The SEVEN Things You NEED To Learn for Your Financial FREEDOM - Robert Kiyosaki

[Music] you know when I was in business school the most horrible subject of wall was accounting you know I was sound asleep an accounting course and on top of that I argued with the accounting teacher because the accounting teacher had no idea what accounting was that was an idiot so Rich Dad Poor Dad is more appropriate today because if you read Rich Dad Poor Dad this is all it's about it's about a financial statement income statement balance sheet statement of cash flow how could it not be irrelevant when 99% of all people graduate from school

don't even know what a financial statement is and if they do they probably had the same accounting teacher I had mr. boring who wasn't really an accountant he had a master's in accountancy but he had never been an accountant so that's why I created the cash flow boardgame because it is the accounting is the most important subject for individuals because this is what your banker wants to see your banker wants to see our financial statement this is your report card when you leave school if you have good financial statement bankers will give you all the

money you want see bankers have never asked me for my grades or my college I went through Mike I want to say this you have this look you've all the money you want point out really really quickly the differences between what they're teaching in school and what we at rich dad teach so this this is the very big difference like I said most school teachers are like my poor dad and this was actually this was Rich Dad Poor Dad what you're seeing here is a financial statement you know Rich Dad Poor Dad is a book

on accounting almost boring subject on planet earth but book number two of Rich Dad was this one here and this was called the cashflow quadrant right you have e s B and I test for you what does he stand for employee what the employees always say that they work for money but they want job security paycheck and pension yes what does s stand for self-employed their small business owners doctors lawyers they work for tips tip stuff so their self-employed and BIA stands for what big business owners so 500 employees or more and I stands for

what investor investor it's more than just investor its insider you see this is like Shark Tank on the TV shows these guys here have done this and had done this so this was my poor dad this site this was rich debt here so the difference that's what schools are not teaching you is what's the difference really speak and these people that's the big difference and that shows up so when I was about your age I had to make a decision did I want to as a pilot you know most of my friends went to fly

for the airlines but I'd be here or I could be you know I could have a little I could be an Alaska flying fisherman around the place you know a private a pilot with a small plane and you know flying around the place or I could own an Airlines or I could invest in Airlines and that that's the difference in the mindsets and skill sets you don't just make crossings the education is extremely different on this side then on this side here you know I know most most Millennials they want a high-paying job they want

to be able to pay the rent and eat and all this stuff and then you dream up the big house a nice car and all that but that's why 99% of Americans are broke because their heads are in the wrong spot so when I asked Kim if she would take an accounting course was just two days you know I wanted to see if Shore head could get into the asset column that was the difference was yeah actually it didn't happen right at that moment but it's all in love with me but this started this started

the journey on investing the start of the the journey on assets but I do remember the moment down the road where just like everybody else I was focused on the income column get a job get the pay raises if you're an hourly rate wage work more hours or raise your hourly wage so I was always focused here and then finally after we'd actually bought some investment properties the light finally went on and I'm like instead of focusing on acquiring income what if we focus on just acquiring assets that the assets go into the income process

so that was a huge shift in my mindset and once that shift happened for me I don't think about the income column anymore I just think about the asset and the stand that's our game called cash flow yeah and so when Kim and I met we had nothing it took us 10 years to go from nothing to financially free so she was 37 I was 47 but that's the power of focusing on assets versus liability most people are so busy working for money so busy trying to pay their bills and so busy buying liabilities I

think our assets so my first gift to Kim was the counting game to get her head in here and today we're financially free you know that's the whole thing so everybody can do it it's a matter of putting your head into the right column and if for me it was in 73 I took my first real estate investment course here I'm free you know I lost money get made money back but I never I never got out of the asset we're still I mean we're still practicing here every single day I'm working on a new

project right now in the asset column it's gonna put a lot of cash flow into the income column because again we're focusing on asset column not the income column there's three kinds of money today you guys gotta be aware of one is God's money and God's money is gold and silver so this silver and this is gold the reason I brought is most people don't know what looks like and in this government my name was just fiat currency which is the dollar the yen to pay SIL the Euro the yuan yeah fake and everybody's working

hard for it just like eating fake food or drinking fake water that's why people are getting sick financially because they working for fake money yeah okay and then those fake assets which with another part of their millennial the fake generation series but the reason I brought this here is most people haven't seen it this here is real silver plot doc okay that's what it looks like and so in 1972 and this here is gold yeah this is God's money this is what God's it looks like the reason I call it God's money is you can't

fake it you know you can fake it with a fake ETF like a gold ETF or a silver which I don't touch cuz it smells as bad as the guys a print in that trap you know I mean Jesus but this is real money so you look at this here when I first started buying that that was a dollar forty yeah today that's sixteen dollars and this here is auto gold and the reason we bought it is most people haven't seen our touch this is real this is God's money why does he has God's money

because it was here when the earth was created yeah and it'll be here when we're all dead and gone when you're saving those fake dollars this will still be here yeah well those fake ETFs or those fake stocks so this here is called the greenbox these are there's five hundred of these little tubes like this Wow five hundred points in here and this is one which is worth more God yeah this is worth more than all that now the reason I say this is because for your general this could be the biggest opportunity you'll ever

see I'll not make any Commission's on this but if you look at what happened with the fake Central Bank see the purpose of the central bank or the Fed or all you know the Japanese Bank the Bank of Japan the European Central Bank they pump out fake money the purpose of central banks like the Fed is to protect the banks not you there are criminal operation as far as I'm concerned you're gonna find most of my talks about the Fed so I would recommend you guys buy this stuff don't save money don't save government money

because they're corrupt as hell as you know save God's money in school they compensate for a risk by telling you to memorize the right answer so in other words these kids leave young people like you leave school think oh if I know the right answers then there's no risk and it drives old guys like me crazy because everybody's talking about Millennials what's wrong with them you know Millennials are the most highly amenities the most highly educated generation in history they have the cell phone they don't get educated school they got educated on social media and

cell phones they know all the answers but they're afraid of doing anything yeah you know the biggest complaint about my generation is Millennials know all the answers but they can't do anything the reason they can't do anything is because you might hurt their somebody's feelings you might make a mistake you know this is keeps you guys just trapped in this little box yeah so that's one of the reasons I think millennial money is such an important point here because if you're going to come into my world old guy's world or the information age you've really

got to understand what is risky and what is not risky and in my world if you play it safe that makes you stupid because if you don't take risks you don't get smarter yeah you know so you may know the answer but you can't do anything yeah and one of the best things I had is I went from one a military school that went to flight school I had such great teachers you know all of them could fly you know so my flight instructor could fly what a novel idea you know a flight instructor can

fly but when I was in high school most of my teachers were terrified mm-hmm they're all cowards you know job security don't make mistakes just memorize the right answer and you'll be safe and that's why I'm all schoolteachers hot rich yeah they teach that to your generation yeah and most of them are teaching us things that they don't do on a daily basis like we have entrepreneurship classes oh and they're not entrepreneurs you know so it's it's kind of frightening when you think we're relying on this school system oh and the fact that they're teaching

us so the way to get through college right is practicing all the right answers taking the exam putting in all the right answers when in real life that's the last thing that will ever happen right no like you talked about fake you know this is my book fake here fake money fake teachers fake assets there isn't it's fake money fake teachers and fake assets it's because all has to be fake you have to have fake teachers to understand fake money they have to have fake assets to buy those stocks bonds and mutual funds bank assets

but without fake teachers fake money and you can't do it so that's why I love I love working with on these programs here because if you're going to be successful you've got to take some risk most of the young people you are age today you know a lot of them might become entrepreneurs the problem with this you have to understand tax you see this is all over the world very little difference these guys pay 40% of their money in taxes so they make $1,000 they're going to spend $40 in taxes these guys that make $1,000

they don't pay 60% in tax so our schools are teaching entrepreneurship but they're not teaching them tax okay and because they're focusing on income over here it's 20% in tax so they make $1,000 only only 200 dollars goes to tax and these guys 0% so the reason financial education isn't working in our school systems is they're teaching financial education for these people in these people but to really become rich you have to focus on this side here and that's that there was a very rich dad and the financial and what they're teaching at school right

now I'd rather be on this side this is a lot harder but in the long run it's more fun for me on this side here it's it's harder but you're paying tax constantly so these guys here are saying tax are rich well these guys don't pay taxes and and as strange as that may seem and I'm talking about legal this is all over the world so that's the big difference around one last thing which I think most Millennials understand is you know in Rich Dad Poor Dad I wrote about Ray Kroc founder of McDonald's and

he was teaching at the University of Texas the MBA program and Ray asks the and most of the MBAs are going to come out here so Ray Kroc asked him says what business is McDonald's in and everybody yelled and said no now we know you're in hamburgers and Array says no we're not I'm not in McDonald's is not hamburgers McDonald's is in the business of real estate over here so what you have McDonald's here and the money McDonald's makes buys the real estate and that is my formula this is rich dead I own real estate

I don't hang out here I'm glad you guys are here right and we do our best to make sure you're educated and you have your own businesses and things like this here but really the formula I follow personally is McDonald's we have education company that buys real estate which means we make a lot of money pay zero taxes legally what the school teach you about money nothing you know balancing a check come and give me a break you may have break so they other part of when you look at this financial statement up here that's

what your banker wants to see your banker doesn't care about your grades banker doesn't care what school you went to I mean so many people say all my banker won't give me any money this is what cuz you don't have one of these and when you look at most of the politicians today they don't have one of these either the US government doesn't have one of these anymore they stop doing this because of the US government the the budget is so out of balance they can't do anything so that's why you know 22 years ago

in 1996 I created the cashflow boardgame the purpose of this so people could teach people what our school systems will never teach you never because they don't know it because evidence is now coming out that the school system was hijacked by the ultra-rich years and years ago to never teach people what I know what my rich dad taught me so that's why most of our political leaders are broke they're poor people you know who makes the most of the politicians they got paychecks for life they get benefits for like I think all this stuff but

they're doing a horrible job so you're gonna depend upon the government to take care of you that's crazy you know a lot of people don't like Trump you know I understand why but he really understands his stuff I know because he's my friend we're all two books together this is how the rich think even hate Trump and Trump doesn't pay taxes that's why he doesn't want to show us his tax returns I mean you gotta be crazy so they'll never teach you this in school there's a reason for it to keep you working harder and

harder and harder so we created this this boy came here is you play it a hundred times your brain will change because you're doing something the game is changing all the time in front of you it's not invest for a long term of the stock market I hope it works for you but you know Marcus crash every 10 years so I like this game a lot better this is the real game of life here so the point here is this people can teach people don't expect the government to take care of [Music]