There, they don't want us to know things that you'll never get on CNBC. The school system will never tell us these things because they're part of it. Fake money, fake teachers, fake assets. I know the game of the rich. My rich dad taught me. You know, because you're a banker. Bankers are rich players. It's different than what they teach you in school.
In this world, how do schools teach you about money? The answer is: nothing. It's not a mistake or an accident. I know, and most people know, that the way to keep the middle class working hard is to never teach them what the rich know. So if you read "Rich Dad, Poor Dad," which came out in 1997, a book about how rich people teach their kids about money, the poor and the middle class don't do anything.
The poor get hurt. I mean, I don't like that. And I don't like that our academic system is so corrupt. We know the banking system is corrupt. We know politics is corrupt, but academia is just as corrupt. I feel like banks and politics are the same thing, but this is where we send our kids, and we trust them to do right by them, and yet they're not taught something as basic as what you would ask your dad as a kid, ask your teacher, when did you tell or teach us about money? And then, they just say nothing and never tell you, you know what? Share What is financial education? It's not about getting a job, working hard or saving money and investing it in a diversified portfolio of financial investments, stocks, mutual funds or ATFs.
The financial industry consists of two things: debt and taxes. In 1971, Nixon took the dollar off the gold standard, which turned the dollar into debt. Yet we still tell our kids to study and get a job, work hard, save money and get out of debt. Who is telling them to do this? This is just ridiculous. The first line of the book says saving money will make you rich. Actually, it never will, you know. We were all taught as children why should you save money? Why would you work for it if it can be printed out faster than you can work for it? Why would you keep it when it's printed out? Rich people never work for money You don't touch that stuff It's a very subtle right, isn't it? They don't say I'm going to train you to be a worker bee for the rest of your life, but they teach you in a way where to go, and this is why you're here, and what else? What exactly do they want to do? What do you do for them in your first few months? What is he trying to get from you? Because he teaches you how to get money.
Let's say if you want to be successful in life you need to find the best teacher. And a good teacher always comes from within, not from outside. But in school, you don't know whether your mentor is real or fake. That's where fake teachers come from. I say: I want you to teach me about money. Why should I teach you? But if I teach you, you need to work for me for free. Then I said: Why for free? My dad, my poor dad, got angry and said, " If I pay you, you'll start thinking like an employee, your brain will change. If you learn to never work for money, you'll be rich. It's an entitlement. Once you give someone a salary, their brain shuts down. Then there's the promise of a pension, the security of a job, which is a salary in disguise, after you stop working.
Give a man a fish and he'll eat for a day, teach him how to fish and he 'll eat for a lifetime." Most poor people are confused about assets and liabilities. They think their house is an asset and also a liability. Yes, an asset is a noun, like a house. Cash is liquid, it's a verb.
So understand whether it's an asset or a liability. It's like a noun plus a verb. If cash flows out of your pocket, it's a liability. If cash flows into your pocket, it's an asset. I own 7,000 rental properties. They're all assets, with cash flowing in every month. Many people have big houses in the mountains, but if the cash flows out, they're going bankrupt. It's like a framework for the mind. Another thing poor people don't understand is that for most people, the most important expense is taxes . Yes, we don't even see it. Isn't it strange? You look around you, you look at your paycheck and say there's something wrong with it, but you don't realize that the government has put a huge hand in your pocket, and there's nothing you can do to minimize it.
That's the big difference between rich and poor people. Rich people don't work for their money. The first expense is taxes. You see, there are three types of income : profit, portfolio income, and passive income. So profit is earned income, and if I have a job, that's my income. If I'm a doctor or a programmer, that's my income because I work for it. If I buy an apple for $10 and I sell it for $20, that's, uh…
Portfolio income, capital gains. But passive income, which is cash flow, is never taxed. That's why these guys in America are screaming about too many taxes, and good luck to you because most of the people complaining don't know that there are actually three types of income. Anyway, the rich don't have any jobs, they have assets, so on average they're smaller than the poor guy out there. You know, send your kids to school, they won't learn this. You see, very few people will buy my stuff. Make a million dollars and pay zero taxes. When my rich dad taught me how to play Monopoly, that's how it transforms, the difference between four green houses and one red hotel.
Or where McDonald's came from? McDonald's is really a real estate business. They sell burgers and they buy real estate. So they pay no taxes. You know this guy Bezos, he has $16 billion. He pays zero taxes on that $16 billion? Zero. And yet it's all legal and anyone can do it. Most people lack the education. So you have to learn how to use debt as money. You can never say I can't afford it.
You see, because banks will give you money. So these banks, after the 2008 financial crisis, the banks gave me $300 million tax-free. When I ask the average person, I say, can you? Why not choose debt? They can't even get a loan because they have this Fico score, and they only have those out there. It's terrible. School teachers will never tell you this because they don't know. My poor dad never knew this. You don't know if something is an asset or a liability until you can tell it in terms of cash flow. So a house, is it an asset or a liability? If you're taking money out of your bag, it's a liability. If you're putting money into your pocket, it's an asset. The US government wants us to provide housing, provide jobs, and borrow money because it's creating money through debt. It's like a giant tax break. Everyone could do the same thing if they all had financial education to do it. If people understood tax policy, we'd be more prosperous. But can poverty be inherited genetically? It's because of a certain mindset and an attitude.
It's very simple, when people ask me how do I stop this? I just, never say, I can't afford it Ask yourself, what should I do? Why do I have so much money? Because I never say, I can't do it, I just do it, how should I do it? Then I just do it! I make a lot of mistakes but that's how I learn, how can I do this? But poor people, like my poor dad, always say I can't afford it. Do you think I do it with money? I'm a school teacher and I can't do it! I chose to give up.
My rich dad never used that word. So whenever I encounter poor people who use the word "I can't," a lot of times these people will say, I can't afford it, I can't do it, I can't go to college. The rich are evil now. I chose not to participate. This is the one thing people can change today. Right now, is the dialogue in their heads. Stop saying the word "can't." So, what do I do? Especially when you say “I can’t afford it”, ask how can I afford it? Because it makes them start looking at it as an investment for a better future. Right, like when I borrowed $300 million and I couldn't do it when I just wanted to ask. When I got rejected so many times, I think you know, every time I showed the bank my financial situation, they would go, " Sorry, please take a look. Do me a favor, why are you rejecting me?" He told me, " This is how the numbers are here." So, if I fix these numbers, can I see you again? So, it's called rejection.
My wife rejected me for six months. It's just about personal will. It's about mental strength. So I said, if they can do it, I can do it, but how do I do it? I think it's what you said once. Words become body. Intelligence and experience grow through your mistakes. There are ups and downs, or you learn something. Real estate is real estate. But what I learned made me rich, not the money. He taught me that money is just for making money. You know, I think all of us have low points in life, but if they get the information, a new life begins. If they don't get the information, they continue to fall. I got richer because I didn't need any money. I could use it to make money. But how I got there was because I made so many mistakes. People are afraid to make mistakes, everything, afraid of failure. Good, good, it will be great.
A lot of people can relate to this voice..
