Financial Mastery with Robert Kiyosaki: Strategies for Building Wealth in Today’s Economy (YouTube Video Transcript)

(00:00:00) Your YouTube transcript will appear here (00:00:00) our today's guest is Robert Kaki well I (00:00:04) don't know if it's a new philosophy it's (00:00:06) new to academics My Poor Dad was an (00:00:09) academic what would be your advice to (00:00:11) these young people I didn't learn much (00:00:13) at school because it was all a lecture (00:00:15) you know going one year and not yeah the (00:00:18) people around me don't study because (00:00:20) they make enough money there are things (00:00:22) you can't explain that's why you've (00:00:24) created the game can you explain golf (00:00:27) reading a book I don't need money so I (00:00:30) don't buy stocks I don't buy bonds I (00:00:33) sell them how do you don't pay taxes (00:00:37) only stupid people pay tax I own the (00:00:39) real estate I'm a control guy I'm a (00:00:42) capitalist AI yes that's going to cause (00:00:45) the biggest financial crash in history (00:00:47) hey I can do a better job than a doctor (00:00:48) do (00:00:53) [Music] (00:01:00) our today's guest is Robert kosaki his (00:01:04) books has inspired people to to (00:01:08) everything their mindset when it comes (00:01:10) to money and his works over a decade has (00:01:15) helped people to build their sustainable (00:01:18) Financial foundation for their life (00:01:21) Robert you're known as someone who (00:01:24) challenges a (00:01:26) traditional positions um when it comes (00:01:28) to finance and Ed ation your books and a (00:01:32) game cash flow has been a source of (00:01:35) inspiration for many people so our (00:01:38) listeners are lit so interested in one (00:01:42) of the questions is that what was your (00:01:45) inspiration for creating a new (00:01:49) philosophy of (00:01:50) wealth well I don't know if it's a new (00:01:53) philosophy it's new to academics (00:02:02) see the story of Rich Dad Poor Dad my (00:02:05) poor dad was (00:02:07) academic so he was uh very left very (00:02:12) Marxist he hated the (00:02:14) rich uh he thought the rich stole (00:02:17) people's money you know he was a very (00:02:20) bad attitude towards money and my father (00:02:23) was a very smart man pad he went to (00:02:25) Stanford University of Chicago in (00:02:28) Northwestern get his PhD (00:02:31) but he knew nothing about (00:02:34) money so my rich dad was my best (00:02:36) friend's father and I wanted to learn (00:02:39) about (00:02:40) money and my rich dad had a pretty (00:02:43) Christian point of view towards it the (00:02:46) love of money is the root of all evil (00:02:50) and I said I think it's the lack of (00:02:52) money dad you know I mean but uh money (00:02:56) is a very strange subject because it's (00:02:59) emotional (00:03:01) also (00:03:03) capitalism is not the best (00:03:06) system but is the system I like the best (00:03:09) where capitalist capitalism is (00:03:12) unstable so you can get rich and poor (00:03:14) really (00:03:15) quickly it's (00:03:17) undemocratic it means that not everybody (00:03:20) gets rich and it's (00:03:23) unfair so it's open to (00:03:27) socialism and attack by communism (00:03:31) so in the world today uh the gap between (00:03:35) rich and poor is too (00:03:37) wide at the same time because there's no (00:03:40) Financial (00:03:41) education the world is crashing (00:03:44) financially right now never has a (00:03:47) country been so in (00:03:49) debt and uh we now have a new leader (00:03:52) taking my friend Donald Trump's taking (00:03:53) over he's a (00:03:56) capitalist but unfortunately they're (00:03:58) going to try and kill him as We Know (00:04:00) though because he's going to go against (00:04:03) the academic left yes the bureaucrats we (00:04:06) call them so it's a very unstable time (00:04:10) unstable system Japan is in serious (00:04:13) trouble China is going down Germany is (00:04:17) going down and we have a war in the (00:04:20) Ukraine and we have a war in the Middle (00:04:23) East and then you have bricks Brazil (00:04:28) Russia India China South Africa going (00:04:31) after the US dollar yeah and at the same (00:04:34) time you Bitcoin with blockchain (00:04:37) technology says I was saying to your (00:04:40) class your class is entering the (00:04:44) world and it's most unstable time in (00:04:47) history challenging times right (00:04:50) unstable challenging is one thing yeah (00:04:53) unstable is another because when things (00:04:56) are unstable that's what leads to war (00:04:59) yes yes fought I fought in Vietnam (00:05:02) twice so what would be what would be (00:05:04) your advice to these young people to our (00:05:07) listeners who is entering this unstable (00:05:10) times what kind of habit level um (00:05:14) education they have to bring into their (00:05:16) life to become financially independent (00:05:18) well that's what I was very proud of (00:05:20) your school here central at Asian (00:05:22) University yeah you have a room where (00:05:24) they play games yes I learned I didn't (00:05:28) learn much at school m because it was (00:05:31) all a lecture you know go one year and (00:05:32) out the other (00:05:34) yeah and it was often taught by poor (00:05:38) people most academics are like my poor (00:05:40) dad they're good people but they're (00:05:43) poor and so they have a resentment (00:05:46) toward capitalism so if you read The (00:05:49) Communist Manifesto by marks and (00:05:51) angles chapter one is abolition of (00:05:54) private property yes the Communists (00:05:57) don't want you owning anything that was (00:06:00) my poor dad he said it's not (00:06:03) fair that your friend's father had so (00:06:06) much and I have nothing and I'm a school (00:06:10) teacher nothing has (00:06:12) changed you still have poor School (00:06:15) teachers trying to teach capitalism a (00:06:19) subject they don't understand so by (00:06:22) Central Central Asia University having a (00:06:25) games room instead of a lecture hall I (00:06:28) think it's so far from forward thinking (00:06:31) I'm blown away I'm I'm impressed and I (00:06:34) I'm ordered my game as one of the games (00:06:37) so young people of usbekistan can be a (00:06:39) part of our University yeah yeah so it's (00:06:42) Progressive it's yes the reason I like (00:06:44) games is because we have four (00:06:46) intelligences MH we have (00:06:49) mental emotional MH physical spiritual (00:06:53) yes so when you sit there in class and (00:06:56) teachers a lecturing (00:07:00) but when you play a game mentally you're (00:07:03) engaged physically you're engaged you're (00:07:05) doing something you know spiritually (00:07:08) you're (00:07:09) engaged and physically you're (00:07:12) engaged so it's a better teaching tool (00:07:16) than a professor exactly yes so what do (00:07:20) you think what distinguish of rich (00:07:22) people and poor people uh without (00:07:26) considering like Financial part like (00:07:28) maybe their mindset are different (00:07:31) different 9 99 the difference between (00:07:34) Rich poor people rich people and poor (00:07:35) people attitude attitude I think money (00:07:38) is important so I study it that's where (00:07:41) I brought Sandra my assistant up every (00:07:43) morning I'm studying I'm studying (00:07:45) markets I'm studying this I'm studying (00:07:47) that other people are watching (00:07:50) TV you know sing contest and yes they (00:07:54) play golf or pickle ball or you know (00:07:57) it's what you do in your spare time (00:08:00) it determines if you're rich or poor you (00:08:03) haven't been sleeping in the plane (00:08:04) yesterday you were studying all the way (00:08:06) yeah I this is I recognize yeah so it's (00:08:10) what you do in your spare time (00:08:12) determines your future so everybody's (00:08:15) yeah we go I go I go back I go back to (00:08:18) Phoenix I go to work and all this but (00:08:20) when Sandra comes in came in this (00:08:22) morning at the hotel here in usbekistan (00:08:24) I'm (00:08:27) studying and so that's what gets me (00:08:29) ahead (00:08:31) yes the people around me don't (00:08:33) study because they make enough (00:08:36) money I just it's not that I don't have (00:08:39) enough money to me making money is a (00:08:42) game it's like playing Monopoly yes I (00:08:45) like the game if you don't like the game (00:08:48) don't play it you mentioned previously (00:08:50) in our conversation with the students (00:08:52) that there are things you can't explain (00:08:55) that's why you've created the game yeah (00:08:57) can you please talk about more about (00:08:59) this because for our listeners it will (00:09:01) be quite interesting why what was the (00:09:03) let's say main reason to create the game (00:09:06) because you have the book that still the (00:09:08) The Game come up which is getting more (00:09:10) popular well think about this if you (00:09:13) were to play what you guys call football (00:09:15) we call soccer yes yes can you explain (00:09:18) soccer by talking about it no way no way (00:09:22) so the same as golf can you explain golf (00:09:26) reading a book (00:09:28) no so there certain things you have to (00:09:31) you have to (00:09:33) do and uh when I started studying (00:09:36) philosophy and all this I found out all (00:09:41) philosophers believed in doing and but (00:09:45) somewhere along the line the more (00:09:46) academic people got it more just came to (00:09:50) listening so they call it lecture yes (00:09:54) which is (00:09:55) boring which is why I flunked out now (00:09:58) the schools I went to (00:10:01) I'm I'm what they call a ring (00:10:03) knocker means an academ mil military (00:10:06) school graduate I went to military (00:10:09) school because we had to learn by (00:10:13) doing whereas if I had gone to a normal (00:10:16) university you would by learning by (00:10:20) listening so I learned how to fly I I (00:10:24) can fly (00:10:26) aircraft you have to practice that (00:10:31) and I can drive ships and I can draw for (00:10:35) oil so I know how to do things but ask (00:10:39) me to study calculus I can't do it I (00:10:43) just don't know it my mind doesn't (00:10:45) operate that way the same goes for the (00:10:47) medicine right you you get lecture but (00:10:50) the most skills they gain in the (00:10:51) clinical rotations where they go into (00:10:53) the clinics they do learn by doing (00:10:56) that's true yes but the reason I like (00:10:59) capitalism (00:11:01) as I was trying to explain to the (00:11:02) students (00:11:03) today I don't need (00:11:06) money I can put a deal together by (00:11:10) taking pieces of a deal assembling (00:11:14) it taking it public through a stock (00:11:17) exchange so I don't buy stocks I don't (00:11:20) buy bonds yes I sell them I create bound (00:11:24) stocks and bonds I learn by (00:11:28) doing so the average (00:11:30) doctor can't put a deal together yes yes (00:11:34) they might be able to do surgery or (00:11:37) something but I talked to some of (00:11:39) doctors they're very smart people but (00:11:42) they couldn't put a deal (00:11:44) together so I'm always putting deals (00:11:47) together so my my next two deals are two (00:11:51) large what we call apartment (00:11:54) houses and so I have to raise a million (00:11:56) dollars it's 100% debt I have none of my (00:11:59) money in the deal it's all debt that's (00:12:02) really (00:12:04) smart debt is debt is money yes and then (00:12:08) I pay no (00:12:09) tax and it puts about (00:12:12) $100,000 not a lot of (00:12:15) money but I make hundreds of thousand (00:12:17) dollars a month whether I work or not so (00:12:21) with that I buy gold silver (00:12:23) Bitcoin but I start with (00:12:26) debt so you mentioned that you don't pay (00:12:29) tax but people claim that one of the (00:12:31) unavoidable things in life is taxes so (00:12:35) how do you like don't pay (00:12:38) taxes how is that possible I'll tell you (00:12:40) something Donald Trump is new president (00:12:42) doesn't pay tax either only stupid (00:12:45) people pay (00:12:49) tax but how like is it you have to (00:12:54) study the way I I pay no tax (00:12:58) okay if I wanted a million (00:13:01) dollars and so I worked and I saved (00:13:04) money to get a million dollars I'd have (00:13:07) to earn three (00:13:09) million because two million would go to (00:13:13) tax if I borrow a (00:13:15) million there's no tax yes so when I use (00:13:20) that million to buy an apartment house I (00:13:23) want to buy an apartment house that's (00:13:25) let's say 10 (00:13:27) billion so through the trick of a count (00:13:29) in systems this appreciation (00:13:33) depreciation (00:13:34) amortization appreciation depreciation (00:13:37) am amortization this is all financial (00:13:40) literacy these are the vocabulary of (00:13:43) money they're all taxfree yes (00:13:47) amortization is (00:13:50) taxfree (00:13:51) appreciation taxfree if you know what to (00:13:54) do with it yes and uh we apprec (00:13:58) appreciation (00:14:00) so it takes financial (00:14:04) literacy but I have to study tax law (00:14:07) this is yeah this is one I do it legally (00:14:09) please s yeah definitely but the thing (00:14:12) is that speaking about crisis you've (00:14:15) just mentioned previously that world (00:14:17) economy is kind of going down and where (00:14:20) a lot of people they see problems but (00:14:24) you see opportunities there like how (00:14:26) come and what kind of skills you need (00:14:28) for this is that like right side of the (00:14:30) brain like creativity thing or yeah I (00:14:33) mean can you explain more about tech (00:14:35) talk about more about (00:14:36) this well let's say I go to uh in (00:14:41) America a (00:14:43) store and they have inventory okay and (00:14:46) nobody's buying it they put it on (00:14:51) sale I buy it on (00:14:53) sale okay you know why would I pay (00:14:58) retail so so I wait for everything to go (00:15:01) on sale so same as real (00:15:03) estate (00:15:05) uh the stock market hasn't crashed yet (00:15:08) in America this is December (00:15:10) 2024 it's going to crash big (00:15:13) time and it's going to cause a worldwide (00:15:17) depression so all these people with nice (00:15:19) Ferraris and all that stuff they won't (00:15:22) be able to afford their (00:15:24) cars so they're going to put their (00:15:26) Ferrari on sale or Lamborghini on sale (00:15:29) or their house on (00:15:31) sale and that's why I just wait for the (00:15:34) crash to buy them (00:15:35) out if I want something El yeah I mean (00:15:38) this is this is the opportunity right (00:15:39) when the price is going down this is (00:15:41) what you see yeah it's called everything (00:15:44) goes on sale yes the sad thing is in (00:15:49) America I'm I'm a baby boomer you (00:15:51) know uh this crash is going to wipe them (00:15:55) out so many people who are my age will (00:15:59) left no (00:16:00) retirement so the homelessness is going (00:16:03) to go up in (00:16:04) America and it's old guys like me going (00:16:08) homeless because they don't know (00:16:10) anything about (00:16:12) money so I wrote a book called who stole (00:16:15) my pension the people stealing the (00:16:17) pension are Wall Street yes stocks bonds (00:16:21) mutual funds ETFs I don't touch any of (00:16:23) that stuff even with Bitcoin I own the (00:16:26) coin I don't own the ETF (00:16:30) okay I don't own real estate and (00:16:32) ETFs I own the real estate I'm a control (00:16:35) guy I'm a capitalist I put my own deals (00:16:39) together my own financing I hire my own (00:16:41) tax guys my (00:16:44) attorneys I'm a deal maker un like Trump (00:16:47) you know good (00:16:49) friends so do Reon new technologies and (00:16:52) AI how it will approach and change the (00:16:56) finance will it change something or HEI (00:16:59) yes that's going to cause the biggest (00:17:01) Financial corash isue AI (00:17:05) yeah mark my (00:17:07) words the reason is is because AI cannot (00:17:11) measure (00:17:12) Insanity so when there's a (00:17:15) panic AI is GNA kick in and they're GNA (00:17:19) sell so that's what happened two years (00:17:23) ago Silicon Valley (00:17:26) Bank the machines went off (00:17:29) and it nearly destroyed the whole (00:17:32) bank so it's my prediction is that a (00:17:36) artificial (00:17:37) intelligence is going to cause the (00:17:39) biggest banking crash in history we're (00:17:41) about three or four months away from it (00:17:43) right (00:17:44) now what about like at job positions (00:17:47) when it come to job positions all I (00:17:51) don't even know this but unemployment's (00:17:53) going through the roof all technology (00:17:56) workers all the guys who thought their (00:17:57) jobs were safe (00:17:59) that like like Google Amazon or apple (00:18:03) Tesla they they're letting people call (00:18:05) it (00:18:06) crazy so that's what they're worried (00:18:09) about so will the AI increase the gap (00:18:13) between rich and (00:18:15) poor already I mean in my town I have (00:18:18) cars no drivers in (00:18:21) them it's already happening and in (00:18:23) increasing inequality right the the (00:18:26) difference between poor and Rich I mean (00:18:28) what basically his question her question (00:18:30) is will it actually um speed it up uh (00:18:34) the process well machines took away the (00:18:38) laborer AI is gonna take away the (00:18:40) knowledge worker like you don't need uh (00:18:44) doctors yes he I can do a better job (00:18:47) than a (00:18:50) doctor so there is there won't be a (00:18:53) middle class right so middle class might (00:18:57) class but it's going to come (00:19:01) smaller the biggest thing as guys my age (00:19:04) have (00:19:05) know see my generation in (00:19:08) 1974 up until 1974 in (00:19:12) America everybody got a guaranteed (00:19:16) retirement in 1974 they changed the (00:19:19) law and they said in (00:19:23) 1974 they shifted I won't give it the (00:19:25) technical terms but they shifted from (00:19:28) what's called defi benefit pension to (00:19:31) Define (00:19:33) contribution so my generation has Define (00:19:36) contribution my mother and father had a (00:19:39) defiant (00:19:40) benefit well that was 1974 this crash (00:19:43) com in right now in the stock market is (00:19:47) going to wipe out our (00:19:48) retirements so there's going to be lots (00:19:51) of baby boomers (00:19:52) homeless are living with their kids yes (00:19:56) so Mr kosaki basically um but that's why (00:19:59) I wrote that's why I wrote Rich tadb yes (00:20:02) that's why I created the board games to (00:20:04) educate yourself and that's why we have (00:20:07) invited you to our country because we in (00:20:10) this uh company in this community (00:20:13) believe that in in stable World in and (00:20:17) when the world is full of challenges (00:20:18) when young people have to decide where (00:20:21) to take direction we do believe that (00:20:23) financial literacy is one of the if not (00:20:26) the most important thing and thank you (00:20:29) for being as us thank you for I want to (00:20:32) say something I am so impressed thank (00:20:35) you I am you guys are so far down the (00:20:38) road as to say so far ahead of your (00:20:41) times my friends in Singapore always (00:20:44) talk about usbekistan as the place to (00:20:47) invest and now that I'm here I can see (00:20:50) why it's because you're not encumbered (00:20:52) by old ideas your ideas are new you got (00:20:56) courage you take risks and you're (00:20:58) educating your student students defly (00:21:00) exactly so thank you for being with us (00:21:03) and um you know together with me and our (00:21:06) students we can give you a bold promise (00:21:09) that we're going to continue your legacy (00:21:11) here in this region thank you to become (00:21:14) uh to to prepare more (00:21:17) financially prepared people to own their (00:21:20) life to have their independence and to (00:21:23) use both sides of their brain right and (00:21:26) don't wait for the government to take (00:21:27) care of you yes (00:21:29) do you know what I mean that that is (00:21:31) what what what Central Central Asia (00:21:34) University I was so impressed today very (00:21:37) very impressive congratulations thank (00:21:39) you for being with us thank you thank (00:21:41) you for beautiful conversation