Why The Rich End up Poor But The Wealthy Enjoy Life

Why The Rich End up Poor But The Wealthy Enjoy Life

In 1997 Robert Kiyosaki published a personal finance book called Rich Dad Poor Dad. The book instantly became a phenomenal success and in no time catapulted Kiyosaki to the world of fame. In one of his books he mentions that there is a disparity between being rich and being wealthy and he went on and said something surprising that the rich have lots of money but the wealthy don't worry about money. And I found this very interesting because I've always thought that the two go hand in glove that if you're rich then you're also wealthy and that if you're wealthy then you're probably living a very comfortable life. But this isn't always true, when I think about someone who's rich, I think about someone with a lot of money and I typically think about someone who's quite showy with their money.

They drive fancy cars and live in a fancy house they wear fancy clothes and eat at fancy restaurants. Growing up I wanted to be rich, I wanted to own a big house, live in a fancy neighbourhood, drive a luxury car and buy expensive clothes, I wanted to sit in the best seats at sporting events and travel the world any time I wished. Heck I wanted to go to Mars and I've got to be honest some of those things still sound good to me now.
Kiyosaki said the rich have lots of money but the wealthy don't worry about money. I thought about this for a while, the wealthy don't worry about money. Growing up I've lived in a relatively financially stable family, we're not rich but we're not poor either we're middle-class if you will. Both my parents work nine to five jobs and they work really hard to provide for me and my siblings somehow they've managed to pay for mine in my siblings tuition while at the same time making sure we have food to eat and a roof over our heads. I can't say things have always been rosy there have been months where money was a serious concern and we weren't sure whether they would manage to pay for all our tuition, bills, and expenses. I watched my parents struggle and I didn't ever want to live a life like that and when I read that statement the wealthy don't worry about money.

I thought to myself well that must be a really nice thing to have. Imagine never having to ever worry about money, who wouldn't want that? I want to be wealthy and rich so I decided to do a bit of digging to try and find out the difference you see having lots of money is nice and all but I believe not ever having to worry about money is even better. So after a bit of research this is what I found out and I think this might surprise you a lot. There actually is a difference between being rich and being wealthy. The simple difference between a rich person and a wealthy person is that a wealthy person has sustainable wealth, in other words a wealthy person will always be wealthy. Whereas someone who is merely rich will only be rich for a short period of time until the money runs out. I'm sure a lot of you have heard stories of rich actors, celebrities, professional athletes and so on who were once living fancy lifestyles with big houses, nice cars, expensive clothes and vacationing all over the world, but are now on the verge of financial bankruptcy because of poor financial skills and trying to sustain this kind of lifestyle for many years.

You've heard of the lottery winner who went to bed one night in debt and woke up the next day an instant millionaire, but due to poor financial management, ends back up where they started or in an even worse situation. So let's use Lucas as an example, Lucas is a surgeon with an annual income of $310,000 most of this income is earned from his work with only 5% coming from some investments a couple of his colleagues enticed him to invest in. By all accounts and standards, Lucas is a rich man, he has a big house, he's living in a good neighborhood, he has two luxury cars, one for himself and the other he bought for his wife. His children go to good private schools and he has membership in the local Country Club. So clearly Lucas has lots of money at his disposal, so he uses this money to make sure he fits in and looks the part of a respectable surgeon in society, obviously Lucas has expenses, as does every other person, he has a mortgage to pay, he has transportation costs, he has to feed his young family, he has to pay health insurance, he has to pay taxes, he has to put aside money for his kid's college fund and he has to buy another expensive anniversary gift this year. Did I mention the annual vacation he takes with his family? When you subtract these expenditures from his annual income, then remove the savings and the little investments he makes here and there, Lucas is not left with much. In total Lucas spends about $21,500 every month on expenditures and he has savings amounting to $43,500 in his bank account. And so since wealth is defined as the status of an individual's financial resources to sustain the individual's way of living, for a long period of time even if the individual stops working.

In essence, this is money coming in on a consistent basis that's able to sustain your current standard of living for many years. This means that should Lucas lose his job today together with all the benefits accruing from it, Lucas should be able to feed his family for only two months. After which he'll immediately need to find an alternative source of income. Lucas is rich, he's not wealthy. Now let's look at an example of a wealthy person. Kiyosaki said that while the rich have lots of money the wealthy don't really have to worry about money. Let's look at Bill Gates. Bill Gates is one of the richest men in the world he's a business magnate, an investor, a philanthropist, a humanitarian and an author. As of early 2018, Bill Gates was worth a mammoth $97.4 Billion Dollars. It's estimated that every second, Bill Gates earns about one hundred and thirty dollars, which translates to around $78,000 every minute. This is to say that in an hour bill makes more money than Lucas earns after a whole year of working, yet Lucas is considered rich. Being wealthy is essentially being financially free.

This means that you don't live paycheck to paycheck and you don't necessarily need to make any more money over a long period of time, because you have enough money saved or passive income flowing in from your assets and investments to maintain your current lifestyle for the rest of your life. Bill Gates doesn't actively work for the $135 that he made this second or the almost $78,000 he will learn by the end of this video. This is passive income that he gets in his sleep when he is playing golf and when he is giving away four billion dollars annually to cause us that he cares about. Wealth is sustainable richness, basically a rich person who never runs out of money. If Lucas quits his job today, he will most likely get bumped into the middle-class. If Bill Gates decided to retire today and become a sedentary person who eats sleeps and eats again, he could maintain his current lifestyle for the next 213 years. But you don't necessarily need to have gates kind of money, or own a large business like Microsoft. As long as you have income flowing in that you're not directly working for, such that if you were to stop working today but you can still maintain your current standard of living, then you are considered wealthy.

Usually when you think of a rich person, you think of someone who buys both their wants and their needs. You know the $5,000 suit, the $3,000 watch, a luxury imported car, usually German made. The big house on the beach and so on. Just because someone exhibits these "Rich behavior’s" it doesn't mean that they have their personal finances in order, sometimes these people you consider rich are actually living paycheck to paycheck or drowning in debt. Many people who say I want to be rich aren't actually looking for financial security, what they want is the social status and prestige they associate with a million dollars Club. So now I pose this question to you, do you want to be rich or do you want to be wealthy? and if so how?

5 Steps To Start An Internet Business

5 Steps To Start An Internet Business

By: John Crestani

So, you want to start an internet business? Well, I've made millions online and I made 3.4 million dollars last year. And I'm going to show you 5 steps you can take to starting your very own internet business. I've taught thousands of people how to start their own internet businesses. And hopefully this will help you start your own. Let's get into it. 

So, starting an internet business is a super honorable pursuit because it gives you that freedom you want of location. And you get freedom of time. All you have to do is work from an internet connection. You can be anywhere in the world. And it's so exciting. That was the reason why I started my internet business. And I've traveled all over the world over 50 countries while I was running my business making a pretty good amount of money. And it's been so exciting this journey. I'm home more often but I make a lot of money and I have the freedom to do whatever I want with my time. So that's really exciting. And I applaud you for doing that. I'm going to go over the 5 steps I would take to start an internet business. 

Now, the first thing you want to do is you want to do research on your particular business that you're trying to start. There's a number of different businesses that you can start on the internet. There's e-commerce which is selling goods on amazon, ebay or you know, drop shipping via shopify. There's also starting an ad agency. So you can offer marketing services to other companies around the world and charge them money. Okay? For offering your marketing services to them. Or you could do what I do which is affiliate marketing which doesn't require any customers support. It doesn't require any sort of product or shipping or fulfillment. Or all of those kind of hassles that e-commerce has. Other sorts of businesses you can start online include consulting where you can work with individuals or coaching and consulting. They're kind of 2 sides of the same coin. Where you offer individuals or businesses advice on how they could do whatever they want to do better. You could build software. You could build application or software apps. 

Either as an agency or just to make money off upon a recurring basis. And what you can also do is be an influencer and make money from your prominent son, Instagram or YouTube or Facebook or whatever platform it is. That you're using. So, there's a number of different business models within the internet realm. But understanding how each of them work is important. And understanding what's available and what's real. Now, there are other opportunities that people may name that you can do. Like you know... Just click on ads and random stuff. But there's also a lot of scams that you need to understand out there. So, do you your research on the business model before you jump into it. You're not just going to click on an ad one day and suddenly wake up with a million dollars in your bank account. That's not how it happens. Do your research on the business model that you're interested in going into. 

Next thing you want to do about whatever business that you're interested in or businesses that you're interested is learn. And you're doing that right now. Learn... Watch a bunch of YouTube,  Articles. Frankly. Just watch a bunch of YouTube  Articles on whatever topic it is that you're most interested in. Let's say it's consulting or let's say it's starting and ad agency or let's say it's affiliate marketing or E-commerce. Learn. Spend time learning. Grab a bunch of YouTubers in that specific topic and just keep learning. Google things. Understand the business model and get a sense for what the ins and the outs and the moving pieces in that business model are. So you can become familiar with the jargon, with the verbage, with the words. And ultimately, that will give you a much better chance of succeeding in whatever you're going into. Now, after you've done a bit of research and you've learned about the business models that are available to you which ever ones you're interested in. You need to decide, okay? This is the time where you need to decide and what you want o do, okay? What business model are you most interested in. And are you going to really deep dive learn about? Okay? So, I'd say learn about specific business model that you think you're more up to. You know? For affiliate marketing, I would say, obviously, it's more marketing prone. You know, if you like putting up ads and if you like... You know, it's kind of a mixture of empathy of kind of like understanding people and needs and desires of what people want. 

And it's also little bit of kind of just mathematical stuff. Kind of like understand split testing and analysis. E-commerce is really fit for accountants because there's... In e-commerce, there's lots of accounting you have to do. You have to spend a lot of money. And you have to come out a lot of money and you have to do a lot of product analysis. Becoming an influencer is good for people who are great networkers and great on social media and who look good or don't look good or sound good, etc. And consulting and running an agency is very good for people who are good at management whereas consulting is really good for people who are good at sales and good at selling themselves. That's sort of similar agency as well. So, once you've decided upon what you want to do and you've done your research, etc. You want to take deep dive into things. I would recommend taking a step by step course. And some people will say, "Oh, John. You're just trying to... You sell a marketing course. You're just trying to get people by your marketing course." Well, you suck. No, it's fine. I'm joking. But what you want to do is you want to deep dive into things. Because there's purpose for education. It's step by step by step. It's chronological. If you Google amazon FBA or how to start an ad agency on Google, you will find 10 gazillion results. There's a million ways to do things. And on the internet, likely what you get is a piece by piece ways of doing things. You'll have to... Frankenstein everything together. 

The reason I came out with an educational course on affiliate marketing was to give people a step by step process to follow for 6 weeks. Take them from knowing nothing to having their affiliate marketing business set up and hopefully generating sales. Now, whatever you decide to do, you know, I'm one teacher and affiliate marketing is one business model. It's not the only business model. It's not necessarily the best business model. But it's the one I happen to know most about. There are other experts such as Alex Becker in e-commerce. Or Sam Ovens in Consulting. Tai Lopez teaches how to start an add agency. But in general, what you want to do is you want to take a course. Really, I'd say there's 2 big requirements. There are 2 big ways you can select your teacher is, you know, ask you self (1) have they done it? Okay? Have they actually done it? Or are they just selling it? Okay? And now, I'm not going to name names here. But there are some gurus out there who are quite prominent on YouTube who sell it but they haven't actually done it before. 

You know? And personally, I don't know if Tai Lopez has actually ever ran a social media marketing agency. I don't know. I think... But who knows? I don't know him that well. But the point is, there are gurus out there who sell it but haven't actually done it. And that's kind of dangerous. Because then you're getting second hand knowledge. And then there's a second thing to ask yourself is does this person have what I want to have, okay? And if you're learning from a teacher who is living in dinky house who doesn't have a lot of money, who isn't very rich and you want to become rich, that's not a good person to learn from. Learn from somebody who has, who is where you want to be. And there's a whole reason why I don't think college is always for business students as the best idea but whatever. We won't go into that. 

So, do a deep dive. Give a step by step plan. This will accelerate your success. If you have all the time in the world, feel free. You know? Like, just learn stuff for free for a long time. But again, that's a dangerous route because there are real cost to running a business and there are real cost to your time. You know, there's so much material on the internet right now. It's not all step by step. And number 5 is after you've gone through all of this, COMMIT, okay? Commit yourself for 6 months. Okay, that may sound pretty hard and pretty drastic. And you may say, "Well, you know, I'm millenial. I want to keep my options open, man. You can't tell me what to do for 6 months." It's okay. Do what you want. Keep your options open, be a little loose butterfly and do what you want. Frankly I don't care what you do. Okay? But the reality is the biggest problem I've seen with younger people is that they can't commit themselves for any period of time. 

They jump around from thing to thing to thing. You will never have success going from one thing to other to the other to the other to the other. It doesn't happen that way. Think of it like a race, okay? This is the starting line. This is the finish line, okay? If you have a bunch of people that are going to go on a race, this person runs very slowly. This person runs very fast. But then they decide to do something different. And they run fast and the decide to do something different. They run fast and the decide to do something different. Even if this person is super fast, if the last smart or whatever person just continues on, slowly but surely, that person will win. Now, I don't know programming. I don't have any technical skills. I'm not necessarily... You know, I didn't do well in school. But I stick to things. I'm focused. And the reason why I've been successful and why some of my peers haven't is because I've stayed the same track for a relative period of time. 

Now, my friends who are more successful. I have friends who have much more money than me. The reason they've been more successful for me or one of the patterns I've seen is they've stayed in the same path for many more years, okay? They just stuck to it. You know, I've this one friend, Steve. We started a business together back in 2013 . And I changed businesses. I ran a business with him for years or so. Yeah, I was a little over a year I think. Then I changed businesses. Because I wanted to do affiliate marketing. Then I start affiliate marketing. And within a few years later I was making multiple millions per year. Where Steve, Steve now runs a business that does... I don't know, something like, 20 to 50 million dollars per year. Way more than me. It's because he stuck to it. And all of my friends who've I've seen become massively successful have stuck to the same thing for just a longer period of time. But they've been committed. And they've figured out a way to make it work. So, that's what I encourage you to do. Hopefully this gives you an idea of 5 steps to starting an internet business. If you got some value from this  Article, give it a like and comment .Looking forward to seeing you in the future  Article. Peace! 

8 Things Poor People Do That Rich People DON'T

By: John Crestani

One of the main differences between poor people and rich people is the way they think. Yes, that's the foundation of everything different between those two types of people. In light of that, what are the different aspects of this "poor person mentality" that need to be changed in order to think like the rich? In today's episode, I'm going to break it down for you, check it out.

Differences between the poor and the rich

1 - React to others / Make others react to them

2 - Give advice / Listen to advice

3 - Watch / Read

4 - Trade time for money / Trade results for money

5 - Saving / Earning

6 - Evil / Good

7 - Blame others / Responsibility

8 - Lottery / Action Mentality

Hey, I'm John Crestani, I'm an entrepreneur. And in this Article, I'm going to go over the 8 key differences between poor and rich people in terms of their mentality which is the most important thing that you can have. if you want to become successful. Keep reading and I'm going to explain all of the key differences to help you on that path to success if you're with me. Money ain't that bad, right? Well, unfortunately there are a lot of people who think it is. And in this Article, I'm going to go over the mindset differences the poor versus the rich. But it's important for you to understand and I don't say this to brag. But I've made tens of millions of dollars in my business. And I earn in the top 1% of people in the United States for years. I became a millionaire in my 20s. And I run a business that does roughly seven million dollars per year without any employees. 

So, I say that not to impress you but to speak hope you understand that I'm speaking from a place of some experience. Not as much as most. And not where I want to be. But hopefully I can convey a little bit of information to you about the differences between poor versus rich that you may not be learning in colleges. And obviously money ain't that bad so let's not get too caught up in it. Let's get our minds straight. 

Now, first thing to understand is poor people react. Poor people react to the notifications on their phone. Poor people react to the requests of others. Reacting to others will leave you in a cycle where you never fully define yourself. Rich people make others react to them. So, that's the important thing to understand between these 2. Now, for me, I realized that this was causing me to... It was taking up a lot of my time. And I actually turned off all notifications on my phone. I deleted social media apps from my phone. I get a text message, nothing happens. That little light, it doesn't blink. The buzzer, it never goes off. When that somebody calls me, it never rings. When somebody calls me, that blinky light never lights up because I've made it so that I am never reacting to others. Others only react to me. And when I need to check my text messages or my emails, I go on my phone when I choose. As opposed to others telling me where my mind should go. 

The next key distinction between poor verse rich mentality is that poor people give advice. You may have heard of the old dodge. We have two ears and one mouth. And that holds true for anything in life. You should be always be a better listener than you are an advice giver. Whenever I'm around people, I ask questions. Whenever I go in a lift cab or an uber, I sit in the front seat and I asked that person about what is the local economy like. What is your culture like? What is the country are from like? I ask a million questions but I never offer advice. That's how you train your brain. That's how you learn. Giving advice doesn't serve you. 

So, the next thing to understand is poor people watch. Whereas wealthy people read. I don't know how to explain this other than. You're going to get more knowledge from books. Watching TV and doing passive kind of passive kind of entertainment methods or outlets is not a way to train your brain to learn more. It's not a way to train your imagination to think of creative or original thoughts. Watching just allows you to experience life vicariously. Whereas reading allows you to create, you know, it forces your imagination to open up. It forces your mind to think on a higher level whereas the TV forces you to tune down and turn down your energy. Have you ever tried to talk to somebody who's been watching TV for an hour? And they're like this and you try to say something to them but they don't hear you? It's because your brain literally shuts down while you're watching screens or movies. You can't process things. You're literally dumbing yourself down for a while. Instead of forcing yourself to think up by reading books. I read a lot of books. I read a lot of science fiction books. I read a lot of business books to always learn more. And read a lot of relationship books to help my relationship too. 

The next thing to understand about poor versus rich is that poor people trade time for money. Whereas rich people trade results for money. Now, Elon Musk for instance will get paid 2.3 billion dollars over the next couple of years not because he was paid a high hourly wage. Not because who's paid him high monthly salary. It is because his stock goes up. Because he sold more Tesla's than his stockholders thought he would. I don't make my money because I charge people a high hourly wage to hire me to do marketing for them. I make my money because I get results for companies. I make more sales for them, I send them more customers and they pay me more commissions for my marketing efforts. A normal company wouldn't pay somebody $1,000 an hour but that's what I make on average a day, a normal company. But they will pay me to bring them results. If I create for them sixteen thousand dollars a day worth of business, they will happily pay me half of that because I created that and I can also turn it off for them at any point if I wish to. Have you ever heard the old of Dodge a penny saved, is a penny earned. It's still a freaking penny. And you're not going to make money if you're focused on saving every single penny or nickel or dime that you make. That's a good way to stay poor. A good way to become rich is to earn. To focus on earning rather than saving. And frankly, when you don't have to worry about saving every dime, life is a lot more fun and you get a lot more freedom to do the things that you like. Now, I shoot this money gun up because... Well, first off, it's fun. But it also is to show you that a lot of people will hate on this. A lot of people think that this is crude. And you shouldn't treat money like fat, frankly. But the difference between poor versus rich mentality is that poor people think money is evil. That it's not good to have too much money. That you shouldn't put it in people's faces or you shouldn't do fancy things. You shouldn't buy a Lamborghini. Don't tell people about that yacht. Don't go on expensive trips in other people's faces. Money is not evil. 

Rich people think money is actually the source of good. And when you have money, you're able to actually do better things. Whether that's... You know, for me it's being able to hire a nanny. You know, being able to hire doulas for my wife. Being able to have a nice house for my family. Being able to buy a horse for my daughter. Being able to build a horse trail in our backyard. You know for me and my daughter to ride horses on, etc. I believe money's great because it solves a lot of problems. And I believe it can solve a lot of problems for other people as well. I help a lot of people that are in my inner circle and a lot of people benefit. And I've made my students highly successful by being able to create innovate better and better training programs for them. 

The next thing to understand is that poor people blame others. When something goes wrong, when the finances are bad, when the you know, there's not you know, there's not enough work, right? Or "My boss is an asshole." Or you know... "Business is bad. The economy's bad. Trump's killing our economy." Whatever it is, it's always outside of yourself. It's never your fault. Nothing's ever your fault. Your relationship, it's not your fault that you have a bad relationship. It's her fault or it's his fault, right? Can't be your fault? You were late. You weren't late because it was your fault. You were late because there was traffic, right? And that traffic made you late. How many people here have used the traffic excuse? And if you have used the traffic excuse, just say "guilty" okay? In the comments, just go down there and write guilty. If you've ever blamed the reason you were late on traffic. It wasn't traffic. You didn't plan correctly. So, if you understand what I'm saying, type in guilty in the comments below. And frankly, if you are guilty of any of these things, type in "guilty". 

Now, the last key difference between the poor and the rich mentality. It's the lottery versus the action mentality. Now, what this mentality is. is that something good is going to happen to you. Eventually you will find that thing. Eventually you will come across that secret way to make money trading stocks or you'll figure out that secret real estate method. Or you'll come across the right internet guru and he will have the magical system which will make everything all right and he'll show you exactly how to step by step make money online. Now, the fact of the matter is if you have a lottery mentality, no matter which teacher you decide to follow, whether it's in YouTube or life or no matter what boss you decide to work for, you are going to severely limit yourself as chances at becoming rich. Whereas if you take the action mentality to life, you can become wealthy. 

Now, I want you to imagine for a second that you are completely in control of your life. That anything you wish for can happen. Then anything you imagine that you want where you want to be you can have. But in order to have everything you want, you need to take full responsibility for everything that goes on in your life. Is your relationship where you want it to be? It's your fault. Or your finances where you want them to be? It's your fault. And is your health exactly where you want it to be? It's your fault. Now, you are completely in control of your life. And you can have whatever it is you want. But to do so, you're going to have to take control and realize that all of these things --your relationship, your finances, your health are your fault. And that's not an easy pill to swallow. It isn't. Really isn't. But it is. And once you realize that, then you're in control. Because now, you are the responsible one. And for those of you willing to play along with me and take responsibility, I encourage you let's look at this list again. Do you react to others? Others being your phone, your notifications, your messages, your texts, your whatsapp, your Facebook notifications. 

You ever spend more time giving advice than asking questions? Do you ever watch more than you read? Do you ever... Do you trade your time for money rather than trading your results for money? Do you focus on saving rather than earning? Now, if you're willing to play along, type in the comments if one of those apply to you. Type in "guilty". Then after guilty type in "I...." Whatever you commit to. "I commit to not reacting to my phone" Or 'I commit to taking more action or reading more". Whatever speaks to you the most. Commit to something. Taking responsibility. Whatever speaks to you the most. Commit to something and write it down. And put it out there in the comments for others to see because it makes it more real. Now, I hope this Article has helped you. And hopefully a little way. Because you know, as a teacher and as an entrepreneur and as a marketer, I feel it's my duty to help others grow as well and learn the same lessons I've learned. And if this has helped you in any way, I encourage you share this Article with somebody else. Share this Article on your newsfeed or your Twitter or your Instagram or whatever that may be. And subscribe to my blog if you'd like to read more articles. I go over lots of different ways that you know, tactics and strategies that you can do marketing or living or being entrepreneur like I have. And give this article a big like. And look forward to hopefully seeing you commit to something new in the comments. Talk to you soon.  

"You Will Never Be Poor Again" | START DOING THIS TODAY!!!

Speaker: Robert Kiyosaki                  Interviewer:  Brian Rose



                         They don't want what we know out there. They'll never get those on CNBC But our school system will never tell us it does their part of the posse Fake money, fake teachers, fake asset, fake future and stay back. I know the game of the rich, my rich dad taught me, You know it, because you're the banker , the bankers are the rich plays it’s different than what they teach you in school all over the world. 

What the school teach you about money? And the answer is nothing, and that's not a mistake that’s not an accident I knew that most people know that. The way to keep the poor and middle class working hard has never taught them what the rich know. So if you read “Rich Dad Poor Dad which came out in 1997.” It's, what the rich teach their kids about money the poor middle class do not, Poverty Hurts.

I mean, I don't like it And I don't like that our academic systems so corrupt, we know the banking system is corrupt. We know politics is corrupt but academics are just as corrupt.

I mean one thing if it's the banking and the politics but this is where we send our children and we trust them to do the right things for them and yet, they're being not taught something so fundamental. Like you asked your dad when you were a kid, Dad...you asked your teacher, When are you going to tell or teach us about money? And it was just…

Never! And they'll never will, you know something what do you know? Share it! What is financial education? It's not get a job, work hard, save money and invest in a well-diversified portfolio, Stocks, bonds, mutual funds and ATFs. The financial industry is two things, debt and taxes.

In 1971 Nixon took the dollar off the gold standard and the US dollar became debt and we still tell kids to go to school get a job, Work hard, save money and get out of debt. Now who tells them to do that? That's the most ridiculous thing.

The book starts and it says, line number 1: Saving money will make you rich.

Yah, it never will, you know that all. We were all taught that as kids. Why would you save it? And why would you work for it, if they can print it? And faster than you can work for it. Why do you keep saving when they're printing it? Rich don't work for money. Don't you touch that stuff?

[Interviewer]   It's very subtle. Yeah, they don't say I'm going to train you to be a worker bee the rest of your life. But they educate you in a way where that's what you come out,

Right!

What else, what was he trying to do those first few months when you were working for him? What was he trying to get across you? Because he taught you the hard way about money,

Let’s just say, if you’re going to be a successful in your lives, you’ve got to find the best teachers, and a great teacher is somebody who comes from the inside, not the outside But in school, you don't know if your instructor is for real or not. That's where the fake teacher comes from. I Said, I want you to teach me about money. So it was so why should I teach you? He said but it if I teach you work for me for free And I said why for free my dad my poor debt whatnots. He says is if I pay you, think like an employee. Your brains will your brain will change if you learn never to work for money, you'll be a rich man And this is powerful once you give someone a paycheck their brain turns off, right because it had been the promise of a pension Right and job security which is kind of a paycheck in disguise Correct After you stopped give the man a fish eats for the day, teach him to fish eats for a lifetime and most poor people confuse Assets and the liabilities. They think their home is an asset. It's actually a liability right an asset. Is a noun like a house? Cash flow is a verb, so to understand if it's an asset or liability. It takes a noun + verb.

So if the cash is flying out of your pocket, it's a liability. If the cash is flowing into your pocket has it burn? That's it. So I own 7,000 rental properties also assets every month the cash flows in. Where as many people have the big house of the hill and the cash is flowing out right now. They're going broke, right? It's like a frame of mind the other thing the poor don't understand is the number one expense for most people as taxes and Yet we don't even see it. Isn't that weird you walk around and you look at the paycheck and say oh! that doesn't seem right and you don't realize that. The government's got a huge hand in your pocket and you are doing nothing to minimize that again.

This is what was very different about the rich and the poor. The rich don't work for money is number one expensive tax See, there are three kinds of income earned portfolio passes. So earned income is if I get a job that's earned income if I'm a doctor or a programmer. That's burning because I'm working for if I buy US by pilots an apple for ten dollars I sent over 20, that's Portfolio income capital gains. Yeah But passive income which is cash flow. Is never taxed? That's all of these guys are screaming right now in America tax, too Rich as a good luck because most of the guys complaining they don't know the three kinds of income and the rich don't have jobs. Anyway, they have assets And so the average small out there poor guy, you know sent the kid to school. They don't learn this. You see very few people will buy what I do, Make a million dollars and pay zero tax and my rich dad taught me that playing Monopoly. That's how it started, you know for green houses one red hotel Or the McDonald's for me. I write about it McDonald's Ray Kroc. Yeah McDonald's is in the real estate business. So they sell hamburgers, but they buy real estates. They pay no taxes. You know this guy Bezos, but he's sixteen billion dollars. How much tax did append on 16 billion? And that's all legal, anyone can do it. It everybody could to put everyone most people lack the education. So once you learn how to use debt as money you can never say I can't afford it because the banks will give you, so the banks after the crash of 2008. The banks gave me 300 million dollars tax-free when they asked the average guys that can you, why don't you use a debt? 

They can't even get a loan because there are scores their FICO scores when only we have them here are so bad. The school teachers will never tell you about because they don't know, its my poor dad. Never knew that. You don't know if something as an asset a liability. Until you can see which way the cash flows. So a house is that it hasn't a liability well, if it's taking money from your pocket, it's liability. It's putting money in your pocket, it’s an asset. The US government wants me to provide housing, Wants me to provide jobs, and wants me to borrow money because that's how money is created through debt. I get huge tax breaks. Everybody can do the same thing if they had the financial education to do it. If people understood the tax code we'd be more prosperous but can poverty be passed through genetic. Yes, because it's some type of way of thinking it's an attitude. It's very simple when I wanted people ask you, How do I stop it? I just never say I can't afford it ask yourself, How can I the reason I have so much money is because I don't say I can't do it. I just got how can I do? And I guess one to it. I make a lot of mistakes But that's how I learned, how can I and poor people like my poured that always that I can't afford it. You think I'm made of money? I'm a school teacher. I can't do that and I picked that up and my rich dad never said those words. So when I make poor people that use the words, I can't a lot, So the people that said I can't afford it. I can't do this. I can't get to college the rich. Are you able them? I choose not to participate in that and that's one thing people could change today Right now is that dialog in their head to stop saying the word can't I can't right. 

So, how can how can I especially as in I can't afford it. How can I afford that because that opens them up to looking at it as an investment to a greater future? Right, you know when I borrowed three hundred million dollars, I couldn't do it when I told I went to ask And I got turned down so many times as a hill and every time I showed the back of my financials they go, Sorry, I said look do me a favor. Why did you turn me down? You tell me, your business out. The numbers are out here. So I get these numbers fixed. Can I come see you again? Because sure so it's called rejection same as my wife rejected me for six months. It's just a matter of personal willpower was a spiritual to signal if they can do it. I can do it and how can I, how can I, and I think it's you once said words become flesh. Yep. I was a Bible to Intelligence increases through your mistakes through the ups and downs of what you've learned Real Estate's, real estate what I learned made me enriches not the money. You don't need money to make money, you know, I think all of us every human being has at low point in their life and if they get the message a new life begins. 

If you don't get the message they keep going down. The richer I got was because I didn't need any money I could use this to make money, but how did I get there? So I made a lot of mistakes People are afraid of making mistakes and all those for fear of failing. So many people trapped in the same device.