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The reason I wrote

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The Rich Dad Poor Dad was

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Because I knew this time was coming

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[Music]

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And we have as world have never been here before

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and so it's a spooky time

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Damn yet

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It's probably the most dangerous time

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Ever ever ever ever

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There's nothing to compare it to

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because there's never been a world economy before

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For example

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you know 100 years ago

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if there was a stock market crash in England

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Didn't affect anybody

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but now the US market goes down

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the world goes down

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So plus with social media

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and all this we're doing right now

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so we've never been here before

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and

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You know I

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I'm excited about it

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Because I make more money in crashes

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than I do when they go up

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so but for the average person

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they'll get wiped out

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I'm afraid at the worst

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I hope I'm wrong

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but I think we head for

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a global depression

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How does this play out

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for the average worker

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for the small business owner

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I mean what's the next 3 months look like?

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because it doesn't look preaty

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I mean people are already being laid off

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made redundant

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businesses are

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there's no cash flow in most of these businesses

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How does that play out?

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Well let me give you

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one more step

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just to give you the size of it okay

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The national debt for WW2 was 25 billions

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Everyday today

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Everyday they're printing 125 billions

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Every single day

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that's like five WW2 per day

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They're printing so much money

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to keep this think a hot of air balloon

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with a tear in it

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and they're doing desperately

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trying to fix this tear

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but no matter how hard they try

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the tear has gone beyond

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it's coming down

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so in financial terms

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it's called out debt-to-GDP

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has now gone from 60% to 90%

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to 105%

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it's going to 120%

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we're bankrupt

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and they are going to print

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more and more money

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which means savers are losers

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just as I predicted

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your money is going to be worthless

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in a few years

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So

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my messages is same

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as some of your other guests

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this is metamorphosis time

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Financial education in Rich Dad's terms

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is really financial transformation

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and the definition of metamorphosis

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is very important

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Metamorphosis

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The definition is

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the evolution or the transformation

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from an immature form

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to an adult form

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an immature form

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to an adult form

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Metamorphosis is the same as a caterpillar

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turning into butterfly

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and Fuller always said

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"There is nothing to predict

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a butterfly inside a caterpillar

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So anybody listening right now

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if you're struggling financially

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just thinking of yourself

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as a little caterpillar

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and this crisis is your cocoon

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The question is

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what do you emerge as

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Do you emerge as a victim?

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You know

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"that the world did that to a man"

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and "the capitalist are crooks"

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"the rich are bastards"

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and all this stuffs

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or do you say

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"Oh"

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"this is the best thing that ever

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happened to me"

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The same as my health

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I am groundzero for the coronavirus

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all that does

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is inspire me to get healthier

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You're either going to

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get healthier and wealthier

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or your going to go bust

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Your choice

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It's between your ears

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your heart

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your body

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your mind

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your spirit

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your attitude

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This could be the best thing

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that ever happened to you

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Physically

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mentally

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emotionally

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spiritually

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If you turn out to a butterfly

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or somebody will step on you

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like a little worm

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it's your choice

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Now if you are in trouble today

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my messege is not so kind

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this is hard talk not happy talk

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The crisis is in your head

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now that's the bad news

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The good news

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you can change the crisis by changing

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what's inside your head

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and so I'm doing

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I'm hating brag

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but I'm doing extremely well financially today

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because as I was warning everybody

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this crisis was coming

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but it would be irresponsible of me

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to warning people of the crisis

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and not personally make changes myself

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So the good news is

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the crisis in your head

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the bad news it is in your head

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the most important thing you can have

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not now is not job security

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but meaningful work

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So you and I don't need the money

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but our work is meaningful

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and it's our meaningful work

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that get's us through the hard times

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So the good news is

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my company is sold out

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we can not keep up the product

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The bad news is supply chain shutdown

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but that's a good problem

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We have tons of cash

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I've gold I've silver

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I do have challenges in the real estate market

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but that's going to make me stronger

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that's my own attitude I can have

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otherwise I just cry and said well

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the government should take care of me

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I need a bailout money understandable

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So what can I do?

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I'm one of them. What do I do?

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This would go back to employee

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self employee business owner

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It's investor like go find the business

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go start the business

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go reposition yourself career-wise

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you know is there a

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1-2-3 steps processes on

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what I can do to be prepared for it

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I have a friend in Panama

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He has avocado farm

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So he say it again

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Panama growing avocados

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he says good people have to eat

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Another guys friend of mine grew blueberries

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but another friend of mine

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he is from Seattle excuse me

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he had a big house his kids all move out

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so he converts the kids bedrooms

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into one-bedroom appartments

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So he put a ktichen

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and he put a toilet

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inside a little bedroom

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and so he know rents out four bedrooms

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he is making more money today than before

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because a lot of workers

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commute to Seattle

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So they come in

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they check in

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the come in on Sunday night

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they check out on Saturday afernoon

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So the point is everybody can do something

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but you got to figure out

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what you going to do

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Well the reason

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the rich don't work for money

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is no 1 expensive tax

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See there are 3 kinds of income

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Earned

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Portfolio

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Passive

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So earn income is if I get a job

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it's earned income

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If I am a doctor or programmer

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that's earned income

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because I'm working for it

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If I buy us if I buy let say apple for $10

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and sent it for $20

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that's a

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porfolio income

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capital gains

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but passive incomes which is cash flow

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It's never tax

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So it's not

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and that's all these guys are screaming

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right now in America

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"Tax the rich" I said goodluck

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because most of those guys complaining

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they don't know those 3 kinds of incomes

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and the rich don't have jobs anyway

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they have assets

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and so the average small out there

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poor guy you know sent the kids to school

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they don't learn this

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So that's why a fake because

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you were talking about it

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It's a newspaper article

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about Jarred Kushner

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and he explained how the Trumps and Kushner

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don't pay taxes

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and make million of dollars

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and the reporter couldn't understand him

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because they're not

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our school never teach that 3 types of income

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and they judge him

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and say they're wrong

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and it's cheating

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and we see it over and over again

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Amazon not paying taxes

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What do you say to people when they come

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to say "Robert, that's not fair."

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"It's not fair. They aren't paying taxes."

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Well there are always 3 sides to a coin

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you know, heads, tails and the edge

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you know

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So which side of the coin on you are?

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From my side it's fair

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But this is the difference

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everybody can do it the same thing I do

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The Tax Laws are for everybody

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They don't say

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"well the tax is only for the rich" No.

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The Tax Laws are for everybody to use

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if you've the right financial education

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And the reason I'm advocate of

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financial education

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without that education

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You have to pay taxes.

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You see very few people will buy

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what I do

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make a million of dollars pay zero tax

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that takes

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And my rich dad taught me

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that playing monopoly

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That's how it turns

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You need 4 green houses and 1 red hotel

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or the Mc Donald's one. I write about that

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Mc Donalds Ray Kroc

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Yeah

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Mc Donald's is in the real estate business

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So they sell humbergers

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but they but real estate

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so they pay no taxes

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You know this guys Bezos

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he is 16 billion dollars

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how much taxes he pays under 16 billions

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zero

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And that's all legal

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Anyone can do it

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Everybody can do it

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But everyone. Most people lack the education

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Correct

293
00:08:57,775 --> 00:08:59,575
So Jarrod learn about money

294
00:08:59,575 --> 00:09:00,425
when he was a kid

295
00:09:00,425 --> 00:09:01,255
by watching his father

296
00:09:01,255 --> 00:09:03,235
by watching his people in real estate and said

297
00:09:03,235 --> 00:09:07,155
Wow. Not only you get to make the money, you get to keep the money.

298
00:09:07,155 --> 00:09:09,185
That's a big problem a lot of people don't understand

299
00:09:09,185 --> 00:09:11,992
Look at how much money I make but how much do you keep

300
00:09:11,992 --> 00:09:15,585
Because it can be half [The tax that you pay].

301
00:09:15,585 --> 00:09:19,184
And so when you always say this is the law. The law is true for every citizen.

302
00:09:19,184 --> 00:09:21,902
You can do it but most people just don't do it.

303
00:09:21,902 --> 00:09:24,302
Sometimes like you said they don't have the education

304
00:09:24,302 --> 00:09:26,312
Because you need to have a plan

305
00:09:26,312 --> 00:09:28,732
If you going to do risky thing

306
00:09:28,732 --> 00:09:31,864
Well it's not risky. I mean to me what's risky is having a job

307
00:09:31,864 --> 00:09:33,648
and paying taxes. [Yeah]

308
00:09:33,648 --> 00:09:36,688
And saving money because they're printing.

309
00:09:37,590 --> 00:09:38,780
You know

310
00:09:38,780 --> 00:09:40,250
That's the worst thing of all.

311
00:09:40,250 --> 00:09:42,070
That's why does fake money

312
00:09:43,457 --> 00:09:44,447
fake teachers

313
00:09:44,447 --> 00:09:47,227
The teachers will never. They don't know it. [Right]

314
00:09:47,227 --> 00:09:48,007
And fake assets.

315
00:09:48,007 --> 00:09:50,327
Because Wall Streets or the city of London

316
00:09:50,327 --> 00:09:52,917
or Lehman Brothers or Goldman and all. They are not going to tell you this.

317
00:09:54,557 --> 00:10:26,313
[Music]