“Savers are Losers”
It’s a comment by Robert Kiyosaki, best-selling author of Rich Dad Poor Dad.
And, like many provoking thoughts, it sparked a debate among personal finance enthusiasts. Such occurs because it is conventional wisdom to “save money”.
So, what is the context behind Kiyosaki’s statement?
Are savers really losers?
What are my personal thoughts about it?
Here, I’ll share my take on savings, access both views for and against the above statement, and to offer an insight that is helpful to optimising our personal wealth presently.
Yes, Savers are Indeed Losers.
Personally, I’m a fan of Robert Kiyosaki’s works on financial education.
From his books, I learnt that “money” that we work hard and save is actually fiat currency. There is a difference between the two. Money has intrinsic value as its supply is limited. Fiat currencies that we use today, like Dollars, Pounds, Yen, and Ringgit, could be created limitlessly. So, with increasing supplies, their values (purchasing powers) would inevitably fall over time.
Hence, to work hard and save currencies for the long-term is likened to building sandcastles.
That’s why Robert Kiyosaki converts his currencies into assets that are income-productive and are able to at least hold their values over time.
Or even better, he could borrow billions (of currencies that fall in value over time) to invest in good quality assets (mostly real estate that generates cash flow and appreciates in value over time) for Robert Kiyosaki is a highly-skilled entrepreneur and investor. That is financial mastery and this lays the context to why he believes that “Savers are Losers”.
No, Savers Are Not Losers
It is financially responsible to save for a rainy day.
It is great to have a sizable piggy bank to meet unexpected life emergencies. Minor car accident? Fridge broke down? Got laid off? No problem at all. We can foot these bills. Plus, what if we have a desire to take a few days, weeks and months off to go on a vacation, rest or even pursue projects or works that are meaningful to us? No problem. The fatter our bank accounts, the more choices / options on what, when, where and how we want to pursue them.
There is a sense of security and freedom to have sizable cash stashed in our bank accounts.
In that view, how could savers be losers in life?
I Agree to Both Views
To me, I find both views to be valid.
Their contexts are different.
To those who are with Robert Kiyosaki, their focus is on long-term purchasing power. Long-term is a period that spans years and decades. Obviously, the purchasing power of cash diminishes in the long run. So, to protect its purchasing power, I invest, which is to convert cash into assets that hold value and produce cash flows.
To those who are with conventional wisdom, their focus is on short-term liquidity. Here, if I spend a total of RM 100,000 in living expenses a year and I have RM 500,000 in cash in my bank accounts, I would definitely feel more financially secure, peaceful and comfortable.
The Key is to Balance the Two Worlds
While I agree to the two views on savings, I don’t think it is practical to be extreme on either end.
If one invests too aggressively, he risks not having enough to face emergencies. This could put him in a position to sell off assets forcefully to pay these short-term bills.
If one is into cash hoarding, he is not optimising his capital effectively to grow his wealth.
So, I feel that it is practical to balance both short-term liquidity and long-term growth. One classic example of such a role model is Warren Buffett. Sure, as of 30 June 2025, Berkshire Hathaway, Inc, Buffett’s company, reported to own US$ 293.2 billion in equities. But, the company was keeping as much as US$ 339.8 billion in cash and US Treasury Bills. In other words, while Buffett is investing for the long-term, he sets aside cash that can either be deployed for more investments or to meet or face any unexpected bills when they arise.
Thus, if you are already heavily invested, it’s timely to build up your cash reserves to meet, at least, 6-12 months worth of living expenses. They can come in handy in times of need.
Also, if you are a cash hoarder, the breakthrough you need is to overcome the fear of losses which arises from bad investments. This takes time to build as you need to gain investment experiences. I can’t say for all but I believe it is worth it. Sure, I’d incurred losses from investing. But, the gains I’ve made exceeded the losses. Beyond financial wealth, I had gained the ability to invest and produce greater returns at lower risks, which is a skill that is liberating and could serve me for life.
Conclusion: How Savers Can Be Winners in Life
While I appreciate the context of “Savers are Losers”, I’m taking a balanced approach where all of us can optimise our financial resources by keeping a portion of capital for liquidity and investing all the balance to protect our capital’s purchasing power and to generate cash flow.
While investing is simple, it takes skills and experiences to be successful in it for the long-term.
Here, if you like to have a structured course to speed up your learning curve in investing, here is a quick link to a FREE webinar session for you if you are looking to explore how to up your game in dividend investing:
- How to build a dividend stock portfolio that delivers steady cash flow.
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