What is Your Financial Heaven? image

What is Your Financial Heaven?

The traditional way and the Kiyosaki way to think about retirement

A couple years ago, I was meeting some friends at a beachside restaurant in Honolulu. I took a seat at the bar to wait for them and began talking with the gentleman sitting next to me. He and his wife had both recently retired and they were living their dream of retiring on the islands. They bought a house on the island of Kauai and were on their way to their new life in a few days.

We had not discussed money, retirement, or the economy, yet out of the blue, this man said to me, “I am just a bit concerned.”

I asked him what he was concerned about, and he told me, “My wife and I have looked forward to our dream retirement for many years and now here we are. My worry is that we may not have put aside enough money to last through our retirement. I guess time will tell.” There was sadness in his voice.

This man, after a lifetime of working hard towards his goal of he and his wife living their retiring in Hawaii, was already worried before they had even begun. He was already fearful of running out of money.

That is not a way to live out the years that are supposed to be your reward for a lifetime of hard work.

Two ways to think about retirement

There are two ways to think about retirement: the traditional way and the Kiyosaki way.

The difference between the Kiyosaki philosophy and other financial philosophies and strategies is that most financial planners, experts, spokespeople, and journalists plan on two things happening upon your retirement:

1. You will have a fixed amount of money to live off of that earns you a small amount of interest, and

2. You will have a lower standard of living during retirement than when you were working, due to the loss of a salary or paycheck and rising medical expenses as you age.

The Kiyosaki philosophy does not make those assumptions. Instead we assume:

1. You have passive income coming in every month that equals or exceeds your living expenses… forever. In other words, you never have to worry about running out of money once you retire or stop working, and

2. Your standard of living remains the same or, in many cases, increases. That is why we measure wealth in terms of time. I can’t imagine a more horrible money problem than being 70, 80, 90, or 100 years old and knowing you are just about out of money.

Reaching your financial heaven

Following the traditional thinking on retirement is kind of a financial hell. No one wants to get to retirement and be worried about whether they will have enough money to live the life they want to. That is what happened to the gentleman I met in Hawaii, and it was tragic. It's financial hell to work hard all your life only to have to cut back your standard of living as inflation, taxes, and health costs eat away at your hard-earned retirement money.

We advocate for planning and reaching your financial heaven. You do this by understanding your infinite wealth goal—what you need to live the life you want without having to worry about money, i.e., making enough in cash flow through assets to cover your living expenses as you want them to be, not as they need to be.

Reaching your financial heaven requires determining your infinite wealth goal and aspiring towards your dream, and then acquiring and applying the knowledge to achieve it. Simple? Yes. Easy? Not necessarily. Worth it? More than you can imagine.

Start with financial education

Achieving your financial heaven is not an overnight process. It starts with financial education today and careful planning for tomorrow. It took Robert and me decades to achieve our financial freedom. We never stopped learning, and we never stopped applying our knowledge. When failure came, we learned from it. When successes happened, they were hard earned.

Today, if you want to avoid financial hell and instead reach your financial heaven, I encourage you to start learning as much as you can about money and investing. Start with a class or read a book. From there, get a coach. Start applying your knowledge, and slowly but surely, you'll be building a rock-solid foundation for your retirement.


Original publish date: September 12, 2013

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