"Most People Have No Idea What's About To Happen" - Robert Kiyosaki's Last WARNING

Summary

The video explores unconventional views on wealth-building and investment strategies, challenging traditional financial advice. The speaker emphasizes that true wealth comes from embracing risks, learning from mistakes, and using leverage. Inflation is highlighted as a key factor eroding purchasing power, and real estate is suggested as a hedge against it. The video critiques the myth that 'it takes money to make money,' advocating instead for taking action and learning through experience. Key themes include the importance of mindset, leveraging assets, and stepping outside conventional financial norms to build lasting wealth.

Takeaways

• 😀 Traditional financial advice, like 'your house is not an asset,' is being increasingly accepted as true, though it was once controversial.
• 😀 People are often unaware of the truth about their financial situation, and this ignorance contributes to poverty.
• 😀 The closer you are to the truth about financial principles, the more successful you'll be; being far from it leads to poor financial outcomes.
• 😀 'Get out of debt' is commonly preached but may not be the best advice; real financial success often involves leveraging debt strategically.
• 😀 The further you are from the truth about health, the worse your health is—a similar concept applies to financial knowledge and wealth.
• 😀 Inflation can dramatically erode purchasing power, potentially reducing it by 15-30% over just a few years.
• 😀 Hedging against inflation can involve a variety of investments, not just real estate—anything that grows with inflation is worth considering.
• 😀 Real estate has proven to be a valuable hedge against inflation, with some people preferring to invest their cash in property rather than keeping it in the bank.
• 😀 The myth that 'it takes money to make money' is false; you can start building wealth without initial large capital, especially by investing in real estate.
• 😀 Learning through direct experience in real estate, even with mistakes, accelerates financial education and smart investing skills.
• 😀 Leverage is key in real estate investments; unlike gold, real estate can be used to generate cash flow and provide financial growth opportunities.

Q & A

Why does the speaker emphasize the idea that 'your house is not an asset'?

The speaker points out that while many people consider their homes an asset, they actually don't generate income or appreciate in value like other assets. A house is considered a liability because it requires maintenance, taxes, and other expenses, which can offset its value as an investment.

What does the speaker mean by 'the further you are from the truth, the poorer you are'?

This statement suggests that many people are trapped in outdated or incorrect financial beliefs. The speaker argues that poor financial outcomes result from misunderstanding how wealth truly works, such as believing that debt is always bad or that a home is automatically an asset.

How does the speaker view inflation and its effects on purchasing power?

The speaker warns that rising inflation (around 5-6%) erodes purchasing power, meaning the value of money decreases over time. This makes it essential for individuals to find ways to protect themselves against inflation, such as investing in appreciating assets rather than holding cash.

Why does the speaker consider real estate a hedge against inflation?

Real estate is considered a hedge because, unlike cash, it tends to maintain or increase in value over time, especially during inflationary periods. People prefer to invest in real estate instead of holding cash, which loses value as inflation rises.

What is the speaker's opinion on traditional financial advice like saving money and investing in a 401k?

The speaker criticizes this traditional advice, arguing that it does not teach financial skills or strategies that lead to real wealth. Instead, they advocate for learning through practical experience, like investing in real estate, to gain deeper financial knowledge.

What does the speaker mean by saying 'the biggest lie ever told is it takes money to make money'?

The speaker challenges the belief that you need large amounts of money to start building wealth. They argue that with the right strategies, like leveraging real estate, people can create wealth without needing large sums upfront.

How does the speaker view the relationship between financial struggles and truth?

The speaker believes that financial struggles are often the result of being distant from the truth about money and wealth. When individuals are misinformed or unaware of financial principles, they remain poor and struggle to improve their financial situation.

What is the significance of the example of selling a $9.75 million property?

The sale of the property demonstrates how real estate can perform well in times of inflation. Despite market predictions that the property wouldn’t sell, it was bought quickly because the buyer preferred holding real estate over cash, which loses value due to inflation.

What does the speaker mean by 'you can’t leverage gold the same way you can leverage real estate'?

The speaker explains that real estate allows individuals to borrow money to purchase property, using the income from that property to repay the loan. In contrast, gold cannot be leveraged in the same way, meaning it cannot generate cash flow to support borrowed funds.

What opportunity does the speaker see in times of economic downturns?

The speaker believes that financial downturns present opportunities for those who are well-prepared and knowledgeable. Just as Warren Buffett’s quote suggests, when the economy faces challenges, those who are 'swimming naked' (unprepared) are exposed, while those who understand how to leverage assets can capitalize on the situation.