Most young adults start their financial journey with big dreams — but little guidance. Robert Kiyosaki, the best-selling author of Rich Dad, Poor Dad, believes traditional education teaches how to work for money, not how to make money work for you.

In this article, we’ll explore the 5 most common money mistakes young people make, based on Kiyosaki’s lessons, and how to avoid them by building real financial independence.

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1. Relying Solely on a Job for Income

The classic path — go to school, get a degree, find a stable job — is still promoted as the ultimate goal. But Kiyosaki warns that depending on a single source of income is a risky move in today’s world.

📌 “Job security is an illusion. Jobs can disappear. Assets generate income even while you sleep.” — Robert Kiyosaki

The problem:

• Limited income growth
• No time freedom
• Income stops when you stop working

What to do instead:

• Work, but think like an investor
• Learn in-demand skills (e.g., digital marketing, coding, sales)
• Start a side hustle (freelancing, YouTube, dropshipping)

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2. Neglecting Financial Education

Many people know how to earn money — but not how to keep or grow it. This leads to debt cycles, impulsive spending, and stress.

Facts:

• 57% of Americans are financially illiterate (Source: NFEC)
• Credit card debt among young adults is at an all-time high

Tips:

• Read books like Rich Dad Poor Dad, The Millionaire Next Door, or The Psychology of Money
• Follow top YouTube channels:
  🇺🇸 Graham Stephan, Andrei Jikh, ClearValue Tax, Minority Mindset, Nate O’Brien
  🇦🇺 Aussie Wealth Creation
  🇬🇧 Meaningful Money
• Use finance apps like YNAB, Monarch Money, Empower (Personal Capital)

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3. Avoiding Calculated Risks

Fear of failure keeps many young people from exploring opportunities. Kiyosaki believes failure is a better teacher than success — and taking risks is key to growth.

Real-life examples:

• Launch a small online store
• Try freelance gigs outside your comfort zone
• Invest $100 in a stock or ETF to learn firsthand

What to do:

• Start small, but start now
• Research before you act
• Learn from your mistakes and iterate quickly

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4. Having Only One Income Stream

Relying on just one paycheck is financially fragile. Multiple income streams are the new standard for security.

Examples of extra income:

• Create digital content (YouTube, TikTok)
• Sell physical/digital products
• Invest in ETFs, dividend stocks, REITs
• Offer services (design, translation, consulting)

💡 Start with something you already know — you don’t have to be an expert to begin.

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5. Spending on Liabilities Instead of Building Assets

Kiyosaki’s core lesson: Assets put money in your pocket. Liabilities take it out.

🎯 “A financed new car is a liability. But a car used for delivery or rental? That could be an asset.” — Kiyosaki

Examples of assets:

• Rental properties
• Dividend-paying stocks
• REITs
• Online businesses or digital products

Common liabilities that look like wealth:

• Expensive cars on credit
• High-end smartphones
• Monthly payments for lifestyle purchases

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The world has changed — and so has the path to building wealth. Kiyosaki’s teachings remain highly relevant in today’s information-rich environment. Avoiding these 5 financial mistakes is a major step toward long-term stability, freedom, and intelligent decision-making.

You can either follow the traditional, “safe” route — or start building your financial empire today