Robert Kiyosaki 2019 - The Speech That Broke The Internet!!! KEEP THEM POOR!

Summary

The video script narrates the author's journey of financial education, contrasting the traditional employment mindset with entrepreneurial thinking. The author, influenced by his 'rich dad,' learns that schools often fail to teach money management, focusing instead on preparing students for jobs. Through hands-on experiences and mentorship, the author discovers the importance of understanding business fundamentals like accounting and taxes, which are essential for financial success. The script emphasizes the power of having a positive, solution-oriented attitude towards wealth creation.

Takeaways

• 😯 The speaker's father, a head of education with a PhD, revealed that the government dictates the curriculum, including what subjects can and cannot be taught, such as personal finance.
• 🤔 The speaker questioned the purpose of education, particularly why it doesn't focus on teaching about money if the goal of getting a job is to earn money.
• 🧐 The difference between an entrepreneur and an employee is highlighted: entrepreneurs must understand money to succeed, while employees rely on the government or company for financial security.
• 👶 The speaker's journey to learn about money began at a young age, with his 'rich dad' teaching him through practical experiences and the game of Monopoly.
• 🏨 The concept of acquiring wealth through real estate investment is illustrated through the story of the Hyatt Regency hotel in Waikiki, which was built on land assembled by the speaker's 'rich dad'.
• 💡 Personal finance and business knowledge, such as accounting, debt, and taxes, are crucial for success but are often not taught in schools.
• 🔄 The speaker emphasizes the importance of learning from real-life experiences and mentors, rather than just theoretical knowledge from textbooks.
• 📈 The idea that success in business and finance is not just about avoiding mistakes but growing from them, embracing the ups and downs as part of the learning process.
• 💰 The speaker suggests that a poor attitude towards money is often passed down through families and can limit financial success.
• 🏫 The education system is criticized for preparing students to be employees rather than entrepreneurs, focusing on academic subjects over practical financial literacy.
• 🤝 The importance of finding real teachers who practice what they teach is stressed, as opposed to theoretical educators who may not apply their knowledge in the real world.

Q & A

Why doesn't the speaker believe that learning about money should be a part of school education?

The speaker's father, a head of education, explained that the government dictates the curriculum and does not include money education, focusing instead on preparing students for employment.

What was the turning point for the speaker to start learning about money?

The turning point was when the speaker's father suggested asking his best friend's father, who was an entrepreneur, about money, which led to the 'rich dad' teaching him financial lessons.

What condition did the 'rich dad' set for teaching the speaker about money?

The 'rich dad' set the condition that he would never pay the speaker, as he wanted to teach him to think like an entrepreneur rather than an employee.

How did the 'rich dad' initially teach the speaker about money?

The 'rich dad' used the game of Monopoly as a tool to teach the speaker about money, having him work for free and learn through the game's mechanics.

What is the significance of 'four green houses and one red hotel' in the context of the script?

It represents a strategy for acquiring wealth, as explained by the 'rich dad', which is based on the game of Monopoly and later applied in real life with the acquisition of a large property in Waikiki Beach that became the Hyatt Regency Hotel.

How did the speaker's 'rich dad' learn about business and money management?

The 'rich dad' learned through practical experience, having to run a family business from the age of 13, and his teachers were professionals like bookkeepers, accountants, attorneys, bankers, and real estate agents.

What is the difference between an entrepreneur and an employee according to the 'rich dad'?

An entrepreneur must know about money to survive, while an employee doesn't need to know about money because they rely on the government or company for their income.

What is the speaker's view on the importance of having real-world teachers?

The speaker believes that real teachers are those who practice what they teach, unlike school teachers who may not apply the subjects they teach in real life.

How does the speaker describe the attitude towards money in his family?

The speaker describes it as having a poor attitude towards money, which is something that is taught in families and contributes to a cycle of poverty.

What advice does the speaker give to young people regarding their financial education?

The speaker advises young people to find their own 'game', implying that they should identify their areas of interest and strength, such as business or real estate, and pursue financial education in those areas.

What is the speaker's perspective on the role of mistakes in personal growth?

The speaker views mistakes as opportunities for growth, stating that those who fear making mistakes and avoid them will not grow, as growth comes from experiencing both positive and negative outcomes.

Outlines

00:00

💼 The Education Gap in Money Matters

This paragraph narrates the speaker's childhood encounter with the disparity between formal education and practical knowledge about money. The speaker, whose father was a government-employed educator, was puzzled by the absence of financial education in school curriculums. His father explained that the government dictates what can be taught, and financial literacy was not part of it. The speaker's curiosity led him to his friend's entrepreneur father, who imparted the first lessons in money management through the game of Monopoly. The 'rich dad' emphasized the importance of learning money management rather than expecting a paycheck, teaching the speaker the value of entrepreneurship and asset accumulation, exemplified by the real-life application of Monopoly strategies in acquiring wealth.

05:00

🏦 From Classroom to Real World: The Reality of Financial Education

The speaker delves into the concept that poverty is often a result of a poor attitude towards money, which is culturally ingrained and perpetuated within families. The traditional school system is criticized for preparing students for employment rather than entrepreneurship, focusing on academic and professional roles without addressing financial literacy. The speaker contrasts the knowledge gained from 'fake teachers' in school, who may not practice what they teach, with the wisdom acquired from 'real teachers' like accountants and attorneys who are actively involved in the business world. The narrative highlights the importance of seeking practical, real-world education and mentorship to overcome the limitations of conventional schooling and societal attitudes towards wealth and success.

10:24

🤔 The Path to Financial Enlightenment

This paragraph is incomplete and does not provide sufficient content for a detailed summary. It seems to be an introduction to a point or a transition to another topic, but without further context or content, it's not possible to create a comprehensive summary or title for this section.

Keywords

💡Education

Education in the script refers to the formal schooling system and its limitations in teaching about personal finance and wealth creation. The video's theme critiques the education system for not including practical financial knowledge, as illustrated by the speaker's conversation with his father, a head of education, who admits that the government dictates what subjects can be taught, excluding money management.

💡Wealth

Wealth in this context is the accumulation of valuable resources, such as money and assets, that provide financial security and independence. The video emphasizes the importance of understanding wealth creation, contrasting the lack of this knowledge in traditional education with the practical lessons the speaker learned from his 'rich dad' about acquiring and managing wealth.

💡Entrepreneur

An entrepreneur is an individual who creates a new business, bearing the risks and benefits associated with its operation. The script highlights the distinction between employees and entrepreneurs, with the latter needing a deep understanding of money and business to succeed. The 'rich dad' in the video is portrayed as an entrepreneur who teaches the speaker about money and asset accumulation.

💡Employee

An employee is someone who works for another person or an organization in return for a salary or wage. The video script points out that employees are often taught to rely on their employers or the government for financial security, contrasting this with the self-reliance and financial literacy required of entrepreneurs.

💡Money Management

Money management refers to the process of budgeting, saving, investing, and spending money wisely. The video underscores the importance of this skill, which is largely absent from traditional education. The speaker's 'rich dad' imparts lessons on money management through practical examples and the game of Monopoly.

💡Monopoly

Monopoly, in the script, is used metaphorically to illustrate the principles of wealth accumulation and investment. The 'rich dad' uses the board game to teach the speaker about business strategies, such as buying properties and leveraging them for income, which parallels real-life investment strategies.

💡Asset

An asset is any resource with economic value that an individual or business owns. In the video, assets are portrayed as the building blocks of wealth, with the 'rich dad' acquiring real estate and other properties to generate income and increase his net worth, as exemplified by the Hyatt Regency hotel in Waikiki.

💡Financial Literacy

Financial literacy is the knowledge and understanding of financial concepts, such as budgeting, investing, and managing risk. The video argues that financial literacy is crucial for personal success but is often neglected in the education system, leading people to rely on jobs rather than understanding how to create wealth.

💡Real Estate

Real estate refers to land, buildings, and related property rights. The script uses real estate as a prime example of an asset class that can generate wealth when bought and managed wisely. The 'rich dad's' success with the Hyatt Regency hotel demonstrates the potential of real estate investment.

💡Fear Mentality

Fear mentality, as discussed in the video, is a mindset characterized by avoidance of risk and a focus on limitations rather than opportunities. The speaker suggests that this mentality is a barrier to wealth creation, as it leads to a cycle of poverty and a lack of initiative to learn about money and business.

💡Real Teachers

Real teachers, in the context of the video, are individuals who are actively engaged in the field they teach and have practical experience. The speaker contrasts 'real teachers' with traditional educators who may not apply the subjects they teach in their own lives, advocating for learning from those who are actively involved in business and finance.

Highlights

The speaker's father, a head of education, admits that schools do not teach about money due to government restrictions.

The purpose of a job is to earn money, but the speaker's father suggests that the school system is designed to produce employees, not entrepreneurs.

The speaker's 'rich dad' begins teaching him about money on the condition that he will never be paid, to avoid thinking like an employee.

Learning about money involves playing Monopoly and doing menial tasks without pay, simulating the entrepreneurial experience.

The speaker emphasizes the importance of real-life business knowledge such as accounting, debt, and taxes, which are not taught in schools.

The 'rich dad' learned about money by running a family business at a young age, turning necessity into a blessing.

The speaker criticizes traditional education for teaching subjects that teachers themselves do not practice or find useful.

The importance of finding a 'real teacher' who practices what they teach, as opposed to a 'fake teacher'.

The speaker's rich dad used the game of Monopoly as a metaphor for real estate investment and wealth acquisition.

The story of how the 'rich dad' assembled a large property in Waikiki, which later became the Hyatt Regency Hotel.

The speaker discusses the concept that poverty is often a result of a poor attitude and mindset, rather than a lack of resources.

The idea that the school system is designed to produce employees, not business owners or entrepreneurs.

The speaker's personal experiences with financial crashes and betrayals, and how they contributed to his growth.

The difference between an employee's mindset and an entrepreneur's mindset, especially regarding money and risk.

The speaker's advice for young people to find their own 'game' in finance, whether it be business or real estate.

The notion that the poor will always be with us due to a fear-based mentality that is self-fulfilling.

The impact of language on mindset, with phrases like 'I can't afford it' leading to a closed mind and limited opportunities.

Transcripts

[Music]

do the rich people cringe and say don't

tell them that

yes yes yes don't tell people what they

what you know keep them poor

[Music]

my father was the head of education phd

all that stuff

i go home and ask him i said why don't

we learn about money in school

[Music]

and he looked at me he says because the

government doesn't let us teach that

subject

the government tells us what we can

teach and what we can't teach

and i thought that was strange and i

said but

aren't we going to school to learn about

money he says no

your job is to get a job i said but you

get a job to

earn money he goes no you're supposed to

just get a job

i'm like no no no no no isn't the

purpose of a job to earn money he goes

you're correct i said so why don't i

just learn about money

i can skip the job part you know and he

got flustered and he said

if you want to learn about money why

don't you ask your best friend's father

about money

and i said why that's mike so i asked

him

he says because mike's father is an

entrepreneur and i said what am

what are you he says i'm an employee i'm

a government employee

i went oh what's the difference

this is the difference is an

entrepreneur must know about money

or that they're no longer entrepreneurs

and it says an employee doesn't have to

know anything about money

because the government will take care of

the company will take care of them

so i'm kid i'm all confused but i took

my dad's advice and i

trundle over to mike's father's office

and knocked on his door and i said hey

i'm here nine years old

teach me about money he says beat it kid

you know

but that's what this toy of rich ted

poor dad started

and finally through persistence my rich

dad started 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 nine years old my head's

going cracking in half

he says you never want a paycheck you

understand that kid

he said okay i got it and he said well

how do i make money he says

that's what entrepreneurs figure out

it's like

so how do i learn about money so he

would just break out a monopoly

game board so i would work for free and

pick up cigarette butts and

get hotels and restaurants and i would

clean and do menial tasks

and as i got older i started getting

into office work and marketing and

accounting and

i was an apprentice basically but i

always work for free

and he would teach me about money but

the way he taught me about money was

playing monopoly

and that's 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

[Music]

we're playing monopoly he goes no no no

no what do you think we're doing

we're playing monopolies what do you

think we're doing

cause i don't know i'm teaching about

money

and then that's when you have one

greenhouse you know he says

there's many formulas for great success

and money there's thousands of them

but one of the best ones founded on the

game of monopoly still is today

four greenhouses one red hotel

said what he says one of the greatest

ways to

acquire great wealth is playing monopoly

in real life four greenhouses 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

greenhouses

and 10 years later when i was 19 i was

now in 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 waikiki beach

and when you go to waikiki beach today

you'll see the hyatt 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

what's called an assemblage because that

property wasn't that big at the time so

you had to buy out all the small

guys because waikiki was a little dirt

about a little town

so he'd buy out this shop owner and 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 hyatt

put up this giant hotel you know i just

and it just sold for 800 million dollars

so that's how i learned about money

[Music]

i've had financial crashes i've had

people stab me in the back

but they're all good because i grow from

it that's spirituality

you know people who are afraid of making

mistakes like they teach in school

they don't ever grow because

spirituality is there's good

and there's bad there's right and

there's wrong there's up and there's

down

most people don't want to be right they

only want to be positive

well you can't have that that's not

reality

well i wasn't poor by most people's

standards

but i came from a family with a poor

attitude if you know what i mean

because rich poor middle-class poverty

starts with

a fundamental attitude poverty is passed

on

it's taught in your families and middle

classes 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 you know

your super ego was taught

get a job work hard or or you'll never

be rich or the rich or evil or

whatever the school system will never

teach you about money

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

and what most people lack is real

business knowledge

like accounting you know like debt like

taxes you gotta know that stuff but they

don't teach it in school to anybody

so and then when people ask me how did

your rich dad learn this

when your poor dad a page they didn't

and the answer is very simply my rich

dad was my best friend's father

his father died when he was 13. so

his so rich dad had this family business

at 13

to run so he had to drop out of school

which was his blessing you know those

blessings and

you know sometimes the blessing doesn't

look like a blessing but it turned out

to be a blessing

and then his teachers became his

bookkeeper his accountant his attorney

his

bankers his real estate agents so he has

what i call

real teachers not these fake teachers in

school

you see most teachers in school they're

out of ethics

they teach subjects they don't they

themselves don't practice

i asked the teacher i said you know i'm

in my third year of calculus now

it was called it was called strength of

materials

i said am i ever going to use this stuff

he goes

no you know he said

why do you teach it as i get paid

so do you ever use it he goes no

[Music]

and that's why you know i you have to in

life

one of the things i suggest to people

you got to find a real teacher versus a

fake teacher

and a fake teacher somebody doesn't do

what they teach

and a real teacher is doing what they

teach every day so my accountants

my attorneys they're in it every single

day that's how i learn because every day

i'm solving problems in my business

so i have i have accountants and

attorneys and bankers and all these

people on speed dial

because i'm i'm solving problems with my

team

i see you giving this knowledge out and

yeah do the rich people cringe and say

don't tell them that

yes yes yes don't tell people but they

what you know keep them poor

but you know unfortunately the poor as

was in the bible i'm not really

religious

the poor will always be amongst us

because it starts up here

right it's that fear mentality it's it's

in their words you know and the words

become flesh

i'm not really religious i flunked out a

sunday school also

but when they say i can't afford it or i

can't do that

they go down they become what they say

my phd daddy says what do you think i am

made of money

i can't afford that 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 escape it's an escape

you know i mean it's easy to say i can't

afford and your rich dad used to say

what

instead of i can't afford it how can i

afford it

how can i do that you know what would it

take or why should i do that

he says a question opens a mind a

statement closes the mind see when you

say i can't afford it

your mind shuts down and you become what

you say

rugby is a team sport but so is soccer

the roles are different

and other people are golfers they play

by themselves

and so everybody's different so my game

financially

is business number one second is real

estate

so what i say to young people is you

find your game

[Music]

[Music]

you