Robert Kiyosaki’s Formula To Get Rich – Millennial Money


(upbeat guitar music) – Hey guys, welcome to Advanced Lessons in Millennial Money,
featuring Robert Kiyosaki. I’m your host, Alexandra Gonzalez. You know Robert as the best-selling author of the number one personal finance book of all time, Rich Dad Poor Dad. But I’m so excited to let you guys know that Robert just released
his brand new book, Fake. Fake Money, Fake Teachers, Fake Assets. You can get your copy by clicking the link in the description. Hurry before we sell out again. Today we’re in for a really good episode. It’s all about the
differences between what you learn about money in school, and what we teach you here at Rich Dad. Instead of learning about taxes and money, in school we learned
about the mitochondria is the powerhouse of the cell. Very useful. But don’t worry, we’re here to teach you what you really need to know. We start by discussing
the cash flow quadrant. The quadrant describes
how different people earn different kinds of income. Let’s watch Robert
describe this in detail. – So anyway, I’ll point
out really really quickly, the differences between what
they’re teaching in school, and what we at Rich Dad teach. So this is the very big
difference, like I said, most school teachers are like my poor dad. And this was actually Rich Dad, Poor Dad, what you’re seeing here
is a financial statement. You know, Rich Dad, Poor
Dad is a book on accounting. Most boring subject on planet earth. But book number two of
Rich Dad was this one here. And this was called
the cash flow quadrant. You have E, S, B, and I. Test for you. What does E stand for? – The employee. – And what do employees always say? – That they work for money. – But they want job security,
pay cheque, and pension. – Yes, exactly. – What does S stand for? – Self-employed. – Small business owners. – Yes. – Doctors, lawyers… – They work for tips. – They work for tips. So they’re self-employed. And B stands for what? – Big business owners. – So 500 employees or more. And I stands for? – The investor. – The investor. It’s more than just
investor, it’s insider. You see, this is like Shark
Tank, on the TV shows. These guys here have done
this, and they’ve done this. So this was my Poor Dad. This side. This was Rich Dad here. So the difference what
schools are not teaching you, is what’s the difference
between these people and these people? That’s the big difference. And that shows up so,
when I was about your age, I had to make a decision. Did I want to, I was a pilot, most of my friends went
to fly for the airlines. But I’d be here. Or, I could have been in Alaska, flying fisherman around the place. A private, a pilot with a small plane, flying around the place. Or, I could own an airlines, or I could invest in airlines. And that’s the difference. In the mindsets and skillsets. You don’t just make crossings. The education’s extremely
different on this side, than on this side here. – We discussed the financial statement, and the differences between
how the rich and poor make their money. – But this is the big difference here. E’s, in essence, focus here. The rich focus here. And you see, that’s why I
don’t want a job or anything. These guys want jobs, they
have salary interests. Their big problem is
they pay the most taxes. E’s and S’s pay the most taxes. The B’s and I’s focus
here, they don’t pay taxes. Legally. And that makes a lot of people angry, especially the millennials. They want to tax the rich. – Yeah. – But you can’t tax the rich, because they don’t have any income. You see, if you have a
job, and you have income, you’re taxed. If you’re a small business
person, an entrepreneur, a pizza shop or something,
you pay the highest taxes. But because the rich, my Rich
Dad taught me to focus here, my Poor Dad taught me to focus here. And that’s what they’re
not teaching in school. Because to understand this, they would have to teach you this here. And most school teachers
are here and here, they know nothing about this and this. Does that make sense to you? – Yeah, it makes sense. I mean, when you tie it
into school teachers, I think, okay, if I want to lose weight, I go to a personal trainer
who has the body I want. So why do we go to these teachers, when they aren’t accomplishing
what we want to accomplish? – Right. Most of the young people your age today, you know, a lot of them want
to become entrepreneurs. The problem with this, you
have to understand tax. You see, this is all over the world, very little difference, these guys pay 40% of
their money in taxes. So they make $1000, they’re going to spend $40 in taxes. These guys that make $1000, they’re going to pay 60% in tax. So our schools are
teaching entrepreneurship, but they’re not teaching tax. Okay? Because they’re focusing on income. Over here, it’s 20% in tax. So they make $1000, only $200 goes to tax. And these guys, 0%. So the reason financial
education isn’t working in our school systems, is they’re teaching financial education for these people and these people. But to really become rich, you have to focus on this side here. And the difference between a Rich Dad, and the financial, and what they’re teaching in school right now. I’d rather be on this side. This side is a lot harder. But in the long run, it’s more fun for me. On this side here, it’s harder, but you’re
paying tax constantly. So these guys here saying tax the rich, well these guys don’t pay taxes. And as strange as that may seem, I’m talking about legally, this is all over our world. So that’s the big difference here. One last thing, which I think most millennials will understand, is in Rich Dad, Poor Dad I wrote about Ray Crock, founder of McDonald’s. And he was teaching at
the University of Texas, the Mba program, and Ray asked, and mostly MBA’s are
going to come out of here. So Ray Crock asked, and said, “What business is McDonald’s in?” and everybody yelled and said, “No, no, no, we know,
you’re in hamburgers.” And Ray says, “No, McDonald’s
is not in hamburgers. McDonald’s is in the
business of real estate.” Over here. So we have McDonald’s here, and the money McDonald’s
makes for real estate. And that is my formula. This is Rich Dad, I own real estate. I don’t hang out here. I’m glad you guys are here, right? And we do our best to
make sure your educated, and you have your own businesses
and things like this here, but really, the formula I
follow personally is McDonald’s. We have education company, that buys real estate, which means we make a lot of money, and pay zero taxes. Legally. But they’ll never teach
you that in school, which is what Fake is about here. Fake talks about fake money, fake teachers, fake assets. They’re all the same thing. Fake money, fake teachers, fake assets. It’s not an accident. It’s the way the system is set up. There’s why there’s no
financial education in school, because if you guys know this, you wouldn’t stay here. Am I correct? – Yeah, no, you’re correct. – So when I say to go
to school and get a job, you go, “No, no, I think I’ll go here.” – Yeah. And then that’s what I love. Because here at Rich
Dad, you’ve opened doors to other people who have the opportunity to learn about the other side. And to educate themselves
so they have an opportunity and the chance as opposed
to just following the path that we’re supposed to. And we’re led to. – Right. Almost every employee
has their own company, and we encourage you to
have your own business, to invest and things like this, so while you’re still young, you’re making all the mistakes now. – Trump says he paid zero in taxes. That statement got tons
of people in our community wondering how can I do that? I mean, who wouldn’t want
to pay zero in taxes? Robert explains in the next clip. – Do you ever wonder how
the rich don’t pay taxes? – Of course! I mean it went viral
when Trump said he’s paid zero in taxes. And so it got me wondering, too. Well one, how can I do that? Because I need that. I mean, it would be great if
I could pay zero in taxes. And two, how exactly can they structure it to get zero in taxes? – It goes over here to fake money, fake teachers, fake assets. It’s all the same. And all of these guys that are screaming for the rich not to pay taxes, I cover it in Fake. I actually have an article from the New York Times, where they interview Jared Kushner, who is Trump’s son in law, Ivanka’s husband, they’re
richer than the Trumps. Jared Kushner’s family is
richer than the Trumps. But the reason that Jared explains it, why these guys pay no taxes, is because they’re in real estate. And that then stops us in
mutual funds and ETF’s. And so he explains it, the reason the rich don’t pay taxes, is because there’s three types of income. They’ll never teach you this in school. The fake teachers know that. Number one type of, there’s
three types of income. Number one type of
income is earned income. That’s earned income. It’s when you work for money. It’s earned. So that earned income, shows up here. So these are the guys that pay tax, and when all the guys that are screaming tax the rich, well you can’t tax them
because they don’t have jobs. (laughs) it’s kind of funny, isn’t it? You go, tax the rich, well, good luck. And the second type of
income is portfolio income. And portfolio income is
from flipping houses, or you buy a stock for $10, but you sell it for $20. That’s portfolio income. I don’t do that. Trump doesn’t do that. So most guys who are
flipping houses and all that, buying stuff and flipping them, are getting this kind of income. So this income is about 20%. Something like that. But the income that the rich work for is called passive income. Passive income is also known as cash flow. That’s the name on the game. Cash flow. And that income is income that’s flowing from here to here. It bypasses taxes. So I know this doesn’t sound fair, and it isn’t fair. I don’t disagree with you. What’s not fair is our schools, which are part of the problem, never explained that. – And so because it’s passive income, is it not taxed because I guess you guys are creating jobs, and providing houses? – You’re getting smarter then. It’s not illegal because the tax laws are incentives to do what the
government wants done. So the reason the Trump’s,
Kiyosawki’s and Kushner’s pay no taxes, is we provide housing. Number two in the B column. We provide job, but pay no taxes. And three, and it’s a bad word, is oil. You drill for oil, you pay no taxes. But if you buy at Chevron, you pay taxes, stocks. If you provide food, you pay no taxes. So if real financial education, which will never be taught in school, because they’re fake teachers. There was a 1903, the rich got together and they took control
of the education system. That was the Rockefeller’s,
the Melon’s, and the Carnegie’s. And they determined
what school would teach. And that’s why we have fake teachers. They’ll never teach you this in school. So all those schools right
now are saying we’re having financial education, it’s
fake financial education. – A pretty popular topic we’re hearing a lot about is tax the rich. And the rich should pay their fair share. Let’s hear what Robert’s
opinion is on this. – Well, from your generation,
are saying tax the rich. As they say, never happen, Joe. Because the tax laws made the rich do what the government wants done. There are incentives. I provide housing, jobs,
and food, and energy. So that’s what they should be teaching, but the schools will never teach that because they’re fake teachers. So that’s kind of a review
of Rich Dad, Poor Dad. – Yeah, and thank god you gave that. I mean, even when you
were talking about jobs, it’s like, well yeah,
none of us would be here if it wasn’t for you
creating this company. And so, it’s kind of curious as to why the government wouldn’t
want us to be creating more housing, more companies. Why aren’t they making
us learn this in school? – Well because it’s fake education. It’s fake teachers. It’s been going on for hundreds of years. And like I said, when the rich took over, that was Rockefeller’s,
Carnegie, and Melon, and they said, “We don’t
need more entrepreneurs. “We need more employees.” So the purpose of American education is to create soldiers. And employees. People that just do as they’re told, but know nothing about money. – And that’s a wrap for this episode! I hope you learned something new. If you’ve gotten to the end of this video then you should clearly subscribe and hit the notification
bell to stay updated on your financial education. Check out our other videos and thanks for being
part of our community. See you later! (upbeat guitar music)

100 thoughts on “Robert Kiyosaki’s Formula To Get Rich – Millennial Money

  1. We are planning more videos with Robert but we need ideas! Post in the comments section what topics you'd like to learn from Robert in upcoming episodes.

  2. so it looks like a major key of the method is to pay no taxes… but what if you buy S&P500 index fund and hold for 40 years? that also is no tax for 40 years… or if you put it in Roth IRA, then when you take out the money, it is no taxes

  3. Leveraged on your best advantage to plan your becoming rich.
    Robert said something that when you hear about money to be made in bitcoin then the opportunity is gone.
    You need to know about it before others and be ahead of the pack always.
    That got me thinking!

  4. It seems, all are aware of all these and perhaps trying to adopt, leaving the world at the scene to which no change is being apparently found.. Principle is nothing remain specific when generalised tool is placed as master weapon…

  5. No negativity intended here. But has anyone else realized that this girl is either extremely scripted and/or borderline retarded? How is she still in these videos, what is he sleeping with her? I mean it'd make sense considering his stature and all.

  6. Hello hello Rich Dad family, I would like to ask you guys if in the coming future you are going to release the Book Fake for the Kindle? Thanks a lot

  7. How to dodge income tax in the uk > > ?? ? IF i am earning money from property in the uk its income tax you cant dodge it

  8. Let's say, you're currently an employee, working class. Not much spare cash. How do you then enter into investments to then take advantage of 0% tax?

  9. Guess Robert's learned to separate Trump's "business sense" and his "moral and ethical sense." I'm not mad about anybody not paying taxes legally, including Trump.

  10. Ok Say u have 50k or 100k, saved, you got it from the " E". Then what? Leverage and go 100% Real Estate? And expect to be millionaire?

  11. I'm intrigued by your financial ideology. Thank your for sharing your financial knowledge with the world. I will really appreciate a complementary copy your book Poor Dad, Rich Dad. Financial education is of great interest to me.

  12. Ok I have a small business and I don't have a good credit score either I dont want to be paying to much taxes

  13. Robert, There are so many FAKE teachers and advisors. A mentor would be ideal.. Can you post a Financial Reading List? I want to dive deep. Thanks.

  14. How much does Mr Kyosaki charge for one on one sessions to teach me what he isn't teaching here… It's more to this… I read his books, I'm still hanging out on a limb.. something is missing.

  15. Robert, you are a gigantic assface. Alexandra seems like a robot. A hot one. There are other people teaching exactly the same stuff. Every video you keep repeating a lot of things. Only thick lines, no details. Pretty useless.

  16. Investing and owning a business is not for everybody. We are not all the same. Everyone was born do to something else in their life. If everyone was either an investor or a business owner, people would starve to death and die from curable diseases. Life as we know it would not be possible. It makes me kind of angry when rich people look down at other people without whom they would not be able to live and maintain their rich lifestyle..

  17. It's sad that Americans don't understand why taxes are importance. If you don't invest in your people, expect more crime, more inequality, more school shooters!

  18. Where are you coming up with this 60% tax nonsense? It's not true, at all. Self employment tax is 15% up to $132k TAXABLE income. You can write off just as much with an llc self employed and your tax rate is lower than corporations. You have to have a massive business to not take a salary and be able to live off it and your business still pays a higher % than self employed.

  19. How do millenials have any money living in moms bsmt playing video games or being indoctrinated in uni while also going into massive debt?

  20. Very excellent piece of information, I've seen the benefits of investing my money, my forex trading investment has yielded much income beyond my expectations.

  21. So how do I an unemployed 57yo male with nothing no bills get a loan from the bank to buy me real estate rental unit assets where I be responsible for all aspects of paying for rental property maintainance so it runs well, how do I get this capital from the bank? Thankyou [email protected]

  22. This philosophy (make money….don't work for money) applies in a small group of people ….. you want to have an operation by a doctor (who went to school……have a job…..work for a paycheck) or by a "self teaching" doctor? 😱

  23. It takes money to make money someone that lives paycheck to paycheck doesn't have the money to jump in the game at this level that he explains in all of his videos and says the same thing over and over and over again he always dances around the actually questions that poor people have and that's how do you get started because nowadays your word doesn't mean anything to anyone if you don't have good credit or money to buy your way into the game like playin poker in Vegas you have to start somewhere his videos are good if you can rrad between the lines see the gray area and solve riddles actually frustrating to watch his videos he says one thing and his wife Kim says another thing on how she got started just tell me what to invest in and where to put my money to get in the game

  24. The thing is, I’m glad I learned this info been studying for years on this stuff. But honestly it makes since they changed the education system because we need workers. Everybody can’t be entrepreneurs, the government needs the workers and middle class and people taking loans and buying stuff they don’t need. It keeps the world going round, it’s just the people with the knowledge and most importantly the COURAGE to take this risks in investing

  25. Thanks my Rich Dad, I"m now becoming financially free from your lessons I'm acquiring from your books, articles, games as well as videos and audios. Your are really serving the purpose of God by helping others because I can now help myself as well as my family members

    MAY ALMIGHTY GOD BLESS YOU

  26. How do we learn exactly what to do? Like where can I go to invest? And what if I don’t have any money to start with?

  27. A lot of thanks to this great financial teacher.

    Mr. Kiyosaki, pls discuss on” Should we buy house or live in the rented house while the rental is almost near the installments of the mortgaged house?

    Thank s a lot..

  28. This guy is bullshit. Same old shit in every videos. He have 100 videos on how to get rich, and yet no direct answear. He can talk about same thing for hours and still not get to the point. Lol

  29. Anyone interested in multiplying their income and learning how money works for you using kiyosaki's principles? Email me and I can show you how many people are winning from simply learning a skill on your phone. [email protected]🤑👌🏾

  30. Everything is so well explained…and its so mind blowing. BUT what I want to know is" What do you gain by teaching us this" !

  31. Thank you Robert your videos has gotten me this far in life while most of my friends still depends on a school degree to be successful

  32. Sir I need an explanation how do you do the real-estate buisness differently that is converting debt into asset

  33. Hola Alexandra, You and Robert are a quite team. Great job guys!!!! I would like you guys maybe help us to know how to find the right real estate course, or talk a little about how to find the best one. SALUDOOS FROM BRAZIL

  34. The other reason is while you’re creating real estate and jobs, someone has to rent those houses and fill those job positions.

  35. I’d like to see the fundamentals of some of the methods. Like how to hold your personal assets as a business rather than personally.

  36. "The diligent hand will rule, but laziness will lead to forced labor" Proverbs 12:24

    "The slacker craves, yet has nothing, but the diligent is fully satisfied" Proverbs 13:4

  37. Hai!l am from India
    Plz ask him how buying a home becomes a money generating assets when we need to pay the lone amount and liabilities although I use it as rental purpose how can I manage through small liabilities like house maintenance please make a vedio on this

  38. “You can’t tax them b/c they don’t have jobs” great content, going into my first year of real estate with what I have learned from reading and studying Robert, thank you changed my life.

  39. Nice Channel and great contents i've really learnt a lot from your channel, as Ferris Fitzgerald the man who i consider as my rich dad would say the only formula to get rich is by INVESTING

  40. As you said that in video by Robert sir, Passive income did not get taxed but my question is whatever our income comes from different streams it taxed by the government…How should we avoid that??

  41. Teachers don't teach students to be employees and pay taxes. They teach education. It's not that teachers teach the wrong thing, they do their job and teach about maths, english, history etc. The issue is that there isn't any financial education in school. I think it's an important distinction because he says it over and over again

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