The reason I wrote
The Rich Dad Poor Dad was
Because I knew this time was coming
[Music]
And we have as world have never been here before
and so it's a spooky time
Damn yet
It's 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 100 years ago
if there was a stock market crash in England
Didn't affect anybody
but now the US market goes down
the world goes down
So plus with social media
and all this we're doing right now
so we've never been here before
and
You know I
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 head for
a global depression
How does this play out
for the average worker
for the small business owner
I mean what's the next 3 months look like?
because it doesn't look preaty
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 you
one more step
just to give you the size of it okay
The national debt for WW2 was 25 billions
Everyday today
Everyday they're printing 125 billions
Every single day
that's like five WW2 per day
They're printing so much money
to keep this think a hot of 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 out debt-to-GDP
has now gone from 60% to 90%
to 105%
it's going to 120%
we're bankrupt
and they are going to print
more and more money
which means savers are losers
just as I predicted
your money is going to be worthless
in a few years
So
my messages is same
as some of your other guests
this is metamorphosis time
Financial education in Rich Dad's terms
is really financial transformation
and the definition of 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 butterfly
and Fuller always said
"There is nothing to predict
a butterfly inside a caterpillar
So anybody listening right now
if you're struggling financially
just thinking of 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
"that the world did that to a man"
and "the capitalist are crooks"
"the rich are bastards"
and all this stuffs
or do you say
"Oh"
"this is the best thing that ever
happened to me"
The same as my health
I am groundzero for the coronavirus
all that does
is inspire me to get healthier
You're either going to
get healthier and wealthier
or your going to go bust
Your choice
It's 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
it's your choice
Now if you are in trouble today
my messege 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'm hating 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 warning people of the crisis
and not personally make changes myself
So the good news is
the crisis in your head
the bad news it is in your head
the most important thing you can have
not 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 get's us through the hard times
So the good news is
my company is sold out
we can not keep up the product
The bad news is supply chain shutdown
but that's a good problem
We have tons of cash
I've gold I've silver
I do have challenges in the real estate market
but that's going to make me stronger
that's my own attitude I can have
otherwise I just cry and said well
the government should take care of me
I need a bailout money understandable
So what can I do?
I'm one of them. What do I do?
This would go back to employee
self employee business owner
It's investor like go find the business
go start the business
go reposition yourself career-wise
you know is there a
1-2-3 steps processes on
what I can do to be prepared for it
I have a friend in Panama
He has avocado farm
So he say it again
Panama growing avocados
he says good people have to eat
Another guys friend of mine grew blueberries
but another friend of mine
he is from Seattle excuse me
he had a big house his kids all move out
so he converts the kids bedrooms
into one-bedroom appartments
So he put a ktichen
and he put a toilet
inside a little bedroom
and so he know rents out four bedrooms
he is making more money today than before
because a lot of workers
commute to Seattle
So they come in
they check in
the come in on Sunday night
they check out on Saturday afernoon
So the point is everybody can do something
but you got to figure out
what you going to do
Well the reason
the rich don't work for money
is no 1 expensive tax
See there are 3 kinds of income
Earned
Portfolio
Passive
So earn income is if I get a job
it's earned income
If I am a doctor or programmer
that's earned income
because I'm working for it
If I buy us if I buy let say apple for $10
and sent it for $20
that's a
porfolio income
capital gains
but passive incomes which is cash flow
It's never tax
So it's not
and that's all these guys are screaming
right now in America
"Tax the rich" I said goodluck
because most of those guys complaining
they don't know those 3 kinds of incomes
and the rich don't have jobs anyway
they have assets
and so the average small out there
poor guy you know sent the kids to school
they don't learn this
So that's why a fake because
you were talking about it
It's a newspaper article
about Jarred Kushner
and he explained how the Trumps and Kushner
don't pay taxes
and make million of dollars
and the reporter couldn't understand him
because they're not
our school never teach that 3 types of income
and they judge him
and say they're wrong
and it's cheating
and we see it over and over again
Amazon not paying taxes
What do you say to people when they come
to say "Robert, that's not fair."
"It's not fair. They aren't paying taxes."
Well there are always 3 sides to a coin
you know, heads, tails and the edge
you know
So which side of the coin on you are?
From my side it's fair
But this is the difference
everybody can do it the same thing I do
The Tax Laws are for everybody
They don't say
"well the tax is only for the rich" No.
The Tax Laws are for everybody to use
if you've the right financial education
And the reason I'm advocate of
financial education
without that education
You have to pay taxes.
You see very few people will buy
what I do
make a million of dollars pay zero tax
that takes
And my rich dad taught me
that playing monopoly
That's how it turns
You need 4 green houses and 1 red hotel
or the Mc Donald's one. I write about that
Mc Donalds Ray Kroc
Yeah
Mc Donald's is in the real estate business
So they sell humbergers
but they but real estate
so they pay no taxes
You know this guys Bezos
he is 16 billion dollars
how much taxes he pays under 16 billions
zero
And that's all legal
Anyone can do it
Everybody can do it
But everyone. Most people lack the education
Correct
So Jarrod learn about money
when he was a kid
by watching his father
by watching his people in real estate and said
Wow. Not only 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 at how much money I make but how much do you keep
Because it can be half [The tax that you pay].
And so when 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
Because you need to have a plan
If you going to do risky thing
Well it's not risky. I mean to me what's risky is having a job
and paying taxes. [Yeah]
And saving money because they're printing.
You know
That's the worst thing of all.
That's why does fake money
fake teachers
The teachers will never. They don't know it. [Right]
And fake assets.
Because Wall Streets or the city of London
or Lehman Brothers or Goldman and all. They are not going to tell you this.
[Music]