Here’s little Robert Kiyosaki.
He has two fathers.
One of them has a Ph. D.,
the other never finished 8th grade.
Both earn substantial incomes,
yet one always struggles financially,
while the other is going to
become one of the richest men in Hawaii.
One is going to die
leaving tens of millions of dollars to his family.
The other is going to leave bills to be paid.
The problem with financial education is that
it isn’t taught in schools,
so the family decides to teach it.
Now, the problem with this is
that unless your parents
are in the top 1 %,
they are going to teach you how to be poor,
not because they don’t love you,
they just don’t know what they’re teaching,
and they don’t read books like Rich Dad Poor Dad.
My story is very similar.
I was taught how to be poor.
Then I went to the Air Force Academy
and studied economics and took accounting and investing classes.
I did complicated regressions on economic data
and balanced complex balance sheets.
Yet, I have received more pragmatic advice
by reading a single book from Kiyosaki
than I did by taking four years of complicated classes.
I never had a rich dad,
but I have many rich dads now.
Clason Kiyosaki Hill DeMarco
Clason, Kiyosaki, Hill, DeMarco,
the list goes on.
So if you weren’t born into the top 1 %,
let’s learn from Kiyosaki
who learned from his rich dad.
You have to know these two words: assets and liabilities.
Now forget what you might have learned in your accounting classes,
we are going to define them in very simple terms.
An asset is anything that puts money in your pocket.
A liability is anything that takes money away from your pocket.
Anything can be an asset or a liability.
If you own a house
and it eats a $1000 a month
then it’s a liability.
If you own a house
and it brings in a $1000 a month
then it’s an asset.
资产是生意 房地产 金融资产
Assets are things like businesses, real estate, paper assets,
things like stocks and bonds.
Here is why knowing this distinction is so important.
Really try to focus on this.
The poor only have expenses, the rich buy assets,
and the middle class buy liabilities that they think are assets.
After graduating if I had followed everybody’s advice,
I would have gotten a job which increases my income,
but there are so many problems with that.
As I got my job,
my girlfriend and I would have moved into a bigger house,
we would have gotten a BMW in addition to our Mustang.
I would have bought the iPhone6.
The problem with all of this is that
I would think I was acquiring assets
while I was actually acquiring liabilities.
I would have to pay every month
为了房子 车 和昂贵的手机付费
for the house, for the car, for my expensive phone.
unless you make a paradigm shift about what you do
with your money, which is to buy actual assets,
no matter how much income you earn from your job,
you will just match it
with your liabilities and expenses.
Your friends might admire your iPhone 6,
and you might look rich but you will never actually be rich.
Now there is nothing wrong with having your job.
I just don’t have one,
because I’m operating from the assets quadrant.
But if you are following the standard narrative
of going to school and getting a job,
chances are you’re acquiring liabilities
which you think are assets.
That is the problem.
So keep your job,but make sure
what you are going mostly towards real asstets
rather than liabilities that seem like assets.
And yes, eventually when you acquire enough assets,
you won’t need your job either.
It absolutely blows my mind how people say,
well what if I lose money with the business,
or the real estate, or the paper assets.
They don’t say the same thing about
buying their second enormous TV
which will be worthless in a year,
and which creates a liability every month.
I would rather lose all of my money
starting a business than lose it
by buying yet another TV I don’t need.
Even if I lost all my money,
the lessons learned from starting a business
would be infinitely more valuable than watching Dr. Phil.
Here is another problem.
It’s not how much money you make,
it’s how much money you keep.
If I told you
I was going to pay you a million dollars a month,
but then I took away $ 999,999,
you’d have to be an idiot
if you said you were making a million.
My dad told me become a doctor and you will be rich.
Yet a doctor pays a half or even
more of what he earns just to the government.
You get taxed when you earn.
You get taxed when you spend.
You get taxed when you save.
And guess what, you get taxed when you die.
On the other hand,
you could operate from the assets quadrant
and pay sometimes your percent in taxes
I have doctor friends who are more financially anxious
than my absolutely broke friends.
Here is a short history of taxation.
Years ago, there was no tax
in Great Britain or the United States.
It amazes me how so many people don’t realize this.
The government would sometimes collect tax
during civil wars and extreme cases,
but there was no actual tax.
Well, the government realized that
the poor and the middle class were idiots
The masses looked up to the idiotic story of Robin Hood and actually admired it.
so the government decided
it was going to leverage that.
政府说：嗨 伙计们 让我们对富人征税吧
It’s said, hey guys let’s put a tax on the rich
so you idiots can get money from them.
Well,of course all the idiots agreed and voted for it.
The problem is that
the government’s greed grew bigger and bigger until the taxation
trickled down to everyone including the poor.
But the rich didn’t care.
They were too smart for little Robin Hood.
They easily found ways to avoid being robbed
of their hard earned money.
So it actually hurt the idiots in the end,
the poor and the middle class.
why Warren Buffett pays lower tax rate thanhis secretary.
I was born in 1992,
in the Republic of Georgia right after the breakup of the Soviet Union.
If you think I worked my ass off in poverty for two decades,
so one day I could come to
another communist state, you must be out ofyour mind.
You must be out of your mind
if you think I’m going to share
over half of what I earn with blood and sweat with people
who want to sit on their ass and watch TV all day
and collect the benefits the government hands out to them
so they can get reelected.
The rich are too smart for this.
Yes,I am going to buy my BMW,
I’m just going to buy
it for my corporation.
A poor person thinks of a bunch
of buildings when he thinks of
a corporation when in reality,
it’s really a folder full of papers, a folder full of
papers that allows the rich to make all
the expenses and then pay the taxes at the end.
So the rich will never actually be affected by any of this.
It will always come down to
the middle and the upper middle class,
the people who work the hardest, to pay for the
benefits of the person with a bag of chips
in one hand, and a remote in the other.