Rich Dad Poor Dad Author Robert Kiyosaki on Attaining and Keeping Wealth | Transcription

Transcription for the video titled "Rich Dad Poor Dad Author Robert Kiyosaki on Attaining and Keeping Wealth".

1970-01-02T21:04:00.000Z

Note: This transcription is split and grouped by topics and subtopics. You can navigate through the Table of Contents on the left. It's interactive. All paragraphs are timed to the original video. Click on the time (e.g., 01:53) to jump to the specific portion of the video.


Introduction

Intro (00:00)

Everybody, welcome to Impact Theory. Today's guest is Robert Kiyosaki. He's a wildly successful entrepreneur and the bestselling author of Rich Dad, Poor Dad, the top-selling personal finance book of all time. He's written many books on the subject of finance and proven through his own real-world investments that his methods work, helping to make him one of the most sought-after public speakers in the world. Rounding out what is truly an insane resume, he was also a gunship pilot during the Vietnam War and was awarded with the air medal in 1969. And now today, despite having achieved a very uncommon level of success, long after most people his age have retired, he continues to pour himself into helping the world become more financially literate. Robert, thank you so much for joining me today. - Oh, no, it's my pleasure. Thank you and congratulations on all your success. - Thank you, man. I really appreciate that. And right now, traditionally, I haven't had a lot of people on the show that talk about finance, but in this time, I think it's incredibly important to be able to help people navigate what is certainly going to be the most devastating financial time in any of our lifetimes, for sure. And your insights are very intriguing. You certainly aren't afraid to push back on what you think is BS. You're not afraid to just say the way that you see it. I'd love to get a sense of what you think are the fundamentals of how people should be thinking, like the average person should be thinking right now during this crazy time. - Well, first of all, that's no average people. We all have our unique skills and traits. I am not one of these one-size-fits-all person. And when I listen to so-called financial planners, they say, just give your money to them and they'll invest in a well-depressified portfolio of stocks, bonds, mutual funds, and ETFs. And for the average person, that's not bad advice. I don't do that stuff. So I think that's kind of to understand is because I don't have any stocks, bonds, mutual funds, and ETFs, I don't touch the stuff. But the other side of it is I don't need to have that stuff. You know what I mean? - Walk me through the mechanisms. Why is it that for the quote-unquote average person, that's a reasonable play, but why do you not touch it? - Well, it's because I flew gunships in Vietnam. Now you wanna fly gunships in Vietnam. You have some prep work to do. I was talking to this school teacher. I didn't do well in school, you can tell. I'm a C student. And I have a bachelor of science degree, which tends for BS. And the best thing about that BS, it allowed me to be a Marine Lieutenant instead of a Marine gunner. I could fly the gunship. And that was a qualify. You know what I mean? That's what college degree did. So it was worth it from that point of view. And so I was talking to this one guy, and he says, "Well, I have a private pilot's license." Okay. And then you know, those guys, this is called the Big Duck. He was like, "Big Duck, I got a private pilot's license." I was just thinking to him, I said, "I don't even have a license, but I have air metals." He didn't know what an air metal was. You know, an air metal just made, "How many round trips did you take into combat?" He came back alive. I said, "That's all it means. "Doesn't mean I was a hero or anything, 'cause I wasn't." You know, we're just happy to bring my crew back alive. That's all we cared about. But to get to that level of flying is the same as investing. And I think that's what I really learned is the dedication not to be the best pilot, but be the best that I could be. And if I'm not the best that I can be, people die. And a lot of people, it's okay to be average, if you know what I mean. But when you get into that situation, when you're weighing it out of those combat zones, I went down three times, you know. But I wouldn't be back today if I hadn't practiced to be the best.


Motivation And Self-Improvement Strategies

I'm Not Average (04:18)

And so when I go into the world of money and investing, I'm still not, you know, I'm not Zuckerberg or those guys, but you still have to be the best you want to be. And that's how I can be, you know, investing in this stock market with diversified stock, the stock spot, which are the ETFs. If you're not willing to be the best that you can be, that's the best for you. You're an average person, nothing wrong with being average. But there's something inside each of us that wants to be the best at something. When I was reading your background, I think that's what you're pushing people, asking people what do you want to be the best at? And I just love the Marine Corps. I hated it when I was at it. I tell you what, they're not polite. But they demanded the best of them. So today I carried those traits. I went to military school and then I went to, you know, five years of Marine Corps and flying and all this. So when I hang up with my friends, my friends also want to be the best. And so in some of my books and things, I said, look at the five people you spend time with. You know, if they're not striving to be the best, that's who you are too. - You know, I find your background in the military really compelling and very interesting. You're talking about, we maybe use different words, but it's possible that we're sort of saying the same thing, which is my obsession right now for people is skill acquisition. So when you talk about getting shot down, that to me feels like the moment that we're living through right now, something so unexpected and so quite frankly, dangerous has happened. And now it becomes a question of, who's gonna stay clear headed? Who's not going to panic? I think panic is the worst enemy that anybody could have right now. So getting control of your mind and then being able to perform. So I wanna talk about, when you talk about it took a lot of preparation and you prepared to be the best, like really truly in terms of Vietnam and the military, what did that look like? What did preparation and becoming the best take? - Well, I got my Bachelor of Science degree. I almost had high paying jobs. High paying jobs, not that big a deal to me. So my first job was about 120,000 a year back in the 60s. That's quite a-- - This is before you went to Vietnam? - Yeah, oh yeah. And then, so making money has never been an issue, not made high paying job as an employee. So that's kind of, it wasn't challenging. So I want the challenge. So the Vietnam War was all when I graduated and they drafted my kid brother and I was drafted to exempt because I was an employee of Standard Oil in California driving oil tankers for them, up and down the California coast. So I was set 22 years old, high paying job, career.


The Great Skill of Demanding The Best (07:15)

I worked seven months on, five months off, 120 K a year. Not much money today, but back then, 69, there's a lot of money for sure. So my consciousness gets to me. And I think that's really what I read about you is you're asking for their souls. Where is your soul? Where is your spirit? - What do you mean by that?


Are you a Wimp? (07:38)

- Because that's not where I'm headed now, but I'm very intrigued. So what do you mean? - Where is your guts? Where is your spirit? If people, I've been in shock, I've lost millions, I've done all that. What's your spirit that carries you out? And then it's horrifying. You know, when I never got shot down I lost my engines several times because our aircraft were so tired and just flying so hard, you know. So every time my engine quit, I had already practiced crashing every single day in a flight school. So when it quit, it was like just flight school. Just dropped it. And most people avoid the terror of life. And so they try on living this little bandwidth called comfort. They want to be comfortable, they want to be happy. I just want to save secure a job. I want security and all that. And so when I stepped, when I went to apply for the Marine Corps, I had to step it up. Because I was bandwidth, 120 K a year, 22 years old, career set. You know, it was a most horrifying feeling. - Why did you apply? - Because I wanted the next adventure. - So you're 22, you're making good money. You see your brother get drafted. And unlike most people who are sort of running in the opposite direction, you actively pursued getting into the military. - So I practiced what I'm terrified of. And when I meet the average wimp out there, I am a Marine. I don't hang out with wimps. And I said it earlier to do, we have five best friends. And that's kind of, I selected my new bunch of friends. And when I meet most people, most men and women, I think today the women are tougher than the men. I hate to say that. But, you know, I meet a lot of guys that they just don't have it. They have it, but they don't call on it. And so that's how I was talking, you want to find your soul. Where is your soul? You know, what will sit up? You know, it's like when I was, when each time I was going down, I wasn't flying for me. I was flying for my two young gunners, you know, the 19 year old boys really, with kids already. If I didn't do it the best job possible, taking that aircraft into the ocean, though their kids were fatherless. And when I meet people who don't have it in life, they don't really have that soul in them. The soul is there, I'm not wrong. It's there, but you don't need it yet. So today we're going into a major depression. I hate to say that. But are you prepared for it?


Turn your fear into a skill. (10:27)

I'm prepared for it. You know, I wrote a book called Rich Dad's Prophecy. And I said, the biggest stock market in history was coming in 2016. So the biggest crash in world history came in March 2020. We're going into a depression, you know, hope not. But I would say there's a 60% chance for a depression. Now for somebody with a soul and a spirit, it's the greatest opportunity in history. You know, the world's changing, I'm going to get out of this thing. - I want to go back to that. I find it the notion of practicing what terrifies you to be incredibly powerful. I don't know that a lot of people know how to translate that though into real life, like right now today. So let's say somebody just lost their job. They don't have savings. They're in panic mode. How do they begin to practice in this time to build up the resilience, to become anti-fragile? What does that look like? - Let me ask you this, okay. If you want to be a plumber, right? You have to have skills. So you say, well, I want to be a plumber. I don't have the skills, but you can't be a plumber. Well, an entrepreneur has a different set of skills than an employee. The reason I run companies, the reason I'm an entrepreneur is I have different skills when they teach you at school. You know, I don't want job security. You know, security is the worst word in the world for me. You know, same as when I had to learn to fly. I had to learn to fly without an engine. You can't fly without an engine. You shouldn't be a pilot. You talk a lot about the ability to go through a metamorphosis and change. Have you always been sort of a tough ass or did something change you in your teens or early 20s? - You have to have skills. If you're, well, my father, poor dad was a PhD. He had no entrepreneurial skills. His whole life was based around fear, the fear of failing. He needed job security. He could never make him as an entrepreneur, never. Not with that spirit. - You didn't have-- - Could you change your spirit? That's my question. - Yes, of course you can. You get to choice your friends. Every day you're making that choice. So the thing that I, when I was still in the Marine Corps, flying, I came back from Vietnam, went to a station in Hawaii for my last year. At that point, my poor dad, you know, says to me, "All your friends are gonna fly for the airlines." So Hawaiian Airlines was, they needed pilots, bad, you know, not like today. But most of my friends got to fly for United. And so my poor dad says, "Why don't you fly for United?" I said, "Something inside me said that's too easy. "I can already fly." You know, I'd already had a thousand hours of flying in combat. So they go fly 747, not that challenging to me. But he said, "But you're making 500,000 a year." I said, "That's a chunk change." You see, my expectations of self are a lot more than 500 K a year.


Finding a mentor (13:20)

This is in the 70s and 80s. I said, "I want a bigger challenge than that." Now this is an interesting thing. I just finished my latest book, "Who Stole My Pension?" My friends who flew for United, their pension was stolen. So they're all host. But they chose security. They chose security. And what I did, instead of going to work for United, my rich dad, my best friend's father, says, "You're not an entrepreneur." So why is that? He says, "Because you can't sell. "You're too shy." And he was just giving me a cellular heart evaluation. He said to me, my rich dad says, "Robert, how's your sex life?" I said, "I don't know, I can't get a date." He says, "Because you can't sell." He says, "You can't handle rejection. "You're not going to make another entrepreneur." Entrepreneurs, there's a thousand rejections to one. He says, "You better go get rejected pretty quickly." So instead of looking for a job at United Airlines, and Hawaiian was hiring also, I forbid that. But anyway, I got a job at Xerox because they had sales training. And then for two years, I was the worst sales I've ever had, I was going to get fired from Xerox. And so I went to my rich dad, and I said to him, "Why? "What's wrong?" He says, "How many sales calls do you make a day?" I said, "On a good day, three." He says, "That's why you're not successful." Same formal. He says, "You have to fail more." He says, "You got to step up your failure rate." So I found a nonprofit. And at night, after I worked at Xerox, I would go to the phone bank up the street from where I was working at Honolulu. And I had to go, I had to fail 35 times that night. So I just failed 35 times. Now, interesting thing happened. My numbers at Xerox went up. You see, I was handling that fear. I was handling the whimpening, the count. And most people don't want to go through the whimp. And that's why I don't really have much time for it. - So I think the idea of being able to fail more, fail faster makes a lot of sense. But I think you also have to be able to assess what's going wrong if you have a shit strategy and you just keep running that shit strategy faster and faster. You might make some incremental gains, but do you have a process for assessing what's going wrong, figuring things out? Or has it always been having the mentor that can sort of clear that blind spot for you? - Well, that's what you have a team for. We have coaches and we have mentors, teachers. My, this is coming Friday. We're all getting together via Zoom. And we're going to study Robert Kennedy Jr. What he's saying about Bill Gates versus, you know, back, I'm not, I'm not a back guy or another one, but we get together, the study together. We're always studying. We study constantly. We read books together and all this. And when we have people, I'm not interested in studying then you're not our friend. It's that simple. I mean, it's pretty, pretty clear. Just like in the Marine Corps, when we're at sea on a carrier, we had to run four miles a day, no matter what. So we get on the aircraft carrier deck and we take laps. Now I'd rather go sit in the coffee room and smoke a cigarette and drink coffee, but my team ran together. So when we crashed, we were ready. And that's what leadership is. You have to bring people together and move them forward.


Having a plan that works (17:03)

That's really sad. You know, a lot of days there were days on missions. I'd stand on the deck and my friends don't come back. You know, that's no return. Missing in action today. And so those are the kinds of lessons where I said, test your soul. How strong is your soul? And we all have them. But most of us don't ever put ourselves in the situation where we're testing our soul. And we all have it. I know that. I've seen young men and women just get stronger and stronger and more resilient. What you're calling anti-fragival by talent. But most of those things are just buzzwords, glib buzzwords, you know? But oh yeah, I guess the fourth turning and this crap and that crap and then just show me the money. Show me your money, show me your team. You know, did this crash destroy you or did it make you better? So right now I'm making money hand over fist for the same reason, prepare for it. - So I want to start getting specific. You've thrown out some really powerful ideas like sales being super critical. What are a few lessons that you learned from selling that have continued to carry through your life? - Prove it. It's always showing me. I don't like, you know, in the Marine Corps we call them whip jaws. All taught, nothing going on. It's, I gotta say it again. Who are your five F and friends? That's it.


Who did you look up to? (18:30)

- I heard you once say that you had a lot of respect for JFK. And I'm curious what was it about him that resonated with you? - Courage. You know, profiles and courage and all that. That was his book. And you inspired people. I'm not Republican or Democrat. I vote for the man or the woman. And, but you inspired. - Who out there right now do you think has great advice for getting through this difficult time? And I'd love to know why you think those particular people are great. - That's a great question. I mean, your generation has the best teachers in the world. They're on YouTube. They're not in colleges. I mean, the people I run into on YouTube, they're, they blow me away. This guy, George Gaiman, I'm just seeing him. The Rebel Capitalist. Holy mackerels, I got young guy, but you're age brilliant. And there's Brett Johnson, Melkshake Theory. I'm basically a finance guy. So I hang out with finance guys. You know, I don't watch Martha Stewart in home cooking. You know, I don't, I don't think he has a website or not, but I don't watch him. I like to eat. I don't like to cook. You know what I mean? So all those things. So I was saying, George Gaiman, G-A-M-M-O-N, he's fantastic. This guy Patrick Bette, David, it's fantastic. London Real, Brian Rose, they have the best teachers on. So you have more access to great teachers than ever before via YouTube and their little handheld devices. But it's up to you to choose what do I want to learn. And so I'm blown away at how many great teachers are in the world today. I'm very impressed. That's why I'm honored to be on your program because I'm the old guy, I'm phasing out. And I can pass on the best I know, but I'm definitely not gonna say to go back to school, get your master's degree and look for a good job and climb the corporate ladder.


How to Get Your Finances in Control (20:16)

I'm not your teacher there. That's my poor dad. So give us the, if you make an analogy between finance and your military training, so you've got the guy who got the private pilot license, took him six weeks, took you three years, was much more dangerous, but the depth of knowledge is more usable, is probably the best way to explain that. What can people do now to learn the game of finance? So what can people be doing to practice, to really train, to excel at this game in this crazy time? Well, that's why in 1997, I created the cash flow, 96th grade, the cash flow of board game. It's the only game that teaches you accounting by having fun. So the cash flow game, I play at least 10 times because each time you play, you learn something new. Well, what the game is doing, 'cause you have to move pieces and write and all this stuff, is moving your neural pathways. You have to train, you know, the most important thing is changing the neural pathways in your brain. And the brain is driven by your heart. And when I meet somebody with an employee's brain, they say, "I want job security. "I want a good pension." Do they have medical benefits? That's their brain. I can't help them. They gotta rewire the brain, yeah? 'Cause the economy takes place between this year and this year. That's where the economy takes place. And in your heart and in your guts. I started playing monopoly. I was nine years old. And everybody's playing monopoly, except I play in real life. Four grand houses, one red hotel, tax free. And if you really got to learn to be rich, you have to learn how to sell, how to use debt, and how not to pay taxes. That's the game.


The Three Kinds of Income (22:15)

- All right, well, let's dive into those details. You've talked about there's three types of money. I think that a lot of people don't understand that. If you can explain that and then explain the principles behind cash flow and monopoly, I think that'd be super helpful for people. - Yeah, well, there's three kinds of income. There's ordinary portfolio paths. So when you say to some poor kid, go to school, get a job. They're working for ordinary income, the highest tax income in the world. I don't work ordinary income. I don't want to pay che. Passive income is generally what happens when you invest in a stock market. I mean portfolio income. So they say, well, I bought Tesla at 100, it went up to 200, I sold it. So I made $100. That's portfolio income. That's tax at the next higher level. So when I have passive income, it's tax free. Getting passive income, you have to know what you're doing. So that's why I have the best first of all, bookkeeper, accountants, attorneys, bankers. I operate as a team, just like mine, and we flew into combat, we're a team. And most people are trying to do it self-employed way. I'm a good computer programmer. Good.


Your Strength Your Weakness (23:33)

You pay the highest taxes, you work the hardest, you don't get ahead that way. But that's what most people, they want to do it on their own. If you want it done right, do it by yourself. And an employee is always saying the same words this year and this year. I'm looking for a safe, secure job with benefits and a paycheck and a pension. You got that? That's what they're looking for. So if I have a job, I'll help. And a self-employed person says, "How are you gonna? I'm the best." Good, I'll hire the best. But the government's gonna penalize you for that, because you're working for quite a blended income, with some more passive income. It's actually ordinary income. But pay the highest taxes. The tax law are nothing but incentives, not punishments. So if you donate, I just donated money to the food bank, it's a lot of food, so it's 10,000 bucks. I got a tax grant. I don't donate money to the food bank, no tax grant. So because I have 7,000 rentals in apartment houses, I got a tax grant, you know what? 'Cause I'm providing housing. And because I have thousands of employees, the tax grant, the government even sent me money to pay my employees, it's just a different game. It's like soccer and rugby are two different games, two different types of players. I say, "My wife's a golfer."


Impact Theory Belief Window (25:05)

I play golf, but I don't enjoy the game. She's fanatical. But she would be a guest, you know, self-employed type and all of this stuff. She was gonna do it on her own. I cannot do my job on my own. I cannot go in the rugby field by myself. And when I go on to the field of business, I don't go by myself. Workkeeper, thousands, attorneys, bankers, and whoever else, that's how we play the game. - So I may be just coming at this from a slightly different perspective.


The Right People (25:28)

So my goal would be to help people right now that may struggle to put a roof over their head or may struggle to eat. I have one last world first. Where can people connect with you? - Well, that's richdad.com. The most important thing for these people right now is choose your teachers' wives, and I commend you for attempting to help people. As if I could leave anything to you, the people that are listening to you right now, commendable. They're looking for answers. But it comes back down to who are your five friends. And are you happy with them? Or is it time to move on?


Self-Identity

Who AM I (26:08)

- Man, it's incredible that you've continued to pour into people all these years in, trying to help. I really, really appreciate that. What is my last question? What is the impact that you wanna have on the world? - Well, I said to you, thank you for having me on your program. This is an impact at this present time. And I just think this is the neatest format. You're a young man, you're gonna evolve into a great, great teacher. 'Cause I know you'll push yourself. You'll push yourself 'cause you wanna help other people. That's the most commendable part. I may not do it the same way, but is it in your heart and soul? Do you wanna give your fellow human, or better, or watch? So you keep up the good work.


Conclusion

End (26:52)

- Thank you, Robert. And thank you so much for being on the show today. I really appreciate it. Guys, if you're not following him, he's putting out tremendous amounts of information. The books are incredible. He's got a lot of social content that I think will also resonate and help people do this time. You haven't already, be sure to subscribe. And until next time, my friends, be legendary. - One common mistake that people make is they just try to cut a little bit of everything. 5% here, 5% there. Life sucks when you do that. And the classic thing we've all heard is $3 latte is blah, blah, blah. Saving $3 latte is not gonna change your life at all.


Great! You’ve successfully signed up.

Welcome back! You've successfully signed in.

You've successfully subscribed to Wisdom In a Nutshell.

Success! Check your email for magic link to sign-in.

Success! Your billing info has been updated.

Your billing was not updated.