The BIGGEST Lie About Money They Don’t Want You to Know

Summary

In this video, Robert Kiyosaki discusses the disparity between the rich and the poor, emphasizing the importance of cash flow over traditional money. He criticizes the reliance on paper currency, which he views as 'trash,' and advocates for real assets like gold, silver, Bitcoin, and real estate. Kiyosaki also critiques the political system, claiming that money plays a pivotal role in elections, and discusses the flaws in traditional education that teach people to work for money rather than make it work for them. The video stresses building financial foundations through smart investments to achieve wealth.

Takeaways

• 😀 Rich Dad Poor Dad emphasizes the importance of cash flow over traditional savings and investments.
• 😀 Money (paper currency) is considered 'trash' by the speaker, particularly after 1971 when the dollar was removed from the gold standard.
• 😀 The speaker highlights that the key to wealth is understanding how to create income streams (cash flow) rather than working for money.
• 😀 Education on money is vital; traditional schooling tends to teach people to be poor by focusing on job-seeking, saving, and investing in stocks.
• 😀 The government and monetary system are criticized for printing more money, which causes inflation and devalues savings.
• 😀 Bitcoin, gold, and silver are seen as valuable assets because they increase in value over time, unlike paper money.
• 😀 The speaker argues that politicians who appear poor often end up rich due to insider trading and campaign donations, indicating a corrupt political system.
• 😀 There is no such thing as a 'free' election; political influence is largely determined by the amount of money you can raise.
• 😀 Real investments are in assets that hold value, like gold, silver, Bitcoin, cattle, real estate, and oil. Stocks, bonds, and ETFs are seen as poor investment choices.
• 😀 The principle of 'Grams Law' states that when bad money enters a system, good money (like gold, silver, and Bitcoin) goes into hiding, indicating that real money is being undervalued.
• 😀 Savers are 'losers' because they hold onto money (paper currency) that continually loses value due to inflation and debt accumulation in the economy.

Q & A

What is the key difference between 'cash flow' and 'paper money' according to the speaker?

The speaker argues that cash flow is the key to wealth, whereas paper money is considered 'trash' because it is not backed by anything real and is subject to inflation. Cash flow, on the other hand, represents a consistent source of income, which the speaker suggests is essential for financial success.

Why does the speaker believe the dollar is 'trash' and 'fake money'?

The speaker believes the dollar is 'fake money' because it is no longer backed by gold, following Nixon's decision in 1971 to take the U.S. dollar off the gold standard. This, along with increasing government debt and inflation, led the speaker to view paper currency as unreliable and devaluing over time.

What is the significance of education in the speaker’s financial philosophy?

The speaker emphasizes the importance of financial education, particularly through experience and learning how money works in the real world, such as through games like Monopoly. He contrasts this with traditional schooling, which he believes focuses on creating employees rather than teaching people how to generate wealth.

Why does the speaker value Bitcoin and other hard assets like gold and silver?

The speaker values Bitcoin, gold, and silver because these assets are designed to retain or increase in value over time, unlike paper money which devalues due to inflation. Bitcoin is seen as a deflationary asset with a limited supply, while gold and silver are considered stable stores of value.

What is the speaker’s opinion on investing in stocks, bonds, and ETFs?

The speaker criticizes investing in stocks, bonds, and ETFs, calling them poor choices because they are often tied to paper money or are subject to manipulation. Instead, he advocates for investing in tangible, real-world assets like real estate, gold, silver, and Bitcoin.

How does the speaker view the concept of 'free elections'?

The speaker dismisses the idea of 'free elections,' claiming that they are influenced by money and that politicians need to raise large sums to win elections. He suggests that without substantial financial backing, individuals have little chance of influencing the political process.

What is the relationship between campaign donations and political success, according to the speaker?

The speaker argues that political success is largely driven by campaign donations. He explains that politicians with access to large amounts of money can secure their positions and influence policy, while those without significant financial resources are often excluded from the political game.

Why does the speaker refer to savings as a 'loser's game'?

The speaker believes that saving money in traditional forms, such as cash or bank savings, is a 'loser's game' because it loses value over time due to inflation. Instead, he encourages investing in assets like gold, silver, and Bitcoin, which he views as preserving and growing wealth.

What does the speaker mean by 'Gram's Law'?

Gram's Law, as explained by the speaker, states that when bad money (such as paper currency) enters a system, good money (like gold or Bitcoin) will go into hiding. This means that people will move their wealth into more stable, real assets to protect it from devaluation.

What is the speaker’s strategy for investing in real estate?

The speaker's strategy for investing in real estate involves acquiring properties with potential for increased value through zoning changes or development. He gives an example of a property he purchased for $3 million, which he later transformed into a more valuable four-story building, generating significant passive income through rent.