Transcription
When I was leaving school, I was said, "Go to school, get a job, work hard, save money, buy a house cuz your house is an asset, get out of debt, and invest in the stock market." I don't do any of that stuff. That's for suckers. I would never do that.
So, the reason working hard doesn't work is because this is called a financial statement. This comes from my cash flow board game. And I have a little video that says, you know, why games are the best teachers. You really want to learn about business. This is your financial statement.
In real life, when I talk to my banker, this is what my banker wants to see. My banker doesn't want to see my great card. My banker doesn't want to see what college I went to or my GPA. This is what my banker wants to see.
So, when they say work hard, well, here it is. This is poor dad here. You work really, really hard. What's your first line of expense? Taxes. So, the reason I don't work for money is because I'll pay taxes. You want to pay taxes? Up to you. But taxes come from Marxism. Karl Marx said a graduated income tax is essential for the spread of communism. So the people that pay taxes here are communists and the capitalists don't pay this tax. Like if you watch uh Donald Trump, you know, Hillary Clinton accuses he didn't pay any federal income tax. And Trump says that makes me smart. Hillary is an attorney. She's not very smart. You know, she may be academically smart, but this is why I don't want to pay taxes. So if you work hard here, you just pay taxes 50% right off the top. Stupid. Go to school to learn to be stupid financially. Not very smart.
So my rich dad taught me to focus here. This is the balance sheet. You have to have income statement, balance sheet, statement of cash flow. This is what the cash flow game teaches you. So when I was a young man, I was taught to focus here on assets. So that's why when I left the Marine Corps in 1974, my rich dad said I had to learn how to sell and I had to learn real estate because real estate is based on debt. So I can get really quickly because I'm using debt to get rich to buy assets. So debt is a liability like Kenny Malro and I we buy a apartment house the asset and that provides cash flow but we don't pay tax. Income comes like this. If you get a job your first line of expense is tax. That's why I don't work hard for money. But of course if you want to to me it's stupid but most smart people work hard for money like doctors and lawyers. As I said earlier, doctors and lawyers pay the highest taxes. Good. That's the way it should be. But the capitalist down here pay make a lot of money and pay little taxes. So that's why you want to play cash flow. So you get your mind shifted down here. But if you go to school, you're shifted up here. And this is the key to the whole thing. It's called a statement of cash flow. Cash flow are the two most important words in business. The reason most people are poor is more cash is flowing out than flowing in. If you focus here, you focus on cash coming in and staying in.
So, those are some of the benefits you get from playing the casual game. Don't just play it once like these idiots. It's a tough game. You have to learn all of this and all this, but you take your time. You play with about 10 people, play it 10 times, teach 10 people. Your brain will start to think like this. You can go to school, become a doctor, a lawyer, or airline pilot, and pay a lot of tax. As Trump says, the reason he doesn't pay tax is because he's smart. I want you to get smarter. These people here, the poor people of life, you know, they want to save money, but they taxes take their money first and then they put it over here in an asset called a 401k. Well, that's full of stock, bonds, mutual funds, and ETF. Paper, like the dollar and paper. And this is February 2025. We're in the middle of the biggest stock market crash in history. There's millions of guys like my age who get wiped out because all they have is a 401k. What I invest in are over here, businesses, real estate, and all this. I have oil companies, gold companies, gold mines. I'm an entrepreneur. These guys are employees over here who need a 401k. It's your choice. Again, it goes back to goes back to this here. Most people go to school to become employees or doctors and lawyers and accountants. Not too smart. If you want to get rich, you should learn how to be a big business owner and an investor. This is Elon Musk, Steve Jobs, Bill Gates. And inside here, I put my own deals together. I am the owner of the gold mine. I take the gold mine public. I own my real estate. I own it. I don't have any paper assets. So, it depends on what type of assets you use. But if you're going to create your own assets, you have to understand this side, this side. And that's what the Rich Dad Company teaches, and that's what the cash flow game teaches to get your brain over to this side and get out of your butt on this side. A lot of people become self-employed so they can make more money. A lot of them do, but you pay the highest taxes. It depends on what type of income you're getting. this income and this income comes from you working for money. It's stupid, stupid, stupid. Hard to get rich working for money because of taxes. And the trouble is, oh, I think I'll start investing, but they have no education.
So, let me say it again. When I was coming out of the Marine Corps in 1974, I had to take real estate investment courses. I had to learn to invest with no money. So, I understand real estate very well. Ken Mroy is an expert at real estate. So our cash comes from our investments, not from our labor. These are really stupid people because they'll work hard and pay the most taxes. And again, taxes come from communists. A graduated income tax is essential for the spread of communist. Karl Marx, do your study. So all this, oh, I'm making so much money here. Good. And so I'll start investing. But what do you invest in if you don't know what to invest in? You put it in stock, bonds, mutual funds, ETFs. Good luck. Because right now, I wrote a book called Rich Dad's Prophecy. Why the biggest stock market crash in history is coming. We're in the middle of it right now. This is February 2025. The markets are starting to crash. It's going to be the biggest crashes we've ever seen. It's going to wipe out these guys with 401ks. Stupid, stupid, stupid. Cuz he went to school. They should teach you about money. So that's why you've got to understand and study and all this stuff here is I put my own deals, the markets crash, I get richer. Markets crash, these guys get poor. And so the justification these guys make all the time. Oh, but I'm making so much money. I said, "Yeah, you're paying more tax." It's stupid. Again, this is fake. In 1971, Nixon took the dollar off the gold standard. This became toilet paper. But this is what ease and essence work for. The rich don't work for this stuff. So, what we do is we create assets. And I'd rather have cash flow, but not this here. It's very big difference. There's one more big problem happening today. It's that every time they print money, the rich get richer. The reason the rich get richer is when you print real assets here, the asset goes up in value. So when you print money, like I own oil wells. I don't oil stocks. When you print money, oil wells go up in value. But when oil wells go up in value, so does the cost of gasoline for these guys here. So the reason we have so many problems today is our schools are still stupidly teaching people to go to school, get a job, work hard, save money, buy a house, get out of debt, invest for long-term talk.
So I'll say it again. I took real estate courses. I'm constantly taking classes. I'm constantly going to classes on any kind of investment. I'm learning about crypto and Bitcoin and all that right now. Not because I'm smart, because I want to learn. But most people are so stupid. They think they can just buy Bitcoin and make money. I hope you lose everything because you're arrogant, very cocky. You really need to study. That's why be careful who you study with.
So, let me say it again. The reason people are homeless today is because every time they print this here, inflation goes up on assets and inflation goes up on expenses. Like the cost of eggs are going through the roof right now. So you go to our restaurant, I don't know how people survive today. So when I see all these millions of homeless people, it breaks my heart. Yet Kim and I were homeless for a while. We were homeless for about 7 days. That was enough. It inspired me to get off my ass and start studying harder, working harder, and acquiring more real assets. Not this. Kim and I were homeless in San Diego. We lived in a little brown Toyota on the beach. I think in the mission beach, one of those really beautiful places, but we were homeless because I had a bad business partner and we got shafted. But those seven days inside that car changed my life. I said, "Boy, you know, I thought I was pretty smart then. It inspired me to get smarter." So, I see all these homeless people today. You know, homeless me homelessness is a disease. After the California fire, I think there's 25,000 people now homeless. You know, it's tragic what's happened. And this is not the only cause of it, but a big cause of it is this is fake money. And so the people that work for this trash are stupid, stupid, stupid, stupid, stupid, stupid because all this does is create inflation, makes life harder for people. So they print this, the price of eggs go up. Of course they have there's evidence of a fake aven flu right now which sent the eggs higher but or like big pharma you know like Fouchy and those guys with the COVID that's such a conj job but the pro one of the big the only cause of homelessness it makes life so expensive for people they can't survive but they still send their kids to school and I like my daughter's got a college degree I'm going she's still stupid she knows nothing about money she's going to look for a job oh no no no she's going to get an MBA I said she's still going to look for a job they don't get it. You know that it really is. This is book number two of Rich Dad Poor Head. The cash flow quadrants. Our schools train us to be over here. Rich Dad Trains over here. You want to come over this side? It's a cash flow board game. You know, find five people, play it 10 times, teach 10 people, and you'll learn a lot about creating assets and working for cash flow, not for money. There's a very, very big difference.
So, remember, actions speak louder than words. You're probably going to sit there, oh yeah, yeah, yeah. I know all about real estate. Well, how much do you own? How much do you own? Give me a break. Oh, no, no, no. My father owns a house and I got to listen to these freaking idiots. You know, don't be stupid today. We're in the middle of the biggest crash in world history. I'm afraid we're heading to a depression. I mean to be pessimistic, but every hundred years there's this change. The last depression was in 1929. This is 2025. It's almost 100 years. So, not that saying that history repeats, but it looks like it might. That's why I wrote the book Rich Dad's Prophecy. If you can find Rich Dad's Prophecy, I explain why the stock markets I wrote that book in 2014. This is 2025, 10 years ago, and we're now in the middle of the biggest stock market crash in history. And then my generation, the boomer generation with the first generation with a 401k or an IRA. So many people, my generation will be homeless even though they have jobs and all this when their 401k or their IRA goes out. So that's why I wrote Rich Dad Poor Dad and I encourage financial education. I suggest you play the cash flow game and learn quickly. I can't force you to do that. But as many you know, there's a lot of people there who are really stupid and all they want is job security or they want to make a lot of money as a self-employed person, but they have no assets. All they have is cash. That's not sword.