The words of Robert
Kiyosaki are very interesting. The reality is that not everyone has
it in them to be rich, but everyone does have it in them to at least
not think poor.
Here's my typed
transcript from this YouTube video:
RICH VS POOR MINDSET |
An Eye Opening Interview with Robert Kiyosaki
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.
Why would you save
money when they're printing trillions of dollars?
The gap between the 1%
and the 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?
In every one of us
there's a poor person.
There's still a poor
person inside me.
There's also a middle
class person.
The middle class person
wants 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.
You're taught to go to
school to, get a job and get a paycheck.
You're not taught how
to get rich.
If you 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.
It drove my poor dad -
you know a government employee - nuts.
Poor Dad "You got
to pay people"
And rich dad was not
saying that the paycheck was bad.
He says he didn't
want to be a slave to money.
So as an entrepreneur
you know if rich dad folded.
Rich Dad "I just
try 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 there."
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.
Small business does not
operate in the same rules as big business.
Entrepreneur is a
mindset first, a skill set, and rules.
And depending upon
whether you're an employee or a small business the roles are
different.
Mindset are different,
the skill sets are different.
If you could say one
thing to someone who's never been an entrepreneur, and they're
thinking about taking 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 working for
Xerox.
And my boss gave me my
last - it wasn't a paycheck, it was a bonus check - I think it was
about thirty thousand bucks taxable. Only problem with that.
So I got this check and
I went "Holy mackerel!"
You know what I mean, 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,
you're going to be back. I said why.
He says because you're
going to fail.
I looked at him and
said "look ... few expletive words ..."
Because that's what he
did.
He left Xerox, failed
and came back.
I said "look. You
fail and you came back. But I'm going to fail and I'm never coming
back."
And that's the
attitude.
Do you know what I
mean. 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.
I didn't have a
paycheck.
But that's what my Rich
Dad encourage me to do.
He says when you don't
have this paycheck you get hungrier, smarter, and it's a test of your
character.
Or you become a crook -
you become dishonest and cheat and steal.
Or you will become a
better human being.
So really that's the
benefit of becoming an entrepreneur - you really find out who you
are, when you don't have anything.
So you always have to
look at the big picture.
Too many people look at
- well, what's going to happen to me.
When 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're going to get 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.
You know I just
refinanced 300 million in debt.
I went from 5 percent
to 2.5 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.
See when I came back
from serving 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 (for the) real estate. It was how to use debt and taxes.
Debt and taxes make the
rich richer.
Debt and taxes make the
poor and middle class poor.
So all the rich guys
who are doctors, or lawyers, or you know.
Those guys, they're
getting creamed and they don't know why.
Doctors are getting
creamed?
They are making more
money but the take home is less.
You know my doctor just
yelled at me, he's happy, he says, ahh guess what, I finally made a
million dollars!
And I said "yeah"
- this is just three weeks ago.
So I said "yeah,
well how much you pay in tax"
He says "750
thousand in taxes."
So his net was bout 400
thousand. 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 are taxed.
So that's why lesson
number one in rich dad 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.
The reason is, because
as entrepreneurs I have more control over my income, home much I
make, and how much I pay in taxes.
And because I am an
entrepreneur as well as an investor in real estate, I pay zero tax.
So every time I make
say a million dollars as an entrepreneur, I immediately invest it in
real estate and have a 4 to 1 step up.
So I put a million
dollars in real estate. I got 4 million from the bank. That's why I
love banks.
But the banks are
screwing everybody else. Terrible. But it's good for me.
Because when you print
(print money/quantitative easing), savers get creamed and people who
work for money get creamed. When they print, debtors get rich.
Debt and taxes make the
rich richer.
Debt and taxes make the
poor and middle class poor.
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 - and investing for
the long term, is obsolete.
The world has changed.
The world changed 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 which states information doubles every 18 months. In
other words, everything's obsolete after 18 months. And this is a
recent phenomena.
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.
I said "that's how
long like 50 years ago?"
Today the banks are
charging you interest to save money.
In other words, the
banks don't want your money because they've printed too much of it.
And that's why there's
bubbles in stocks and bubbles in real estate and all this.
People are dumping
their cash because - as I said in my book - savers are losers and
cash is trash.
Are people are saying
"I 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 in to debt. How to use
debt to get rich.
And they'll never teach
you about taxes.
The reason the 1
percent is way up here and the 99 percent are going down, is because
when you print money, two things happen: inflation and taxes.
It's crushing them.
And any entrepreneur
that thinks I'm just going to make money, and start a business, and
make a lot of money, like we talk about.
They really have got to
smell the roses.
That's not what the
real entrepreneurs are doing.
Most entrepreneurs...
there's 28 million small business owners in the America. 24 million
are one person entrepreneurs: they are called non-employee
entrepreneurs.
That's what happens
when people don't understand what an entrepreneur does.
So most people are
self-employed but they are not really entrepreneurs.
The self employed pay
the highest taxes of all. And nobody tells them that.
It's also call the
entrepreneurial spirit. But what were actually talking about is,
there's no such thing as a bad economy.
We all have the
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 are going to see is a bad
economy.
Because
they don't know how to make money in any economy.
And
a middle class person, they have a middle class economy - they want a
nice house and steady paycheck, and a job, and a car - so when you
take their job away, to them that's a disaster.
An entrepreneur doesn't
have a job anyway, it's no big deal.
There's always two
sides. So if you think the economy is bad, it's because your economy
is bad. If you think steady employment is important, then you'll see
an economy without jobs (as a bad economy.)
Your economy vs the
external economy.
Internal focus vs
external focus.
So the real
entrepreneur has an internal focus, but if they fall down they say
this is good because I'm going to go up higher.
You know the average
person will fall down and say I'm going to take some Prozac, or
somebody has all the mistakes,
Mistakes matter, it
means you didn't know something.
But a real
entrepreneur, when they fall down or go up, they always can go
higher.
No matter what
happens to them, they get stronger and better and smarter and
happier.
But a person with a
weak internal mindset.
They're so afraid of
what happens, it generally happens.
Like people who are
afraid of losing their jobs, they generally lose their jobs.
So the entrepreneur
first job is to 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.