Financial education: Robert Kiyosaki vs Dave Ramsey - achieve financial freedom

robert kiyosaki dave ramsey to the biggest names in personal finance and they have two of the biggest differences in opinion on personal finance so if you're sitting at home and you're sitting there saying you know what I've had enough I'm sick of being sick and tired and I want to get control of my personal finances then you start googling and you say you know who who should I should I look for what should I do about my finance and then you come across Dave Ramsey you may have known him or heard of his name or you come across Robert Kiyosaki and you may have heard of him the majority of people have heard of one or the other is what I found so you know let's say you look and Yahoo or Dave Ramsey you see his philosophy on Finance and then you go and you find Robert Kiyosaki and you see his philosophy on personal finance you may be very confused at this point you might they're so different so then you're gonna say you know who do I listen to what who's right this is this guy saying this this guy saying this I'm so confused I don't know well thanks for stopping by my channel and watching this video my name is Shalon winter and I'm about to tell you who's right so keep watching so who is it quickly before we go into that let's talk about each one's philosophy quickly let's go over a quick recap because you know many people from what I've seen is that most people either know of Dave Ramsey know his philosophy on Finance or know of Robert Kiyosaki in his philosophy on finance and that they are so different that what I've seen is most people if they are followers of Dave Ramsey their mindset does not get them to listen to what Robert Kiyosaki has and vice versa the people that follow Robert Kiyosaki their mindset does not allow them to listen to Dave Ramsey they don't cross Pat's here so in this video what I want to do is I want to cross those paths for you because most of the people that I know of though that I've seen or that was on Facebook or in public groups anywhere many many many people in majority of people were or are struggling financially and looking for a way out so I want to expand your mind I want to help you expand your mind and see both sides of it like I said most people are on one side of the other and they never really crossed paths to learn and see who might be you know maybe this guy over here is correct maybe this guy over here is correct so real quick Dave Ramsey if you go on his website he has seven seven steps have a baby steps to get started and take control of your finances so step one is to save a thousand dollars towards your emergency fund first step start saving everything you can twenty-five dollars here fifty dollars there whatever you can till you get a thousand dollars take towards your emergency fund step to pay off your debt early start paying off your debt and he has a he calls it a snowball Declan where can take all of your your debts revolving credit cards fixed debt cars mortgages student loans all that stuff take it and you put it into this plan the snowball plan where basically it structures it in a way where once one is paid off it takes that amount and it rolls it on to the next and so on until your debts paid off it's a great way to pay off debt faster earlier and actually have an actionable plan in place so there's a lot of spreadsheets out there for you Google snowball Excel spreadsheet you'll find some I will include one in the description here and a link you can download for free and also on home budgeting worksheet just to keep track because the first thing that you need to do is actually know where you are financially keep track of where you want to go know where you want to go on keep track and follow that plan because if you don't follow that plan you're not going to get to where you want to go financially so that's that step two step three now you want to fully fund that emergency fund with and that emergency fund is you want to have three to six months of living expenses if you were to lose your job today you want to have enough safe to live three to six months off of your emergency fund so that's what he recommends on step three is to go ahead and fully fund that whatever you need for three to six months right step four invest fifteen percent of your income towards your retirement the toward your you know he recommends a Roth IRA a long-term savings vehicle that will produce a create a good rate of return over time that way by the time you are at retirement age you can retire and have funds you know to live off your golden years step 5 he wants you to go ahead and save up for a college fund for your kids step six is pay off your home early because whenever you get towards retirement age let's say you have a plan to retire at age sixty you don't want to get to that age sixty and still have five or ten years on your mortgage to pay because that'll just mess up your plans be debt-free mortgage paid off retire at 60 now if you have a million saved up two million whatever it is for your tournament you live that you live off of that forest you know of your life basically step four is now build wealth and give that's what he in a nutshell recommends so term life insurance put a financial plan in place to get out of debt early save you 15% of your income and you know retire oh say for the long-term retire that's that's basically what Dave Ramsey's plan is now Robert Kiyosaki let's look on the other side he has a traditional non I'm sorry non traditional way of his personal of his financial philosophy and I say non-traditional because Dave Ramsey's is more traditional more of a realistic way of handling personal finance in the mindset of the majority of people because the majority of people have an income they can save money they could put a little bit of money to decide to retire on you know that's more realistic Robert Kiyosaki he has he's best known for his book Rich Dad Poor Dad that book was a number one personal finance book for of all time and and it was on the New York Times bestsellers list for like ten years and wrote something like that crazy great book I recommend picking that up and reading it I'll have a link in the description also if you want to pick up a copy it'll take you straight to Amazon you can buy your copy but the thing is is that he has he talks about in the book - there's four ways of making money basically and he calls it the cash flow quadrant I'll put that right here e SBI you can see that what that stands for is employee self-employed business owner and investor his whole philosophy is saying you need to go from the left side of this quadrant to the right side of the quadrant find a way to be a business owner and investor why because he taxes and debt will make you rich and because that's what the tax code incentivizes you to do in real estate we invest in real estate businesses that give provides jobs to employees oil gas commodities he also likes to hold physical gold and silver as a hedge against the dollar that's losing value that's why he also says savers are losers if you save just save in a savings account well the inflation of dollars losing value all the time so another thing that he talks about is that's been a very very big area of debate is he says your home that you live in your personal home is not an asset I don't know if you feel that way or not but the reason why is because by definition his definition of an asset is something that brings you cash flow into your account every month something that provides cash flow to you every month something that takes cash from you is not an asset so and he says that because your home has a mortgage your home has repairs and maintenance and taxes and all the kinds of stuff you got to pay which cash is leaving you not coming in - that's what he said is your home is not an asset so that's been a big big big debate big debated area so you know going over real quick recap of Robert Kiyosaki said you must find a way to become a business owner and investor you need to invest into physical tangible assets he calls 401 k's and stocks bonds mutual funds ETFs he hates all those things he says they're fake assets he says there's you know the dollar is losing value all the time so he hates all the stuff he wants to invest in physical physical assets and that's his philosophy now I know most of you are thinking well Dave Ramsey sounds like something I can do Robert Kiyosaki sounds like I can do how do I go and just you know I'm barely living paycheck-to-paycheck I'm barely making ends meet right how do I go and buy another house and rent it out or buy an apartment like he buys apartments how do i do all that how do I become a business owner so for most people that is just so far out there where it's like where I am is start so then you follow Dave Ramsey so my opinion and I've been in the world of finance since 2008 actually right after the financial crash like crass crisis last time it's when I got into finance and I got into personal finance where I used to you know help people with it something similar like like what Dave Ramsey explains and then I started learning about Robert Kiyosaki and his philosophy so in my opinion they're both right but what you need to do for yourself is find out what you want to do what do you want out of life in general and then I recommend reading Dave Ramsey stuff following him seeing what he talks about right his philosophy do the same for Robert Kiyosaki because like I said earlier most of these audiences do not cross paths they don't go and read each side or listen to who's saying what listened to both of them and figure out which one works best for you and make that decision then you can make that decision right so that's what I really recommend to do so that's why I feel like they're both right because if you're not gonna get financially educated on what Robert Kiyosaki is doing because in my opinion I'm more on the Robert Kiyosaki philosophy I'm a full-time real estate investor I follow his I have followed Dave Ramsey's so and that's why I say they're both right because if you're not gonna take the time to learn and get educated on certain things then you should probably follow Dave Ramsey but learn both where both and may that decision that is my recommendation so hey guys so I'm gonna keep making videos I know this is I'm just getting onto YouTube but I'm gonna start making videos on a lot of topics on financial education that's my thing so please like this video subscribe leave some comments in the in the comments you know I wanna see what you guys have to say about about this who do you follow you follow Dave Ramsey you follow Robert Kiyosaki who do you follow let me know tell me why subscribe share this video and I'll see y'all next video take care

Channel: Shalan Winter

Views: 8,534

Rating: 4.483871 out of 5

Keywords: financial education, financial planning, financial freedom, robert kiyosaki, dave ramsey show, the dave ramsey show, TheRichDadChannel, becoming a millionaire, how to become a millionaire, assets vs liabilities, how to invest, how to pay off debt, personal finance, debt pay off, how to make money, how to retire, renting vs buying, compound interest, credit card, real estate, retirement fund, 401k

Id: ANkMibbZICA

Length: 13min 25sec (805 seconds)

Published: Mon Apr 29 2019