![\"\"](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/10\/491cd986-lifestyle-kiyosaki-emel-pic-221025.webp.jpeg\"\/)
\u2018Rich Dad Poor Dad\u2019 author and influential \u2013 if controversial \u2013 entrepreneur Robert Kiyosaki. (Pinterest pic)<\/p>\n\u2018Rich Dad Poor Dad\u2019 author and influential \u2013 if controversial \u2013 entrepreneur Robert Kiyosaki. (Pinterest pic)<\/p>\n
\u201cSavers are losers.\u201d This is quote attributed to Robert Kiyosaki, the bestselling author of \u201cRich Dad Poor Dad\u201d. And, like many provoking thoughts, it sparked a debate among personal-finance enthusiasts.<\/p>\n
After all, it is conventional wisdom to save money. So, what is the context behind Kiyosaki\u2019s statement?<\/p>\n
According to his book, the money that we work hard for and save is actually \u201cfiat currency\u201d that derives its value from supply and demand and the stability of the issuing government. Currencies such as dollars, yen, pound sterling and ringgit can be created limitlessly; with increasing supply, their value \u2013 i.e. purchasing power \u2013 falls over time.<\/p>\n
Hence, in his view, to work hard and save currencies for the long-term is like building sandcastles. Kiyosaki prefers to convert his currencies into assets that are income-productive and are at least able to hold their value over time.<\/p>\n
Kiyosaki\u2019s focus is on long-term purchasing power. As a highly skilled entrepreneur and investor, he could borrow millions (in currencies that fall in value over time) to invest in high-quality assets (such as real estate, which generates solid cash flow and appreciates in value over time). This is financial mastery.<\/p>\n
That said, it remains financially responsible to save for a rainy day. It is great to have a sizable stash to meet unexpected life emergencies, or if we wish to treat ourselves to a vacation or pursue projects that are meaningful to us.<\/p>\n
The focus here is more on short-term liquidity. There is freedom and security in having ample savings in our bank accounts. From this perspective, how can savers be losers?<\/p>\n
Ultimately, one can appreciate the context of Kiyosaki\u2019s statement by keeping in mind that balance is the key. It\u2019s not practical to be extreme on either end.<\/p>\n
If you invest too aggressively, you risk not having enough in times of emergency, which puts you in the position of having to sell off assets forcefully to pay for short-term bills. It would be advisable to build up your cash reserves to serve you in times of need.<\/p>\n
If you are into cash hoarding, you are not optimising your capital effectively to grow your wealth. It\u2019s wiser to overcome your fear of loss, gain investment experience, and reap greater returns at lower risk, which is a skill that is liberating and could serve you for life.<\/p>\n