Robert Kiyosaki


money

Most of us know of the 80/20 rule. It also known as Pareto Principle or Principle of Least Effort. What it means is that, 80 percent of our success comes from 20 percent of our efforts. This rule was originated by the Italian economist Vilfredo Pareto in 1897.

However, Robert Kiyosaki believes that the 80/20 rule is only good for average. In his book “Rich Dad’s Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!“, he explain that in the world of money, the most suitable rule is 90/10.

Rule 90/10 means that 90 percent of the people make 10 percent of the money and 10 percent of the people make 90 percent of the money.

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investor

In his book “Cashflow Quadrant: Rich Dad’s Guide to Financial Freedom”, Robert Kiyosaki identified seven (7) levels of investors. The ideas are coming from John Burly but he modified the definitions based on his experiences. The 7 levels of investors according to Kiyosaki are,

Level 0: Those with Nothing to Invest
Level 1: Borrowers
Level 2: Savers
Level 3: Smart” Investors
Level 4: Long-term Investors
Level 5: Sophisticated Investors
Level 6: Capitalists

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