00:00if you were to stop working imagine this to yourself how long can you survive on
00:09your remaining savings what I just asked you was the definition of wealth here is
00:17a man named Robert Kiyosaki an American investor businessman author motivational
00:23speaker and financial commentator who became well known in the recent years who
00:28has an estimated net worth of 80 million dollars want to know something
00:33interesting oh he wasn't raised in a wealthy background in fact his family was
00:39like most people who work but didn't have the best financial education and
00:44oftentimes struggled with money so then how did Robert become rich today let's
00:51take a look as he explains in one of his bestsellers called rich dad poor dad
00:58Robert Kiyosaki was born in Hilo Hawaii in April 1947 in 1957 at age 9 years old
01:13little Robert was attending the same public school where the rich people sent
01:17their children for his town had lots of doctors business owners and bankers Robert
01:22saw that the rich kids would separate themselves from him for his family wasn't
01:27able to afford the newest collections of toys and bikes like them so one day
01:32Robert asked his father who had a PhD and completed multiple universities with
01:37excellent degrees dad can you tell me how to get rich unfortunately his dad didn't
01:42know the right answer because he was a rich himself so he responded with well use
01:47your head son stay in school get good grades so you could find a safe and secure job his
01:53real dad is what he'll be referred to as poor dad he wasn't poor during this time
01:58in fact he was making lots of money but in the end this man's financial life takes a
02:03turn for the worst now little Robert has a friend named Mike in which Mike's father
02:09would be referred as rich dad who started mentoring Robert and his son Mike
02:14about how to really become rich at this point in time rich dad wasn't really rich
02:19yet but soon became to be one of the wealthiest men in Hawaii so then what did
02:24rich dad teach Robert rich dad poured a strong financial foundation into these
02:29kids minds of many important principles to start off the first lesson you need to
02:34know is you must know the difference between an asset and a liability and that
02:39you need to buy assets if you want to be rich this is all you really need to know
02:44and understand the most you see the rich acquire assets and the poor and middle
02:49class acquire liabilities but sometimes they think they are assets the primary
02:54cause of financial struggle is simply not knowing the difference between an
02:58asset and a liability oh oh right you even know what an asset and a liability is
03:05don't you an asset is something that puts money in my pocket a liability is
03:13something that takes money out of my pocket for instance let's draw a cash flow
03:18pattern of a normal individual this person right here earns his income from a job
03:27and his expenses are things like food clothes entertainment and transportation
03:32unfortunately he doesn't have assets but sure does have liabilities that
03:38constantly takes money out of his pocket because things like mortgages taxes
03:42credit cards loans and believe it or not the house now let's take a look how to
03:51cash flow pattern really works for the rich instead of looking to earn more money
03:55from their normal job as the only source of income they buy and own assets that
04:01brings money into their pockets as a form of passive income passive income is
04:05something that earns money that doesn't require you to trade your time for it so in
04:10other words you would be earning money even as you're sleeping examples of assets are
04:15businesses that doesn't require your presence stocks bonds mutual funds income
04:22generating real estate royalties notes and anything else that has value that
04:29produces income as mentioned before poor dad was making quite a lot of money from
04:35his job but his expenses seem to always keep up with his income never allowing him
04:40to invest in assets as a result his liability such as his mortgages and credit
04:45card debts grew greater over time and this is the fault of having income equals
04:51expense and assets is less than liabilities and sadly this is what drove poor
04:56dad into debt even after he passed away on the other hand rich dad's personal
05:01financial statement reflects the result of a life dedicated to investing and
05:06minimizing liabilities so he has income that is greater than expense because of
05:12assets is greater than liabilities this is practically why the rich are getting
05:18richer
05:19their assets generate more than enough income to cover expenses with the balance
05:27reinvested into the asset column the asset column continues to grow and therefore the
05:33income grows with it you see both that's worked hard but they have opposing
05:38attitudes and thoughts one dad recommended study hard so you can find a
05:43good company to work for the other recommended study hard so you can find a
05:48good job to buy one dad said the reason I'm not rich is because I have kids the
05:53other said the reason I must be rich is because I have you kids one said when it
05:58comes to money played safe and don't take risk the other said learn to manage
06:04your risk one said I can't afford that the other said how can I afford that
06:10although both men had tremendous respect for education and learning they
06:15disagreed and what they thought was important to learn Robert learned from
06:18rich dad that the truth about the general population their lives are run
06:23forever by two emotions fear and greed that keeps them stuck in a pattern of
06:29get up go to work pay bills get up go to work and pay bills fear has them in this
06:36trap of working earning money working earning money and hoping fear will go
06:42away of not having money instead of confronting the fear the react
06:46emotionally instead of using their heads the other emotion which is desire
06:51some call it greed is a second reason why people also work for money they
06:56desire money for the joy that they think it could buy but the joy that the
07:01money brings is often short-lived and soon needs more money for more joy more
07:06pleasure more comfort and more security you see that same fear and desire is
07:12what makes a lot of people be so fanatical about going to school for
07:17better chance of a high-paying job but don't be discouraged an education and a
07:22job are important but it won't exactly handle that fear to handle that fear you
07:27need to learn the power of money not be afraid of it
07:31unfortunately most schools don't teach about this and if you don't learn it
07:38you'll become a slave to money ignorance of money can cause so much
07:42greed and so much fear that can lead you into life's biggest trap of
07:47constantly working rich dad said learn to use your emotions to think not think
07:53with your emotions examples of emotional thinking are like I need to get
07:58another job I deserve a race I want this job because it is secured instead of
08:04clearly thinking like is there something I'm missing here this is our
08:08reality for most people your profession is your income the rich your assets is
08:14your income apply these lessons to your life for if I were to ask you about the
08:18definition of your wealth if you would stop working today how long can you
08:23survive you might laugh at me and say I no longer work for money money works for me
08:28thank you guys for watching click that like and that subscribe button if you
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