Robert Kiyosaki: "You Will Never Be Poor Again" | START DOING THIS TODAY!!!

Summary

The speaker criticizes the education system for failing to teach financial literacy, asserting that the rich know secrets about money that are kept from the poor and middle class. They emphasize the importance of understanding assets and liabilities, the impact of taxes, and the power of passive income. The speaker shares insights from 'Rich Dad Poor Dad,' advocating for financial education that goes beyond traditional savings and investments, and encourages a mindset shift from 'I can't afford it' to 'How can I afford it?'

Takeaways

• 😷 The speaker criticizes the school system for not teaching about money and financial literacy, which they believe is intentional to keep the poor and middle class working hard.
• 📚 'Rich Dad Poor Dad' is mentioned as a book that teaches the financial knowledge that the rich pass on to their children but is not commonly taught in schools.
• 💼 The speaker suggests that the traditional advice of getting a job, working hard, saving money, and investing in a diversified portfolio is not the way the rich become wealthy.
• 💰 The concept of money has changed since 1971 when Nixon took the dollar off the gold standard, turning the US dollar into debt, yet this is not commonly taught.
• 🏦 The speaker emphasizes that rich people do not work for money but rather have assets that generate income, and they understand the importance of not being an employee mindset.
• 🤔 The importance of distinguishing between assets and liabilities is highlighted, with the cash flow direction being the key indicator.
• 🏠 The common misconception that a home is an asset is challenged; it is considered a liability if it costs money to maintain.
• 📈 The speaker discusses the importance of understanding different types of income: earned, portfolio, and passive, and how they are taxed differently.
• 💼 The rich are portrayed as having systems in place to minimize taxes, unlike the average person who may not be aware of these strategies.
• 🚫 The speaker argues that the use of debt can be a powerful tool for wealth creation, contrary to the common belief that one should avoid debt.
• 🔄 The idea of never saying 'I can't afford it' is promoted, encouraging a mindset shift to 'how can I afford it', which opens up possibilities for wealth creation.
• 📚 The speaker shares personal anecdotes about learning from mistakes and the importance of persistence and willpower in achieving financial success.

Q & A

What is the main argument presented in the script about the school system's approach to financial education?

The script argues that the school system fails to teach students about money management and the financial strategies used by the rich, instead focusing on traditional employment and saving without addressing the creation and use of debt or the impact of taxes.

According to the speaker, why is it important to understand the difference between assets and liabilities?

Understanding the difference between assets and liabilities is crucial because it determines the direction of cash flow. Assets put money in your pocket, while liabilities take it out, and this understanding is key to financial success.

What does the speaker suggest is the role of debt in the financial strategies of the rich?

The speaker suggests that the rich use debt as a tool for acquiring assets that generate income, rather than as a burden, and that understanding and utilizing debt effectively is a key to wealth accumulation.

Why does the speaker believe that the concept of saving money is flawed for wealth creation?

The speaker believes that saving money is flawed for wealth creation because the value of money is eroded by inflation and the fact that it can be printed by the government, making the act of saving less effective than investing in assets that generate income.

What is the speaker's view on the role of the banking system in relation to the financial education of the rich?

The speaker views the banking system as a facilitator for the rich, providing access to debt that can be used to acquire assets. However, this system is not taught in schools, and the average person is often unaware of how to leverage it effectively.

How does the speaker describe the impact of the 1971 decision to take the US dollar off the gold standard?

The speaker describes the 1971 decision as a turning point that made the US dollar a form of debt, fundamentally changing the nature of money and its relationship with wealth creation.

What is the speaker's opinion on the effectiveness of traditional financial advice such as 'get a job, work hard, save money, and invest in a diversified portfolio'?

The speaker criticizes this traditional advice as insufficient and misleading for achieving wealth, arguing that it does not address the underlying mechanisms of money creation and wealth accumulation used by the rich.

What does the speaker mean when he says 'the rich don't work for money'?

The speaker means that the rich focus on creating systems and acquiring assets that generate income passively, rather than relying on earned income from traditional employment.

How does the speaker define 'passive income' and why is it significant in the context of the script?

Passive income is defined as income that is generated without active work, such as rental income or capital gains. It is significant because it represents a form of income that is often not heavily taxed and can be used to build wealth without constant labor.

What is the speaker's perspective on the role of taxes in the financial lives of most people?

The speaker sees taxes as a significant expense that is often overlooked or not well-managed. He suggests that the rich are more adept at minimizing their tax liabilities through strategic financial planning and the use of different types of income.

What advice does the speaker give to individuals who want to change their financial situation?

The speaker advises individuals to change their mindset, particularly to stop using the phrase 'I can't afford it' and instead ask 'how can I afford it', which encourages a more proactive and solution-oriented approach to financial opportunities.