What the Rich teach their children about money – Robert Kiyosaki

he teaches people to become millionaires today here his money-making secrets it was life-changing and just woke me up went from 48 to a hundred thousand one year what do the rich teach their children about money that the poor and middle class do not Robert Kiyosaki teaches people to be millionaires he teaches people to be millionaires that's how he earned the nickname the millionaire schoolteacher and he says that the rich have a very different way of thinking about money that anybody can learn his book Rich Dad Poor Dad has been on the New York Times Business bestseller list for eight months and his unique advice may change the way you look at your money this is a really important show if you like money if you need money if you'd like to have some money this is a show for you take a look I've been rich and I've been poor and I like rich much better I found out that the secret to success is not hard work or luck I found a new way of thinking that works for me remember these here he's a nylon and velcro surfer wallets when I was 26 I began marketing these products worldwide and that's how I became a millionaire before I was 30 besides building businesses I also invest in stocks as well as real estate I was able to retire the age of 47 today I teach other people how to build businesses or to be investors I must say well much of my financial success to a man I called my rich dad who was my childhood best friend's father he made me realize that was a very big difference between what the rich teach our kids about money that the poor don't teach their kids about money my real dad all my biological father was a head of education for the state of Hawaii I call it my poor dad simply because he was a high paying government official he made a lot of money yeah that end there every month he was broke my Rich Dad on the other hand was my best friend's father he and he ultimately became one of the wealthiest men in the state of Hawaii and by the way my Rich Dad was a high school dropout one dad had a habit saying I can't afford it my Rich Dad on the other hand forbade his son and I from ever saying I can't afford my poor dad always said our house is an asset and it's our largest investment my Rich Dad said your house is not an asset it's a liability and if it's your largest investment you're in financial trouble my poor dad believed in job security he said look for a company that had excellent pay good benefits such as medical vacation and other types of perks my Rich Dad said that that entitlement mentality kept people financially weak and financially needy my poor dad always said find the safe secure a job and work your way up the corporate ladder I rich dad said why not just hold the ladder I decided to listen and learn for my rich dad the rest is history well let's go through some more of Roberts points about what he says the rich teach their children that the poor and middle class do not main difference you say between the rich and poor it lies in what we teach our children about money well airless and it's a mentality it's a total way of thinking exactly yes and it's really easy to change if you willing to change the way you think for instance my my poor dad was a very good man for Japanese he was six foot four very smart academic genius but he always said to me you know go to school get good grades get a job and work hard save money and my Rich Dad said well if you want to be a rich that's not the way you do it and he instead of working for money my rich dad taught me how to have money work hard for me and that's why I've only had a job four years of my entire life other than that I'm building companies or I'm investing and that's all I'm doing well the subject money is taught at home not in school you say because most of us learn about money from our parents and it's only good if you have a rich dad mentality my message to people is you know why struggle for money when you don't have to you know it's that really simple if you have good advice the problem is money is not taught in school and so what we do is we oftentimes follow in our parents footsteps we may do different jobs but we oftentimes follow in the same financial patterns and my rich dad used to say and I said you can't you can't end poverty by giving somebody money giving a poor person money keeps some poor longer yeah and that's what breaks my heart because I want to help people change the way they think about money that's all it is yeah and I think one of the most important things is that I noticed when my rich dad my poor dad was the vocabulary my poor dad you know the PhD in education very smart man but he had the vocabulary of a schoolteacher and my Rich Dad had the vocabulary of a rich man and someone I say the people what's the first you mean by vocabulary well I know what the word means but what kind of vocabulary well maybe my I stood around the dinner table I listened to both dads and one would talk about algebra geometry trigonometry and my Rich Dad would sit there and he talked about return on investment assets liabilities discounted cash flows etc well you said you know what you just said about your house is a liability it's not an asset most people think it is their biggest investment yes and that's the one the biggest middle-class traps they said my banker says my house is an asset and my rich dad would say if you can read a financial statement you'll see you can read that your house is actually a liability I'm not saying don't buy a house and I like big houses I like the finer things of life just don't call a liability an asset and what's trapping the middle class is thereby liabilities they think remastered I like what you say in the book but this is interesting too cuz I've been always been a person who lived beneath my means now it's kind of hard to say it doesn't matter but I've always been a person because I just was reading about how the Chevy Chevette was the worst car one of the worst cars everything and I had one of those little tendons because that was the thing that I could pay cash for not have to you know pay interest in so forth so I've always believed in living beneath the means until you could really afford to pay for stuff mainly cuz I hate bills right just hate bills and you say one of the mistakes that middle-class and poor people do is they try to look rich so those are the first people to go buy the furs the Diamonds the big TVs and all the stuff correct right my rich dad called it looking good and going nowhere yeah my grandma used to call it not a pot to piss in [Applause] that's somewhere but anyway it's the same principle you have all this stuff I know when I see people out and they got all the stuff and all the things and they love the guy but then when they go home what they have bills bills and they worry and their health goes down and you know it's not worth it the thing that I think most people don't realize is that there's only two kinds of money problems basically one's not enough money and one's too much money and they're both problems and you really know you have to know how to handle too much money as I'm sure you do right now yeah what's a different problem yes a different kind of problems so when you have no money you have a plan to eventually have plenty of money and then when you have plenty of money go chef plans yes and so that's why people win the lottery always gonna get all this plenty of money and they go broke overwhelmed by it right I think because they have never understood how money work Paul Roger says he changed from a poor dad to a rich dad and now wakes up every day with a new outlook on life here's what Paul's story is Paul Rogers a divorced father of two was making forty eight thousand dollars a year as a firefighter and living paycheck to paycheck by the time I paid the house payment the child support the car payment food and utilities with the two kids it was it was really tough last year Paul discovered Robert Kiyosaki's financial plan he stresses rename things number one set up our home-based business number two get control of your taxes number three take that extra income and buy more assets with it he followed the steps and set up his own home-based business it was easier than he thought and only cost him $300 with that extra income from his new home business and a pay raise from the firehouse of $300 a month he started to buy homes that were in foreclosure you can purchase them under value go in carpet paint them fix them up turn sell them and they even make more money with the money he made from selling those houses Paul bought stocks mutual funds IRAs had even set up an educational account for his children it has changed my outlook on life because this is giving me more time freedom with my kids and more financial freedom and the best thing is my incomes gone from about 48,000 a little over a hundred thousand in a one year period Wow Wow I bet you impressed with yourself I'm impressed with Rich Dad Poor Dad in the book it's just an unbelievable book you're gonna have a great response from all your viewers on this well you sound like an infomercial so it obviously has changed your life your outlook and what you will now pass on to your children yeah really the educational system educational system that I had growing up then teach me about debt credit card debt liabilities college loans you know getting that fancy car right out of school but what Brent and Chelsea are learning now is that hey you know make your money work for you don't work for money so it's been it's been a big life-changing experience for me so what exactly cuz not people going what exactly caused you to go from 48 to 100 in a year well that's that's a very good question I think what it was was number one i sat down and I actually wrote out what my goals were and what my dreams were and I had never done that before and when I actually wrote those on paper I said to myself well how am I gonna get there what do I need to do and it's probably a lot of the viewers gonna say yeah this all sounds good but tell me the answer well the answer for me was I set up a home-based business by doing so it only cost me $300 I'm generating income from that and taking it income buying real estate put it in to the stock market stuff like that buying more assets in my life and having my money work for me but you also kept your other job I'm still a full-time fireman I plan on keeping it I thoroughly enjoy my job yeah we like fireman you and me on the singles show yeah I will yeah [Applause] call the Oprah show and give me a call so your whole life has changed yep pretty much I've got just a great outlook I mean when I wake up every day now it's just like there's all kinds of opportunity out there but it's really taking that first step in saying yo why am I here you know what do I want to do where do I want to go well one of the things you say is that the poor pay their bills first the rich pay themselves first that's a tough that's a really tough one but it makes people kind of crazy yeah because the owner from richest man babylon says pay yourself first but what most people do is they pay the bills first and they never pay themselves anything and that's a discipline I had to get into was all I was pay myself first even when I had no money and would have all these bill collectors calling me I use them as inspiration really Oh wonder how the government's hounding you bill collectors call that because I've been broke so I can you understand what it feels like to be pro when those guys are calling you instead of you know shrinking and going into the shell and eating my pizza I use it as motivation to go out and make more money so I use that I used my bill collectors as motivation and that's why I paid myself first even though sometimes I would you pay yourself I was blunt assets I'd buy a house or I'd put money in the bank and things like this but it was just a habit exec what you're talking about it's up here it's about changing the way you think the whole book is about that's because we're our biggest asset we're also my biggest liability we are yeah we are I know I read that during the commercial break you said what stand up say it again would you say that you can you can pay yourself first pay your bills second but if you do that you still can't afford to pay to buy a house say you say you bought a house how am I gonna get somebody to loan me the money to buy a house when I can't pay my and when I can't fully pay my bills as I'm paying them now when I'm paying the middle you know in payment let's say that pay yourself person he's with a lot of people out there who are saying look I got the bill collectors calling I'm scared to answer the phone because yeah I I don't have the money so how am I gonna now give myself money first when I got these people knocking down the door that's what all these people are shaking their heads too right they're thinking easy for you to say from where you sitting now I sell I'm gonna say I go to I go to work every day and I try to sell more and more and more to make more and more money but that money's still going to my bills so I'm not getting called by the credit deflectors one thing that Paul said right there he starts a home-based business the tax laws are written against tax laws are not equal and if you want what I'm saying is gotta get educated here so tax laws are not equal so if you're an employee and you work harder and harder the government's gonna take 50% no matter what so by being a business owner this was Paul did he has packs advantages that the middle class and poor do not have it taxes are the biggest expense in your life as a salesman the more money you make the more the government takes so get control of your taxes first by setting up a home-based business take that tax savings now pay down debt and buy more assets in the real estate and you said well I've got credit problems I'm not gonna be able to get a loan find a motivated seller fine owner financing there's all kinds of opportunities out there most of society though watch this show and then they'll go back to just sit at home at night you really have to change what you're doing in your life if you're not happy where you're at financially you've got to do something drastically just saving money and investing it's not enough there is a complete mind set that goes on I think that's what these people is saying because we all have the mentality in this country you work harder you work harder you they will pay off in the end it does not cuz the government always gets theirs right and then and then real estate is the least taxed income you can get so when when my wife and I were struggling we save $6,000 we bought that house they went to went from 46,000 to 105 we had $50,000 but I think when people think of real estate they think about the house that they would want to live in so you start out buying something that you wouldn't necessarily want and you use that to build more income just as she does she bought seven Fillmore atomize that's my idea I want to buy a three flat living the basement ran off the two top two apartment anything haven't paid my mortgage for me but I still need to come up with the original capital to buy the place that starts with a paying yourself first that's what people should be teaching in school cuz I swear you we've all been taught be responsible pay your bills first so that the people don't you know call you or not harassing you and so forth what are you gonna say Paula state that I was doing with the real estate what your what Roberts talking about but for $300 I set up a home based business anybody in this room can do that and you're gonna save money on your taxes number one while you're generating income on your business once you've got that income coming in you can do all the real estate that you want them so it's really just getting out there and looking at the different opportunities $300 investment can't beat it

20 thoughts on “What the Rich teach their children about money – Robert Kiyosaki”

  1. The way I taught my 7yr old kid:

    *I was the bank that gave her $10

    * She bought a kid jewelry maker for $10

    * She sold 1 braclet to my wife for $20

    *She Payed me(the bank) $12, my daughter kept $8 for herself!

  2. Pay yourself formula, 50/30/20. Fifty percent to your needs, thirty percent to yourself and twenty percent to savings and/or investments.

  3. If they seriously believe that mindset is all it takes, they have clearly never been in real struggle.

  4. i'm on the process of changing my mind set after reading the book rich dad poor dad, and viewing this video is not really new to me but more additional knowledge, feel more motivated to go forward chase my dream, maybe i cant do exactly what robert did but a little resemblance to what he is teaching, especially about securing a job and working with that job my whole life – ohh its a nonsense thing to do that. After i read the book, slowly my mind got to rumble and slowly changing it, from poor mindset to rich mindset, if only i can find a strong mentor that can help me personally on how to start any business to get me also into a rich life, the better.., thank you sir robert fro all the knowledge you shared, May God Bless You more

  5. It took me all these years, I'm 34 now, to finally say to myself "this isn't working, there's gotta be another way" at that same moment I stumbled on Robert Kiyosaki, I'm so grateful ever since. I think changing your whole mindset and way of thinking is the hardest part, everything else after that gets easier.

  6. We stopped our kids from asking for money all they time with busykid.com Works so well. If they want to spend some, they earn it!

  7. I have taught my kids to manage money since they were one year old. I've taught them how to earn money by being entrepreneurs, manage the money they make by dividing it into 5 accounts that have very specific purposes. They now give 10% of their own money, buy their own toys and entertainment and they buy all the food for their pets. My kids are now 11, 9 and 1. I am so glad I started them off young by empowering them with a financial education. We explore financial principles together every week. The more we do it, the better they get at asking the right questions to advance their financial education. We have taught the kids to use 30% of all their money to invest in businesses and stocks.

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