Motivation Daily by Motiversity - THIS IS WHY ONLY 1% SUCCEED | An Eye Opening Interview with Robert Kiyosaki

Episode Date: August 18, 2022

"This is what the 1% won't tell you!" ROBERT KIYOSAKI. How to thrive in a market crash!►RICH DAD, POOR DAD book: https://amzn.to/316zZTQ►RICH DAD, POOR DAD Audiobook: https://amzn.to/2VIYuZ2Special thanks to Patrick-Bet David from Valuetainment. Subscribe to them for more inspiring interviews: http://bit.ly/ValuetainmentYouTubeSpecial thanks to London Real! Check out their awesome channel here: https://www.youtube.com/user/LondonRe...▶SpeakerRobert KiyosakiMusic:AudiojungleDisclaimer: The above links may be affiliate links. If used to make a purchase, we receive a small commission. Thank you for your continued support! Hosted on Acast. See acast.com/privacy for more information.

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The reason I wrote Rich Dad, Poor Dad, was because I knew this time was coming. And we have, as a world, I've never been here before. And so is it a spooky time? Damn yet. It is probably the most dangerous time ever, ever, ever, ever. There's nothing to compare it to because there's never been a world economy before. For example, you know, a hundred years ago, if there was a stock market crash in England, it didn't affect anybody. But now the U.S. market goes down, the world goes down.

So plus with social media and all this we're doing now, and so we've never been here before. And, you know, I'm excited about it because I make more money in crashes than I do when they go up. So, but for the average person, they'll get wiped out. I'm afraid at the worst. I hope I'm wrong, but I think we're heading for a global depression. How does this play out for the average worker, Robert, for the small business owner? I mean, what does the next three months look like? Because it doesn't look pretty.

I mean, people are already being laid off, made redundant. Businesses are, there's no cash flow in most of these businesses. How does that play out? Well, let me give one more step, just to give you the size of it, okay? The national debt for World War II is $25 billion. Every day today, every day they're printing 125 billion. Every single day, that's like five World War IIs per day. They're printing so much money to keep this boat.

Think of a hot air balloon with a tear in it. And they're doing desperately trying to fix this tear, but no matter how hard they try, the tear has gone beyond. It's coming down. So in financial terms, it's called our debt to deep GDP has now gone from, 60 to 905 is going to 120. We're bankrupt. And they're going to print more and more money, which means savers or losers, just as I predicted. Your money is going to be worthless in a few years. So my message is the same as some of your other guests. This is metamorphosis type.

Financial education in Rich Dad's terms is really financial transformation. And the definition of metamorphosis is very important. Metamorphosis is very important. Metamorphosis, the definition is the evolution or the transformation from an immature form to an adult form, an immature form to an adult form. Metamorphosis is the same as a caterpillar turning into a butterfly. And Fuller always said there's nothing to predict a butterfly inside a caterpillar. So everybody listening right now, if you're struggling financially, just thinking yourself as a little caterpillar. And this crisis is your cocoon. The question is, what do you emerge as?

Do you emerge as a victim? You know, the world did it to me and the capitalists are crook and rich are bastards and all this stuff? Or do you say, oh, this is the best thing that ever happened to me. The same as my health. I am ground zero for the coronavirus. All that it does is inspire me to get healthier. You're either going to get healthier and wealthier. or you're going to go bust.

Your choice. It sits between your ears, your heart, your body, your mind, your spirit, your attitude. This could be the best thing that ever happened to you. Physically, mentally, emotionally, spiritually, if you turn out to a butterfly or somebody will step on you like a little worm, your choice. Now, if you're in trouble today, my message is not so kind.

This is hard talk, not happy talk. the crisis is in your head. Now, that's the bad news. The good news, you can change the crisis by changing what's inside your head. And so I'm doing, I hate to brag, but I'm doing extremely well financially today because as I was warning everybody, this crisis was coming. But it would be irresponsible of me to warn people of the crisis and not personally make changes myself.

So the good news is the crisis is, the crisis is. the bad news it's in your head. The most important thing you can have right now is not job security but meaningful work. So you and I don't need the money but our work is meaningful. And it's our meaningful work that gets us through the hard times. So the good news is my company is sold out. We cannot keep up with product. The bad news is the supply chain shut down, but that's a good problem. We have tons of cash. I have gold. I have silver. And I do have challenges in the real estate market, but that's going to make me stronger. That's my only attitude I can have.

Otherwise, I just cry and say, well, the government should take care of me. I need a bailout. I need a stimulus. So what can I do? I'm one of them. What do I do? There's a go back to self-employed business owner and investor. Like go find a business, go start a business, go reposition yourself career-wise.

You know, is there a one, two, three-step process? on what I can do to be prepared for. I have a friend in Panama. He has an avocado farm. So he's sitting in Panama growing avocados. He says, because people have to eat. Another guy's friend of mine is growing blueberries. But another friend of mine, he moved up to, he was from Seattle,

excuse me. He had a big house, his kids all moved out. So he converted the kids' bedrooms into one-bedroom apartments. So he put a kitchen and he put a toilet in some of the kids. inside his little bedrooms. And so he now rents out four bedrooms. He's making more money today than ever before because a lot of workers commute to Seattle.

So they come in, they check in, they come in on Sunday night, they check out Friday afternoon. Instead of the little house, he's making more money. So the point is everybody can do something, but you've got to figure out what you can do. Well, the reason the rich don't work for money is number one expense is tax. See, there's three kinds of income.

income, earned portfolio passive. So earned income is if I get a job that's earned income. If I'm a doctor or a programmer, that's earned income because I'm working for it. If I buy, if I buy, let's say, Apple for $10 and I send up a 20, that's portfolio income, capital gains. But passive income, which is cash flow, is never taxed. So it's not, in the, you know, So these guys are screaming right now in America, tax to rich. I said, 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 schmow out there, poor guy, you know, sent the kid to school. They don't learn this. So that's why in fake, as you were talking about it, is a newspaper article about Jared Kushner. And he explains how the Trumps and the Kushner don't pay taxes and make millions of dollars. And the reporter couldn't understand him because they're not, our schools will never teach you that three types of income. And they judged him and say

they're wrong and it's cheating and we see that over and over again, Amazon not paying taxes. What do you say to people when they come up to you and say, Robert, it's not fair. It's not fair. They're not paying taxes. Well, there's always three sides to a coin, you know, heads, tails and the edge. You know, so which side of the coin are you on? From my side, it's fair. But This is a difference. Everybody can do the same thing I do, because the tax laws are for everybody. We don't say, well, the tax laws only for the rich, no.

The tax laws are for everybody to use if you have the right financial education. And the reason I'm an advocate of financial education without that education, you'll have to pay taxes. You see, very few people will buy what I do, make a million dollars and pay zero tax. That takes, and my rich dad, taught me that playing Monopoly. That's how it started. You know, four greenhouses, one red

hotel or the McDonald's formula. 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 estate, so they pay no taxes. You know, this guy, Bezos, who's $16 billion. How much tax did they pay on that $16 billion? And that's all legal. Anyone can do it. Everybody can do it. But most people lack the education. So Jared learned about money. when he was a kid. Why? We're watching his father.

We're watching these people invest in real estate and said, wow, not only do you get to make the money, you get to keep the money. That's a big problem. A lot of people don't understand. Look how much money I made, but how much did you keep? Because that could be half. How much tax did you pay? Right, the taxed your pay.

And so you always say, this is the law. The law is true for every citizen. You can do it, but most people just don't do it. Sometimes like you said, they don't have the education, but you need to have a plan if you're going to go do risky things. Well, it's not risky. I mean, to me, what's risky is having a job in paying taxes and saving money because they're printing it.

That's the worst thing of all. And that's why there's fake money, fake teachers, because the teachers will never, they don't know it. And fake assets because Wall Street or the city of London or Lehman Brothers or Goldman and all, they're not going to tell you this.