[Namsan Ddalggakbari] Why Women Need to Open Their Eyes to 'Money'

[Asia Economy Reporter Seomideum] 'Marrying for money,' 'Continuing an undesirable marriage or romantic relationship out of fear of managing a household alone,' 'Believing the illusion that men know more about money.'

These are the thoughts and choices of quite a few women. Many women depend on men, believing that men have far superior financial knowledge than women. However, Kim Kiyosaki, author of Rich Woman (Minumins), sounds a warning. Her husband is Robert Kiyosaki, famous for the Rich Dad series.

The book begins with the author meeting friends after 20 years. Kim defines a rich person as 'someone who does not work for money but makes money work for them.' She emphasizes that having a lot of cash on hand is not important, but rather living a life free from being tied to money through 'cash flow' is crucial. Cash flow refers to the ability to analyze the money needed and the money possessed, understanding the amount required monthly to achieve financial freedom. Broadly, it also includes earning the necessary amount as seed money.

There are various reasons why women need to become financially aware. Among women over 50, 47% live without a spouse, and over 50% face economic difficulties due to divorce. Additionally, three out of four elderly people in poverty are women.

Based on this, the author argues that women must also achieve financial independence and to do so, they must learn to read cash flow. It is commonly thought that women lack financial knowledge compared to men, but the author says women can actually become better investors. Women are less reluctant to ask for help and tend to be risk-averse. While risk aversion is sometimes seen as a drawback in high-return investments, if thorough research and investigation are conducted to overcome this, it can become a strength. The author also points out that women’s lower arrogance is an advantage.

In fact, there is no magic solution. Every long journey begins with a single step. Assuming men and women have the same intelligence, the key is to broaden information through reading, lectures, seminars, and newspaper subscriptions. The author especially encourages mastering technical terms.

Of course, gender-specific characteristics cannot be ignored. It is true that women generally feel greater fear. The author says that acknowledging this fear and rising above it can have a positive effect. Education and experience are presented as solutions. Overcoming the fear of the first investment with a small investment and gradually growing is also a method.

The author confesses, “Once, while closing a deal, I was so scared that I actually cried because I was convinced the real estate price would drop.” She continues, “But I endured well. Each time I made a new investment, I learned a little more and became a little smarter. More and more knowledge accumulated. Investing is a process of steadily moving forward one step at a time.”

The author emphasizes, “There is no perfect magical formula. (...) To become an excellent investor, you have to do the homework and put in the effort.” And she adds, “We can buy one of two things with money. (...) By valuing money, I was able to buy freedom.”

Rich Woman | Written by Kim Kiyosaki | Translated by Park Seulla | Minumins | 16,800 KRW