable, Robert argues they may not be enough to build real wealth.
Using a small investment example, he shows how modest actions can grow into significant gains. His overall point is that a strong financial foundation, built on solid financial education - is essential for long-term success.
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