- Hello this is Robert
Kiyosaki and we're here for another exciting and
important and financial education. Money for Millennials, or
Millennials and Their Money. Cause as you and I know, our school teaches us this about money. - Yes. - And it really kinda screws people up, because they go out of
school and they start doing the thing we talked about, go to school and get a job, right? So that was the first two lessons. So we have Alexandra here. She is a daughter of our dear friends Fernando and Cicilia Gonzalez. And Alexandra was born the same year that rich dad was born. - Yeah. - And again for those who may not know my rich dad was my best friend's father. My poor dad was an academic
straight A student, I wasn't. I was a D, F, and C student. On a good day. (laughing) But my rich dad never finished school. So he had a completely
different point of view. It's not right or wrong, but rich dad was an entrepreneur, and poor dad was a school teacher, head of education, PhD, Stanford, University of Chicago, all the credentials for academics. So at the age of nine in Hilo, Hawaii, my rich dad starting teaching me. Cause I asked a question of my teacher, my fourth grade teacher, said, "When do we learn about money?" "Well we don't teach about money." And I thought that was really stupid. Why go to school, get a job but know nothing about money? So with that this lesson's
lesson number one, and the rich don't work for money. So when I show you that
what goes through your head? - Because I already know your philosophy it makes a lot of sense to me. - But for somebody watching
this for the first time. It doesn't make sense right? - [Alexandra] Yeah it doesn't make sense. - Cause you go to school to get a job so you can work for money. - [Alexandra] That's the
purpose of life, yeah. - Right, right. To be a slave for money. - Exactly. - And work for idiots like me. (laughing) - [Alexandra] Exactly. - But anyway my way of
teaching is to first put doubt in your brain. To challenge your belief systems. And then maybe you can choose new beliefs, or keep up with old beliefs. So when you think about working for money, what comes through your head? - I think about the time
that I worked at the bank and I was working paycheck to paycheck. And I wasn't exposed to
the financial education that you provide me with. It was kind of sad that I
couldn't afford the things that I wanted to do, and I was just in this
cycle of paying my bills, and going to work and that's it. - Do you have friends who
haven't found the good job, even though they went to school. - So I have many friends
that have graduated and they're told that
they're gonna go to school, and they're gonna find a job, and they find themselves without anything. So many of them have found jobs, and many of them have
have also not found a job. - The irony of when I
left school in the '60s, there was plenty of jobs. But the world has changed. And our schools haven't. And they're still making
this innate promise of get a job. And I was very fortunate
when I graduated in '69, we're the highest paid
graduates in the world. My classmates were making
about $120,000 to $150,000 a year. That's not much money today, but 1969 that was a lot of money. But naturally as young guys do, we spent every penny of it. (laughing) So I had my rich dad's lesson, the rich don't work for money, in my head. I said, "Okay I'm making all this money, I have a secure job, but what's beyond that?" And that's where education comes in. So if I could explain this
to you for the rest of the millennial lessons, it's really gonna be on this theme here. Because financial education is
about not working for money. Like one of the first questions, when I finally realized
what my rich dad was saying, I said, "well when do I
never need a paycheck again?" See my goal wasn't go to the moon, or cure cancer, my job was when would I
never need a paycheck again? Because as long as you need a paycheck, be it from an employer
or like my poor dad, he was so afraid of losing
his government pension. And I'm going "Jesus what
a way to run your life." Your pension? So my old man kinda got fired, he lost his pension. It was the most frightening
thing in the world to him. He had no pension. Then it was social security, which is even worse. So that's why my goal
when I was about your age, a little older around 25 I said, "My goal is to never
need a paycheck again, from anybody, even the government, I don't want any
Medicare, social security, or whatever." Well I was a military pilot, so, "Oh you gotta get the
military pilot pension." I said, "You do, but I'm not going to." And just because of this here. That was the difference. Cause I never wanted to work for money to need a paycheck. So the next few lessons
in Millennial Money, you'll find out what I do work for. So for right now let me
go to the lesson here. So this comes from rich dad poor dad. And these are some of the distinctions. It was the advantage I had at age nine, cause I knew what I wanted to work for. And this here in simple terms is called a financial statement. In school they teach
you to get a FICO score. FICO is BS. All that means, how good are you paying your bills? That's all FICO means. Should be the Fido score. (laughing) Good dog. So this is what your banker wants to see. When I was nine years old playing Monopoly with my rich dad, this was the lesson that's
not included in Monopoly, but rich dad taught me. And fundamentally the problem
that most people make, they go to school to get a job, and they work here. So this is the poor middle
class and these guys. And we're gonna talk about later your first line on an expense is taxes. You know just recently
President Trump said he'd get a tax cut. He didn't have a tax cut for these guys. As you know the rules are
always written for the rich. I didn't make the rules. You can get angry at me, but these are the rules. The rich make the rules. The Golden Rule. He who has the gold makes the rules. (laughing) So the tax cut went to people here. That's where it goes to, you'll learn more about this later on. But this is what I work for. So what I work for number one is I'm an entrepreneur, I want businesses, I
have multiple businesses. And I don't work as you
know because you work here, you never see me do you? - No. - Because I don't work for a paycheck. - [Alexandra] Exactly. - Next is real estate. And real estate is good for many things which we'll go into, but number one is debt. I use a lot of debt to buy real estate, and I pay no taxes. That's the relationship there. The next is paper. And that's savings, stocks, bonds, mutual funds, ETFs, and that stuff. I don't have any of that stuff. I don't save money, I don't have any of that. But this is what most people have, go to school get a job, get a 401K and save money. Loser. (laughing) I'm doing that just to upset you guys. Cause maybe you'll start to think. Cause I didn't make the rules, I'm just telling you these are the rules. These people pay the highest taxes. And they work the hardest. And the last are commodities
for different assets classes. So commodities are, number one is gold, silver, oil, land, water, food. So this is what I work for. When I left school, rather than working for a paycheck, and working for money, my education had to go
beyond getting a job. Which I had a good job, but I now had to start when I left school, about your age, the thing I focused on first
actually was commodities. So back in 1972 I started buying gold. And it was illegal for
Americans to own gold, can you imagine that? Back in '72. Today you have Bitcoin, it's different. Everything is changing so rapidly today. So I started with gold, but actually the next
thing was actually oil. Because I went to school
to be a tanker officer, driving ships for Standard Oil. So understand oil if I own, my wife and I don't own Standard Oil or Chevron or Exon. We own oil wells. Again taxes. You get no tax breaks
for owning paper oil, huge tax breaks for owning real oil. And then I went into real estate. Why? Because I can use debt to buy real estate. And because I use debt, I pay no taxes. And then third I started my business, my first real real business. I had many many businesses as a kid. But my first real business
was a nylon and velcro surfer wallet business. I went worldwide right away, the trouble is I was an idiot and the business went up and the business came down. What kept me alive was this and this. So you may say well aren't
you working for money, but we'll go into that next. I don't want what's called a paycheck. I want cash flow, from here. So that's what I mean by the
rich don't work for money. You want cash flow that
pays very little taxes, and I can use lots of debt over here. The average person went to school, their biggest liability they have is student loans of course. (laughing) - Yeah of course, definitely. - I mean it's horrible what
they do to you guys today. A student loan was just the
worst type of debt of all because you cannot
declare bankruptcy on it. Then you get and you try to buy a house, and you call it an asset
when it's really a liability. Why? Because the cash if flowing that way. Your house costs you money every... You rent a house it's
all costing you money. Then you have to have a nice car, I had one of those... this. So the problem with most young
people is they go to school to get that job, then a lot of them has student loan debt. Then they try to get
married and buy a house, have a car, and then they have credit card debt. But they never have the
chance to come over here. If they do any investing
in America it's a 401K, which I wouldn't touch
with a 10 foot pole. Now you should, but I don't cause I don't have to. Cause I went to school for here, and people who don't go
to school should be here. This is a 401K, IRA, ETFs and that stuff. Paper. Savings. I don't touch that stuff. And we'll go into that later on. So when I say the rich
don't work for money, I never want to be
dependent on a paycheck, either from an employer or the government. I want to be a free human being. Any comments any questions on this? - Well now I see it clearly
because it's ironic how people were upset about
Trump not paying taxes, but in reality he would
have to be a complete idiot if he paid taxes especially
when you were talking about your assets and how the government wants you to have these things. They want you to own homes
and invest in properties. That's exactly what Trump was doing, and so he gets all the
tax benefits from it. - Correct. - So many people come
to this country because they want to live the American Dream, of buying their house, going to a job working
paycheck to paycheck, goin to school, when in reality that's a nightmare. - And what happens if they lose their job. - They lose all security
they were promised and they lose everything. And they don't have anything to provide for their family either. - So what does your brain, I mean you're a very smart young lady, but now your brain is a think right? - [Alexandra] Yeah. - So the question is when I talk to people about financial education, well right now we're gonna talk
about there's another issue is Bitcoin, the dollar and gold. Which one is better? I love real estate
again because it's debt. I use debt to buy real estate. And everybody else is
saying get out of debt. (laughing) I love debt. Trump loves debt he's the king of debt. I'm in debt about $600 million. The average person cannot pay
for their credit card debt. - [Alexandra] Wow. - That's how tragic it is. And I'm talking about educated people. And then this here I get tax breaks because I have employees. This'll be another subject going
down with Millennial Money. But if you have a job you're taxed, if you hire employees
they give you tax breaks. Look at right now Amazon
is looking for a new home. Every government wants
to give them a home. "Please move to Indiana.
Please move to Canada." Why? Cause they'll bring in employees, and employees pay the tax. It's the same as Tesla. They got I think $50 billion
from the state of Nevada. Cause they bring in employees. So that's why when your
teacher says to you go to school get a job, you say, "I think I'll
think a little bit different this time." Now you need a job in interim. But you want a job for the experience. That's the difference. So the reason rich dad's
lesson number one is rich don't work for money, is I never want a paycheck, I wanna use debt, and I don't wanna pay tax, I pay some tax but minimum tax. But I wanna accumulate
this so I have cash flow. Anything you wanna say,
any questions on that? - No, I'm happy because
I can see both sides. I do see the employee's side, and the entrepreneur's side. And thankfully because
I work in this company, I'm not forced to work a
regular nine to five job. I'm able to actually
work on my own projects, and it's incentivized that we actually do become entrepreneurs. - Our company encourages
everybody to come here. So we don't have a 401K do we? (laughing) - [Alexandra] No. - We don't have a
retirement plan here do you? - [Alexandra] No. - Keeps you motivated right? - [Alexandra] Yeah it does, it does. - So what would you say to
your friends or your fellow millennials about why the
rich don't work for money? - I would tell that they truly
need to educate themselves because to work for money
is completely ridiculous. While taxes are increasing, and the inflation is increasing, it doesn't make any sense to be working from paycheck to paycheck. The rich don't work for money. Money works for them. - Or being afraid of being fired. Or losing your pension. Do you realize that's the
biggest terror of most people? I might lose my pension too? - Yeah it's really sad that
it's one of the biggest fears of everybody on a daily basis whether they're gonna get fired or not. And just seeing that my dad
previously and my mother were both scared of not being
able to support our family and now thankfully because
we followed your philosophy, we have all the freedom in the world. - And your mother's a real estate agent. She's an investor and real estate agent, and she can help you. - [Alexandra] Yeah exactly. Both of them are my team, and tomorrow if I do get fired I have my properties to live off of. - You do too good a
job for us to fire you. (laughing) - [Alexandra] No I work hard here. - Are you afraid of being, if you make a mistake in this company, are fired? - No mistakes are actually encourage. Coming from a traditional work system, where we're punished for it, and then coming to this
one where they're actually incentivized because we learn from them, it's amazing. - Correct but you have to
admit you made a mistake. If you cover up the mistake you're fired. - [Alexandra] Exactly. So Sarah my supervisor whenever I'm like, "I'm so sorry I
can't believe I messed up." She's like, "No it's okay
we learn from our mistakes." - That's our culture here. - [Alexandra] It's awesome. - So thank you. So the rich don't work for what? - Money. - And for those of you at home, find a friend and discuss this. Thank you.
