RICH VS POOR MINDSET | An Eye Opening Interview with Robert Kiyosaki — Transcript

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1. 0:00The most obsolete idea
2. 0:01is go to school, get a job, work hard, save money,
3. 0:05get out of debt and invest for the long-term in the stock market
4. 0:08See, why would you save money
5. 0:10when they're printing trillions of dollars?
6. 0:12The gap between the 1% and 99% is massive.
7. 0:16You see it's not just money,
8. 0:18you have to step back and look at the bigger picture.
9. 0:20So what do you do?
10. 0:24In every one of us there's a poor person,
11. 0:27there's still a poor person inside me.
12. 0:30There's also a middle-class person
13. 0:32and the middle-class person wants security
14. 0:34they want that steady paycheck.
15. 0:35And there's a rich person
16. 0:38And they're all inside of us except that...
17. 0:43It's not taught.
18. 0:44It's- you're taught to go to school, get a job and get a paycheck.
19. 0:48Not taught how to get rich.
20. 0:51If you've read Rich Dad Poor Dad, my rich dad refused to pay me.
21. 0:55He said the paycheck
22. 0:56was one of the most damaging things you can take in your life.
23. 1:00He says the moment you take a paycheck you're an employee
24. 1:03and that's the mindset.
25. 1:05So my rich dad never paid me.
26. 1:07It drove my poor dad, you know, a government employee nuts.
27. 1:10"You got to pay people, you got to pay people"
28. 1:12And rich dad was not saying that the paycheck was bad,
29. 1:15he says he didn't want to be a slave to money.
30. 1:19So as an entrepreneur,
31. 1:21you know, if rich dad folded
32. 1:24I just try another company.
33. 1:25I don't need a paycheck.
34. 1:27I don't need anybody to take care of me.
35. 1:29If my government doesn't like me I move to another country
36. 1:32because they need entrepreneurs there.
37. 1:34So the entrepreneur is not so much the business,
38. 1:36the entrepreneur is really the mindset and the skill sets
39. 1:40and the different set of rules.
40. 1:43You see, I don't operate small business
41. 1:46does not not operate in the same rules as big business.
42. 1:49Entrepreneur is a mindset first,
43. 1:52a skill set and rules.
44. 1:55And depending upon whether you're an employee or small business
45. 1:59the rules are different,
46. 2:01the mindsets are different, the skill sets are different.
47. 2:03If you could say one thing to somebody whose never been an entrepreneur
48. 2:07and they're thinking about making the leap of faith
49. 2:09into becoming an entrepreneur,
50. 2:11what could you tell them?
51. 2:14Well, I'll just tell them the same thing that happened to me.
52. 2:18You know, my last paycheck, I still remember it clearly
53. 2:23it was one of the worst and the best days of my life
54. 2:25and I was in Puerto Rico,
55. 2:27I was in, I was working for Xerox
56. 2:29and my boss gave me my last, it wasn't a paycheck it was a bonus check
57. 2:33I think it was about 30,000 bucks
58. 2:35taxable, that's the only problem with that.
59. 2:37So I get this check and I went, "Holly mackerel."
60. 2:40You know, I mean, so I was excited
61. 2:42but I was also disturbed.
62. 2:45And so this other guy comes up to me, his name was John
63. 2:47and John says to me says to me this,
64. 2:49"you're going to be back." I said "Why?"
65. 2:51he says, "because you're going to fail."
66. 2:53I looked at him and I said, "look...
67. 2:55few expletive words
68. 2:57Because that's what he did, he left Xerox, failed and he came back.
69. 3:01I said, "look...
70. 3:04You fail and you came back
71. 3:06but I'm going to fail and I'm never coming back."
72. 3:09and that's the attitude.
73. 3:11- Do you know what I mean, - yeah
74. 3:12If you say, "Well, if I fail I'll go back to mommy and daddy"
75. 3:15then that's what you'll do.
76. 3:17So if you fail, that's when I became an entrepreneur because I had no money.
77. 3:21I had no money for years
78. 3:23Yeah, I didn't have a paycheck
79. 3:25But that's what my rich dad encouraged me to do.
80. 3:27He says when, when you don't have this paycheck
81. 3:30you get hungrier, smarter and it's a test of your character
82. 3:34will you become a crook? Will you become dishonest?
83. 3:36Will you cheat and steal?
84. 3:38Or will you become a better human being?
85. 3:40So really that's the benefit of becoming an entrepreneur
86. 3:44you really find out who you are
87. 3:45when you don't have anything.
88. 3:49So you always have to look at the big picture.
89. 3:50Too many people look at, "well, what's, what's going to happen to me?"
90. 3:53When you look at the big picture, you're also going to know
91. 3:57that when something bad happens something good is going to happen.
92. 4:00But you gotta prepare for whatever is coming
93. 4:03If you think the next 20 years will be like the last 20 years
94. 4:06you're going to get creamed.
95. 4:08You know, when you and I go to the supermarket
96. 4:09and we buy a carton of milk
97. 4:11We always check for the expiration date.
98. 4:14But most people do not check for the expiration date on their brains
99. 4:19Instead of getting out of debt I get into debt.
100. 4:22I just refinanced 300 million in debt
101. 4:25I went from 5% to 2.5% interest
102. 4:28I made a fortune.
103. 4:29Every month more money comes in because my cost of money has gone down.
104. 4:34So while some financial experts are saying get out of debt,
105. 4:37I'm saying learn how to use debt.
106. 4:40See when I came back from serving in Vietnam
107. 4:42in January of 73
108. 4:44and the first thing my rich dad said to me was,
109. 4:46"Go to school to learn how to invest in real estate."
110. 4:49It wasn't real estate, it was how to use debt and taxes
111. 4:53debt and taxes make the rich richer.
112. 4:55Debt and taxes make the poor and middle class poorer.
113. 4:59So all the rich guys who are doctors and lawyers or...
114. 5:03you know, those guys, they're getting creamed
115. 5:06- and they don't know why - doctors are getting creamed?
116. 5:09Oh, yeah, they're making more money but the take-home is less
117. 5:12You know, my doctor just yelled at me
118. 5:14he's happy, he says, "Oh, guess what I finally made a million dollars."
119. 5:18And I said, "Yeah", this is just three weeks ago.
120. 5:20And so I said, "Yeah, well how much you pay in tax?"
121. 5:23He says, "$750,000 in taxes."
122. 5:26So his net was about $400,000
123. 5:28That's not bad
124. 5:30but when I make a million bucks, I keep a million bucks.
125. 5:33And the reason is because I don't make it by working for money.
126. 5:36See if you work for money your taxed.
127. 5:39So that's why lesson number one in Rich Dad Poor Dad
128. 5:41is the rich don't work for money.
129. 5:43What we do instead is we create businesses as entrepreneurs.
130. 5:46We acquire real estate.
131. 5:48I don't invest in the stock market
132. 5:51So the reason is because as entrepreneurs
133. 5:53I have more control over my income,
134. 5:56how much I make and how much I pay in taxes.
135. 6:00And because I'm an entrepreneur as well as an investor in real estate
136. 6:04I pay zero tax.
137. 6:06So every time I make let's say a million dollars as an entrepreneur
138. 6:09I immediately invest it in real estate, and I have a 4 to 1 step up.
139. 6:13So I put a million dollars in real estate, I get four million from the bank.
140. 6:17That's why I love banks.
141. 6:19But the banks are screwing everybody else
142. 6:20you know, terrible but it's good for me.
143. 6:23I thought you said when you print it's good for you
144. 6:25but when you print it's bad for people that work for money.
145. 6:27Because when you print savers get creamed
146. 6:30and people who work for money get creamed.
147. 6:32When they print debtors get rich.
148. 6:34You see, debt and taxes make the rich richer
149. 6:39and debt and taxes make the poor and middle class poorer.
150. 6:44When we have obsolete ideas we get obsolete results.
151. 6:48So what's happening for most people
152. 6:51the idea of going to school,
153. 6:53getting a job, working hard, saving money, getting out of debt,
154. 6:58buying your house because it's an asset and investing for a long term.
155. 7:01It's obsolete.
156. 7:03The world has changed, the world changed in 1971
157. 7:06when President Nixon took us off the gold standard
158. 7:09and money became debt.
159. 7:11What if we get rid of school then what would happen?
160. 7:14Would it be better if we had no educational system at all?
161. 7:17No, I'm saying education was more important before, it's just obsolete.
162. 7:20You know, there's Moore's law that...
163. 7:22Moore's law which states information doubles every 18 months.
164. 7:26In other words, everything is obsolete, 18 months.
165. 7:28So, and this is a recent phenomenon.
166. 7:31So when you come out of school, you're already obsolete,
167. 7:33and that's why I'm the old guy,
168. 7:34you know, I meet my friends, I went to Harvard.
169. 7:36Yeah, I went to Harvard. I said,
170. 7:38"Yeah, that was how long 50 years ago?"
171. 7:40Today the banks are charging you interest to save money.
172. 7:44In other words, the banks don't want your money
173. 7:47because they've printed too much of it.
174. 7:49And that's why there's bubbles and stocks and bubbles in real estate and all this.
175. 7:53People are dumping the cash.
176. 7:55Because as I said in here, "Savers are losers and cash is trash"
177. 7:59And yet people are, "Well, I want a high-paying job."
178. 8:01Well, that's an obsolete idea.
179. 8:03Get out of debt, it's an obsolete idea.
180. 8:05You should learn how to get into debt How to you use debt to get rich
181. 8:08And they'll never teach you about taxes.
182. 8:10The reason the 1% is way up here and the 99% are going this way
183. 8:14is because when you print money two things happen
184. 8:17inflation and taxes.
185. 8:19It's crushing them.
186. 8:22And any entrepreneur that thinks "I'm just going to make money
187. 8:24and start a business and make a lot of money because that what we talk about
188. 8:27They really have got to smell the roses man.
189. 8:31You know, that's not what the real entrepreneurs are doing.
190. 8:35Most entrepreneurs, there's 28 million small business owners in America
191. 8:4024 million are, are one person entrepreneurs.
192. 8:44They're called non-employee entrepreneurs.
193. 8:48So that because, and that's what happens
194. 8:49is when people don't really understand what an entrepreneur does.
195. 8:53So most people are self-employed, but they're not really entrepreneurs.
196. 8:59The self-employed pay the highest taxes of all
197. 9:02and nobody tells them that.
198. 9:05Yeah, it's also called the entrepreneurial spirit
199. 9:08but what we're actually talking about
200. 9:10was there's no such thing as a bad economy.
201. 9:13You know those externally, you and I, we all have an external economy.
202. 9:17But we also have an internal economy
203. 9:19and the will power is to change our internal economy.
204. 9:23So for me, I can see the good, I can see the bad
205. 9:26I don't really give a damn.
206. 9:28Because I'm going to be rich anyway.
207. 9:30But a poor person with a poor personal economy
208. 9:34All they're going to see is a bad economy.
209. 9:37Because they don't know how to make money in any economy.
210. 9:41And a middle-class person, they have a middle-class economy
211. 9:43you know what they want is a nice house, a steady paycheck
212. 9:47and the job and the car.
213. 9:49And so when you take their job away to them that's disaster.
214. 9:52Well since an entrepreneur doesn't have a job anyway, it's no big deal.
215. 9:57So all I'm saying to people is what Bucky Fuller taught me.
216. 10:00There's always two sides, you know what I mean,
217. 10:03you know to use plural at minimum two.
218. 10:05So if you think the economy is bad, it's because your economy is bad.
219. 10:09If you think that steady, you know, employment is important
220. 10:13- then you'll see an economy without jobs. - Your economy
221. 10:17Your economy versus the external economy.
222. 10:20Where you control VS where you can't control
223. 10:21I can control yes, it's called, it's called an internal focus
224. 10:25versus an external focus.
225. 10:27So the real entrepreneur has an internal focus
226. 10:31but if they fall down they say, "Oh, this is good
227. 10:34because I'm going to go up higher."
228. 10:35You know, the average person will fall down and
229. 10:37say "Oh, I'm going to take some Prozac"
230. 10:39Or, or the- or somebody has the mistakes, all the mistakes don't matter well
231. 10:42Mistakes, mistakes matter, it means you didn't know something.
232. 10:46But a real entrepreneur whether they fall down
233. 10:48or they go, they always can go up
234. 10:50They can stand back up and go higher.
235. 10:53That no matter what happens to them
236. 10:54they got stronger and better and smarter and happier.
237. 10:58But a person with a weak internal mindset
238. 11:02Is that they're so afraid of what happens, it generally happens.
239. 11:05Like, you know, people who are afraid of losing their jobs
240. 11:08they generally lose their jobs.
241. 11:09- You know what I mean, - yeah,
242. 11:11no doubt, so everything comes through you
243. 11:13Yeah, so the entrepreneur first job is control inside here
244. 11:16not outside there.
245. 11:18The moment you take that paycheck you're an employee
246. 11:21You've got to be stronger than that.
247. 11:23It's about inside control.