Robert Kiyosaki Financial Education: 10 Wealth-Building Habits That Will Change Your Life Forever

This here is fake money. I would never work for this stuff. It's good as toilet paper. This is the best investment in the world today. It's called silver. See, my bankers never once asked me what my grades were. My bankers never asked me what college I went to. Rich Dad says learn to sell. I can hear my poor dad saying, well, salesmen are scum, they're crooks, they'll tell— they're liars and all this stuff. So that was in my head. Most college professors never grow up. They're little kids yet. I got a PhD, I got a PhD, I got a PhD. I went to school to kill people. I fought I fought against communism. They killed us. We killed them. Now I fight with education. I asked my calculus teacher, I said, when will I ever use this calculus? He says, I don't know. I said, why do you teach it? Because I get paid. And today my brain is still messed up taking 3 years of calculus. I had no idea what I was studying. Hey, it's Evan Carmichael, and I watch these videos every day because I need them for motivation. Being around successful entrepreneurs every morning helps me believe that I can do great things too. It's like your morning coffee, but for your goals. Kickstart your day starting your day with a blast of positivity. So here is a challenge for you. Try watching one video every morning for the next 30 days, and let's find out together if they help you do great things too. If you're in, leave a hashtag #believe in the comments below so I can celebrate with you. So today, let's get some incredible motivation from the one and only Robert Kiyosaki. Enjoy. You got to study, man. You've got to study. Okay. I studied. You can ask my friends. I study constantly. You study constantly? Constantly. Every day? I'm on YouTube every day, all day. Okay. I'm reading books, studying this. I'm talking to my friends and all this. Okay. I'm not looking for a job. I'm not working for money. That's why the one book is Rich Dad Poor Dad. Second book is Cashflow Quadrant. Third book is Rich Dad's Guide to Investing. I put it all in there. You can read that. Then I created the Cashflow board game. And if you play the Cashflow board game, the reason it's better than going to school, it's about a financial statement. You see, my bankers never once asked me what my grades were. My bankers never asked me what college I went to. My banker wants to see my financial statement. My financial statement's my report card when I grow up. Most college professors never grow up. They're little kids yet. I got a PhD, I got a PhD, I got a PhD. I got a financial statement. So what happened in 2008 when the markets crashed, I borrowed $300 million. You know why? Because all the real estate had crashed. So we bought, took my financial statement and showed it to the banks. So how much money do you want? Tax-free money. We bought almost a billion dollars worth of real estate because it crashed. So when I tell people the market's crashing, I get excited. 'Cause everything goes on sale. You know, that's like Ferrari saying, we'll put our cars at half price. Oh no, no, I don't wanna pay half price for a Ferrari. That's how stupid people are. You know, they could be a soccer player, make millions of dollars, and they wanna pay full price for a Ferrari. That's right. Stupid, stupid, stupid. Poor man with nice car. You kind of feed this. The fortunate thing was I had a rich dad and I learned about money early. Mm-hmm. And, you know, so I keep asking people, what does school teach you about money? Nothing. Right. So that's why so many guys aren't rich, you know. But my poor dad was a PhD in education and no money at all. And I didn't want to follow in his footsteps. So I started off with Rich Dad, Poor Dad. And my rich dad was the one teaching me how to be successful because I just think at the with Patrick McDavid is I wanted to be an entrepreneur, but Rich Dad said to me, he says, you got to learn how to sell. Now my poor dad thought salesmen were scum. So I had that going in my head. So my Rich Dad says, learn to sell. I can hear my poor dad saying, well, salesmen are scum, they're crooks, they'll tell you, they're liars and all this stuff. So that was in my head. So I went, oh my God. So finally Rich Dad was saying to me, he says, I don't, but can I, how can I get rich without selling? Well, sales equals income, as you know. So I find somebody who's poor because they can't sell. But a lot of it's because you have people like my poor dad saying salesmen are scum. Do you know what I mean? So that's inside your head already there. So I said to my rich dad, I said, but I don't want to sell. I don't, you know, I took real estate courses to get rich like he advised. And finally my rich dad asked me, so I just said, 'How's your sex life?' So here I'm a Marine, I'm in shape. You're what age at this point? About 28, 27. Okay. 27. You know, I'm physically in good shape and all this, live in a nice place, nice cars. But I, so I said, 'But I don't want to sell.' He says, 'So Rich Ted says to me, how's your sex life?' I said, 'It doesn't exist.' 'Cause you can't sell.' Really? Yeah, it's the place that you can't sell. I'm going, So with that, I said, I'd better learn how to sell. And so rather than taking— I was going to fly for the airlines because I was a pilot. I went to work for Xerox because they had the best sales training. So I was flown from Hawaii to Leesburg, Virginia, and learned how to sell and all this. And I realized then is that sales equals income. But in all areas of life, you cannot sell, you cannot communicate, cannot market. Toast. My advice to young Indians is this is the best investment in the world today. It's called silver. Okay. And the reason I say that is because I study history a lot. This here is fake money. I would never work for this stuff. It's good as toilet paper. So the biggest investment today is this. This is 35 US. And I think everybody in the world can afford this today. And I tell people every day, you should buy this. No, I'll save this. You see, they don't know the difference between this is fake money, this is real money. And this here is gold. Real money, fake money. So the yen, the rupee, the dollar, the peso, all fake. So when I was 9 or 10 years old, I started finding that out. I said, "How come they don't teach us money at school?" "Well, they don't want you to know it's fake." How can highly educated people be so stupid? Well, there's many reasons, is because they think they're better than us. You know, they think they're above the law, they can do what they want. You know, like my poor dad with his PhD thought he was superior to all people, although he was flat broke. And my rich dad who had no financial education, who Kim met, was one smart dude. So that's why I'm happy talking to Rich Dad's World and all this, because what happens in a market crash, the really smart people get really rich. In a crash, the really smart, the financially astute, the reason we have Rich Dad's World, the reason we have the Cashflow games, reason we write our books, it's just time for really smart people financially smart people, financially prepared people to get very rich. A bull market, a bubble market really is what it is, makes stupid people look smart. But a crash makes them look stupid and they can't admit it. That's why Cramer and Abby Joseph Cohen and Yellen, they can't talk about what's really going on, 'cause they'd have to look stupid. Meanwhile, the people go to Rich Dad's World, have a chance because when the market crashes, it's gonna be, it's a possible depression, but the next depression may be the biggest opportunity you ever have or wipe you out. It's your choice. Also, to make sure you're actually taking action after watching this video, I've designed a special free worksheet just for this video. The worksheet will highlight our favorite lessons from the video that will inspire you to remember what you learned you learned today and actually apply them. The worksheet will also give you space to write down what your key takeaways are and your specific plan of action to make sure you're getting results. If you want the worksheet designed specifically for this video, absolutely for free, there's a link in the description below. Go click on it and start building the momentum in your life and your business. I'll see you there. And I really want to talk to you about the most important subject for all of us today— rich, young, 4-year-old. It's called financial education. And as you know, our school systems teach us nothing about money, nothing. It's pathetic. You know, they have financial literacy courses today. Well, that's not financial education. You know, it's really pathetic. And what's happening for most people today is, you know, they follow that age-old mantra, go to school. What do you learn about money in school? Nothing. Get a job. Well, jobs are disappearing. Not only that, is that with artificial intelligence and G5 coming, more jobs are going to be wiped out. Plus with driverless cars, more jobs are getting wiped out. So why would you go to school to get a job and then work hard for money, but pay and pay taxes? Taxes are going to keep going up, sports fans. They have to. Somebody's gonna pay off this massive mountain of debt stacking up all over the world. And the only way they pay off debt is via taxes. And then they tell you to get out of debt. Oh God. Debt is money. Please understand me. In 1971, when Nixon took the dollar off the gold standard, money became debt. So the rich know how to use debt to get rich. And that's one of the problems of young people today. They're going to school with teachers who don't know what they're talking about. I remember I went to military school, the academy in New York, and I asked my calculus teacher, I said, "When will I ever use this calculus?" He says, "I don't know." I said, "Why do you teach it?" 'cause I get paid. And today my brain is still messed up taking 3 years of calculus. I had no idea what I was studying, okay? So anyway, Tom has really helped me with those things like this, but Rich Dad Poor Dad is about income, expense, assets, and liabilities. That's all it's about. And one more thing, the most important word for those of you who are in real business. It's a statement of cash flow. That's all it is. So very simply, Rich Dad Poor Dad, the statement of cash flow says assets put money in your pocket, liabilities take money from your pocket. That's all the book's about. And so the reason people are in trouble financially is they buy houses they think are assets, but it's really taking money from your pocket. Whereas I buy a piece of rental property and puts money in my pocket. That's the difference. The word asset is a noun. A house is a noun, but you don't know if it's an asset or liability until you apply the verb, which is cash flow. So I can have a rental property and it's producing income one day, but it goes vacant and now it shifts into a liability the next day. And that's what happened to many people in 2008. They got hammered. Because their tenants moved out or lost their jobs or whatever it is. So basically, all Rich Dad was produced 1997, 21 years ago. And it's very simply about what they should teach kids about money. That's all it's about. Everything is coming down. I hate to be Chicken Little and bear bad news, but that's why on my tweet I was begging people especially your generation, you gotta change your thinking. You know, get rid of that mantra, go to school, get a job, work hard. You know, buy stocks and bonds, save cash. 3 times, Andy Schectman, smartest guy I know, a 3 times crash is coming. First of all, all paper assets, stocks, bonds, mutual funds, ETFs. Second, real estate. Third, And I've always said cash is trash. I hope I'm wrong. Our debt to GDP, you know, in 2008 wasn't that bad. But then after when it crashed, then Bernanke started printing, you know, they call it quantitative easing, it's printing money. And so that's why in 2013 I wrote the book Rich Dad's Prophecy to warn people that the crash was gonna get bigger. In 2013, I wrote that book and it's gonna get bigger because the debt to GDP, David, as most people know, is 130 debt to GDP. It's the biggest in world history. Our debt is through the roof and Powell is raising interest rates, which makes that debt more expensive. So let me give some dates. In 1974 was the deal was cut that the world would have to buy oil in US dollars. And that's what Andy's talking about is they're all saying right now, adios dollars. And Andy is saying 60% today of the world's population will stop using the US dollar. And that's what gives us power. So those of you who are saving those fake dollars, you're in serious trouble right now. And that's why what Andy says, and Kim will back me up, for all these years, we don't save dollars, we save gold coins and silver coins stored someplace else. Because that is the challenge with gold and silver is the storage. So I want you to understand this. This goes back to what they always say at school, go to school, get a good job, work hard, pay taxes, and save money. And invest in the stock market. And that's what we're talking about now. That dollar gave the power to the stock market to go through the roof. And when they talk about the, you know, the bubble, the 3 times bubble, it's stocks, paper assets, real estate, and the dollar is gonna crash. So all you out there, savers out there, I would pay attention right now. 'Cause if you still think, you're still believing in the power of the dollar, you're in serious trouble. The saying I have is don't teach pigs to sing. It wastes your time, it annoys the pig. If you're talking to pigs at home, don't teach 'em to sing 'cause it wastes your time. They still believe in going to school, getting a job, saving money, paying taxes, getting outta debt and investing in a 401k or an IRA. They're gonna be the biggest losers today. I mean, it's already, they've already started to lose. If you look at the stock market, and they're gonna try and curb inflation. But as you know, they're raising interest rates, which is not gonna solve, it's gonna make it worse. So if you really want a real education, you can go back to college, get in student loan debt, and wonder what happened to your life 'cause you're still saving money and investing in a 401(k). I mean, that's the most stupid thing you can do right now. Numerous people my age actually think debt is horrible. And you just showed us a perfect example of cash flow and how debt can generate income. And many entrepreneurs use this formula to make money on a day-to-day basis. So what most people do is they have student loan debt, SL, and that debt is going out this way. You know, it doesn't put any money in your pocket. You can say, well, I have a job. Well, that's still you working for it. So I don't work for any of this money here. I do this job once, set the deal up. Every year I add more and more and more. I'm borrowing money from here, it's coming here and going this way. So the debt is putting money in my pocket and bad debt is taking money from my pocket. So the problem is if you're gonna use debt, you've gotta be much smarter than this person here. You've got to be very, very smart. That's why I took real estate classes when I was 25 and I've never stopped taking real estate classes. Because you buy a piece of real estate and you make a mistake, this turns into a liability. If I get, the renter leaves the place, this goes here that fast. And the cash flows that way. It's going out of my pocket. So it has nothing to do with real estate, it has nothing to do with a car, nothing to do with student loan. It has to do with these two words here. So good debt, again, is debt when I borrow for this and it puts money in my pocket. If I had a car and I borrowed money from it and somebody rented from me as an Uber driver or something and it put money in my pocket, it would be an asset. Are there segments of real estate that are expected to do better or worse in the coming years? You know, you got single-family homes, you got multiple, multi-units, you got commercial, you got offices, anything like that you would suggest? Well, the reason I like real estate, because you can see, touch, and feel it. Yes. Okay. I'm very skeptical of what I call derivative. See, paper is a derivative. Okay. So we have REITs, real estate investment trusts. I don't trust anything paper. I see. A derivative. In silver, it's SLV, it's an ETF. Yes. Gold is GLD. I don't have any of that. I only have what I can see, touch, and feel. So the trouble with real estate is real estate is dependent upon jobs. So with AI coming, bam! So one of the reasons I moved here to Arizona 25 years ago a little company called Taiwan Semiconductors moved here. So Taiwan Semiconductors has one of the biggest plants not too far from here. So they call, you know, the Silicon Valley in California, over here in Phoenix it's called Silicon Desert. So when technology moved to Arizona, I moved too. So it's jobs. But the thing is, AI is going to change it all again. I see. So our changes are coming faster and faster and faster. So who should come to these events? People who are looking to change. If you just kind of come and I'm going to tell you buy real estate, I'm not going to do that. I'm going to say it's going to change on you. So if you don't want to change or you want everything to be the same, Don't come. My wife Kim always, you know, she says, you can be a lot of things in life. Most important thing to be is be kind. Wow. So I'm working on being kinder, smiling. You know, I listen to like Dennis Prager on how to be happy. Prager, yeah. The way you get happier is to make other people happy first. So it's kind of a therapy. It's a practice, you know what I mean? And that other guy though, the FBI, negotiator, Chris something. But he says, you know, like, smile. Is that the guy who wrote Never Split the Difference? Yeah, yeah, of course. Great guy. You smile with your eyes. Smize is what it's called. Yeah. Well, today I make— so I'm reprogramming me because I'm the biggest problem I know, biggest opportunity. So I just look at— I just reprogram my brain to say smile. I'm gonna make that person feel good first. Don't think about myself. If you wanna be an entrepreneur, you've got to study with Chris Voss. I mean, the number one skill of an entrepreneur is communication. You can call it negotiation, you can call it sales, you can call it whatever you want. But as my friend Blair Singer says to me all the time, he says, sales equals income. Do you know? And if you, when I find somebody who can't sell, is their income is low or vice versa. But more than that, I was, I mean, and I came up, we interviewed Chris years ago when his first book came out, "Never Split the Difference." And I didn't, I hate to say I didn't read the book, but I will read the book now. I'll admit that. And all I remembered from that, which a lot of people remember from Chris was the midnight DJ voice and all that. So I was practicing that, didn't work. What really worked, Chris, I'm just gonna surprise Kim on this because, you know, about 3 or 4 years ago, Kim says, "I'm outta here. I don't wanna be married to you anymore." And I went, "¿Qué pasa? What did I do wrong? You know, what did I do wrong?" Then I was listening to you discuss my friend Donald, the Trump, and he's a really good friend of ours. But what you said about him, it just hit me right between the eyes. I was going, "Holy mackerel, Donald plays win-lose." You know, he has to win. He wins at all costs. And I was going, oh my God. And then what, this is not your words, but I paraphrase the same, but if you play win-lose, pretty soon people stop playing. And then— That's exactly it. Yeah, and that's my way of saying with Kim, you know, we're talking before the show came on, I went to military school. I mean, day one, we're screamed at. There is no compassion. Then I joined the Marine Corps and I learned to adapt to that behavior. Do you know that you talk to everybody like a Marine? So for 35 years, I talked to Kim like a Marine. And one day she said, I've had enough. So when I was listening to one of your podcasts, I went, oh my God. So I wanna thank you because what your technology is more than sales, is more than negotiations. The key to world peace, if we could learn to speak with kindness and humanity and support. The reason there's Rich Dad world is my rich dad was my coach. I mean, he slapped me around the place, yelled at me, called me stupid. He was tough, but rich dads were all about it. Not that they're mean, but people like me needed a coach. And the other reason Kim and I created the Cashflow Board Game is the way my rich dad taught me about money was playing Monopoly. And as Maria Montessori says, or the Montessori school system says, what the hand does, the mind remembers. So if you're just getting words, it goes in left ear, comes out right ear. And so you have the Cashflow Board Game, you actually have to do something. So you have Rich Dad's World. I mean, I had a coach, you know, Kim and I had a fantastic coach, Frank Crerry. And the reason Kim and I now own partners in one of the biggest, richest gold mines in the world is because of Frank. We had great coaches. [Speaker] What I've found, the biggest issue that we all have right now, and most of the people that we associate with, are deals, deal flow. And tonight, you know, like, you know, my 32nd and Camelback, that apartment, it's an old age home going up. You know how I made my money on that one? How? Our friend Sal got it rezoned from 3 stories to 4. Yeah, change of use. That's called a change of use. That's in the book. Holy mackerel. We made so much money. It's shocking. But then the property in front of it where Tarbell's and Tomasos is, tonight I'm meeting with Mark Tarbell. And we wanna take a run at that corner. But that's how you find a deal. Kenny's problem right now is finding deals 'cause guys like me have so much money coming in from the last deal you gave us. I have to give it back to Kenny. I said, Kenny, I can't take this money. And he's all, well, his capital raising gets easy because there's so many guys like me where you've made so much money for, I'm trying to give it back to you, right? I own 15,000 houses. 15,000 houses. Okay, which you give it out for rent. Yeah, right. So nothing wrong with buying a house. Yeah, difference is I use debt to buy it. Okay. And I pay no taxes. It's not the house, it's not the stock, it's not the bond, it's not the ETF, it's your brains. So I would rather use debt and pay no taxes. In 1971, this became debt. Okay. The only way it's created is somebody has to borrow money. So in your credit card, there's no money in your credit card. There's no money anywhere. So the moment you use your credit card, money's created. And the US dollar is debt, the rupee is debt, the yuan is debt, the peso, the yen is debt. They need people to borrow money. So when I go to a bank and I say, I wanna borrow $20 million, I get huge tax breaks because I'm creating money. But if I use my credit card, I get nothing. Okay, it's up here. Your greatest assets between this year and this year, this year. So that's why you have the Cashflow board game. There's not too many here. The board game was designed to teach you to think like a capitalist, cash flow. And so I wrote a book, Rich Dad Poor Dad, same thing. It's all about accounting. What is happiness, sir? I love what I do. I don't think, I really don't think about those things. Really? Yeah. I have work to do. You see these here? I was a pilot in Vietnam. I went to school to kill people. Okay. I killed a lot of people. Went to military school. We think differently. I fought for my country. I fought against communism. They killed us, we killed them. Now I fight with education, the same intensity. I fight for the freedom of people. So if you can understand this, I don't care if I live or die. I went down 3 times in Vietnam. My friends don't come back. I came back to America, this is in 1972. I lost so many friends. And the hippies, you know, the hippies and the peaceniks and all the Maharishi who the Beatles went to see, they were spitting on us and hitting us with eggs. So I don't play that game. I said, I treat everybody with respect. You do your job, I do my job. So when I came back from Vietnam, you can tell I'm still a little bitter about it. Eggs were hitting me, people were spitting on me, and I lost my friends. But we fought for our country, we fought for freedom. If we don't fight for freedom, we've lost our freedoms. The other thing we're investing in besides oil, you know, 'cause I have, Kim and I have no stocks or bonds. No ETFs, no funds, except things that we started, 'cause we're entrepreneurs and we're venture capitalists is what we are. And so the other thing we invested in is Wagyu cattle food. And I go, why Wagyu? Because that's a brand. And the rich will always have money. The poor and middle class will have to eat ground turkey or fake meat. Beef. Do you know what I mean? So we invested, Kim and I invested in Wagyu cattle. We actually bought the calves and all that. And because that's food and people have to eat. You may not like to eat beef. You can eat your fake beef or whatever, fake chicken, but the rich will always order a brand. So there's so many distinctions which education's supposed to give you. That makes you smarter no matter what happens in the economy. And that's why we have Rich Dad's World, is get the basic information out there so you can either take control of your own finances or let some college-educated person from Stanford or MIT do it for you. First word I had to learn at the academy, mission. Mission is spiritual. What's your mission? And my mission has always been to serve people. Most people, all they give a fuck is making money and screwing people. That's called the Federal Reserve Bank, Wall Street, and all that. I want nothing to do with them. I just don't play their game, but you have to get smart enough to play their game. [Speaker] One of the challenges with Bitcoin is people don't accept it. They don't know what it means. But Standard Chartered Bank, which is a huge Asian bank, just came out backing up Bitcoin. And they said that Bitcoin in 2023 will hit $50,000. This is Standard Chartered Bank, not Robert Kiyosaki or, you know, Joe Schmo the ragman out there. So this is Standard Chartered Bank. So today it's $30K. Not only that, Standard Chartered says that Bitcoin will be $120K from $30K. In 2024. So I'm not saying it's going to happen. We make no recommendations. We're just educational. The kind of printing that they've been doing over the last 1 or 2 years of excessive cash into the economy, what do you think is going to happen if they continue doing this in terms of the inflation? Just be careful. Be careful whose money you use, either the dollar or the yuan. So that's why I've been saying It's commodities, silver and gold, right? This today is about $35 US. Okay, okay, that's a lot of money here. And I don't— $35, huh? This is $35 US. $35. This is about 2,000. Okay, okay. Is that real? No, they're fake. Okay, this is real, the silver. But anyway, so being a capitalist, I own gold mines and I own silver mines. So when the dollar crashes, I get richer. Right. And that happens time and time again. It's going to happen now. When do you think it will happen? It's happening right now. America is sliding into a depression right now. I said it's Brazil, Russia, India, China, South Africa. But it's Russia, China versus America right now. It's the biggest battle in history going on today. And the dollar is going to lose. So if you read Rich Dad, Poor Dad, I said, I don't work for money. I work for gold and silver. I do not save dollars. Okay. I use debt to buy real estate. Right. I pay no taxes legally. Yeah. And I save gold and silver. And since I was a little boy, I've been saving so much gold and silver, I now own the richest gold mine in America. Which is? It's called the Trixie, but it's on the New York Stock Exchange. Okay. It's OCD, callsign. Okay. So I only work for real money, which is gold and silver. What's the future of your country? We're in serious trouble. You think so? Oh God, I study money. This here, I wrote this in 2020, "Who Stole My Pension?" America is bankrupt. We're the biggest debtor nation in the world. The only nation more in debt than us is Japan. Stupid Japanese. Japanese save this. Per capita, Japanese save the most money. And what happens, capitalists like Trump and I, I don't know if you speak the same language, but it's called carry trade. So the Japanese save all their little yen and they buy dollars and guys like me borrow their money and we invest all over the world. Japanese are savers. That's why Japan's in trouble. They're not investors. India's in trouble 'cause you don't produce enough money, capital. A lot of people say, well, how come my kid's kicking my butt? I said, 'Cause they don't have brakes put on yet. You know, kids just make mistakes. Parents still have what they were programmed to think. Don't make mistakes, make sure everything, you know what I mean? They're slower, kids are faster. And so they learn faster. So I learned, you know, when I was 10, my rich dad started teaching me about entrepreneurship and investing with the game of Monopoly. And you know, so I'm sitting there and my poor dad, the academic, is going, "What you doing?" I said, "I played Monopoly." And he says, "Well, that's a waste of time. You know, go back and study." And so he says, "Well, ask your friend's father, Rich Dad, why you studying Monopoly?" And so I asked Rich Dad, I said, "Why are we studying Monopoly?" He says, "'Cause one of the greatest formulas of wealth is found on this game board, idiot." I said, "What is it? I'm 10 years old." Going like this. "Four greenhouses, 1031 tax-deferred exchange into a red hotel." And so I'm a kid going, and my old man, the PhD from Stanford and all this stuff, you know, and he's broke. He's broke. He's broke. And Rich Dad goes from his little dinky little store, and now the property he owns is called the Hyatt Regency on Waikiki Beach. So he followed the 4 greenhouses, 1 red hotel. And again, the greatest educator of our times could have been Maria Montessori, who said, "What the hand does, the mind remembers." So my rich dad, for my education, he says, "You want a real education, kid?" I go, "Of course, of course." So he owned, my father called, poor dad called them slums. My rich dad said, "I'm a low-income housing provider." I mean, it's just definitions. He says, "Go knock on doors and collect rent." I went, "What?" You know, so that's why people, everybody wants to invest in real estate, but they don't wanna collect rent or fix the toilet. You know what I mean? So I'm a 10-year-old, 10 to 12. I'm, "Your rent is due." And I heard more bullshit than I've ever heard in my entire life. These are grown adults like, "Hey kid, beat it up." I don't have money, it's you sons of a bitch, it's you capitalist people. I'm 10 years old. So we can't afford it, they got big screen TV in the room, they're watching TV, but they can't pay the rent and they have kids. What are they teaching their kids? Knocking on doors, asking grownups for overdue rent. Fried my brains. Said, "I don't wanna be like you." That was one of the biggest wake-up calls of my life. I said, "The reason between rich people and poor people is they don't know real money from fake money." My mom and dad didn't, good people, but they don't know that. So they spent it. And so today, you know, I have millions and millions and millions in gold and silver, and I also use debt. I don't use money. And guys like Dave Ramsey say live debt-free. And for 99% of the people, that's good advice. But if you're going to be really rich, you have to learn how to use debt as money. But to do that, you gotta be a lot smarter than some hodler, you know, chasing Ethereum and all the other stuff, okay? So that's what real financial education— I don't have an answer. I don't know what's gonna happen in the future. Could my Bitcoin go to zero? Yes. But gold and silver have been here since the Earth was formed. It's been gold, it's been money for about 12,000 years. Bitcoin has been money for 10. Now, does that mean I don't buy Bitcoin? No, I still will buy it, but I'll buy it because it's liquid. I can get out of it if I made a mistake. I wrote this book here, it's called "Fake." And the reason I wrote this book is because it says fake money. Our money is fake. We have fake teachers. So many teachers have no idea when it comes to money. But I'm not just talking about school teachers. You know, YouTube and all this stuff. There's a lot of people saying, I can make you rich, I can do this and all this. But how do you know they know what they're doing? And then fake assets. So what I'm excited about going to India to talk about is you better know what's real. You have to start knowing what's real. So I love silver, I love gold, I love real I love my businesses and all this, but as you guys know, because Indians are— I mean, you guys are the brains of the world. I mean, do you know what I mean? Indians are the brains of the world, but AI is coming. Yes. Yeah. And AI is going to wipe out millions and millions of intellectual workers. So like doctors will lose their jobs. Anybody just in their head. Teachers will be wiped out because AI is going to be the better teacher. I've already seen the technology for that. Right. So we are the— this is the biggest change in world history. And we're still teaching kids to go to school and get a job, work hard, save money, and money is fake. And I've never seen such changes. Humans learn by making mistakes. You know, God designed us, so when a baby learns to walk, baby crawls, stands up and falls, stands up and falls, then finally takes the first step, and the next thing they're running, then flying. But what our schools do when a child falls, they punish them. You're stupid. You make mistakes. Smart people don't make mistakes. And when I look at the way humans were designed to learn, we're designed to learn from mistakes. So that's why you can't, you know, you play golf, I'm sure Tiger Woods has hit more bad shots than me. He's failed more than me. So when you look at the real reality of the world, the biggest failures are the most successful. You know, like what's his name, Steve Jobs, never went to school, he dropped out of, I don't know, Reed College. Gates dropped out of Harvard. Michael Dell at University of Texas. But they failed their way to success. But our academics say, that's greedy, they're capitalists. Don't make mistakes and do as I tell you. Do as I tell you and don't question anything I say. That's called tyranny. I only became an entrepreneur because it was the greatest challenge I could take on as far as my personal education, personal development. And it wasn't to make money, you know, and as I said, my first business business was a nylon and Velcro surfer wallet business. And the mistake I made— I was successful and we grew internationally so fast, I just couldn't finance my success. And so I started borrowing money, and which was good. I started to learn how to raise capital. I learned, I learned how to negotiate. And, you know, the reason I was in Korea fighting taekwondo was I was out there negotiating anyway for production because we were manufacturing in Hawaii, where the cost of manufacturing was too, too high. Sure. So I had to fly to Korea and Taiwan to negotiate manufacturing. I tell you, man, you're not stupid until you're negotiating against Koreans and Taiwanese, man. Those guys had me coming and going up one side and down the other. But that's what I did it for, you know what I mean, is to learn and to learn to finance, learn how to factor, you know, how to how to ship and then factor my inventory and all this stuff. I learned so much as I was going broke, successfully going broke. And so when I explained to young people, that's what I did it for. That's how you get smarter. But in this academic culture, you know, we're just talking about Jordan Peterson, how he rails up against academics. Well, the academic culture, the person who makes the most mistakes is a stupid person. But an entrepreneur, the person that makes the most mistakes and learns from them is the rich person. So I always say to young entrepreneurs, it's not, money will never make you rich. You know, it's your experience, how much you learn, the mistakes you make, the people you make. And all of those horrible experiences are all good experiences if you learn from them. And that's the attitudinal difference of an entrepreneur. Most guys are small business guys, they're not entrepreneurs. You know, they open a pizza shop to make money and they get stuck in that pizza shop forever. Well, that's not me. And the subject of entrepreneur is a massive subject. So you got a drug dealer peddling drugs is also an entrepreneur, as is Jeff Bezos running the biggest product pushing company in the whole world. They're both entrepreneurs, but the gap between the drug dealer and Bezos, massive. So when I speak to young people, I said, what kind of entrepreneur do you want to be? And if you're just here to make money, You can do that, but it's not exciting. The thing I've said before, and I'll say it again because some people need to hear it, your generation, this thing called a cell phone didn't come out until 2007. Yeah. The millennial generation was given the most powerful single tool ever given to any generation. And what are you guys using this thing for? Twitter, you know, social. I don't know what you guys do with this thing, but I love this thing. I mean, I'm on YouTube constantly. You know, I find the best teachers in the world out there. I mean, I don't know why anybody would go to college because the best teachers are on YouTube for free. And I learned, and it's not that the teacher is the best. The thing I love about YouTube is I can get one person says X and the guy that says no, that's Y. And so I'll listen to both sides. But that's where your intelligence grows because both sides have a point of view. And I listen to both sides. But if you're in college, you gotta listen to one idiot who's boring, you know, I really did not like school, you can tell. First of all is I didn't want to become an employee. You know, every time the teacher says, go to school and get a job. And I said, but I don't want a job. You know, and it didn't make sense to me because I had a rich dad. My poor dad was an employee. He was a good one. But personally, I didn't want to become an employee, but your generation now must. That's the difference. You must, you don't have that option. What would financial education in school look like for you? What would you like to have learned? Well, it was really simple because my poor dad, I finally bugged him enough, you know, and said, well, what am I going to learn about money? He said, why don't you ask your best friend's father, my classmate. And that was Mike in the book. Had to change his name for the family, doesn't want to be known. And so why does Mike's father know about money? My poor dad said, because he's an entrepreneur. I'm like, what's that? And what are you? He says, I'm an employee. I'm only 9 years old. I'm learning 2 new words, employee and entrepreneur. I went, what? What's the difference? You know? And then my poor dad says, well, an entrepreneur must know about money. An entrepreneur must speak the language of money. I went, what? And then my poor dad says, and I said, what are you? He says, I'm a schoolteacher. I'm an employee. And what about you? Why don't you have to learn to speak about money? He says, 'Cause all I want is a paycheck and a pension, paychecks and pensions. So that's kind of the, you know, I'm 9 years old. I am totally confused now. So I go across town, it's a little dinky little sugar plantation town. Like I said, my classmates owned the plantations and the kids across the street at Union union school, all union members. They worked for the plantations. And my other, you know, so I'm going, I'm poor. So I sit down with my rich dad who never went to school, ironically. And he wouldn't teach me about money either. And he kept rejecting me. I didn't realize it was part of the process. He wanted to find out how badly I wanted to learn. And he says, and as we all know, as entrepreneurs, right, salesmanship begins when the customer says no. And so the more he said no, the more I got insistent. I said, well, and so I kept going back to talk to him and all. He says, get outta here, kid. So that was test number 1 from my rich dad. Test number 2 was, if I teach you, you have to work for me for free. And I said, why for free? He says, 'Cause if I pay you, you'll think like your dad, poor dad. The rich don't work for money. So if you read Rich Dad Poor Dad, which is right there, The rich don't work for money. And then I'm now all confused as a 9-year-old kid. And so that's when the whole thing started about financial education. For me, I was coming out of the Marine Corps in '74, and I said to my rich dad, I wanted to be an entrepreneur. And because my poor dad wanted me to get my PhD, of course, fly for the airlines and get a PhD. I'm going, oh my God, you know, my old man was broke. Poor Dad was broke 'cause he ran for Lieutenant Governor of the State of Hawaii, and dirtiest business there is is politics. And the governor said to my dad, Poor Dad, he says, "You'll never work in this state again." And my Poor Dad went poor. I mean, up until that time he was okay, but once he could not work and he couldn't sell. And so I come out of the Marine Corps and he's telling me, "Oh, go fly for the airlines. United Airlines is hiring." and go back to school and get your PhD like me. And I said, that's funny, my saying is PhD stands for poor, helpless, and desperate. Jesus, I mean, he couldn't sell. So I go to Rich Dad and I go, what should I do? I'm being an entrepreneur. He says, gotta sell. I'm going, oh my God, oh my God, that's the worst thing possible. This is 1974. And 'cause my old man, Poor Dad, kept saying, he says, salesmen are scum, you know, da, da, da, da, da, da, da. And so I said, "Rich Dad, why do I have to sell?" He says, "How's your sex life?" I says, "Terrible." He says, "'Cause you can't sell." So I got a job with Xerox in Honolulu and I went to see, I had to go home to my poor dad and apologize. I said, "I'm a disappointment to you 'cause I got a job as a salesman." And that's when it started and it was horrible. Knocking on doors. Knocking on doors. And if you don't sell, you don't eat. I don't know if you know, but there was a Sikh or something in, right after 9/11, they murdered him here in Phoenix. Yeah, Sikh. Yeah, Balbir Singh Sordi was the first Sikh killed after the 9/11 attacks. Yeah. And people, when they go nuts, you know, which we did in Vietnam, we did things you're not supposed to do. But when you see your friends dying, You change. And until you see that, until you walk a mile in my shoes, you know what it's like. So you're just talking from experience, things that you've seen. Correct. Things that you've wished you would have known, things that you have, you know, seen along the way that it's just— But you can't know, you know, you don't know much when you're young, you know. I mean, I meet young people today, I can't believe how stupid they are. But then when I look back up on my own record, I make them look intelligent. I was so stupid. Well, yeah, I mean, you had your rich dad that you kind of look up to. And that's why I understand. That's why when I talk about YouTube, I listen to both sides. There are hardcore communist school teachers on YouTube. It takes every— I meet so many people who say, well, I can't afford this, I can't afford that. I can't afford to buy real estate. I can't afford to buy Bitcoin. I can't afford to buy— Well, the reason you can't afford to buy something is because you can't sell. And sales equals income. So back in 1974, you know, my dad wanted me to go to the University of Hawaii and get my PhD. And I said, no, I'm gonna— or he wanted to fly for the airlines because I was a pilot. And I said, no, I'm not gonna do that. I'm gonna learn how to sell. And it was, he was upset. He says, you know, salesmen are crooks, they're con artists. You know, it's not a very honorable profession, but that's why he was poor. You know, so many PhD types, academic types, they think they're above the capitalist process. They think their PhD entitles them to the better life. But if you go for your PhD, you really don't have the skill sets to be in the capitalist world. You know, like when my father, you know, bless his heart, he ran for Lieutenant Governor against his boss, the governor, as a Republican in the People's Republic of Hawaii. You know, Hawaii's 100% communist. And so he ran as a Republican and he lost. And the governor said to him, you'll never work in this state again. So the power the governor had over my dad was his job. And the hardest thing for a schoolteacher, Patrick, is you, as a capitalist, you really don't need a schoolteacher. You need a salesman. And my father just couldn't sell. He wouldn't, you know, he just kept holding up his PhD. I have a PhD, but he couldn't sell. And you know what I mean? And I saw that. And that's when my rich dad, who had no education at all, said, "You better learn how to sell pretty quickly." John and I, like I said, rugby players, played for the Hawaii Harlequins rugby team. And I'm talking to him and he's telling me about all the rich people we knew in Hawaii who were going broke. I'm going, "You gotta tell that story." Because as I said, you know, in 1974 was the first 401(k). It was called ERISA. Employee Retirement Income Security Act. And I was still in the Marine Corps and I was flying out of Hawaii and I went to listen to these pitches on how to sell a 401(k). And I said, "These guys are lying through their teeth." Because the advantage I had is I had a rich dad and I had a poor dad. And my poor dad was the village idiot. He was a PhD, which stands for poor, helpless, and desperate. He ran the school system for the state of Hawaii and he thought the 401(k) was wonderful. I'm going, you gotta be kidding me. And my rich dad was my best friend's father. He goes, oh my God, boy, talk about a license to steal money from stupid people called employees. So I came from a different, so this is '74, I'm still in the Marine Corps. And the first thing my rich dad said to me, if you're gonna be a rich man, Man, you better learn two things right now. Be an entrepreneur, you know, but he says you've got to learn how to sell. And secondly, you've got to know real estate 'cause real estate is debt and taxes. And that's, what do you mean debt and taxes? So in 1974, I took my first real estate course and opened my eyes up because you don't need money to buy real estate and you pay no taxes on top of it. So just before I get out of the Marine Corps, you know, I get a job with Xerox, learn how to sell. So I got sales and then I understood real estate. So why am I rich man today? Because I took two courses, learn how to sell and learn about real estate. And my poor dad, the PhD says, go back to school, get your MBA and get your PhD. I'm going, then I'd wind up like you, a poor, highly educated man with a 401(k)? There's 3 kinds of money today that you guys gotta be aware of. One is God's money, and God's money is gold and silver. So this is silver. Yeah. And this is gold. The reason I brought it is most people don't know what it looks like. Mm-hmm. And then there's government money, which is fiat currency, which is the dollar, the yen, the peso, the euro, the yuan. Yeah. Fake. And everybody's working hard for it. It's like eating fake food or drinking fake water. That's why people are getting sick financially, 'cause they're working for fake money. And then there's fake assets, which was another part of the fake millennial, the fake generation series. But the reason I brought this here is most people haven't seen it. This here is real silver, plata. That's what it looks like. And so in 1972, And this here is gold. Yeah. This is God's money. This is what God's money looks like. Yeah. The reason I call it God's money is you can't fake it. You know, you can fake it with a fake ETF, like a gold ETF or a silver, which I don't touch because it smells as bad as the guys that printed that crap. You know what I mean? Jesus. But this is real money, so You look at this here. When I first started buying that, that was $1.40. Yeah. Today, that's $16. And this here is oro, gold. And the reason we brought it in is most people haven't seen or touched. This is real. This is God's money. Why did I say it's God's money? Because it was here when the earth was created. Yeah. And it'll be here when we're all dead and gone. When you're saving those fake dollars, this will still be here. Yeah. Or those fake ETFs or those fake stocks. So this here is called the grain box. These are— there's 500 of these little tubes like this. Wow. 500 coins in here. And this is one, which is worth more. Which one's worth more? The gold. Yeah, this is worth more than all that. Now the reason I say this is because for your generation, this could be the biggest opportunity you'll ever see. I'm not making any commissions on this stuff. Yeah, of course. But if you look at what happened with the fake central bank, see, the purpose of the central bank or the Fed or all, you know, the The Japanese, the Bank of Japan, the European Central Bank, they pump out fake money. The purpose of central banks like the Fed is to protect the banks, not you. They're a criminal operation as far as I'm concerned. You're gonna find that most of my talks is about the Fed. So I would recommend you guys buy this stuff. Don't save money. Don't save government money, 'cause they're corrupt as hell, as you know. Save God's money. Young people like you leave school thinking, oh, if I know the right answers, then there's no risk. And it drives old guys like me crazy, 'cause everybody's talking about millennials. What's wrong with them? Millennials are the most highly, in many ways, the most highly educated generation in history. They have the cell phone. They didn't get educated in school. They got educated on social media, on the cell phones. They know all the answers, but they're afraid of doing anything. The biggest complaint about my generation is millennials know all the answers, but they can't do anything. And the reason they can't do anything is because you might hurt somebody's feelings, you might make a mistake, and that just keeps you guys just trapped in this little box here. So that's one of the reasons I think millennial money is such an important point here, because if you're going to come into my world, old guy's world, or the information age, you've really got to understand what is risky and what is not risky. And in my world, if you play it safe, that makes you stupid, because if you don't take risks, you don't get smarter. Yeah. You know, so you may know the answer, but you can't do anything. Yeah. And one of the best things I had is I went from— I went to military school, then I went to flight school. I had such great teachers, you know, all of them could fly. You know, so my flight instructor could fly. What a novel idea. You know, a flight instructor can fly. But when I was in high school, most of my teachers were terrified. They're all cowards, you know. Job security. Don't make mistakes. Just memorize the right answer and you'll be safe. And that's why most school teachers aren't rich. And they teach that to your generation today. If you understand how money is created, money is credit and debt. That's all it is. Money, credit, money. I mean, credit, debt, and taxes. That's what money really is. But they don't teach you that in school. So today, the reason the world economy is crashing goes all the way back to '71. But what happened in '71, they could just make fake money and they can keep printing fake money. And this is the US dollar. The US can keep printing fake money for a number of years yet. And the only way they could keep the economy expanding, they had to find people stupid enough to get into debt. So as you know, one of the most, I didn't have this, as a kid, you know, it's called a credit card. Now everybody has credit cards, but they never teach you how to use it. Why did they have a credit card? It's because they needed more money. So they keep expanding the economy. They keep finding people stupid enough to just get into debt. They give them credit cards and all this and say, well, they give auto loans. But I think the most dastardly thing for your generation was in 2009, When President Obama went to the banks and said, look, we need to get the students more into debt under the guise of you need to get a good education. That's why I keep saying to the young, the millennials, you know, they're a pack of wimps. You know, I meet millennials who are just horrifyingly weak. Snowflakes, I call them. You know, they go to college. Doormats. They're taught trigger events or whatever, you know, I don't know what they say today, but they've got to have special rooms where there's no whatever. I'm going, holy mackerel, welcome to the real world, you know? And there's other millennials who are as tough as nails. I mean, this is the biggest opportunity they've ever had. Huge. So it just depends upon what's between this ear and this ear, what's in your heart. And that's what happens, no basic financial education, you know, whether you're old or young, if you're stupid, you're stupid. Don't worry about it. You know, the market will take care of you. And the difference was, is that in my generation it was real estate. So I took real estate courses. I've never lost money in real estate. I've made fortunes in it. Do you know? I'm an insider 'cause I do all my, I don't touch REITs, R-E-I-T, real estate investment. I don't trust paper. I handle my own. I've started my own gold mine in China. Unfortunately, the Chinese took it. That was a lesson. And I started my own silver mine in Argentina. So I understand mining. So all of these guys, my friends who are in crypto, now tell me they expect about 15,000 new ICOs. So this, you know, basically all it takes is a brain and some electricity and a computer, and you can create your own crypto. So could Bitcoin be toast also? Possibly. You know, so when I told this guy I bought Bitcoin when it dropped from $65 to $50, he says, "It's gonna go to $5." I said, "It might." The difference is I can afford to lose that money, but that's called, I'm speculating. So this is, in my world as a professional investor, I'm in the acquisition phase. I've taken a position. I've taken a position in Bitcoin and Ethereum. Every time it looks like it's getting a little cheaper, I'll buy it, I'll buy it, I'll buy it. So I saw Bitcoin at $20,000, I think it was, and it dropped to $7,000 and I waited. And when it came to $9,000, I bought. So today, let's say it's $50,000. I'm still in the money. And if it goes to $40,000, I'm gonna buy more. Now, could I be wrong? Absolutely. Could some hodler coin take off? Yeah. Could there be another pets.com of crypto? Absolutely. But the difference is I'm in the acquisition. I've taken a position. I took a position in silver and gold. I have millions, not in this country, but I don't have any paper. I don't have any ETFs. I only take the real stuff because as I said, the Perth Mint can't deliver on silver. If a mint can't deliver on silver, Who do you trust? And so with all of these young kids coming up, going to invent the next Bitcoin, I don't doubt they will. I don't doubt one of those 10,000 new crypto may blow Bitcoin and Ethereum out of the water. And if that happens, I'll make my switch. But until then, I'm like I was with gold and silver. I'm in acquisition, I've taken a position. When I sell is called distribution. So as a professional, I, not a speculator, and I don't flip houses 'cause I think that's really stupid because it's such high risk to flip a house. But today everybody's flipping houses because the price of real estate's going through the roof. You know, I was talking to the guy who cuts my hair. He says, "Oh, I finally bought a house. You know, I offered $100,000 over the price." I'm going, "Holy moly." It's a mania. As you know, there's booms, busts, and mania. Real estate is in a mania. Because of this, because interest rates are so low. So not only are stocks going up, real estate's going up and everybody's jumping in. When this happens, the idiots jump in and that's what's happening right now. So Bitcoin is the same way. So when it took a dip, I bought more. Can it go lower? Yes, I'll buy more. But there's one big difference between Bitcoin on Ethereum and real estate. Bitcoin and Ethereum are liquid, means I can get out. If I realize that there's a new NFC, whatever they call them, or a new guy's gonna take out Bitcoin, I can get out. But with real estate, the trouble with real estate, if it goes down, you're the skipper of the Titanic. You're gonna ride that baby all the way down. So real estate is not liquid. At least stocks are liquid. But that poor bus driver dropped from liquid stocks into liquid bonds. He's got no place to go. So when I talk to him about possibly gold, silver, or crypto, no, he's an old guy, you know, he's an old guy. So those are, they're all related. So in this world of money, they're all related. You know, it's like we're all related somehow on this whole planet. And so that's the world of money today. So that's real financial education. If you realize you cannot make a prediction, especially today, because nobody knows what's gonna happen until it happens. The question is, are you prepared for when it happens? So I love Bitcoin because if I realize there's a hot new coin coming along, I can get out, but in real estate, I'm stuck in it. So those are some of the differences between investors, acquisition, taking a position, and distribution. I can distribute my Bitcoin and gold and silver quickly. I cannot distribute my real estate that quickly or my businesses. So those are some of the differences in that real financial education. Most of the young people your age today 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 $1,000, they're going to spend $400 in taxes. These guys that make $1,000, they're going to pay 60% in tax. So our schools are teaching entrepreneurship, but they're not teaching them tax. Okay, and because they're focusing on income. Over here, it's 20% in tax. So they make $1,000, 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 that's the difference between 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 are saying tax the rich. Well, these guys don't don't pay taxes. And as strange as that may seem, and I'm talking about legally, this is all over the world. So that's the big difference here. One last thing which I think most millennials understand is, you know, in Rich Dad Poor Dad I wrote about Ray Kroc, founder of McDonald's, and he was teaching at the University of Texas, the MBA program, and Ray asked the, and most of the MBA students And the MBAs are gonna come out here. So Ray Kroc asked them, he says, what business is McDonald's in? And everybody yelled and said, no, no, no, we know, you're in hamburgers. And Ray says, no, we're not, McDonald's is not hamburgers. McDonald's is in the business of real estate over here. So you have McDonald's here and the money, McDonald's makes buys the 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 you're 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, state, which means we make a lot of money, pay zero taxes legally. I just know that, like your father, you know, he went to military school and I went to military school. And notice the people that have had really tough mental, emotional, physical, and spiritual training, they're tougher. So I came out of the academy like your dad. He went in the Navy. I went in the Marine Corps. And we come out tougher, you know, internally stronger. And I don't know how you guys get that. You know what I mean? I call it spiritual intelligence at this point. And let me draw this picture. You guys have seen it before. But again, if you look at it this way, this is intelligences. And this is what makes us up. Makes us human beings. We have mental intelligence, we have physical intelligence, you know, like Tiger Woods is a fantastic golfer, I suck, you know. And then you have emotional intelligence, and emotional intelligence, they call it EQ, is the most important because Because I get my feelings hurt all the time, I get angry, I hallucinate in my head, I think things that aren't true. But the biggest one of all is the spiritual. And the difference between mental and spiritual, it's very simple. Mental causes two. So, man, woman, good, bad, up, down, where spiritual is one. So I'll give you an example. Why do I do my work? Yesterday I was driving down the road and I saw this young guy. God, just broke my heart. You know, he's standing there in hot Phoenix sun. He's unemployed, needs money to feed the kids and all that. Now mentally I could say, well, get a job, you idiot. You know, no, no, no. But spiritually, I am him. I feel for him. So in my work, I work for this. You know, like, I don't need the money. But I, as my teacher was Dr. R. Buckminster Fuller, and he says, I don't work for me, I work for everyone. And that was one of the biggest lessons I got from the military. You know, from the military was very high spiritual intensity. That's why your dad and I get along so well. 'Cause when we went into combat, which is a horrible experience of good and bad people, enemy and friends, you know, but when we climbed into our aircraft, there was a crew of 5, we became one. It is the best feeling, as horrible as it is, flying into combat, 'cause we might not come back, but it was the highest feeling of all. It was spiritual. And I'm afraid it's not just millennials, it's human beings. Well, is this good? Is this bad? Is this the best Vuitton shirt? Can I get it at a better price? Oh, he's cute or she's cute, but is there somebody better? Right? Yeah, I mean, that's exactly what's going on. So you guys are stuck in your head and I think you should get more into your spirit. What can I do for my fellow human being? What can I do for the environment? And I think the biggest secret of my success is I have all, we all have these, we all have some degree of physical things we do. Emotionally, I'm a basket case a lot of the time. I get upset, I get angry, I get sad, I get my feelings hurt. And I'm always, this is good, this is bad, you watch politics, it's all, Good and bad is a bunch of BS. But what keeps me going is this, and it's spiritual, is how can I serve others? How can I serve the planet? How can I fix this problem? And millennials, it's not just millennials, it's just human beings in general. If you can get back to being one, being compassionate, you'll always have idiots here, you'll always have There's idiots here and idiots here. But just stay in your spirit. So like when I saw that guy, he's probably 45 years old. I couldn't imagine being a father saying, I need money for my kids. And I gave him a few bucks, but it doesn't help. All I was, when I gave him a few bucks, I just said, hey, We're one. I feel your pain. And so what's happening, I think, it's not just millennials, it's human beings are idiots, you know? We inflict a lot of pain. But this is spiritual intelligence, is how do we make it one? You know, like my love of trees. When I see people cutting down trees, I wanna kill them. I wanna kill them. And then the oceans, it just breaks my heart because I grew up in the oceans. So when we're in our spiritual, in our heart, in our silence of the brain, of the mind, then we're most effective. So the reason games are the best teachers, at least Monopoly was for me, and our board game Cashflow, the reason I created Cashflow is a game will engage me mentally, I'm interested, It gets me emotionally. Nobody likes to lose, you know? And then physically I have to do something. I like the board game better than the electronic game because I have to do the math. Do you know what I mean? When you do the math, you're actually getting smarter. And then it's spiritually, it's, I wanna make sure you win and I can, I don't have to take you out to win Cashflow. Do you know what I mean? I don't have to make you the loser. But that's what schools do. They have to have one person smart, one person stupid, one winner, one loser. So when I'm teaching you either real estate or business and all this, I don't want you to lose, I want you to win. So once again, the games are the better teachers, like the game of Monopoly, simply because it involves your physical intelligence, and the more you do your numbers on the cash flow game, the smarter you get. Emotionally, 'cause nobody likes to lose. This is really surprising. A lot of people lose 'cause they got too happy. Do you know what I mean? Like, what happened? Oh, I'm rich. Then I get egotistical and arrogant, you know? I get cocky and I'm smarter, I'm richer, then you lose. And you also lose if you've been told, well, I'm stupid and I failed and all this stuff. You also lose. So that's why games are the best teachers, 'cause you go up and down emotionally as you're playing the game. But spiritually, as we get together to help each other out, we're one. There are many, many people who always tell you, live below your means. Well, that's not a Rich Dad philosophy either. I think if you live below your means, and especially if you're poor already, you live below the means, your spirit dies. So what the Rich Dad Company is really about is how do you improve your spirit by increasing your financial intelligence or your financial IQ. Instead of living below my means or what most people have as a J-O-B, a job, you can only work so hard. So my goal, my wife's goal every single year is we increase our assets. So we buy more rental property. We invest in oil, gold, stocks that pay dividends and all this. So every year our income or our cash flow keeps increasing every year. Our goal is not to get a higher-paying job. Our goal is to keep increasing our assets. We want you to have all the wonderful things this world has to offer. So that's one of the differences between don't live below your means. I used to say— what we say at Rich Dads is increase your means and you can have anything you like. And that's what makes the Rich Dad Company's philosophy a little different than the rest. The big mistake that people make is they say these words here: sales and marketing. It's inaccurate. Again, it's the power of the word. Okay, the real thing that I was trained as, the way it really goes is first it goes PR, it's really a philosophy above it. So PR is public relations. PR is when I'm in the— like I'll be in Newsweek next week, Time magazine next week. I fly to New York on Tuesday to do a television a television show with us, web broadcast with Steve Forbes, coming out with a book with Donald Trump, and things like that. It's all PR stuff. Marketing is kind of the spreadsheet between it. You know, marketing plans, testing and all that. It's like an accounting spreadsheet. And then there's a sale. So when times get really, really tough, What's the first thing that most businesses cut back on? PRs and marketing, so they have no sales. It's really stupid. So what we're doing in our company is we're upping it 10 times. Okay, so Mike— so I went and I spent 4 years learning how to sell. The reason I recommend networking network marketing is if you can't sell, you can't do the rest of the stuff. Is that right? That's why I recommend it. Okay, you've got to know how to communicate today. People who are poor cannot communicate. Okay? So I spent 4 years here and I found that I sucked at it. Really terrible. But I went from the worst salesman I became number 1 just by sheer determination, overcoming my fear, my embarrassment, and I get my feedback, my stats, and pretty soon I was making more in a month than most people were making in a year. That was the thing. And the biggest thing I learned about sales was the reason most people aren't successful is they haven't failed enough times. So for me to become successful at sales, When I worked for Xerox, I was making about 4 sales calls a day. I'd dial for an appointment, and I'd go in, they'd say no, and I'd go eat lunch. I'd go back in, they'd say no, I'd eat lunch. I'd go in, they'd say no, I'd eat lunch. I gained 40 pounds. And I talked to my rich dad, I said, "Why am I failing at sales?" He says, "Because you're not failing enough." He says, "If you want to be successful," I life, you have to step up your failure rate. So at night I would leave the Xerox office about 6:00, and I'd go across town to a nonprofit, and I'd dial for dollars. And I wanted to get 30 nos a night as fast as I could. And the more I failed, the more my sales went up. Does that make sense, you guys here? Hello? I went, wow. So the reason most people are not successful is because they haven't failed enough. So please discuss that really. It doesn't make a difference what it is. Could be golf, tennis, sales, marketing, anything. The reason I say only lazy people use their own money is because it takes much more intelligence to raise capital. And so I've never been able, ever since my rich dad, since a little boy, my rich dad forbade me from ever saying, I can't afford it. He says, figure out how you can afford it. How can you do something? Figure out how you can do something. So over my lifetime, most of the projects I've started, I've never had any money. I like not having money. Because it forces me to think. I get creative. I have to educate myself. I have to talk to rich guys. How'd you do this? How'd you do that? How'd you do that? And what has happened to me— I mean, I just turned 72— I've never needed money, because if I need money, I figure out how to raise it. And today we have both good news and bad news. And the bad news is the world economy is collapsing. But the good news is the number one investment that everybody in the world can afford is silver. Everybody. And that's the good news. But will most people buy it? No, they'll save money instead. And they'll save money in spite of the fact that they're printing trillions of it. Gresham's Law is in full force right now. Bad money is pumping into this system and all these idiots, you know, it's called financial stupidity. They're saving dollars. You gotta be kidding me. And they're printing, they're printing so much money. And the beauty of silver, let me say it again, everybody in the world can afford $20 or you can afford a dime. You know what I mean? You can go to a coin store and say, I'd like a 1963 dime. You might pay a buck for it. But that's how stupid people are. They don't realize that Silver has not only been an industrial metal, but it's also a monetary metal. It's been used as payments for years and years and years. So I got this job at Xerox, the same story you have is I get my little handy-dandy sales planner up, I'm dying. Let's say there's 20 sales guys at the Xerox branch in Honolulu. I'm dying. I mean, I'm like, and this guy Sanchez flies in from Western Region, Santa Ana. He looks at my sales thing and I got all these appointments, but no sales, you know, and I'm gonna get fired. So I said, I can't, I'm working hard, but I'm gonna get fired, you know, 'cause I had no sales. So I go, my rich dad's office was at Waikiki. So I go to rich dad's office and I show him my planner and he looks at it and he goes, okay, he says, let me ask you this. How many, and you know, you get to knock on doors. I had no established accounts. The FNGs and the FNU guy has to always cold call. You know, that's as brutal as it comes. So I'm cold calling, cold calling, cold calling in Honolulu. I'm getting nowhere, but I'm making a lot of cold calls. So I show my rich dad my sales planner, just like you do with your guys. And I said, my rich dad says, well, it's obvious why you're failing. I said, why is that? He says, you're not failing enough. He says, if you want to become successful, you have to step up your failure rate. I went, what? Because in my poor dad's family, the academics family, PhDs and all this, failure means you're not successful. And to my rich dad, failure meant you were getting successful. So his advice to me, and I'm still working for Xerox, I'm probably 28 years old. He goes, you gotta step up your failure rate, find a way to fail faster. So that's when you get creative. You know, I can only make so many sales calls a day. [Speaker] What is the biggest difference between fear today versus fear 50 years ago versus fear 100 years ago versus fear 20 years ago? Isn't this a common thing? Like when market does well, economy does well, a few people are prepared for it, most people kind of sit around, don't do anything about it. What's changed? And is that gonna be happening 50 years from now, 100 years from now, where people capitalize and most don't? Well, that's a fabulous question because, you know, today when I refer to 2008, most people remember 2008. Do you know what I mean? That's when Lehman went down, Bear Stearns went down. 38% drop. Yeah, they all remember it. But when I started Rich Dad Poor Dad, the only thing they had was the Depression. I came out in 1997, Rich Dad Poor Dad came out, and their only reference points was the Depression. And none of the people I talked to remember the Depression. So the fear today, I think people are a little bit wiser, is because they do remember 2008. And they do remember 2000. So 2008, I mean, 2000, 2008, and here we are today. So I think most people are at least kind of tuned in. I hope it doesn't come down, but I'm afraid it will. That's what I have to say. Most people more tuned in today because it was only 12 years ago when the last market crash happened. I remember '08, '08 was pretty ugly. We started our agency a year later in '09. And AIG— That's the smartest thing you could have done. Yeah, believe me, it benefited us because we got a contract with AIG at the time and a few insurance companies, and we started growing. But everybody was scared. I want to say what you did was really, really smart because the best time to start a business is right after a crash. I made more money after 2008 than ever in my whole entire life because everybody was hiding like little cockroaches. Wow, you made more money after 2008 2008 your entire life. Yeah, so when, you know, here I'm talking about the coming depression, everybody says, oh, you're such a pessimist, you know. I go, no, I'm excited. You know, I get sexually stimulated thinking about all the bargains that are going to be on the street, you know what I mean? I mean, it's going to be bargains everywhere. But everybody else, oh, you're pessimistic. No, I'm actually optimistic. So anyway, so you're very smart. Just, you know, when I study, I study I study business, guys who start right after a crash do very well most of the time. I invest with Kenny McElroy in real estate. So let's say he buys a building for $1 million to keep the numbers simple. He increases the rent so that he refinances the building at $2 million. So we have $1 million in debt. He borrows out another million. We now have $2 million in debt. And he and I get the million dollars extra. How much in tax do we pay for that extra million? Zero. Zero. And who pays the debt? The tenants. The tenants. Rich Dad's World teaches capitalism. So I'll read you something because this comes from this book here, The Capitalist Manifesto, because years ago, 1965, I read this book here, The Communist Manifesto by Marx. And Marx was just like my poor dad, an academic. And the trouble with academics is they're poor. They have no idea how capitalism works. So stay tuned to the end of this program to find out how capitalism works. So once you understood this, I understood my rich dad, why he did things the way he did. And my poor dad hated my rich dad. My rich dad's my best friend's father. And rich dad had all these houses. And he paid no taxes and he owned hotels. He was playing Monopoly and Rich Dad paid no taxes. And my poor dad being a communist, but didn't know it, he hated the rich. And that's what Marx did. Marx hated the rich. But I wanna read you a quote from Marx. So all of you who believe that paying taxes is patriotic, This comes from this book here, The Capitalist Manifesto, and this book here, The Communist Manifesto. It says here, a heavy or progressive or graduated income tax is necessary for the proper development of communism. I may read it again to you. This is Marx's words. If you want to verify, just read this book here. Okay. So it's a heavy or progressive or graduated income tax is necessary for the proper development of communism. And that's what's happening in America. So if you want to be a communist, you stay on this side here. You wanna be a capitalist, you come to this side here. And again, Rich Dad's World offers you opportunities to understand this side, not this side here. So anyway, that's why I, that's why Tom is one of my go-to guys, 'cause the less tax I pay, the more capitalistic I become. That's right. Freer I become. What are the things that you're thinking about? Because with every downside, there's an upside. Someone's getting, it's like the way I think about it is it's a zero-sum economy. Money never leaves the ecosystem, it just moves and changes hands. So where's the power going? Where's the money going? This here is a 1964 silver dollar. It's real silver. What happened in 1964, I think it was Johnson, one of those guys, he took the silver out of this coin. So this silver dollar today is worth $10. And I tell the story of going into Safeway at the salad bar, and these women were asking me the same question, what should I invest in? And I said, well, give me $10 for this. They go, it's a half dollar. Why would I give you $10 for this? I said, because this could be the best investment of all. I've been collecting silver since I was 17 years old. I own silver mines and I own gold mines. So when the dollar goes down, gold and silver go up. When you're putting your team together, what are some things you look for as a team? And what does it take to build a stronger bond with your team? It takes time. Okay. That's all. Yeah. You know, 'cause, you know, people, when it comes to money, people lie, you know? So it takes time to build that trust. Can you trust this guy under fire? That's why I love the Marine Corps. You know, we may not have liked each other, but we went into battle, We're all Marines I could trust. So it takes some time to put a team together. Yeah, and a lot of flakes out there too. So like a couple of my partners, we're 40 years together. 40 years together. We know each other like brothers. It's the most important thing is trust, confidence, loyalty, integrity, diligence, cover my back. This here is book number 2 in the Rich Dad series. It's called The Cashflow Quadrant. So E stands for employee. So you go to school, they tell you, go to school, get a job. But if you're really smart like Tom, you become, S stands for super smart, you become accountants, attorneys, and doctors. So Tom, who pays the most taxes of these characters here? Oh, definitely the S, definitely the super smart. The more degrees you have, the more tax you pay. Thank God most of your friends, Tom, are like me, C students. Qualify for this one here. That's for sure. You educate all of us that as a general rule, and this is worldwide too, this is not just US, right? And so Tom and I have traveled the world and employees pay about 40% in taxes. That's right. Say about that, and that's worldwide. That is, that's a, that's a pretty standard rate worldwide. It's going to be anywhere from 30 to 50%, but on average 40% if you make any kind of decent wage. You're going to be up in that 40% range. Correct. And if you're a doctor, lawyer, self-employed, or like somebody says, I'm going to quit my job and start my own business, you become a small business owner or a specialist. I'm going to be a web designer. How much do these guys pay in taxes here? They can get all the way up to 60% in tax because they're paying not just the employee share, they're paying the employer share. As well. So they pay two taxes, employer and employee. So that's what happens when people quit their job and start their own business without talking to Tom first. Okay, so big, B stands for big business, which is according to the tax code, 500 employees. But B also stands for brand. And most people don't build a brand here. So big business, like the big corporations, how much do they pay? Typically around 20%. 20%. And again, what Tom instructs people and advises people, it's because we're doing what the government wants done. So why would the government give a tax break to big business? Well, because that's where the jobs are, right? So one of the government's primary goals is to create jobs and employment. And so the big business doesn't pay the taxes in the B quadrant. It's the E people who work for the big business who pay the taxes. Right. The government needs people to hire these people here. Correct. And so if you hire a lot of people, they'll give you a tax break for that. And then I stands for investor, but it's an inside investor. In other words, over here, lots of people invest, but they invest in a 401(k) or an IRA. They invest in public market, like stocks, bonds, mutual funds, ETFs, which I don't have any of those things. I don't want them. But over here is an insider or investor. How much do they pay? Well, they're the ones who get down to zero and pay zero tax. So if you enjoy being over here, you can tune out right now. Now, interesting thing is these guys here can do this. They can. If they have a good attorney also, right? Right. So that's why I have Garrett Sutton and he's our attorney. But you have to act like these people. You can't act like these people. If you have money, you have more power. If you have attractiveness and sex appeal and all that, you have more power. So I think one of the most misunderstood words here is power. And that's why we have Rollo on this program. It's about power. So, and, whether you, and I don't know if you want it or you don't want it, but I would say most people want more money. People want to be more attractive, to be more sexually attractive, or have great relationships and things like this. But also you want more power, the ability to do, 'cause many people today are trapped. And when people lack power, their lives are kind of different. So power is simply the ability to do. And one of the biggest abilities is can you change an addiction into a good habit? Can you take a bad habit into a good habit? So for example, ever since meeting Rollo and the gang, I was able to break my habit of overeating. I overeat every time I'm under stress. You know what do I need to do? I need to eat. And thanks to Dr. Nicole Srednicki, an UltraHealthy Human, and then "Carjacking the Rich" and "Rollo," I've been able to get my body back down to Marine Corps weight, and I'm 74. And so I have the body of a 25-year-old now when I was in the Marine Corps. But I had to get over the addiction of eating. That was tough. Thank God I didn't drink that much or smoke. But that's power. If you're poor right now, It was called look in the mirror. That's what my rich dad always said to me. He says, if you're looking in the mirror right now and you see a loser, that's what you are. You can't make money in this economy, you better change your thinking. You know, hindsight is 20/20, as they say. Yes. So I was, if you're looking at, you know, you don't have any money, you don't have a job, your boyfriend or girlfriend has left you, And then they go, "Well, how did I get here? How did I get here?" There was a great book called, you know, "Gulag Archipelago" by Solzhenitsyn. So he gets thrown in this concentration camp or a gulag in Siberia, and he says, "How did I get here?" You know how he got there? Because he was a peacetime leader. Didn't fight back. So people are being sold the bill, go to school, get a job, pay taxes, save money, get out of debt, buy a house, so the house is an asset, and invest for the long term in a well-defined portfolio of stocks, bonds, mutual funds, and ETFs. And I do none of that. This past week, it seems like the big banks are going to get bigger despite everything the administration really hopes happens here. Can you just talk about whether these trends— when you say it comes back to us and what we're doing, but are some of the things that you or that the others are doing making it worse for the guy who's just trying to, to get ahead? Well, I'm a big advocate for financial education. So in the 1970s, when I got out of the Marine Corps, my rich dad had me take two things. I had to learn how to sell because sales equals income. And then I had to learn how to invest in real estate because real estate is debt. So, most people say, you know, live debt-free. I had to learn to use debt as money. And as you guys know, in '71, Nixon took the dollar off the gold standard and the US dollar became debt. So, I do almost everything opposite of what the pundits say. I'm not debt-free. I use debt as money to acquire real estate. And that minimizes my taxes. That's what I do. Marketing and sales are a brilliant thing, and it's a, it's a global discipline, right? No matter if you're doing business, no matter where you're doing business, it's a global discipline. You just got to be committed to it and you can't give up on it. But you have to spend your dollars wisely. And that's, that's most important. And what, what Vic is saying, most small business people cut back They stop spending when they should be spending on marketing and advertising 'cause sales equals income. But they say— They get scared. They get scared. So let's leave that as tip number 1. And even if you're not an entrepreneur, just know that bad times are the best times sometimes to start a business. I've only started in bad times because everything else is gonna shut down and lots of, opportunity when things are slow. But what happens is like many small business people, they cut back on the spending on marketing and advertising, or they market and advertise to the wrong customer. What do you want young people, young civilians today to understand? Maybe a lesson or an experience you've had serving our country from the Marine Corps that you wish young people could learn? Today? Well, like I said, I studied this book, Communist Manifesto. I read that in 19— I went to the academy, Merchant Marine Academy, and it's also appointed to a Naval Academy, but I took Merchant Marine Academy. But the most important thing is this. When I was flying this aircraft, we went down 3 times, crashed. We didn't get shot down. The aircraft was so tired, you know, you just kept falling outta the sky. But the thing that worked, we had the best team. You know, as soon as my engine quit, I was about 1,500 feet flying into North Vietnam, not north, but just south of the demilitarized zone. My engine quit immediately. What pilots do is they raise the nose generally. What they train us to do is dive the nose. And so moment I did that, I heard my crew members, they were jettisoning all the cans of ammunition. Dropping the machine guns and dropping the rocket pods. And we were in the water within like 10 seconds. But it was the most powerful team. Young guys too. 2 pilots, 1 crew chief, and 2 young Marine gunners. We're a team. So what's gonna get you through probably the next 10 years is how tight your friends are, how tight your team is. You know, so that's why I count you as one of my assets. Because you allow me to speak. And as you know, our freedom of speech is being taken away as this guy demanded. So it's gonna depend upon who your friends are. You know, are they smart, are they stupid, and things like this. So when things happen, you know, you gotta have a team. My team at Rich Dad is ungodly. They are such a high performance team. Small, we're only 10 people. But we kick ass wherever we go. And thanks a lot to my wife. My wife did a great job and I wouldn't be here without Kim. And we're a tight team. Kim and I got divorced, unfortunately. But your team right now is crucial. So the final words, as Marines say to each other, Semper Fi. Semper Fi means forever faithful. The older I get, I go, the more I don't know. And crypto is taking over the world. And I was just on my phone to my gold and silver dealer, and I still own gold and silver, and I bought a lot of crypto, but it's a very important subject that we need to be aware of. And once again, the Rich Dad, we don't recommend anything, but we just do our best to give you the information so you can make your own decisions. And I still own some, quite a bit of Bitcoin and Ethereum. But I'm waiting for the price to come down before I buy more, take another position in both Bitcoin and Ethereum. I just want people to know that, to know and think, because I get promoted all the effing time. You gotta get in on this one, or you gotta get in on that one. This one's gonna go to the moon. You know, I'm an old man, I've heard this bullshit. So many times over all these years in real estate, stocks, you know, and that's why we have the Rich Dad Radio Show. It's not to promote anything, but the idea of understanding what's good and what's bad about something. I get a little disturbed every time, 'cause it happens like 5 times a day, a young man or young woman come up to me, "Oh, I'm getting my real estate license." "Oh, I'm buying real estate." I said, at the top of a market? So the reason I highly recommend, if you subscribe to only one newsletter, there's lots of them out there, is Bert Dohmen, D-O-H-M-E-N Capital Research, his Wellington Report. And again, he has his free book, I mean his free advisory, "Surviving Soaring Inflation: The Opportunity of a Lifetime." And this is it here, just, you know, you can get it. It's the opportunity of a lifetime. And I agree 100% with him. You have no idea what it was like. Some of you were too young. I'd go into a Chinese restaurant and they had whiteout on all the menus. I like Chinese food, but anyway, so one day rice would be a buck, next day it'd be 2 bucks. And they had to keep whiting stuff out. You know, I'm going, holy mackerel. And then I put together when I was flying in Vietnam, why my rich dad, who was Chinese, said, "Watch out because they took the dollar off the gold standard. They're gonna print money." It's called money supply, not interest rates. That's exactly what Bert was just saying right now. So they're gonna try and raise interest rates to slow down the economy and they're gonna exacerbate. We're in a recession already 'cause things are slowing. The velocity of money is slowing at higher rates of speed. But also it's gonna crash the economy and we may be going into a depression. Now, oh, you're such a bad news guy. I tell you something, I learned more in the '70s than I do today. Because when I was trying to put our real estate together, when interest rates are 20%, you get really smart. I mean, I had to be creative and all this and still make it cash flow. So ladies and gentlemen, it's only how smart how creative, how smart you are in the future and how resourceful and resilient you are. Because I'm afraid Bert's correct. This is May 2022. I think we're heading into a depression. There's gonna be a recession, that's a given. We're already there technically. But a depression's gonna be a whole nother magilla. And some people will be wiped out exactly as Bert says, the last depression gave us communism. How do we generate cash flow passive income, which is one of the tenets you preached in Rich Dad Poor Dad, in today's high inflationary environment? Well, I'm still a real estate guy, but I've never been a flipper. You know, guys were buying a house for $10,000 and selling it for $20,000. I don't do that stuff. I buy income-producing real estate. Like if you owned farmland and it's producing, let's say alfalfa, that's an asset. I own cattle. I own Wagyu cattle because what I sell is the Wagyu bulls' semen. You know, there's cash flow. I should change that to semen flow. And what that's hanging behind me is, you know, George Gammon, he always talks about the economy is hanging on this hot air balloon. And that little basket down there is us, you know, just dangling from this balloon. And that balloon happened in, as most people know, in 2008 when Bernanke, who was awarded the Nobel Prize, can you imagine that, printed trillions of dollars to blow the economy into a bubble. And it was the everything bubble, you know, stocks and bonds went up, real estate went up, and he kept dropping interest rates. So the dollar became more valuable. But what happened this year, David, is that balloon's coming down. It's called what Andy Shechtman calls the 3 times crash. Stocks, bonds, and mutual funds crash, real estate crashes, and cash is trash. It's going to start flowing. The US dollar, I mean, is going to start flowing back to the US because treasuries are going down. If you don't have gold, and I mean physical gold or physical silver, you better start doing it now because our, the US dollar, although Jay is Canadian, he, he can see sometimes clearer than Americans can how screwed up our dollar is. Yesterday I panicked. Gold pushed $2,000 US. I don't know what it is in Canadian, in the loonie, but I think next stop is $5,000 for gold. Okay. And it may take another 5 years, but I think it, you know, this here is a real gold coin. And my first, the first one I ever bought was in 1972. I bought it in Hong Kong and I paid $50 for this. And today it's $2,000 plus, plus, plus, plus. And this also is a silver coin. This is real silver. I don't like fake money. And that's why this Vancouver Resource Investment Conference is important, because you come to hear about why if you don't have gold, I mean physical gold and silver, you should have some now. Is the Fed doing what it can in your view, or is there a different way to combat inflation? Well, I would say it's not what the Fed's going to do. What are you going to do? And so I always talk about the 4 G's that I've been investing in for most of my life. The first G is gold. You know, this is gold and then this is silver here. And I stay away from the SLV or the GLD. I want no counterparty risk. I want the real stuff. I think I'm investing in this ground. I own apartment houses. I'm glad I'm not in office buildings or commercial real estate. And then gasoline, you know, gasoline, you know, the greenies hate the thing, but that's how we fly our planes and stuff like this. And then the last one is food. I invest in cattle and food. So, I just stay in things that as inflation goes up, gold goes up, real estate goes up, Gasoline goes up and food goes up. So I invest with the inflation, not against it. Language of money is a very good, you know, the definition of the word. So, and the good thing about it is you wanna be rich, just learn the, just speak the language of money. Like if I wanted to go to, let's say Spain, I would learn Spanish. I'm fourth generation Japanese. I wanna go to Japan, I learn Japanese. But when you go to a school system, you learn the language of a school teacher. Go to school, get a job, work hard, save money, pay taxes, get out of debt, and buy a house 'cause it's an asset. But all you have to do is learn the words. So my poor dad called his house an asset. And my rich dad said, your house is a liability. Again, it's just the power of words and language. So the difference between rich people and poor people are words. And words are free. And when I say that, and it naturally, it upsets the school teachers who are mostly, they're not bad people. When I was in 1965, I read the Communist Manifesto by Marx. And as I read, I went to military school in New York and reading the book, I realized, my God, my family's communist. Wow. See, they believed in taxes. They believed in, abolish real estate. You know, today Klaus Schwab says, "You will have nothing and you'll be happy." That's all Communist Manifesto stuff. If you're just starting out and you're right here, you may not have much money, may not have a job and all this, but that's really not an excuse because you can still start. And I would suggest, you know, getting Kenny's ABCs of Real Estate, look at programs because we're going to go into, let's start out how I started It was the reason I got into real estate was that my rich dad, this is back in the '70s, he knew that President Nixon had taken the dollar off of the gold standard and prices were starting to rise. And so rich dad said one thing, he says, don't save money, learn how to use debt. And so it's counterintuitive to what most people think, 'cause most financial advisors say save money and get out of debt. And we're saying, don't save money, get into debt. It's a different process, you know, so that's really it. The reason I invest with Kenny is because we're into debt. You see, the beauty of real estate over stocks, there is those margins and things like that with stocks, but with real estate, banks are really anxious to lend you money if you're good. If you're not good, they don't lend you money. So again, it goes back to when somebody says, I don't have money, it's because you don't have financial, you don't have education, you know, stuff like this and this and this. You go, well, I don't have money, so I don't start. Well, you're not supposed to use your own money anyway. And that was my rich dad's lesson to me back in the '70s. He says, look, the dollar is no longer backed by gold. The dollar is now backed by debt, US Treasuries. And he says, if you're going to be rich, you'd better understand how to use debt. Meanwhile, the other people, all the financial people, oh, save, save, save, and put your money in mutual funds. The postmodernist communists, the Marxists in our academic system, they speak in these platitudes like equality, this, that, you know, and it's as nonspecific as possible. But as a capitalist, I must speak in facts, figures, and the history. But they want to change history, you know, the 1619 Project or whatever that is. And the real fact is, you know, America, and then why you got to pay taxes? Well, Marx said graduated income tax is essential for the spread of communism. And so my father, poor dad, he believed in paying taxes. My rich dad didn't. Again, the word is taxes. And so when you look at what Biden's doing right now, he just, he just put in 87,000 IRS agents who are armed. The reason is they're going after you, small business. They're going after the small entrepreneur. They can't touch me. Because I'm not that stupid to pay taxes and I can do it legally. But that's why I make fun of my friends, Peter Schiff and Mark Moss, they were living in Puerto Rico. I said, if you were a real estate guy, you wouldn't live in Puerto Rico. You could live anywhere you want and not pay taxes. In Rich Dad Poor Dad, I said savers are losers. And guess what? They are. It's coming soon. We're going to have negative interest rates. I don't know how they can do that, but if you deposit $100 in the bank, when I was a kid, I got 15% interest. So I put $100 in the bank and a year later I got $115. Today, you put $100 in the bank and you got to pay the bank $15. And they're printing it. So the value of the dollar is going down, but the price of keeping it in the bank keeps going up. They charge you to keep your money in the bank. Tell me, why would you save money? So that's why way back when, 25 years ago, the savers are losers. I also said your house is not an asset, and then 2008, the market crashed. Well, it's gonna crash again because everybody's going into real estate right now. Now, the good news is that the people are moving out of the big cities like New York, Chicago, San Francisco, Los Angeles, and they're moving into smaller towns. Well, what that does in the smaller towns, it drives the price of real estate up. So again, it pushes out the lower, you know, if you live in Podunk U, little dinky town, you don't make as much money as the guys moving in from Chicago. And I was up, I was, you know, I own a piece of property up in Northern Arizona and my friends in real estate there are just laughing. They're saying, "Oh, these guys from California come in, you know, a house I bought for $100,000, they're paying me $400,000 for." So they're all happy. Well, for the Californian, they sold a $4 million house so they can afford a $400,000 property. So this market is all convoluted, going all over the place and all this. People are excited. Kim just sold her mom's house in Hilton Head, South Carolina. These people came out of New Jersey and there was a bidding war for the house. So there's all kinds of things going on in real estate today, but it'll eventually crash simply because the government is making it so expensive to build a house. So one of the reasons my niche market with Kenny McElroy in real estate We only buy existing property because it costs too much to do, you know, the permits and fees and all that. It costs so much to develop a piece of property. So once again, the millennials get screwed because the price of property gets more expensive, but you get less house. Do you know what I'm saying? This is so screwed up, but that's what happens when the government steps in and they kick capitalists out. And then the socialists kick in. But anyway, that's why savers are losers today. Be careful for those who are not paying attention. In other words, we're about to go into what's called the Wile E. Coyote moment. Everybody's running along and says, "Oh, don't worry, the Fed's got my back. You know, the economy's fine. I love this guy Biden, you know, and America's the greatest and the economy's safe." All of a sudden, And when people crash, when this thing crashes, and it's coming soon, it's the people that are not prepared, the people who are not watching this emergency podcast number 3, haven't watched number 2 or number 1, are the ones you're gonna have to be afraid of. Be very, very afraid of those who are sound asleep at this moment. 'Cause when they wake up, they're gonna wonder what happened. So I'll just tell you a quick story. I went to flight school, you know, to fly these things in Vietnam, and they wanted to prepare us for the worst. So how did they prepare you for the worst? Well, they make it the worst. So what they did is they take us out into the Gulf of Mexico off of Pensacola Beach, They simulate a parachute crashing into the ocean. So it's freezing weather. I think the temperature was -3 degrees or something. We hang off the back, we drop into the water, we got unhooked, then we paddle ashore, our little rubber ducks. You know, there's like 7 of us in a group and we go ashore into the swamps of Florida and our job is to survive. So it's a simulated crashing. In Vietnam or the jungles. And then we had to figure out how to survive. So everything is like a little Boy Scout camp. The first day, everybody's happy, you know, we're chugging along. This is easy, this is easy. Day 2 gets a little bit more serious. Then day 3, we're hungry. And this is what I'm talking about. It took us till day 3 to turn into animals. We went primal. I was ready to kill the guy next to me. You know, we just, we're starving to death. We're hungry. These guys are chasing us with guns, you know, blanks of course. But we're running. I'm eating palmetto. I mean, just ripping palms apart trying to get a little piece of nourishment, starving to death. We finally shot a raccoon. And there was 7 men, 25-year-old men, and 1 little raccoon. And pretty soon we were growling. We were just like a bunch of wolves. And the side of me came out of me that terrified me. It's what happens when you go primal after day 3. Kim and I retired, she was 37 and I was 47, 10 years apart. Took us 10 years. But all we did was get richer after that because we found our formula. And our formula wasn't go to school, get a job, work hard, save money, get out of debt, and invest in the stock market. That wasn't our— nothing wrong with that formula, it just wasn't our formula. What was your formula? Play Monopoly. Yeah. 4 green houses, red hotel. And the McDonald's formula of our, you know, as Ray Kroc said, who founded McDonald's, McDonald's is in the business of real estate and paying no taxes. So that's when, so anyway, when Tom and Kenny and the other advisors come here, their job is gonna twist your brain to see it differently. Does that make sense to you? Yeah, it's gonna be a whole mind shift. Shift of what we've been taught and very non-traditional ways where sometimes when you think about not paying taxes or using debt, it's like, what are you even talking about? How? Right. And that's dangerous because you've been taught to pay taxes and get out of debt. Brainwashed. Yeah, right. So what's— what, what I'm— what I'm glad you're starting on here is you bring in my advisors. And remember, advisors are my teachers. They're not just telling me what to do. They're not experts. We work together, we plan together. Right now, Tom and I are— and Kenny, because Kenny is who I invest through using debt, and Tom would advise me on taxes. So that my game I play is not be a good employee and work hard and pay taxes. My game is to be a capitalist, to have my money and investments work hard for me so I can make millions and millions of dollars and pay no tax. Now that drives a lot of people crazy, right? So if I was teaching a bunch of high school kids, I said, when you leave school here today, the big question in your mind is, what kind of income do I want for the rest of my life? Well, I want it passive. And the average person, because they have a a job is working for earned income, which is the highest tax. You get tired working for that. So when you look at, again, the Rich Dad financial statement here, income, expense, assets, and liabilities. Okay, so earned income is this here. That's earned, okay? When you work for, and then the problem with that income is tax. Then if you're working for portfolio income, you're generally working for this. You buy a stock for, let's say Apple for $10, and it goes to $50 and you sell it. The trouble with that again is tax. But if you're working for passive income, which your mom and dad work for, is this is passive income here. Okay, it's cash flow, it's also called. So that's why the cash flow board game pictured here. So all I wanted was passive income. So what I have today is I have about 7,000 rental properties. I have hotels, golf courses, oil, and all this. But again, it goes back to these three types of income. Income, earned portfolio, and passive. So if I was talking to a bunch of high school kids or even elementary school kids, it's not that hard. But I'm glad you asked the question because I think a lot of the young people can think now, say, well, why am I in school? I don't know. You know, if you just want to work hard and pay taxes on earned income and flip real estate or flip houses, then you're working for Portfolio. Yeah. I don't flip. Yeah. That's a very big difference. I don't like to buy low and sell high. That's flipping. That's called capital gains, which is portfolio. I vote for cash flow, which is passive. And I can turn capital gains into passive. I mean, it's so, it gets crazier and crazier and crazier from there on, but I'm glad you asked the question. To see the very first Top 10 Rules video I made on Robert, check the video right there next to me. I think you'll love it. Continue to believe, and I'll see you there. Most PhDs tell me I can't write. Yes, I said I can't write, but I can sell. You don't like to live below your means, do you? No. No. And I think when you say to somebody, live below your means, you wipe their spirit out. Look,