They don’t want what we know out there. You’ll never get those on CNBC. But our school system will never tell us that, because they’re part of the process. Fake money, fake futures, fake assets. I know the game of the rich. My rich dad taught me, you know it because you’re the banker. The bankers and the rich play is different than what they teach you in school.
All over the world, what does school teach you about money? And the answer’s nothing. And that’s not a mistake. That’s not an accident. I knew that. Most people know that. The way to keep the poor and middle class working hard is never teach them what the rich know. So if you read Rich Dad Poor Dad, which came out in 1997, it’s what the rich teach their kids about money the poor and middle class do not.
Poverty hurts. I mean, I don’t like it. And I don’t like that our academic system is so corrupt. We know the banking system is corrupt. We know politics is corrupt. But academic system is just as corrupt. I mean, one thing if it’s the banking and the politics, but this is where we send our children and we trust them to do the right things for them.
And yet they’re being not taught something so fundamental. Like you asked your dad when you were a kid dad you asked your teacher when are you going to tell teach us about money and it was just never never and they’ll never will you know something what do you know share it what is financial education it’s not get a job, work hard, save money, and invest in a well-diversified portfolio of stocks, bonds, mutual funds, and ETFs.
The financial industry is two things, debt and taxes. In 1971, Nixon took the dollar off the gold standard, and the US dollar became debt. And we still tell kids to go to school, get a job, work hard, save money, and get out of debt. Now, who tells them to do that? That’s the most ridiculous thing there is.
The book starts and it says, lie number one, saving money will make you rich. Yeah, it never will. You know that. All taught that as kids. Why would you save it and why would you work for it if they can print it faster than you can work for it? Why do you keep saving when they’re printing it? Rich don’t work for it if they can print it as faster than you can work for it.
Why do you keep saving when they’re printing it? Rich don’t work for money. Don’t you touch that stuff. It’s very subtle, right? They don’t say, I’m going to train you to be a worker, be the rest of your life. But they educate you in a way where that’s what you come out. Right. What else was he, what was he trying to do those first few months were you working for him? What was he trying to get across to you? Because he taught you the hard way about money.
And she says, if you’re gonna be successful in your life, you’ve got to find the best teachers. And a great teacher is somebody who comes from the inside, not the outside. But in school, you don’t know if your instructor is for real or not that’s where the fake teacher comes from I said I want you to teach me about money so it was why should I teach you he said but if I teach you you work for me for free and I said why for free my dad my poor dad went nuts he says if I pay you you think like an employee Your brains will your brain will change if you learn never to work for money. You’ll be a rich man
And this is powerful. Once you give someone a paycheck their brain turns off Correct because it’s and then the promise of a pension right and job security Which is kind of a paycheck in disguise correct after you stop working Give the man a fish, eats for the day, teach him to fish, eats for a lifetime.
And most poor people confuse assets for liabilities. They think their home is an asset, it’s actually a liability. Right. An asset is a noun, like a house. Cash flow is a verb. So to understand if it’s an asset or liability, it takes a noun plus verb. So if the cash is flowing out of your pocket, it’s a liability.
If the cash is flowing into your pocket, asset, verb, it’s an asset. So I own 7,000 rental properties. Those are assets. Every month the cash flows in. Whereas many people have the big house on the hill and the cash is flowing out and they’re going broke. Right, it’s like a frame of mind.
The other thing the poor don’t understand is the number one expense for most people is taxes and yet we don’t even see it. Isn’t that weird? You walk around and you look at the paycheck and say, ah that doesn’t seem right and you don’t realize that the government’s got a huge hand in your pocket and you are doing nothing to minimize that again this is what is very different about the rich and the poor the rich don’t work for money is number one expensive tax see there’s three kinds of income earned portfolio passive so earned income is if i get a job that’s earned income
So earned income is if I get a job, that’s earned income. If I’m a doctor or a programmer, that’s earned income because I’m working for it. If I buy, let’s say, Apple for $10 and I send it for $20, that’s portfolio income, capital gains. But passive income, which is cash flow, is never taxed. So these guys are screaming right now in America tax the rich.
I said good luck because most of the guys complaining they don’t know there’s three kinds of income and the rich don’t have jobs anyway. They have assets and so the average schmo out there, poor guy, you know sent the kid to school they don’t learn this. You see, very few people will buy what I do, make a million dollars and pay zero tax.
And my rich dad taught me that playing Monopoly. That’s how it started. You know, four green houses, one red hotel. Or the McDonald’s formula. I write about it in McDonald’s, Ray Kroc. Yeah. McDonald’s is in the real estate business. So they sell hamburgers, but they buy real estate. They pay no taxes You know this guy basil’s what he’s 16 billion dollars.
How much tax did it pay on that 16 billion? Zero and that’s all legal anyone can do it. Everybody could do it everyone most people lack the education So once you learn how to use debt as money, you can never say, I can’t afford it. See, because the banks will give you, so the banks, after the crash of 2008, the banks gave me $300 million tax-free.
When I asked the average guy, I said, can you, why don’t you use debt? They can’t even get a loan. Because their scores, their FICO scores, I don’t even use debt? They can’t even get a loan because their FICO scores, I don’t even have them here, are so bad.
The school teachers will never tell you that because they don’t know it. My poor dad never knew that. You don’t know if something is an asset or a liability until you can see which way the cash flows. So a house is an asset or liability. Well, if it’s taking money from your pocket, it’s a liability. If it’s putting money in your pocket, it’s an asset.
The U.S. government wants me to provide housing, wants me to provide jobs, wants me to borrow money because that’s how money is created through debt. I get huge tax breaks. Everybody can do the same thing if they had the financial education to do it. If people understood the tax code, we’d be more prosperous. But can poverty be passed through genetically? Yes.
Because it’s some type of way of thinking. It’s an attitude. An attitude. It’s very simple. When people ask how do I stop it, I just say never say I can’t afford it. Ask yourself, how can I? The reason I have so much money is because I don’t say I can’t do it I just go how can I do it and I just go and do it.
I make a lot of mistakes but that’s how I learned how can I? The poor people like my poor dad always said I can’t afford it. You think I’m made of money? I’m a school teacher I can’t do that and I picked that up and my rich dad never said those words. So when I meet poor people, they use the words, I can’t a lot.
So the people that say, I can’t afford it. I can’t do this. I can’t get to college. The rich are evil. I choose not to participate in that. And that’s one thing people could change today. Correct. Right now is that dialogue in their head. Stop saying the word can’t. I can’t. Right. So how can I? How can I? Especially as in, I can’t afford it.
How can I afford that? Because that opens them up to looking at it as an investment to a greater future. Right. You know, when I borrowed $300 million, I couldn’t do it until I went to ask. And I got turned down so many times. And every time I showed the bank my financials and he’d go, sorry, I said, look, do me a favor.
Why did you turn me down? And he’d tell me, this is out, the numbers are out here. So if I get these numbers fixed, can I come see you again? He goes, sure. So it’s called rejection. Same as my wife rejected me for six months. It’s just a matter of personal willpower, which is spiritual.
Just saying, if they can do it, I can do it. And how can I? How can I? And I think it’s you once said, words become flesh. Yep. That’s the Bible too. Intelligence increases through your mistakes, It was the Bible too. Intelligence increases through your mistakes, through the ups and downs, through what you’ve learned.
Real estate’s real estate, but what I learned made me richer, not the money. You don’t need money to make money. You know, I think all of us, every human being has that low point in their life. And if they get the message, a new life begins. If they don’t get the message, they keep going down. The richer I got was because I didn’t need any money.
I could use this to make money. But how did I get there is I made a lot of mistakes. People are afraid of making mistakes and all this fear of failing. It limits them. Nice, nice, so very nice. So many people trapped in the same device.
Robert Kiyosaki The Speech That Broke The Internet
Do the rich people cringe and say, don’t tell them that, Robert? Yes, yes, yes. Don’t tell people what you know. Keep them poor. My father was the head of education, PhD, all that stuff. I go home and ask him, I said, why don’t we learn about money in school? And he looked at me and says, because the government doesn’t let us teach that subject.
The government tells us what we can teach and what we can’t teach. And I thought that was strange. And I said, but aren’t we going to school to learn about money? He says, no, your job is to get a job. I said, but you get a job to earn money. He goes, no, you’re supposed to just get a job. I went, no, no, no, no, no. Isn’t the purpose of a job to earn money? He goes, no, you’re supposed to just get a job. I went, no, no, no, no, no.
Isn’t the purpose of a job to earn money? He goes, you’re correct. I said, so why don’t I just learn about money? I can skip the job part, you know? And he got flustered and he said, if you want to learn about money, why don’t you ask your best friend’s father about money? don’t you ask your best friend’s father about money?” I said, why? That’s Mike.
So why ask him? He says, because Mike’s father is an entrepreneur. And I said, what are you? He says, I’m an employee. I’m a government employee. I went, oh, what’s the difference? He says, the difference is an entrepreneur must know about money or they’re no longer entrepreneurs And he says an employee doesn’t have to know anything about money Because the government will take care of the company will take care of So I’m kid I’m all confused But I took my dad’s advice and I trundled over to Mike’s father’s office and knocked on his door and I said hey
I’m here nine years, teach me about money. He says, beat it, kid. But that’s where the story of Rich Dad Poor Dad started. And finally, through persistence, my rich dad started teaching me about money on one condition. And that condition was he would never pay me.
He says, the moment I pay you, you think like an employee. He says, that’s the trap. Entrepreneurs work for free. And now I’m nine years old, my head’s going cracking in half. He says, you never won a paycheck. Understand that kid. He said, okay, I got it. And he says, well, how do I make money? He says, that’s what entrepreneurs figure out. It’s like, so how do I learn about money? So he would just break out a Monopoly game board.
So I would work for free. I’d pick up cigarette butts. And he had hotels and restaurants. And I would clean and do menial tasks. And as I got older, I started getting into office work and marketing and accounting. And I was an apprentice, basically. But I always worked for free. And he would teach me about money. But the way he taught me about money was playing Monopoly.
And I finally one day I got upset, I said, well when are you going to teach me about money? He says, what do you think we’re doing? We’re playing Monopoly. He goes, no, no, no, no. What do you think we’re doing? We’re playing Monopoly. He says, what do you think we’re doing? I said, I don’t know. I’m teaching about money.
And then that’s when, you know, you have one green house. He says, there’s many formulas for great success in money. There’s thousands of them. But one of the best ones is found in the game of Monopoly. It still is today. Four green houses, one red hotel. I said, what? today four green houses one red hotel said what he says one of the greatest ways to acquire great wealth is playing monopoly in real life four green houses one red hotel is that all there is he goes that’s it and he says what do you think i’m doing and i went i don’t know so then he took me out he showed me his greenhouses
and ten years later when I was 19 I was now in school in New York and I come back to Hawaii and Rich Dad had bought the biggest piece of land smack dab in the middle of Waikiki Beach and when you go to Waikiki Beach today you’ll see the Hyatt Regency Hotel. That was his hotel. Just like the game of Monopoly.
Just like the game of Monopoly. Acquired assets and they became bigger assets. He just kept what’s called an assemblage because that property wasn’t that big at the time. So he had to buy out all the small guys. Because Waikiki was a little dirt water little town. So he’d buy out this shop owner, buy that shop owner.
And it took him a while, but he finally assembled this large piece of property. And then he and Hyatt put up this giant hotel. And it just sold for $800 million. So that’s how I learned about money. So that’s how I learned about money. I’ve had financial crashes. I’ve had people stab me in the back.
But they’re all good because I grow from it. That’s spirituality. People who are afraid of making mistakes like they teach in school, they don’t ever grow. Because spirituality is there’s good and there’s bad.
There’s and there’s wrong there’s up and there’s down most people only want to be right they only want to be positive well you can’t have that that’s not reality well I wasn’t poor by most people’s standards but I came from a family with a poor attitude, if you know what I mean. Because rich, poor, middle class, poverty starts with a fundamental attitude. Poverty is passed on. It’s taught in your families. And middle class is taught in families.
And so the people right now who are sitting at home, who are struggling financially or worried about money or unhappy, they may be making a lot of money, but unhappy with what they’re doing, it was probably taught to you. Your superego was taught, get a job, work hard, or you’ll never be rich, or the rich are evil, or whatever.
The school system will never teach you about money. The school system was designed to teach you to be an employee, which is important, or a doctor or a lawyer, a specialist, but never about money. And what most people lack is real business knowledge, like accounting, like debt, like taxes. You gotta know that stuff, but they don’t teach it in school to anybody. like accounting, like debt, like taxes.
You gotta know that stuff, but they don’t teach it in school to anybody. So, and then when people ask me, how did your rich dad learn this when your poor dad, a PhD, didn’t? And the answer’s very simply. My rich dad, who’s my best friend’s father, his father died when he was 13. So his rich dad had this family business at 13 to run. So he had to drop out of school, which was his blessing.
You know, there’s blessings and you know, sometimes a blessing doesn’t look like a blessing, but it turned out to be a blessing. And then his teachers became his bookkeeper, his accountant, his attorney, his banker, his real estate agents. So he has what I call real teachers, not these fake teachers in school. You see, most teachers in school, they’re out of ethics.
They teach subjects they themselves don’t practice. I asked the teacher, I said, you know, I’m in my third year of calculus now. It was called strength of materials. I said, am I ever going to use this stuff? He goes, no. You know, I said, why do you teach it? I said, I get paid. He said, do you ever use it? He goes, no.
And that’s why, you know, you have to, in life, one of the things I suggest to people, you’ve got to find a real teacher versus a fake teacher. And a fake teacher is somebody who doesn’t do what they teach. And a real teacher is doing what they teach every day. So my accountants, my attorneys, they’re in it every single day.
That’s how I learned, because every day I’m solving problems in my business. So I have accountants and attorneys and bankers and all these people on speed dial because I’m solving problems with my team. I see you giving this knowledge out. Do the rich people cringe and say, don’t tell them that, Robert? Yes, yes, yes. Don’t tell people what you know.
Keep them poor. But, you know, unfortunately, the poor, as was in the Bible, I’m not real religious, the poor will always be amongst us because it starts up here. Right. It’s that fear mentality. It’s in their words, you know, and the words become flesh. Again, I’m not really religious. I flunked out of Sunday school also.
But when they say I can’t afford it or I flunked out of Sunday school also. But when they say, I can’t afford it or I can’t do that, they go down. They become what they say. My PhD dad, he says, what do you think I am, made of money? I can’t afford that. And my rich dad would say, that’s why he’s poor.
Poor people say, I can’t afford it. I can’t do that. I don’t have time. Because this is an escape. It’s an escape. You know what I mean? It’s easy to say, I can’t afford it. And your rich dad used to say what instead of, I can’t afford it? How can I afford it? How can I do that? You know, what would it take or why should I do that? He says a question opens a mind, a statement closes the mind. So when you say, I can’t afford it, your mind shuts down and you become what you say.
Rugby is a team sport, but so is soccer. The rules are different. And other people are golfers. They play by themselves. And so everybody’s different. So my game financially is business, number one. Second is real estate. So what I say to young people is you find your game. Thank you.
