Robert Kiyosaki - The Speech That Broke The Internet!!! KEEP THEM POOR! PART 2

Summary

The speaker shares insights from his 'rich dad' on financial education, emphasizing the importance of entrepreneurship and asset acquisition over traditional employment. He discusses the impact of mindset and habits on wealth, using the game of Monopoly as a metaphor for real-life wealth-building strategies. The narrative also touches on the challenges of self-publishing and the role of media in shaping public perception of financial success.

Takeaways

• 💼 The speaker emphasizes the importance of not thinking like an employee and avoiding the 'employee mindset' trap, which can limit financial growth.
• 🧠 The idea that fear is universal but how one deals with it is crucial; it's not the absence of fear but the management of it that matters.
• 🌟 Einstein's quote is highlighted, suggesting that while knowledge is important, imagination is more so, but knowledge also empowers imagination.
• 📚 There's a need for basic financial literacy, including understanding taxes, debt, and financial statements, which are often not taught in schools.
• 🏫 The school system is criticized for preparing individuals for employment or specialization but not for financial independence or business acumen.
• 💸 The speaker's 'rich dad' taught him that the mindset of 'I can't afford it' is a self-fulfilling prophecy that keeps people poor.
• 🏘️ The concept of acquiring wealth through real estate, likened to the game Monopoly, is presented as a strategy for building assets.
• 🎲 The game of Monopoly is used as a metaphor for real-life wealth-building, with the progression from green houses to red hotels representing scaling up in real estate.
• 📈 The speaker's rich dad's success story with real estate development, including the assemblage of properties and the creation of a hotel, illustrates the power of asset accumulation.
• 🚫 The initial rejection of the speaker's book by publishers and its subsequent success through self-publishing and network marketing reflects the resistance to new ideas in traditional systems.
• 🤝 The importance of having a team, including accountants, attorneys, and bankers, is stressed for success in business, as opposed to trying to do everything alone.
• 💡 A shift in mindset is necessary for financial success; simply acquiring money without changing one's perspective will not lead to long-term wealth or happiness.

Q & A

What condition did the speaker's rich dad set before teaching him about money?

The condition was that he would never pay the speaker; he believed that the moment he paid, the speaker would start thinking like an employee.

What did the speaker's rich dad believe about the school system's role in teaching about money?

He believed that the school system was not designed to teach about money or business; it was designed to teach students to be employees, doctors, lawyers, or other specialists.

What is the significance of the phrase 'the moment you accept the paycheck, your brain goes' according to the speaker?

It signifies that once you become dependent on a paycheck, you start thinking and behaving like an employee, which can limit your entrepreneurial mindset and financial growth.

What did the speaker's rich dad emphasize about the importance of imagination and knowledge?

He emphasized that while imagination is more important than knowledge, having basic knowledge empowers imagination, especially in areas like taxes, debt, and financial statements.

Why did the speaker's poor dad not want to learn what the rich dad was teaching?

The speaker's poor dad did not want to learn because he lacked the real business knowledge that the rich dad was teaching, and he was content with the status quo.

What role did the game of Monopoly play in the speaker's financial education?

Monopoly was used as a teaching tool to illustrate the concept of acquiring wealth through real estate, such as upgrading from green houses to a red hotel, which the speaker's rich dad later applied in real life.

What was the speaker's reaction when he was told that his book 'Rich Dad Poor Dad' was initially rejected by publishers?

The speaker self-published the book, which eventually gained popularity through network marketing companies and was later endorsed by Oprah, leading to its success.

How did the speaker's rich dad amass wealth through real estate, similar to the game of Monopoly?

He bought small properties, gradually assembling a large piece of land, and then partnered with Hyatt to build a hotel, which later sold for $800 million.

What is the speaker's view on the importance of having a team in business?

The speaker believes that having a team of professionals like accountants, attorneys, and bankers is crucial for success in business, as opposed to trying to do everything alone.

Why does the speaker believe that many people remain poor despite making money or winning the lottery?

The speaker believes it's because they have a 'poor man's soul' or mindset, which means they haven't learned or changed their habits and beliefs about money, leading to financial instability regardless of their income.

What advice does the speaker give to young people regarding finding their 'game' in life?

The speaker advises young people to find their passion or area of expertise, whether it's business or real estate, and to learn and apply the necessary knowledge and strategies to succeed in that field.

Outlines

00:00

💼 Entrepreneurial Mindset and Financial Education

The first paragraph discusses the importance of an entrepreneurial mindset over an employee's mindset when it comes to financial success. The speaker emphasizes the value of working without expecting a paycheck and the necessity of overcoming fear. The narrative includes the influence of 'Rich Dad' who imparted knowledge about taxes, debts, and financial statements, contrasting it with 'Poor Dad's' reluctance to learn. The speaker also touches on the lack of real business education in schools and the societal and familial influences that contribute to financial struggles. The anecdote about playing Monopoly with Rich Dad illustrates the concept of asset acquisition and scaling, which is likened to the real-life success of building wealth through property investment, as exemplified by the Rich Dad's Wy ke Beach hotel investment.

05:01

🚀 From Obscurity to Fame: The Journey of Financial Independence

The second paragraph narrates the speaker's personal journey to financial independence and the subsequent fame that came with it. Initially facing rejection from publishers, the speaker self-published and eventually gained massive success, being featured on Oprah, which catapulted them to worldwide recognition. The paragraph also delves into the speaker's philosophy of not needing a job or retirement, choosing instead to take on a social responsibility to educate others about financial literacy. It discusses the importance of embracing failure and learning from it, as opposed to the school system's approach of avoiding mistakes. The speaker advocates for having a team of professionals such as accountants and attorneys to navigate the business world effectively. The paragraph concludes with advice for young people to find their own path to financial success, highlighting the unfair advantage gained through combining business acumen with real estate knowledge.

Keywords

💡Paycheck

A paycheck refers to a wage or salary payment made by an employer to an employee. In the video's context, it symbolizes the traditional employment relationship where one's income is directly tied to their job. The speaker suggests that reliance on a paycheck can lead to a mindset of being an employee, which contrasts with the entrepreneurial spirit of creating wealth through assets.

💡Entrepreneur

An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The video emphasizes the importance of entrepreneurial thinking for financial success, as opposed to being confined to an employee mindset. The speaker's 'rich dad' encourages the speaker to think like an entrepreneur by not accepting a paycheck.

💡Imagination

Imagination is the ability to form new ideas or images in one's mind. The video cites Einstein's quote that 'imagination is more important than knowledge,' suggesting that while knowledge is crucial, it is the creative application of that knowledge that can lead to innovation and success in business and finance.

💡Knowledge

Knowledge refers to the understanding or awareness of facts, information, descriptions, or skills acquired through experience or education. The speaker mentions that basic knowledge of taxes, debt, and financial statements is essential for financial empowerment, contrasting it with the lack of such education in schools.

💡Financial Statements

Financial statements are formal records of an individual's or company's financial activities, including balance sheets, income statements, and cash flow statements. The video highlights the importance of understanding these documents as a part of having real business knowledge, which is necessary for managing one's finances effectively.

💡Monopoly

Monopoly is a board game that simulates the buying, renting, and selling of properties. In the video, it is used metaphorically to teach the speaker about money and investment strategies, such as upgrading from green houses to red hotels, which parallels real-life asset accumulation strategies.

💡Asset

An asset is a resource with economic value that an individual or company owns or controls. The video discusses the accumulation of assets as a path to wealth, contrasting it with the mindset of not being able to afford things, which the speaker suggests is a self-imposed limitation.

💡Habit

A habit is a routine of behavior that is repeated regularly and tends to occur subconsciously. The speaker mentions that people become creatures of their own habits, which can be a barrier to change and financial growth unless they are broken.

💡Mentality

Mentality refers to a person's general attitude or way of thinking. The video emphasizes the importance of changing one's mentality towards money and wealth accumulation, suggesting that a 'poor man's soul' can persist even when one has money, leading to financial mismanagement.

💡Self-Publishing

Self-publishing is the process of publishing one's own work without the involvement of a traditional publisher. The speaker mentions that 'Rich Dad Poor Dad' was initially self-published, highlighting the path to success that bypassed traditional publishing channels, which initially rejected the book.

💡Network Marketing

Network marketing, also known as multi-level marketing, is a business model where salespeople are compensated not only for selling products but also for recruiting others to sell or consume products. The video mentions that network marketing companies picked up the speaker's book, contributing to its initial success.

💡Financial Independence

Financial independence is the state of having enough wealth to live without having to work actively for basic necessities. The video's theme revolves around achieving this state through understanding and applying financial knowledge, as well as breaking away from traditional employment and embracing an entrepreneurial mindset.

Highlights

The importance of not thinking like an employee to achieve financial success.

The concept of working for free as an entrepreneur to avoid the 'employee mindset'.

The fear of financial instability and its impact on decision-making.

The significance of imagination empowered by knowledge in business.

The necessity of having basic financial knowledge such as taxes and financial statements.

The lack of real business knowledge among the general population.

The school system's role in preparing individuals for employment rather than entrepreneurship.

The idea that poverty is a mindset passed down through generations.

The impact of self-limiting beliefs on financial status.

The importance of breaking habits to achieve financial change.

Learning about money through the game of Monopoly as a metaphor for real estate investment.

The strategy of acquiring wealth through real estate investment exemplified by the speaker's rich dad.

The story of the high at Regency hotel and its connection to the Monopoly game strategy.

The challenges faced in publishing 'Rich Dad Poor Dad' and its eventual success.

The role of network marketing companies in promoting financial independence.

The transformative impact of the Oprah show on the popularity of 'Rich Dad Poor Dad'.

The idea that making money is not inherently evil and the misconceptions about wealth.

The importance of having a team in business, including accountants, attorneys, and bankers.

The concept of finding one's own game in life for financial success.

The unfair advantage gained through knowledge of business and real estate.

The idea that a poor mindset can persist even with wealth.

The genetic transmission of poverty mindset and its implications.

Transcripts

the moment you accept the paycheck your

brain Go's did he says as long as you're

hungry you'll think teaching me about

money on one condition and that

condition was he would never pay

me he says the moment I pay you you

think like an employee he says that's

the Trap entrepreneurs work for free and

now I'm 9 years old my head's going

cracking in half he says you never want

a paycheck you understand that kid said

okay I got it we all have fear you to be

truthful we all have fear it's just how

you deal with

it and um you know Einstein said you

know imagination is more important than

knowledge but knowledge empowers

imagination got to have the basic

knowledge of taxes debt financial

statements and all that if you don't

want to learn it I can't help you so my

poor dad never wanted to learn what my

rich dad was teaching and what most

people lack is real business knowledge

got to know that stuff but they don't

teach it in school to anybody the school

system was designed to teach you to be

an employee which is important or a

doctor or a lawyer a specialist but

never about money poverty has passed on

it's taught in your

families and middle class is taught in

families and so the people right now who

are sitting at home who are struggling

financially or worried about money or

unhappy they may be making a lot of

money but unhappy with what they're

doing it was probably taught to you or

do the rich people cringe and say don't

tell them that Rob yes yes yes don't

tell people what they what you know I

keep them poor the poor will always be

amongst us cuz it starts up here it's

it's in their words but when they say I

can't afford it or I can't do that they

become what they say and I made so many

people I can't afford it you think I

made of money and my rich dad would say

that's why he's poor poor people say I

can't afford it I can't do that I don't

have time because this is an escape easy

to say I can't afford oh I I'm too tired

oh I can't go to the gym you know when

you could go to the gym no I can't truth

is I'm just too late to go to the gym

but the thing is is that we become

creatures of our own

habits and until we break the Habit we

don't

change but the way he taught me about

money was playing Monopoly and I finally

one day I got upset I said well when are

you going to teach me about money he

says what do you think we're

doing we're playing Monopoly he goes no

no no no what do you think we're

doing we're playing Monopoly says what

do you think we're doing I don't know

I'm teaching you about

money and then that's what you know you

have one green house you know he says

there's many formulas for great success

in money there's thousands of them but

one of the best ones found on the game

of Monopoly still is today four green

houses one red

Hotel said what he says one of the

greatest ways to acquire great wealth is

playing Monopoly in real life four green

houses one red

hotel but is that all there is he goes

that's

it and he says what do you think I'm

doing and I went I don't know so then he

took me out he showed me his green

houses and 10 years later when I was 19

I was now School in New York and I come

back to Hawaii and Rich Dad had

bought the biggest piece of land smack

dab in the middle of Wy ke Beach and

when you go to Wy ke beach today you'll

see the high at Regency hotel that was

his hotel just like the game of Monopoly

just like the game of Monopoly acquired

assets and they became bigger assets he

just kept it was called an assemblage

because that property wasn't that big at

the time so he had to buy out all the

small guys

cuz wanky K was a little dirt water

little town so he'd buy out this shop

owner buy that shop owner and it took

him a while but he finally assembled

this large piece of property and then he

then he and hayatt put up this giant

hotel just and it just sold for $800

million so that's how I learned about

money and then Rich Dad Porta came in

'97 and um the story go goes every

publisher turned me down they said you

don't know what you're talking about CU

they said Savers were losers your house

is not an asset the rich don't work for

money and so the Publishers are like my

dad academic Superstars you know they a

students in

school and um so they turned the book

down and it took going by self-published

Route you know a lot of network

marketing companies picked up the book

like Amway and those guys and they

picked up the book to help recruit

because it's about financial

Independence they're about the same

thing I

am and then opra cult in 2000 and then

the next I'm on Oprah and I went from

obscurity to world famous in overnight

success in 2000 and the book has been on

the New York Times best cellist for

seven years until the New York Times

took it off they said it been on too

long but as you know I mean most people

in publishing or Journal ISM they're on

the other side of the coin of capitalism

you know so they don't like guys who

make money and that's like my poor dad

side so that's kind of the story and you

know I play I play a monopoly in real

life uh I don't need a job I don't have

a retirement don't need a retirement I

don't want the government to take care

of me but I felt a social responsibility

to teach and that's what my rich dad did

for me

and the average person the reason

they're poor is they haven't failed you

know they play it so safe they haven't

made any mistakes like they taught in

school that means they don't learn

anything that's why the school system is

actually fundamentally corrupt it's

anti-education

don't make mistakes and don't ask for

help and if I didn't ask for help I have

my accountants my attorneys my bankers

and all that you know I go into business

like a rugby team you know boom boom we

kick butt but the average guy is

standing there oh I'm an a student I'm

going I'm going to do this all on myself

and and a bunch of rugby players run you

over and you go well they're not playing

fair you what you're not you're playing

stupid you should have a team you should

have accounts attorneys and bankers and

all that stuff but that's not the cam I

want to play I said then don't play the

game you know the the game of business

is played with accounts attorneys

Bankers hey to say it politicians you

know you got to know the game so what I

say to young people is you you find your

game so my game financially is business

number one second is real

estate and that's why I pay no taxes

legally is a combination of business and

real estate that gives us an unfair

advantage over

employees because they don't know what

to do you know your super ego was taught

get a job work hard or or you'll never

be rich or the rich are evil or

whatever and until you change your

mindset money won't help you right

correct and we see that with people that

win the lottery people that make more

money they still have the same problem

because they have that poor men's Soul

correct if you're poor you'll always be

poor that's really hard for people to

understand yeah the money will disappear

that fast just like most pro athletes

you know they make millions of dollars

and what 65% are bankrupt 5 years later

it's because they come from poor

families now you tell them that they get

very angry at you not it's a rich fault

you know you guys ripped me off and

government ripped me off but

unfortunately what Mr Lipton was saying

it's passed down

genetically that's the frightening thing

the