How to Make Money Without Working - Robert Kiyosaki

there's lots of Education the sex

education music education physical
education stuff like that but to be
successful in the world of business
there's three basic types of education
Academic Education
you must have one academic education
that's reading writing arithmetic I
didn't do very well here you know it's
very important I'm not saying it's not
important two extremely important so
academic is very important second is
professional when they become a doctor a
lawyer secretary in my case I had two
professions my first profession was a
sailor I was a third mate on boards oil
tankers again it was good profession and
the second profession was as heir as a
pilot and most of my friends went on to
become airline pilots I just didn't want
to fly anymore
and the third is financial education and
what would be covering is this as a
young boy I realized that I could beat
my friends over here if I understood
this in other words I can make a lot
more money here than these guys here the
beauty of the world today is that you
know like if when I went to work for
Standard Oil of California I got paid by
the month and if I was a pilot flying
for the airlines I got paid by the month
and when I worked on straight
Commission's with Xerox I got you know
basically commissions
but I realized from my Rich Dad talking
to me if I understood financially I
could make money 24/7 without working
that was a difference so what you'll be
learning about this today is how we make
money 24/7 without working ok to me that
makes a lot more sense than working hard
all the time the basics of financial
Literacy
education begins with this with literacy
is it begins with an income statement
and a balance sheet this is the
fundamental if you are going to be
wealthy if you look over here after
mission its cash flow this is basically
accounting CFO's auditing departments so
as a young boy that's what my rich dad
started me on this he says if you can
manage this you'll always be a rich man
no matter what happens to you so this
here is income expense asset liability
where people get mixed up is they call
their house and asset and he says that's
the problem they call their car and
asset by gap general accounting accepted
accounting principles I can actually
count this suit as an asset and that's
where that's what my Rich Dad said
that's where people get messed up see so
this this form is called an income
statement in America this is called a
balance sheet there's a third form is
called a statement of cash flow okay so
when you look at this here this here is
the real game board from the from my
cash flow game this is income this
income statement balance sheet statement
of cash flow okay so it's the game is
teaching you as a kids version
intermediate version advanced
is teaching while you're having fun so
the mist so very simply my Rich Dad said
assets put money in your pocket so this
is the cash flow pattern of an asset
because from the asset it could be my
house I rent out okay boom so assets put
money in your pocket whether you work or
not so what's the different asset assets
what put money in your pocket whether
you work or not one more time assets
what put money in your pocket whether
you work or not now I asked somebody as
on Singapore and I said can you can you
name an asset you have this little
Chinese woman raised her hand she says
oh yes yes yes my husband my husband
I said I'm talking about inanimate
objects he says oh he doesn't do
anything anyway you know and so a
liability takes money from your pocket
what's definite liability takes money
from your pocket so the reason people
are afraid of losing their job it's
because they have liability to think are
assets so they have to keep going to
work does that make sense you guys here
so the other mistake that people make is
that what they do is because they think
their house is an asset so they go and
buy a big house because it aprietale
going to appreciate but what they have
is a mortgage and a mortgage stands for
death Mort here dead kills you I'm not
against mortgages so then buy a more big
house and Sicily here often they're the
big boat you know then they have the BMW
it Alexis like this and so this is the
cash they have a job money comes in cash
flows out I called this financial
diarrhoea
they make a non stop it flows out
constantly 24/7 again this is this is
the real game sheet for the cash flow
games this was this is the piece de
resistance this is a patent was awarded
by the US Patent Office basic on a
financial statement which I thought was
pretty interesting you know but when I
look at somebody's financials people
Assets
like ease and s's employees and
self-employed they think this line here
salary is the most important that's not
what my Rich Dad that I was taught me
look for he wanted me look at these
lines here interest dividends real
estate businesses it's this here
that makes people rich not this here so
the purpose of the cash flow board game
was to train people to take this money
coming in here to come down this way and
come back up here that's it okay
so the assets there's four basic asset
classes that make people rich number one
is a business and it's a business on
this side so you look at guys like Bill
Gates he founded Microsoft jobs created
Apple you know Murdoch has broadcasting
so business is the number one asset
that's why I went to learn how to sell
because you have to learn herself good
in business second is real estate my
wife in 1989 started with one rental
unit now she is fourteen hundred ken has
ten thousand my wife and I my wife has
fourteen hundred and we have two houses
we caught honest liabilities we have one
house in Arizona one house in Hawaii so
we call those liabilities we don't call
them assets the third asset class is
paper stocks bonds mutual funds you know
trust stuff like that now in in Malaysia
is when I warned you when I talked about
unit trusts or mutual funds I talked
about real estate we had Realtors and
financial planners leave the room they
were very upset with what I said because
it's not that I don't invest in unit
trusts don't trust them
so that that's the reason but we'll
explain why later on they're there for a
certain class of people but it's
probably the riskiest of all investment
savings are included in here and the
third asset class are commodities so me
personally I have gold
I took a gold mine public in China I
have a silver mine out of South America
I took public I have a copper mine now
I'm an oil company stuff like that but I
also hold physical gold physical silver
and Michael company explain why that's
probably the best investment today is
right here because a dollar is crashing
all right
so basic a moment and disk and and every
month these things whether I work or not
put money in my pocket one of the
problems of an S business is in most
cases like a doctor if they stop working
income stops because it that they
stopped working so these things here
24/7 incomes coming in and that's what I
was trained to do
[Music]
you