So I own 7,000 rental properties.Those are assets.
Every month,the cash flows in.
The banks give me 300 million dollars,tax-free,to buy real estate that the idiots had lost.
And right now as you know,for the middle class of the world,we're in a crash.
By ROBERT KIYOSAKI.
First of all,let's go back to what is finacial education.
It's not get a job,work hard,save money and invest in a well-diversified portfolio,
stocks bonds,mutual funds and ETFs.That's not it.
You know,money is.....The financial industry is two things,debt and taxes.
And we still tell kids to go to school,get a job,work hard,save money and get out of debt.
Who tells them to do that?That's the most ridiculous thing there is.
The book starts and it says line number one saving money will make you rich.
Yeah,and never will,you know that.We were all taught that as a kid.Yeah.
Because they can print it.Why would you save it and why would you work for it
if they can print it at faster than you can work for it.
And number two is they keep dropping the interest rates on it.
You know,Japan still has zero...zero interest rate policy.And I'm Japanese,fourth generation.
They're not too bright.Right.Why would you keep saving when they're printing it?
You know,and when I'm in Japan...And that's what I mean by fear.They're so afraid,
cause the Japanese,they're very good culture,but they do as you're told.
It's very conformist.Very conformist.So they just do as they are told
and then they just save money.They're afraid they might make a mistake.
The good little students in school,go to school,get a job.Don't make mistakes!
Right.And that's what shcool conditions people to do,is do not get mistakes.
Get an A on the test,show up and do your homework.
But to be a great entrepreneur,an investor and a great rich person.
You have to engineer mistakes into your life.
And the military education different than academic education,
We're taught to make mistakes.You know,so every day
I'd fly and we had to kill the engine on our aircraft and crash.
So what happens to the average person in a finacial crash,they don't know what to do.
And right now as your know,for the middle class of the world,we're in a crash.
You know,the purchasing power of the yen,the eurp,the rupiah all going down.
And people are working harder and harder and harder.And the central banks of the world are printing more money.
And most poor people confuse assets for liabilities.
They think their home is an asset.It's an actually a liability.Right.
And againt,that's why yelling at the accounting teacher.
An asset is a noun,like a house.Cash flow is a verb.
So to understand if it's an asset a liability.It takes a noun + verb.
So if the cash is flowing out of your pocket.It's a liability.
If the cash is flowing into your pocket as a verb,it's an asset.
So I own 7,000 rental properties.Those are assets.
Every month,the cash flows in.Whereas many people have a big house on the hill
and the cash is flowing out.Right.And they're going broke.
Right,it's like frame of mind.Everybody can do the save thing I do.
Cause the tax laws are for everybody.You know,they don't say well the tax are only for the rich.
No.The tax laws are for everybody to use if you have the right finacial education.
McDonald's is in the real estate business so they sell hamburgers
but they buy a real estates and pay no taxes.You know this guy Bezos,
he has 160 billion dollars.How much tax did he pay on the 160 billion?Zero.
And that's all legal.Anyone can do it.Everybody could do it.
But most people lack the education.And so,you always say that is the law.
The law is true for every citizen,you can do it,but most people just don't do it.
Sometimes like you said,they don't have the education,you need to have a plan,
if your're gonna go do risky things.Well,it's not risky.
I mean to me,what's risky is having a job and paying taxes.
And saving money,cause they're printing it.You know?
That's the worst thing of all.And that's why there's fake money,fake teachers.
The teachers will never...they don't know.Right.And fake assets，
because Wall Street or the city of London or Lehman Brothers or Goldman or others,
they're not going to tell you this.After the crash of 2008 the banks gave me
300 million dollars,tax-free,to buy real estate that the idiots had lost.
They were idiots because the prices were so high,why would you buy it at the top of a market?
Don't you know that's going to crash? They were all "no,no!".
That was the subprime,was the derivatives market.The MBS'es and all that stuff,
had driven the price of real estate so high,and the rest of us were just waiting.
And then when the whole thing came crashing down,all this real estate was now available.
And they needed...The Fed and those guys in the Treasury needed guys like us to go in there.
So Wall Street gave us hundreds of millions of dollars to mop up all that real estate these guys had lost.
Now it's fair because eveybody could do it!Right.
So,you know,when I ask the average guy and said "why not you use debt?"
They can't even get a loan.Because their scores,their FICO scores are so bad.
Right,right. So that's what's going on in the world today.
It's fake money,fake teachers,fase assets.The school teachers will never tell you that,
because they don't know it.My poor dad never knew that.And they think the rich are crooks.
The rich just play by different laws.The rules are the same.But you have to do what the government wants you to do.