← Rich Dad Radio Show: In-Your-Face Advice on Investing, Personal Finance, & Starting a Business
Rich Dad Radio Show: In-Your-Face Advice on Investing, Personal Finance, & Starting a Business
How to Build Wealth With Assets, Not a Paycheck
00:36:49
Most people work harder, pay more in taxes, and save in hopes of someday retiring—but that path doesn’t lead to wealth. Real freedom comes from cash flow, not a paycheck. In this powerful episode, Robert Kiyosaki reveals how the rich focus on...
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This is the Rich dad radio Show. The good news and bad news about money. Here's Robert Kiyosaki.
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Hello, this is Robert Kiyosaki. I'm very happy to talking to you. And why I'm especially excited is because this is the most important thing you can do. There's nothing more important today than investing in your entrepreneurial education, your financial education. Because as you know, the world has changed so dramatically. And I'm just glad I had a rich dad who warned me that this time was coming. You see, the world because of America is going into a serious decline. You know that, I know that. And it cannot be stopped. So the people that get wiped out are the people that are clinging to old ideas. The people that will do better are people that actually seek information, seek new teachers, seek new skills, and you will do well as independent business people rather than employees. Also want to thank Mc Tan, Sapp and Manchin, Richard and Veronica Tan of Success Resources. They've been my dear friends since 1996. So it's Richard and Veronica who first allowed me to tell the story of my rich dad and my poor dad. So I'll be talking to you today about what my rich dad taught me about business, about being an entrepreneur and being an investor. And so this is another friend of mine. You probably know him as President Trump. And I know a lot of people hate him. We've written two books together because we're very concerned about education. The Nigel schools have no financial education in schools. So whether you love him or hate him, he's very much pro education. I know him, I know his family. I know the people he works with. His business are fantastic people. So please don't listen to everything you hear in the news or in the print and all this. Trump does say some things that upset people, but my experience of him, he's A very, very good band. My wife loves him. He's a lot of fun, he's very smart, and he's straightforward. So anyway, this was the second book, first book, second book I wrote with Donald Trump. It's the Midas touch, and it's for people who want to be entrepreneurs. So getting back to my rich dad here, I'll give you a few lessons you may have. If you've read Rich Dad, Poor dad, you've probably heard them before, but these are the basic lessons for those of you who want to be rich tycoons. And it goes to this. This is found Rich dad, poor debt. This is the thing of a financial statement which you don't learn in school is income, expense, assets, liabilities. Now this is the difference here. My poor dad, PhD, good man, went to Stanford, Northwestern, University of Chicago. This was poor dad. All he wanted was a job. And that's he got to get a good job. And they also wanted to keep his expenses low. This was live. So my poor dad, go to school, get a job, and then live below your means. That was his life, and that's not the life I wanted. This was my rich dad here. And he says what the rich do is they acquire assets or they invest in assets. And the trick with rich dad was he used liabilities here so he could use debt to buy his assets. And what happened to my poor dad? He would use debt to buy liabilities. Very, very big difference. That's that small little distinction is a big difference. The only reason I've made millions and millions of dollars, I use debt to buy real estate. So today I have about 7,000 rental units. And every month, 7,000 rental units put cash flow in my pocket. So I don't need a job. So I want to explain that again to you. So this was poor dad. And for those of you who want to be rich, you may want to get out of your mind the idea of go to school, get a job and live by your means because you don't get rich thinking that way. Now, if you're going to be a rich tycoon, you want to be here. You want to build a person who acquires businesses. So I own a number of businesses. I own a lot of real estate. I have no paper assets. I don't own any stock spots, mutual funds or ETFs, none of them against them. I just don't need to invest in them. And the next one are commodities. And commodities are gold, silver, oil, Bitcoin. So the reason the rich are getting richer is very, very simple and why. What you're learning at, what you're learning at New Tycoon is to be here. If you were in school, you'd be like my poor dad, looking for job security, a steady paycheck. And what you're learning at New Tycoon is here. This is very important today because as you know, the stock market is at all time high. And the reason it's all time high is because the US government, the Fed and Wall Street, Federal Reserve bank and Wall street are printing trillions of dollars. So that's why I've been buying gold since 1972. I bought my first gold coin in Hong Kong. It was a Krugerrat, South African Krugerrand and I paid $50 for it. @ the time, I was flying off Vietnam, flying off of a place called Da Nang, and I was looking for gold in Da Nang and stuff like this. But I didn't get any. So I had to go to Hong Kong, get my first gold coin in 1972 and I bought my first silver in 1964. So the reason I'm a relatively rich man is because I never saved dollars. I don't save US dollars, I save gold and silver and today bitcoin. So if you're going to be a rich person, the secret to long term wealth is found in the commodity section. So gold and silver and bitcoin hold their value. So like I said back in 1972 when I was in Vietnam, then I went to Hong Kong to buy my first Krugerman. That Krugerrand was about $50 US in 1972. Today it's about $2,000 and I have thousands of them. I just don't save dollars. I save gold, silver and bitcoin. This is where the rich get richer and this is where the poor middle class get poor because they make a lot of money here and their largest single expense by taxes. So you have a job and your money goes straight to the government. If I'm acquiring assets, I bypass taxes legally. So those are some of the simple reasons why the rich are getting richer. With this in my rich dad and my poor debt. And you look at this here. Debt made, debt made my rich dad richer. And debt made my poor dad poor because my poor dad bought a house. So very simply, that's it. I mean, you don't have to know much more than that. So if a picture's worth a thousand words, let me show you this picture here. So this is the picture here. This was rich dad. He really valued his financial statement. And this here is a Financial statement. And this is what Poor dad valued. He valued his college degree, his PhD. And the reason Poor dad was poor was very simple. Because this is what he thought was important. This, and this is what Rich dad thought was important here. So the second book in the Rich dad series was this book here, the Cash Flow Quadrant. So Rich Dad, Poor dad was number one. Richard, Poor dad was about this. And this is the Cash Flow Quadrant. Many of you read it, it's a very important book. But these are the four different people that make up the world of business. This is the quadrant. E stands for employee. That was my core debt. S stands for specialist or small business owner. You know, somebody who, like your plumber or your electrician or a doctor or a lawyer. But this is where Rich dad hung out at. So again, Poor dad thought this was important. My mom thought this was important. My mom wanted me to be a doctor, a specialist, but yet to be smart. I'm not very smart, so she says I can't be a doctor. So I came over here and this here is Rich Dad. These guys always use the same words. They'll always say, I need a college degree. I'm looking for a high paying, safe, secure job. These are the people that are being wiped out today. Jobs are lost and lost and lost. So are these guys here. The ripple effects, it's like one guy loses his job, it affects his family, affects businesses, it affects everybody. You got to learn to be over here. You got to learn to be an entrepreneur and an investor. Because that's the secret to success today, not job security and not being a doctor or lawyer. There's another reason this work, taxes. These are E's and S's. They pay the highest taxes. So this guy over here, the poor person in America, and it's true, most of the world, they'll pay about 40% in taxes. In America, these people pay 60% in taxes. And in America and the rest of the world, these guys pay 0%. I mean, excuse me, 20%. And the investors can pay 0% taxes legally. So this is all part of your financial education, because education is what makes you richer, not money. You're not making a lot of money because there's a lot of people make a lot of money here, but it just goes out this way. That's silly. That's really, really silly. So the object is to make a lot of money here and keep the money coming back here. That's how you get richer. But if you make a lot of money here, again, just pay higher taxes, because that's what traps the people on the ems. But that's a big part of your financial education is you've got to know that this here is more important than a job. And the thing I like about this, you know, I'm an old man now, but I've been collecting gold and silver and bitcoin for years. It doesn't take any intelligence, it just takes discipline. So sometimes I buy one coin, sometimes I went out and buy more. But that's what made me rich. On top of that, I have businesses. And the way I really made the most money was in real estate. The reason I take real estate is I can use debt to buy real estate. I don't have to have money. That's the difference. And the more this real estate puts money in my pocket, the less tax I pay. That's the game. So my real estate, the 7,000 rental units make money here, but because the tax law and accounting rules, I don't have to pay the taxes legally. And you can do the same thing. Just have to have a good accountant and a good tax attorney. You'll do very, very well.
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This message is brought to you by Apple Card. If you're like me, you might be considering getting a new iPhone. But have you considered upgrading your credit card? When you use Apple Card, with Apple Pay or the laser etched titanium Apple Card, you can earn unlimited 3% Daily Cash back on everything you buy from Apple. Whether it's a new iPhone, an iPhone case or even a service like Apple Music or Apple TV. Plus earn 3% back on the Apple products and services you love. It's an easy decision. You'll only wonder why you weren't doing it sooner. Subject to credit approval Apple Card issued by Goldman Sachs Bank USA Salt Lake City Branch terms and more at applecard.com Most so called financial gurus are just talking their buck. They're not teaching, they're selling. When I say I buy gold and silver, I'm not selling you coins. I'm showing you what to do to survive a broken system. And make no mistake, the system is broken. America Debt is over $37 trillion. The dollar is down 10%, gold is up 34%, silver is up 42% and the S&P is only up about 10%. Which fund do you trust? I do not trust the dollar. I do not trust Wall Street. I trust real assets I can hold in my hand. That is why you should get the Rich Dad Wealth Defense Guide from Priority Gold. This guide shows you the three easy steps to move part of your 401k and IRA into physical gold and silver. Legally tax free, penalty free. Call Priority Goals right now at 866-703-9895. Ask for your copy of the 2025 Rich Dad Wealth Defense Guide or text GUIDE to 24999. No pressure, just real answers. I'll say it again. Call 866-703-9895 or text the word guide to 24999 right now. I buy gold and silver. I rarely sell. This is not a pitch. This is the truth. The only question is, will you act?
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Welcome back, Robert Kiyosaki. So one more very important lesson is this is every human being, every four. Every human being has four intelligences. One is mental. I was never very good there. Another is emotional. One of the reasons people are not successful is because of fear. Our schools teach you don't make mistakes. It's a fear of failing to be a new tycoon. You've got to overcome that fear of failing and do that smartly. So emotions are important. So is joy. Happiness is also an emotion. And sometimes people make stupid mistakes when they're really, really happy. The other type of education or intelligence is physical. If you're learning to play golf, golf is mental, emotional and physical. Like you can't learn to play golf if you're not good physically. So you got to improve that intelligence. And the last intelligence, which is the most important is spiritual intelligence. And that's what keeps you going to overcome any doubts you have about yourself and all this. There's a thing called self esteem. And if you're going to be successful as an entrepreneur, your self esteem has got to get stronger, is your self perception. That's what's going on inside of you gets stronger, then your success goes up. But money alone, just making more money doesn't necessarily make you more successful. So the more you focus on getting these intelligences stronger, you become more successful. And that's a long way of saying, and that's why my wife and I, Kim, created this board game here, the cash flow board game. Because the board game is not just mental. The board game involves mental, emotional, physical and spiritual. The great thing about the board game is you can play with plain money. And the reason many people are not successful, their fear of losing money is so high they can't think like this does all of their thinking. And what happens is when you get really emotional, you freeze up. So the purpose of the cash flow board game is to give your physical, your spiritual strength time to get stronger. So you get stronger physically Mentally, Emotionally and mentally. But that's what you're learning about right now. One of the reasons my poor dad was not successful, if he couldn't control this here, he was so afraid of failing. He was so afraid of not having a paycheck, he was so afraid of it. And so that's why he stayed an employee. So the reason my poor dad got stuck and he got stuck here and he got stuck here was because he was really smart. Mentally, he was good in school, but his emotional intelligence was very low, which froze him here. And he didn't have the courage to leave this place and come here. Your job is to get emotionally more intelligent. We all have fears, we all have doubts, we all get depressed. But your intelligence will overcome that. You have to know the language of money, know what finance is, business, and all this. You have to learn how to sell, how to talk to other people as if you can't sell. There's no income. But most important is your spiritual intelligence, is how do you fall down and stand back up when you fail? You fall down. If you don't stand up, this, you don't get smarter here, but if you have the strength to stand back up, you get smarter here. So that's the reason my wife and I started the cash flow board game, was very simply so you could engage all four intelligences. Well, let me show you where that works out to. So this is kind of the game board here, inside the game. But this here is your financial statement. And what the game is teaching you to do, and what Tycoon is teaching you to do is to focus here in assets. Because this is the most important thing. This here's your statement of cash flow. This INC statement, this is your balance sheet. So this is all financial literacy. And most school teachers are not financially literate. They don't have one of these. So if you're going to be an entrepreneur, you have to have one of these. If you're an employee, you don't need these things. So that's why I know some of you don't like the guy, but President Trump and I, why we joined forces is to be successful in life, you need all four intelligences. You know, he takes. So people hate the guy. They really hate him. And I know him as a good man. He gets accused of everything, but if he's not really strong here, he could never be president. So I'm not saying you should be President of the United States and all that, but if you're going to be successful in that life, you know, every day as you get older and work and learn and all this, you want to get more successful and more intelligent physically, mentally, emotionally and spiritually. Like a lot of people my age today, all they had was a job, and they played it too safe. Now they have no money. They're already, you know, they have to retire, but there's no money to retire on. It's because emotionally they played it too safe. They're afraid of failing, and they were afraid of losing money. That's not good mental intelligence here. So please remember this. It's all four intelligence that's required to be successful today. And the spiritual intelligence is the most important, because when you fail, spiritual intelligence gets you to stand back up again. And so part of your four intelligence is a lot of times I like to use pictures because pictures involve your right brain. You know, a picture's worth a thousand words. So take a look at this picture over here. One of the reasons my school teachers are not rich is they only teach you to see one side of a coin. They said, either you're right, I'm right, you're wrong, and I'm right, you're wrong. If you're going to be intelligent, you have to see both sides of a coin, because all coins have three sides. One side is heads, other side is tails. But intelligence is standing on the edge of the coin and looking at both sides. So there's a lot of people that really hate Trump, but they don't see the good things he's done. I'm not pitching Trump, I'm just telling you, they're so blinded because they hate him so much, or a lot of people are so afraid that they can't see this. Millions and millions and millions of dollars in opportunities in front of each. All they see, oh, the economy's bad. Oh, the economy's bad. But on the other side of the coin, the economy could be great. So the real test of the four intelligences is not whether you're right or you're wrong. The real test is, can you stand on the edge of a coin and then see both sides? So, you know, right now, economy looks really bad for millions of people, but on the other side of the coin, the economy is really good. But also you can stand on the edge and see where the economy's bad, but sometime where it's bad, it's the opportunity. Right now, I'm making more money than ever before because people want financial education. Now, if the economy is bad for you, then all you have to do is engage your intelligences and see the other side. That's one of the most important things. The reason my poor dad was poor was because he had his PhD. And, you know, in school, you have to be right and everybody else is wrong. That's what PhDs do. If you're going to be an entrepreneur, it's best you see both sides of both sides of the coin. Your opportunity is found in darkness, and if everybody's doing it, I don't know if you want to do it. Like, you know, Apple is one of the biggest stocks. I should have bought Apple years ago or Amazon, but I didn't. But there's still more opportunities than ever before because I can create my own opportunity, I can create my own assets. So those are some of the things I'd like to have you understand here is don't get stuck in the right wrong and all this. You have four intelligences, but the most important intelligence is to stand on the edge and see both sides. So the next time somebody tells you you're wrong, just know they're saying they're right. And your challenge is to know why. What they think is wrong is you're right. You've really got to see all three sides, and all three sides require all four intelligences. One more thing about intelligences, these are markets here. You know, there's an old saying as an investor in the I quadrant is that the bull goes up the stairs and the bear goes out the window. So what happened is up until 20.