'Bad News: The Crash Has Begun,' Warns 'Rich Dad Poor Dad' Author Robert Kiyosaki — But 'Good News: Crashes Are The Best Time To Get Rich'

Robert Kiyosaki, the author renowned for his financial advice in “Rich Dad Poor Dad,” recently alerted his followers about the onset of an economic downturn in a post on X. 

“BAD NEWS: CRASH has BEGUN. It will be a bad one,” Kiyosaki wrote.

He tempered the alarming statement, saying, “GOOD NEWS: CRASHES are the best time to get rich. Bargains will float to the surface.”

In the advice that followed, Kiyosaki counseled his readers to avoid the common pitfall of impulsive buying during market crashes, a time when many assets appear deceptively attractive. 

Don't Miss:

• Investing in real estate just got a whole lot simpler. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Want To Grow Your Wealth Passively? Unlock Real Wealth with Cityfunds’ Exclusive 8% Yield Fund.

"Avoid catching falling knives, just because prices are plummeting, don’t let greed guide you," Kiyosaki said. "Wait until the prices have fully bottomed out and interest in the asset has waned." 

He emphasized the necessity of education in navigating economic downturns, encouraging his audience to differentiate between reputable and dubious sources, particularly highlighting the mixed quality of resources available on platforms like YouTube.

Kiyosaki also advised on the social aspects of wealth building during a crash, recommending that his followers collaborate with peers who share a similar financial outlook and resilience while avoiding those who blame external circumstances for their financial woes. On the entrepreneurial front, he underscored the importance of starting a side hustle or a small business, particularly as artificial intelligence reshapes the job market, potentially rendering traditional employment less secure.

Trending:

• Want to Create a Passive Income Stream? These High-Yield Real Estate Notes Might Be Your Holy Grail

Kiyosaki also touched on the crucial choice of mentors and the types of investments to make during economic lows, favoring tangible assets like gold, silver and Bitcoin over depreciating fiat currencies. Kiyosaki’s recommendations are thriving in a downturn by making calculated, informed choices.

His strategy echoes Warren Buffett's investment philosophy. Buffett, one of the most successful investors of all time, has consistently criticized the practice of hoarding cash, particularly in inflationary periods. He says investing in assets like stocks, real estate or commodities is substantially more beneficial. 

“Cash does nothing for you,” Buffett said, suggesting that it neither grows nor effectively preserves value in the face of inflation.

While Kiyosaki and Buffett have distinctly different strategies for building wealth, they both recognize the value of strategic investments. Real estate, precious metals and other commodities offer a shield against economic downturns because of their inherent value, which tends to appreciate over time, especially when inflation weakens currencies. This strategy can provide stability during economic turmoil and create opportunities for wealth-building.

Read Next:

• Dara Khosrowshahi-Backed Startup Lets You Become a Landlord with $100.
• Miami Is Expected To Take New York's Place As The US Financial Capital. Invest In It With $500 Before That Happens.