RICH VS POOR MINDSET | An Eye Opening Interview with Robert Kiyosaki [Extended Version]

the most obsolete idea is go to school get a job work hard save money get out of debt and invest for the long term in the stock market so why would you save money when they're printing trillions of dollars the gap between the one percent and 99 is massive you see it's not just money you have to step back and look at the bigger picture so what do you do and every one of us is a poor person there's still a poor person inside me there's also a middle-class person and the middle-class persons want security

they want that steady paycheck and there's a rich person and they're all inside of us except that it's not taught that you're taught to go to school get a job and get a paycheck you're not taught how to get rich if you're read rich dad poor dad my rich dad refused to pay me he said the paycheck was one of the most damaging things you can take in your life he says the moment you take a paycheck you're an employee and that's the mindset so my rich dad never paid me he drew up my poor

dad you know government employee nuts you got to pay people you got to pay people and rich dad was not saying that the paycheck was bad he says you air he didn't want to be a slave to money so as an entrepreneur you know if rich dad folded i just start another company i don't need a paycheck i don't need anybody to take care of me if my government doesn't like me i move to another country because they need entrepreneurs so the entrepreneur is not so much the business the entrepreneur is really the mindset and

the skill sets and the different set of rules you see i don't operate small business does not operate in the same roles as big business entrepreneur is a mindset first a skill set and rules and depending upon whether you're employee or small business the roles are different the mindsets are different the skill sets are different do the rich people cringe and say don't tell them that yes yes yes don't tell people but what you know keep them poor [Music] 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 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'm like 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 you want to learn about money why don't you ask your best friend's father about money and i said why that's mike so i asked him he says because mike's father is an entrepreneur and i said what am i what are you he says i'm an employee i'm a government employee i went oh what's the difference this is the difference is an entrepreneur must know about

money or that 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 them 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 old teach me about money he says beat it kid you know but that's what this toy refrigerated 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 want a paycheck you understand that kid he said okay i got it and he said 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 and pick up cigarette butts and get 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 that's 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 [Music] we're playing monopoly he goes no

no no no what do you think we're doing we're playing monopoly says what do you think we're doing because i don't know i'm teaching about money [Music] and then that's when you know you have one green house you know he says there's many formulas for great success and money there's thousands of them but one of the best ones founded on the game of monopoly still is today four greenhouses one red hotel said what he says one of the greatest ways to acquire great wealth is playing monopoly in real life four greenhouses one red hotel but

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 10 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 by that shop owner and it took him a while but he finally assembled this large piece of property and then he then he and hyatt put up this giant hotel you know i just and it just sold for 800 million dollars so that's how

i learned about money the reason i wrote rich dad poor dad was because i knew this time was coming and we have as a world i've never been here before and so is it a spooky time damn yet it is a it is probably the most dangerous time ever ever ever ever there's nothing to compare it to because there's never been a world economy before for example you know 100 years ago if there was a stock market crash in england didn't affect anybody but now the u.s market goes down the world goes down so plus

with social media and all this we're doing now and so we've never been here before and uh you know i i'm excited about it because i make more money in crashes than i do when they go up so but for the average person they'll get wiped out i'm afraid that the worst i hope i'm wrong but i think we're heading for a global depression how does this play out for the average worker robert for the small business owner i mean what does the next three months look like because it doesn't look pretty i mean people

are already being laid off made redundant businesses are there's no cash flow in most of these businesses how does that play out well let me give one one more step just to give you the size of it okay the national debt for world war ii was 25 billion every day today every day they're printing 125 billion every single day that's like five world war twos per day they're printing so much money to keep this boat this thing of a hot air balloon with a tear in it and they're doing desperately trying to fix this tear

but no matter how hard they try the tear has gone beyond it's coming down so in in financial terms it's called our debt to deep gdp has now gone from 60 to 90 to 105 it's going to 120. we're bankrupt and they're going to print more and more money which means savers are losers just as i predicted your money is going to be worthless in a few years so my message is the same as some of your other guests this is metamorphosis type financial education in rich dad's terms is really financial transformation and the definition

of metamorphosis is very important metamorphosis the definition is the evolution or the transformation from an immature form to an adult form an immature form to an adult form metamorphosis is the same as a caterpillar turning into a butterfly and fuller always says there's nothing to predict a butterfly inside a caterpillar so everybody listening right now if you're struggling financially just look at yourself as a little caterpillar and this crisis is your cocoon the question is what do you emerge as do you emerge as a victim you know the world did to me and the capitalists

are crooks and the rich are bastards and all this stuff or do you say oh this is the best thing that ever happened to me the same as my health i am ground zero for the coronavirus all that it does is inspire me to get healthier you're either gonna get healthier and wealthier or you're gonna go bust your choice it sits between your ears your heart your body your mind your spirit your attitude this could be the best thing that ever happened to you physically mentally emotionally spiritually if you turn on to a butterfly or

somebody will step on you like a little worm it's your choice [Music] you could say one thing to somebody who's never been an entrepreneur and they're thinking about making the leap of faith into becoming an entrepreneur what could you tell them well i'll just tell them the same thing that happened to me you know my last paycheck i still remember it clearly it was one of the worst and the best days of my life and i was in puerto rico i was in i was working for xerox and my boss gave me my last it

wasn't a paycheck was a bonus check i think it was about 30 000 bucks taxable it's the only problem with that so i got this check and i went holy mackerel you know what i mean so i was excited but i was also disturbed and so this other guy comes up to me his name was john and john says to me says you're going to be back i said why he says because you're going to fail i looked at him and said look a few expletive words because that's what he did he left xerox failed

he came back and i said look you failed and you come came back but i'm gonna fail and i'm never coming back and that's the attitude do i mean if if you say well if i fail i'll go back to mommy and daddy then that's what you'll do so if you fail that's when i became an entrepreneur because i had no money i had no money for years you know i didn't have a paycheck but that's what my rich dad encouraged me to do is when you're when you don't have this paycheck you get hungrier

smarter and use a test of your character will you become a crook where you become dishonest will you cheat and steal or will you become a better human being so really that's the benefit of becoming an entrepreneur is you really find out who you are when you don't have anything you always have to look at the big picture too many people look at well what's going to happen to me well you look at the big picture you're also going to know that when something bad happens something good is going to happen but you got to

prepare for whatever is coming if you think next 20 years will be like the last 20 years you got creamed you know when you and i go to the supermarket and we buy a carton of milk we always check for the expiration date but most people do not check for the expiration date on their brains instead of get out of debt i get into debt i just refinanced 300 million in debt i went from five percent to two and a half percent interest i made a fortune every month more money comes in because my cost

of money has gone down so while some financial experts are saying get out of debt i'm saying learn how to use debt so when i came back from in vietnam in january of 73 the first thing my rich dad said to me was go to school to learn how to invest in real estate it wasn't real estate it was how to use debt and taxes debt and taxes make the rich richer debt and taxes make the poor middle class poor so all the rich guys who are doctors and lawyers or you know those guys they're

getting creamed and they don't know why doctors are getting creamed oh yeah they're making more money but the take-home is less sure you know my doctor just yelled at me he's happy he says oh guess what i finally made a million dollars and i said yeah this was just three weeks ago and so i said yeah well how much you pay in tax he says 750 000 in taxes so his net was about 400 000 that's not bad but when i make a million bucks i keep a million bucks and the reason is because i

don't make it by working for money see if you work for money you're taxed so that's why lesson number one in rich ted poor dad is the rich don't work for money what we do instead is we create businesses as entrepreneurs we acquire real estate i don't invest in the stock market so the reason is because as entrepreneurs i have more control over my income how much i make and how much i pay in taxes and because i'm an entrepreneur as well as an investor in real estate i pay zero tax so every time i

make let's say a million dollars as an entrepreneur i immediately invested in real estate i have a four to one step up so i put a million dollars in real estate i get four million from the bank that's why i love banks but the banks are screwing everybody else you know terrible but it's good for me that's why you say when you print it's good for you but when you print it's bad for people that work for money because when you print savers get creamed and people who work when they get creamed when they print

debtors get rich you see debt and taxes make the rich richer and debt and taxes make the poor middle class poorer when we have obsolete ideas we get obsolete results so what's happening for most people the idea of going to school getting a job working hard saving money getting out of debt buying your house because it's an asset investing for the long term is obsolete the world has changed the world change in 1971 when president nixon took us off the gold standard and money became debt what if we get rid of school then what would

happen would it be better if we had no educational system at all no i'm saying education is more important before it's just obsolete you know there's moore's law that moore's law which states information doubles every 18 months in other words everything's obsolete 18 months so and this is a recent phenomenon so when you come out of school you're already obsolete and that's why i'm the old guy you know i meet my friends who went to harvard see i went to harvard i said yeah that was how long 50 years ago today the banks are charging

you interest to save money in other words banks don't want your money because they printed too much of it and that's why this is bubbles and stocks and bubbles and real estate and all this people are dumping the cash because as i said in here savers are losers and cash is trash and yet people want a high paying job well that's an obsolete idea get out of debt is an obsolete idea you should learn how to get into debt how to use debt to get rich and they'll never teach you about taxes the reason the

one percent is way up here and the 99 are going this way is because when you print money two things happen inflation in taxes it's crushing and any entrepreneur thinks i'm just going to make money i'm going to start a business and make a lot of money because we talk about they really have got to smell the roses man you know that's not what the real entrepreneurs are doing most entrepreneurs there's 28 million small business owners in america 24 million are what are one person entrepreneurs they're called non-employee entrepreneurs so because and that's what happens

is when people don't really understand what an entrepreneur does so most big people are self-employed but they're not really entrepreneurs the self-employed paid the highest taxes of all and nobody tells them that yeah it's also called the entrepreneurial spirit but what we were actually talking about was there's no such thing as a bad economy you know those external you and i we all have an external economy but we also have an internal economy and the willpower is to change our internal economy so for me i can see the good and i can see the bad

i don't really give a damn because i'm going to be rich anyway but a poor person with a poor personal economy all they're going to see is a bodyguard because they don't know how to make money in any economy and a middle class person they have a middle class economy you know that what they want is a nice house a steady paycheck and the job and the car and so when you take their job away to them that's disaster well since an entrepreneur doesn't have a job anyway it's no big deal so all i'm saying

to people is what bucky fuller taught me is always two sides you know i mean you know to use plural at minimum two so if you think the economy is bad it's because your economy is bad if you think that steady you know employment is important then you'll see an an economy without jobs your economy versus the external economy will you control versus where you can't continue i can control yeah it's called it's called an internal focus versus an external focus so the real entrepreneur has an internal focus that if they fall down they say

oh this is good because i'm going to go up higher you know the average person will fall down say oh i'm going to take some prozac or or or somebody has the mistakes all the mistakes don't matter well mistakes mistakes matter it means you didn't know something but a real entrepreneur whether they fall down they go they're always can go up they can stand back up and go higher but no matter what happens to them they get stronger and better and smarter and happier but person with a weak internal mindset is that they're so afraid

of what happens it generally happens like you know people are afraid of losing their jobs they generally lose their jobs i mean yeah so it's that so you can control you yeah so the entrepreneur first job is a control inside here not outside there the moment you take that paycheck you're an employee you've got to be stronger than that it's about inside control 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 you know 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 right 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 you know your super ego was taught get a job work hard or or you'll never be rich or the rich or 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 you know 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 they didn't and the answer is very simply my rich dad was my best friend's father his father died when he was 13. so his so rich dad had this family business at 13 to run so he had to drop out of school which was his blessing you know those

blessings and you know sometimes the 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 bankers 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 don't 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 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 as i get paid he said do you ever use it he goes no [Music] and that's why you know you have to in life one of the things i suggest to people you gotta find a real teacher versus a fake teacher and a fake teacher is somebody 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 learn because every day

i'm solving problems in my business so i have i have accountants and attorneys and bankers and all these people on speed dial because i'm i'm solving problems with my team i see you giving this knowledge out and yeah do the rich people cringe and say don't tell them that yes yes yes don't tell people but they 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 it's in

their words you know and the words become flesh god not really religious i flunked out a 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 daddy 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 escape it's an escape you know i mean it's easy to say i can't

afford 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 see 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 roles 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 [Music] [Applause] [Music] [Music] you