You are here
Home > Inspirational > Rich Vs Poor Mindset | Best Motivational Speech By Robert Kiyosaki

Rich Vs Poor Mindset | Best Motivational Speech By Robert Kiyosaki

The most obsolete idea is to go to school, get a job, work hard,  save money, get out of debt and invest for the long-term in the stock market and see, why would you save money when they’re printing trillions of dollars?

The difference between 1% and 99% is massive.


You see it’s not just money, you have to step back and look at the bigger picture. what do you do? In every one of us, there’s a poor person, there’s still a poor person inside me. There’s also a middle-class person and the middle-class person wants security they want that steady paycheck and there’s a rich person and they’re all inside of us except that. It’s not taught. It’s you’re taught to go to school, get a job, and get a paycheck. Not taught how to get rich. If you’ve read Rich Dad Poor Dad, my rich dad refused to pay me. He said the paycheck was one of the most damaging things you can take in your life. He says the moment you take a paycheck you’re an employee and that’s the mindset so my rich dad never paid me.

This fired my poor father, as you all know that a government employee is insane. “You got to pay people” and rich dad was not saying that the paycheck was bad, he says he didn’t want to be a slave to money so as an entrepreneur, you know if rich dad folded I just try another company. I don’t need a paycheck. If my government doesn’t like me I move to another country. You see, I don’t operate a small business, does not operate in the same rules as big business. An entrepreneur is a mindset first, a skill set, and rules and depending upon whether you’re an employee or small business.

The rules are different, the mindsets are different, the skill sets are different. If you could say one thing to somebody whose never been an entrepreneur and they are thinking about making the leap of faith into becoming an entrepreneur, what could you tell them? Well, I’ll just tell them something that happened to me. You know, my last paycheck, I still remember it clearly it was one of the worst and the best days of my life and I was in Puerto Rico, I was in, I was working for Xerox and my boss gave me my last, it wasn’t a paycheck it was a bonus check I think it was about 30,000 bucks taxable, that’s the only problem with that so I get this check and I went, “Holy mackerel.

I was excited but I was also disturbed and so this other guy comes up to me, his name was John. he says to me this, “you’re going to be back.”I said “Why?” he says, “because you’re going to fail.” I looked at him and I said, “look. few expletive words because that’s what he did, he left Xerox, failed and he came back. I said, “look. You fail and you came back but I’m going to fail and I’m never coming back.” and that’s the attitude. Do you know what I mean, If you say, “Well if I fail I will go back to mommy and daddy” then that’s what you will do? so if you fail, that’s when I became an entrepreneur because I had no money. I had no money for years, I didn’t have a paycheck but that’s what my rich dad encouraged me to do.

He says when you don’t have this paycheck you get hungrier, smarter and it’s a test of your character will you become a crook? Will you become dishonest? Will you cheat and steal? Or will you become a better human being? so really that’s the benefit of becoming an entrepreneur you really find out who you are when you don’t have anything so you always have to look at the big picture.

If you think the next 20 years will be like the last 20 years you’re going to get creamed. You know, when you and I go to the supermarket and we buy a carton of milk We always check for the expiration date but most people do not check for the expiration date on their brains Instead of getting out of debt I get into debt. I just refinanced 300 million in debt I went from 5% to 2.5% interest I made a fortune. Every month more money comes in because my cost of money has gone down so while some financial experts are saying get out of debt, I’m saying learn how to use debt and see when I came back from serving in Vietnam in January and the first thing my rich dad said to me was, “Go to school to learn how to invest in real estate.” It wasn’t real estate, it was how to use debt and taxes debt and taxes make the rich richer. Debt and taxes make the poor and middle class poorer so all the rich guys who are doctors and lawyers or you know, those guys, they’re getting creamed and they don’t know why doctors are getting creamed?

They are making more money but the take-home is less You know, my doctor just yelled at me he’s happy, he says, “Oh, guess what I finally made a million dollars.” and I said, “Yeah”, this is just three weeks ago and so I said, “Yeah, well how much you pay in tax?” He says, “$750,000 in taxes.” so his net was about $400,000 That’s not bad but when I make a million bucks, I keep a million bucks and the reason is that I don’t make it by working for money.

If you work for money you are taxed so that’s why lesson number one in Rich Dad Poor Dad is the rich don’t work for money. What we do instead is we build businesses as entrepreneurs. We acquire real estate. I don’t invest in the stock market so the reason is that as entrepreneurs have more control over my income, how much I make and how much I pay in taxes and because I’m an entrepreneur as well as an investor in real estate I pay zero tax so every time I make let’s say a million dollars as an entrepreneur I immediately invest it in real estate, and I have a 4 to 1 step up so I put a million dollars in real estate, I get four million from the bank. That’s why I love banks but the banks are screwing everybody else you know, terrible but it’s good for me. I thought you said when you print it’s good for you but when you print it’s bad for people that work for money because when you print savers get creamed and people who work for money get creamed. When they print debtors get rich. You see debt and taxes make the rich richer and debt and taxes make the poor and the middle class poorer.

When we have obsolete ideas we get obsolete results so what’s happening for most people the idea of going to school, getting a job, working hard, saving money, getting out of debt, buying your house because it’s an asset and investing for a long term. It’s obsolete. The world has changed, the world changed in 1971 when President Nixon took us off the gold standard and money became debt. What if we get rid of school then what would happen? Would it have been better if we had no education system? No, I’m saying education was more important before, it’s just obsolete. You know, there’s Moore’s law that states information doubles every 18 months.

In other words, everything is obsolete, 18 months so, and this is a recent phenomenon when you come out of school, you’re already obsolete, and that’s why I’m the old guy, you know, I meet my friends, I went to Harvard. Today banks are charging interest to save money from you. In other words, the banks don’t want your money because they’ve printed too much of it and that’s why there are bubbles and stocks and bubbles in real estate and all this. People are dumping the cash because as I said in here, “Savers are losers and cash is trash” and yet people are, “Well, I want a high-paying job.” Well, that’s an obsolete idea. Get out of debt, it’s an obsolete idea. You should learn how to get into debt How do you use debt to get rich and they will never teach you about taxes.

The reason the 1% is way up here and the 99% are going this way is because when you print money two things happen inflation and taxes. It’s crushing them and any entrepreneur that thinks “I’m just going to make money and start a business and make a lot of money because that what we talk about They really have got to smell the roses man. You know, that’s not what the real entrepreneurs are doing. There are 28 million small business owners in America. 24 million are one-person entrepreneurs. They’re called non-employee entrepreneurs because that’s what happens is when people don’t really understand what an entrepreneur does so most people are self-employed, but they’re not really entrepreneurs. The self-employed pay the highest taxes of all and nobody tells them.

It’s also called the entrepreneurial spirit but what we’re actually talking about was there’s no such thing as a bad economy. You know those externally, you and I, we all have an external economy but we also have an internal economy and the will power is to change our internal economy so for me, I can see the good, I can see the bad I don’t really give a damn because I’m going to be rich anyway but a poor person with a poor personal economy All they’re going to see is a bad economy because they don’t know how to make money in any economy and a middle-class person, they have a middle-class economy.

You know what they want is a nice house, a steady paycheck, and the job and the car and so when you take their job away to them that’s a disaster. Well since an entrepreneur doesn’t have a job anyway, it’s no big deal so all I’m saying to people is what Bucky Fuller taught me. There are always two sides, you know what I mean, you know to use plural at minimum two so if you think the economy is bad, it’s because your economy is bad. If you think that steady, you know, employment is important then you’ll see an economy without jobs. Your economy versus the external economy.

Where you control Vs, where you can’t control,

I can control yes, it’s called an internal focus versus an external focus so the real entrepreneur has an internal focus but if they fall down they say, “Oh, this is good because I’m going to go up higher.”You know, the average person will fall down and somebody has the mistakes, all the mistakes don’t matter well mistakes matter, it means you didn’t know something but a real entrepreneur whether they fall down or they go, they always can go up. They can stand back up and go higher. That no matter what happens to them they got stronger and better and smarter and happier but a person with a weak internal mindset is that they’re so afraid of what happens, it generally happens Like, you know, people who are afraid of losing their jobs they generally lose their jobs.

You know what I mean, everything comes through you, so the entrepreneur’s first job is control inside here not outside there. The moment you take that paycheck you’re an employee You’ve got to be stronger than that. It’s about inside control.

Similar Articles

Leave a Reply