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

Summary

This video script shares insights from the perspective of a wealthy individual contrasting their 'rich dad' and 'poor dad.' The focus is on the lack of practical financial education in schools, particularly the need for real-world knowledge about business, accounting, and taxes. The speaker emphasizes adopting a mindset of opportunity, asking questions like 'How can I afford this?' instead of limiting oneself with statements like 'I can't afford it.' By doing so, individuals can open their minds to financial success and growth. The importance of finding one's own financial 'game'—whether in business, real estate, or another field—is also highlighted.

Takeaways

• 😀 Traditional schooling is designed to teach people how to be employees, but it doesn't equip them with the essential skills for managing money and business, like accounting, taxes, and debt.
• 😀 Most people lack real business knowledge, which is critical for financial success, but this knowledge is rarely taught in schools.
• 😀 A real teacher is someone who actively practices what they teach, whereas fake teachers may teach subjects they don’t actually use in real life.
• 😀 The speaker's 'rich dad' learned business by managing a family business, which provided hands-on experience, unlike the traditional school system.
• 😀 The rich dad dropped out of school at 13 to run the family business, which turned out to be a blessing as it forced him to learn practical skills.
• 😀 The speaker emphasizes the importance of finding real teachers—people who are actively engaged in the field and can provide practical, applicable knowledge.
• 😀 Many schoolteachers are not practicing what they teach, which can hinder students from gaining useful, real-world knowledge.
• 😀 The way you think and speak about money significantly affects your financial future. Phrases like 'I can't afford it' close the mind, while asking 'How can I afford it?' opens up possibilities.
• 😀 Fear-based thinking, such as worrying about not having enough money, often leads to stagnation. The rich adopt a mindset of finding solutions and asking empowering questions.
• 😀 The mentality of the rich vs. the poor is a key differentiator: the rich ask questions that lead to creative solutions, while the poor often limit themselves with negative statements.
• 😀 The speaker encourages young people to find their 'game' in life, whether it’s business, real estate, or another field, and focus on building expertise in that area.

Q & A

What does Robert Kiyosaki believe is the main flaw of the traditional school system?

Robert Kiyosaki believes that the traditional school system focuses on preparing students to be employees or specialists, but it fails to teach essential life skills, especially financial education, such as managing money, debt, taxes, and business knowledge.

How did Kiyosaki's 'rich dad' differ from his 'poor dad' in terms of financial education?

Kiyosaki's 'rich dad' was his best friend's father, who had to run a family business from a young age, learning practical financial and business skills. In contrast, his 'poor dad' was a teacher who, despite being highly educated, did not possess practical financial knowledge.

What does Kiyosaki mean by the term 'real teacher'?

A 'real teacher' is someone who actively practices what they teach in the real world, such as accountants, attorneys, and bankers. These individuals provide hands-on, practical knowledge, unlike school teachers who may teach subjects they don't actively use.

What is the significance of Kiyosaki's experience with calculus and his conversation with the teacher?

Kiyosaki’s experience with calculus highlights his frustration with academic subjects that didn't seem practical or applicable in real life. His teacher admitted that he never used the material in his own life, which underscored the disconnect between what was taught in school and real-world application.

What does Kiyosaki suggest about the mentality of poor people regarding money?

Kiyosaki suggests that poor people often have a mindset of fear and limitation, expressing phrases like 'I can't afford it.' This mentality closes the mind to opportunities, preventing them from exploring ways to improve their financial situation.

What is the difference between the phrases 'I can't afford it' and 'How can I afford it'?

The phrase 'I can't afford it' shuts down possibilities and reflects a limited mindset. On the other hand, 'How can I afford it?' is an open-ended question that encourages creative thinking and exploration of potential solutions to financial challenges.

How does Kiyosaki view the role of questions in financial success?

Kiyosaki believes that asking the right questions is crucial for financial success. Questions like 'How can I do that?' or 'What would it take?' open the mind to new possibilities and solutions, while statements like 'I can't afford it' close the mind to opportunities.

What does Kiyosaki mean by the phrase 'the poor will always be amongst us'?

Kiyosaki uses this phrase to highlight that the poor will always exist, but their circumstances are often shaped by their mindset. He believes that fear and a limited view of money contribute to the ongoing cycle of poverty.

What advice does Kiyosaki give to young people regarding their financial future?

Kiyosaki advises young people to find their own financial 'game,' whether it be in business, real estate, or another field. He stresses the importance of focusing on mastering one area and building expertise in it to achieve financial success.

Why does Kiyosaki emphasize the importance of real-world experience over formal education?

Kiyosaki emphasizes the value of real-world experience because it provides practical knowledge that can be applied immediately to solve business and financial problems. He believes that formal education, while useful in some areas, doesn't equip individuals with the financial acumen needed for long-term wealth creation.