Rich Dad's Robert Kiyosaki: Sacred Cow of Money (2) - Get A Job

Summary

The speaker challenges the conventional wisdom of seeking job security through education and employment, highlighting the tax implications for different income groups. They contrast the perspectives of 'poor dad' who advocated for traditional employment with 'rich dad's' encouragement to become a business owner or investor. The speaker emphasizes the higher tax burden on self-employed professionals like doctors and lawyers, while business owners and investors often pay less. They argue that job security is a myth in the current global job market and advocate for financial education to understand alternatives to traditional employment, such as entrepreneurship, which can lead to creating jobs and financial independence.

Takeaways

• 💼 The speaker challenges the conventional wisdom of seeking job security by suggesting that being a business owner or investor can lead to paying less in taxes.
• 💰 Employees and self-employed individuals, such as doctors and lawyers, are noted to pay the highest taxes, including income, Social Security, and Medicare taxes.
• 🏢 The script introduces the ESBI cash flow quadrant model, where E stands for Employee, S for Self-employed, B for Business owner, and I for Investor, each with different tax implications.
• 📚 The speaker's 'poor dad' advocated for traditional education and employment, while the 'rich dad' encouraged entrepreneurship and investment for wealth creation.
• 🌐 There's a critique of the notion that higher education directly leads to higher tax payments, especially for professionals like doctors and lawyers.
• 🔄 The script suggests that tax laws are designed to reward those who create jobs and stimulate the economy, such as entrepreneurs and real estate developers.
• 🌱 The idea of a 'safe and secure job' is questioned, with the speaker arguing that job security is a myth in the current global economic landscape.
• 🌐 The speaker reflects on the changing nature of work, noting increased competition for jobs from international markets like India and Asia.
• 🎓 The script points out that schools typically do not educate students about entrepreneurship as a career path, focusing instead on traditional employment.
• 🚀 Entrepreneurship is presented as a means to create jobs and contribute to economic growth, in contrast to relying solely on government for job creation.
• 💡 The speaker shares a personal anecdote about starting a business and the shift in perspective from being an employee to having multiple clients, reducing risk.

Q & A

Who typically pays the most taxes according to the speaker?

The speaker suggests that employees, particularly those who are self-employed or specialists like doctors and lawyers, pay the most taxes.

What does the acronym ESBI stand for in the context of the cash flow quadrant?

ESBI stands for Employee, Self-employed, Business owner, and Investor, representing different categories of individuals based on their relationship to income and work.

Why does the speaker argue that being a business owner or an investor can lead to paying less taxes?

The speaker argues that business owners and investors often pay less taxes because the tax laws are structured to reward those who create jobs and contribute to economic growth.

What is the speaker's perspective on the traditional advice to 'go to school and get a job'?

The speaker challenges the traditional advice by suggesting that it often leads individuals to become employees or specialists, who tend to pay the highest taxes and have fewer options for reducing them.

Why does the speaker consider self-employment in the 'S' quadrant to be a high tax burden?

Self-employed individuals in the 'S' quadrant not only pay high income taxes but also have to pay Social Security and Medicare taxes on all their earnings, leading to a higher overall tax burden.

What is the speaker's view on the security of traditional jobs?

The speaker views traditional jobs as insecure, citing the myth of job security and the reality of job losses, including competition from global markets.

How does the speaker's experience of starting a business influence his perspective on job security?

The speaker's experience of starting a business after being fired from a job led him to recognize the lack of control over one's life when relying on a single employer, thus valuing the control and reduced risk that comes with being a business owner.

What does the speaker imply about the role of entrepreneurs in job creation?

The speaker implies that entrepreneurs play a crucial role in job creation, suggesting that the government does not create jobs but rather needs more entrepreneurs to stimulate the economy.

Why does the speaker believe that financial education is important for understanding career options?

The speaker believes financial education is important because it opens up the understanding that there are options beyond traditional employment, such as entrepreneurship, which can offer different financial and career paths.

What is the speaker's opinion on the risk associated with being an employee?

The speaker considers being an employee to be a high-risk profession because it involves relying on a single client (employer) for income, whereas being a business owner or investor can distribute risk across multiple clients or investments.

How does the speaker differentiate between the financial security of employees and entrepreneurs?

The speaker differentiates by stating that employees are punished for mistakes and can lose their jobs, while entrepreneurs and investors can learn from mistakes and become richer, suggesting that financial security is more important than job security.