THE BIGGEST MISTAKE YOUNG PEOPLE MAKE – ROBERT KIYOSAKI

THE BIGGEST MISTAKE YOUNG PEOPLE MAKE – ROBERT KIYOSAKI


(gentle music) – Okay, once again, it’s Robert Kiyosaki. We’re here talking to Miss Alex, and we’re also talking about financial education for
millennials and money. And I’m glad she’s asking
me when she’s very young, because one of the biggest mistakes, I still hear it today, from young people, oh, I don’t have to
worry ’cause I’m still? – Young.
– Yeah. And that is death to most people. Because eventually you get old and then you’re not young again. So it’s a way of saying, when I talk about assets and liabilities, one of the most important things you have in your life is time. It’s one of your greatest
assets or it’s your liability. And being, you know I just turned 70, and I have friends who have nothing. I mean they have zero. Now they’ve made a lot of money,
but they have nothing here. They have nice houses, nice cars, 16 wives, 19 kids, I
don’t know what they have, but do you know what I mean? And being young is great, except it can be a liability to you. ‘Cause when you’re young
you’re just havin’ a lot of fun and life’s exciting, you know, it’s new. So, at the time, but the thing
is, this is the lesson today, is so many people spend
their time focusing here. They wanna make a lot of money. And I can hear it in their words. They say, oh, I want a career. This is career. ‘Kay, or, I’m gonna start my own business and this is the chart
here, which we’ve seen. This is the cash flow
quadrant, book number two. E is employee. S is small business,
self-employed, or a specialist like a doctor or lawyer or web designer. B is big business, 500 employees or more. And I is professional investor. So, when I was your age, I
knew I wanted to get here. This takes time. This is the hardest, you know? This is where the mega bucks
are, and Kim and I are here. And the money is massive. But it takes time to get there. The big mistake I see young
people make is they focus here. And the words are, I wanna do what I love. That’s the track. You see, in the real life, sometimes you have to do what you hate. Like, people think I like to write books. I hate writing books. But it fills my purpose in life. It’s not my passion, my purpose in life. Because my purpose was to get here. A lot of these guys get trapped
here doing what they love, and as we’ve talked about
on earlier episodes of this, you guys pay the highest taxes. 40% here, 60% in taxes here,
20% here, and then 0% here. So when I was in my, before my 20s, I knew I wanted to go there. And it wasn’t doing what I love. I had to learn what I
didn’t want to learn. I sometimes had to do what I hated. I had to learn about taxes. I had to learn about debt. I had to take classes, I had
to learn about insurance. So I was doing a lot of things I hated doing so I could come over here. These guys never do this, ’cause they want to live their passion. I want my passion. The difference is passion is greedy, purpose is for the people. So my purpose was to come over here so I could serve more people. ‘Kay? So I have employees here and all this. I don’t buy stocks, bonds, mutual funds, because as a professional investor I can create my own assets. ‘Kay? Any comments on anything so far? – Yeah, if you ask anyone, they all say they want to do what they love. – And they’re talkin’ about here. And this is where you get taxed. – [Alexandra] Yeah. – And coming here I was
doing fine over here ’cause I didn’t have much money. (laughs) ‘Cause the government takes all your money anyway, right? 40% in taxes, nobody’s gonna sue you. But you come over here, they sue you. ‘Kay, so I had to learn about lawsuits. I hated it, but I learned it. So the big mistake for young people who say I’m gonna do what I love, which is fine over here, but
what do you love the most? Well, I loved my freedom. And I know it sounds greedy,
but I love making money. I’d rather have a lot
of money than no money. I’ve been both. I’ve been broke, I’ve
been down, and everything. But I’d rather have a lot of money. So it was worth my
purpose to get over here. The big mistakes I see
young people making is here. You know, they think
about what they wanna do, what they love, and what I’m saying to the millennials right
now, invest in what you love. There’s a very big difference. In other words, think
about this side first. Most young people, or should
I say short-sighted people, they think this is it or this is it. But this is the one here. So when I was your age, I knew that the assets I wanted to acquire, the richest people own businesses. Over here, these guys are small
businesses, self-employed. You’re self-employed if
you can’t stop working. I stopped working years ago
because I have businesses. Very big difference. It was painful, but I got there. So number one is a business. So when I was in my 20s,
I knew I was gonna do whatever it took, school, study, learn about taxes, debt,
insurance, accounting, lawsuits, and all this, through business. Next is real estate. I love real estate. But most people can’t do what I do ’cause they don’t have a business. It’s catch 22. They don’t have enough
money to get over here. Your mom just made that switch ’cause she uses other people’s money. – [Alexandra] Yeah. (laughs) – So, the reason I make
more money is because, it’s not that I’m doing what I love, I do, sometimes, what I hate, so I can have the assets that I love. I love having a business. You know, if I didn’t have a
business, you wouldn’t be here. Darren wouldn’t be here. I wouldn’t have a CEO and President. I wouldn’t have accountants. I wouldn’t have attorneys. So the business affords
me the lifestyle I want. And then I invest in real estate. I’ve never gone past a piece of land or a building I did not love. And then, what most people
invest in from there is paper. And that’s fine, that’s stocks, bonds, mutual funds, savings, ETFs. Not my game. I don’t love it. I actually hate it. But these guys, it’s perfect
for them to have paper, stocks, bonds, mutual
funds, ETF, and all that. Because they’re focused over here. They wanna do what they love. They wanna climb the ladder,
they want their career, they want this, I’m gonna
become president, you know? That’s not what I wanted. I wanted to be a football star. But this is for the middle class here. That’s fine, you can get rich here too. I just don’t like it. It’s not exciting to me. And then the last one are commodities. And the four basic, there’s a
lotta commodities, like food. Farmers get rich, they
provide food, which is good. I invest in food. I invest in avocado
farms that provide food. Oil, gold, silver. I love those things. I love avocados. (laughs) You know? – [Alexandra] I love avocados. (laughs) – Yeah, I know. So I’m doing what I love. I love trees, I love plants,
you know, things like this. So, I’m doing what I love
here, here, and here. I don’t like stocks, bonds, mutual funds, ETF, 401(k)s, IRAs. It doesn’t excite me. You know? This excites me. So I invest in what I love
rather than do what I love. And these guys do what they love but most of them never get over here. And this is like Steve Jobs, Zuckerberg, Bezos of Amazon, and they have
all the money in the world. That was my plan. Any comments, any questions on that? – So as you mentioned, a
lot of people are talking about how they wanna do
what they love, right? And I think you have a very valid point on investing in what you love. Because a lot of people, just to say that they’re entrepreneurs or investing, they’re investing in the
whole Bitcoin outrage and the cryptocurrencies. And I felt like I wasn’t
actually pursuing what I loved, or I was falling off the wagon, because I wasn’t really
interested in Bitcoin. But, I realized that
that’s just not my thing. I’m not investing in what I love if I’m doing that in Bitcoin. What I wanna do is invest in real estate. So I love looking at properties. I love looking at houses, fixer-uppers, and looking at the numbers. That’s my passion. Maybe I got it from my mom, who knows? But Bitcoin isn’t my thing. So I have no reason to feel
like I’m not doing what I love just because I’m not investing in Bitcoin. – And that’s kind of the attitude. In my world, like I said, I see people, they chase shiny objects. And what a shiny object
means is, you know, when you’re fishing you throw a lure out, this little shiny object goes. And the fish comes and
(imitates splashing) where they jump it. That’s what most people do. Bitcoin today, it’s a shiny object. I’m not saying you can’t
make a lot of money in it. But most people are chasing shiny objects. They wanna make money. They’re not building an asset here. The reason I don’t do it here,
this is the highest risk. Now, this is what I know. The higher the risk, the
more education it takes. For example, if I flew. You know, if I wanted to
just fly my little Cessna 172 around the place, not much risk in that. But when I had to go to Vietnam
to fly, the risk went up. I had to study harder, become
better, work harder at it. The reason most people stay in paper, 401(k)s, IRAs, and chasing
shiny objects like Bitcoin, is because they don’t want
to take the risk here. They’re huge. You’ve gotta study. That’s why we have our
Rich Dad’s Education, Rich Dad’s Coaching. All of you guys are
allowed to take courses on all of this if you come here. It takes no intelligence to be here. It takes no intelligence to buy Bitcoin. I mean, I have four Bitcoin. No, five Bitcoin. It doesn’t take, you know,
I don’t have to do anything. Over here, I have to know a lot. Over here, I have to know a lot. I have to study. So, if you wanna chase shiny objects like the stock market and all
that, you can get rich there. It’s really easy to get in here. It’s really hard here. Any comments, any questions? Does that make sense?
– Yeah. – They’re chasing shiny objects. – So, I do agree with you
when you talk about Bitcoin being a shiny object that
everybody is chasing, right? And one of my favorite
stories that you’ve told is about your mentor Frank,
when he sent you to Peru so you could learn a valuable
lesson about maybe something that wasn’t such a shiny
object and turned into be, because shiny objects change every day. – I wanted to learn,
you know they have ICOs? – Mm-hmm.
– Initial coin offerings? I wanted to learn about IPOs,
initial public offering. And it’s how you take a
business and turn it into paper. You turn it into stock. So, I went to see my friend
Frank who was hardcore here. I don’t know how many companies
he started taking public. And I said, Frank, and he
didn’t know me from Adam, and I said I wanna learn to do an IPO. And he goes, yeah, you and everybody else. He said, most guys don’t have it. They don’t have the guts. They don’t have the determination. And they’re wimps. And I said, I wanna learn. He says, how bad? This is up here in Scottsdale, Arizona. I said, badly. He says, okay, this is Wednesday. Be in Lima, Peru on Saturday. I went, on Saturday? And we were shooting our video for the CASHFLOW game, you know? He says, how bad do you want it? I said, badly. He says, you know, you
meet my president in Lima. Frank never traveled. You meet my president in Lima and I’ll find out how bad you want it. So that was Wednesday. Wednesday night, I was
on a plane to Lima, Peru. I had to pay full boat. I paid my own way. Most employees can’t stand that, ’cause they don’t have any money. I flew into Lima, Peru. I went to look at three gold
mines, with Frank’s president. It was an experience, an education, I would’ve never had if I hadn’t shown up. It cost me probably 15 to $20,000 just for airfare on that thing. I get back on Tuesday to talk to Frank and I said, Frank, there’s nothing there. He says, I coulda told you that. So why’d you send me? I wanted to find out how
badly you wanna learn. He says, most people don’t have it. They want a job, they want job security, they want a paycheck, they want a 401(k). And that’s why they
don’t get to come here. That’s why they don’t
get to come over here. Nothing right or wrong, you know? I don’t ever want to be here. I knew when I was your
age I wanted to come here, but the higher the risk,
the higher the returns, but also the higher dedication, education, and study you have to go through. And I’m making millions and millions. I make more in a day than many
people make in a lifetime. But it was worth it. Did I lose? Sometimes, yes. But it was worth it. You go to school here, you take no risk. That’s why my poor dad was poor. He didn’t like to make mistakes. ‘Kay? – I love that story, Robert. Thank you for sharing it. – I’ll leave you one last word
that’s very very important for people to understand at a young age. And the word is called liquidity. The reason this is better for most people is because it’s liquid. You can buy a stock, you
make a mistake, you get out. You buy an ETF, you make
a mistake, you get out. It’s good, it’s important. The moment you go into real
estate, you’re not liquid. That’s why you gotta be smarter going in. ‘Cause if you make a
mistake, you can’t get out. You buy a bad piece of
property, you ride it down. And the same is businesses. You’re in there. You’re solid, you can’t get out. Rich Dad’s gotten in trouble, you know, with money and all businesses are. I can’t quit. Employees just quit and they leave and they run like little rats, you know? But if you’re in here or
here, you can’t get out. So that’s why liquidity is crucial. It’s very important, which means, that’s why I have Rich Dad’s Coaching, Rich Dad’s Education, we have
all our programs and all this. But most people are not
willing to do the study ’cause they wanna do what they love, rather invest and acquire what they love. That make sense to you? – Yeah, totally. – So stocks, bonds, mutual
funds, ETFs, savings, they’re good ’cause they’re liquid. You can make a mistake and get out. These things, hard to get out of. Including gold, gold’s hard
to get out of sometimes. Gold’s more liquid than this. Oil is tough to get out of. You make a mistake there, you’re gonna ride that
baby down, you know? Silver’s pretty easy. But the word is liquidity. The less liquid, the higher your financial IQ. You’ve got to be so much smarter. And most people, they have it. They have that ability to be that smart. But they’d rather do what they love rather than invest in what they love. Got it? – Yeah, of course. Thank you, Robert. And I also wanna give you thanks for sharing this topic on
investing in what you love, because I hope that this can be a guidance for every millennial out there as opposed to what we’re
traditionally taught in doing what you love.

76 thoughts on “THE BIGGEST MISTAKE YOUNG PEOPLE MAKE – ROBERT KIYOSAKI

  1. The biggest mistake most young people make is that they do not write self help books posing as experts on fields they barely grasp. Maybe if the had a DVD series on how to invest in real state before 2008.

  2. Stop fucking bragging , some of us are starving . You have a lot of money and what do you do with it? you fucking keep it in a volt , and come here and lie in to our face that you don't save and no one should . Whenever some of this type of people come to show you that you are wrong and they are right , and acting like they're your saviour , i call it satan.

  3. I'm gonna vomit if i listen more of this guys bullshit , i don't work for money , but i wanted to have a lot of money , everything he says contradicts the thing he said just before. Are you people blind?

  4. I bet his children watch this to find out what he's been writing about. Sick of Classes in history English-language

  5. He's not a billionaire …so stop listen to him cus most of billionaire they love what they do …….If you want to innovate or change the future and focus what u love …he's not the guy …..try Peter thiel ….bdw money is not always the way …it's the strong will that's take you what you want ….

  6. guys help me out here. I could invest 4 years in either a business degree or on a computer science degree. I'm interested in business more than coding but coding may come in handy as a skill. Which would you suggest and why?

  7. Jesus, this comment section. Not the type of people i was expecting to see here. Why are you even watching?

  8. What is this Robert queue for richman ranking? No queue at all.talk nonsense.
    Bill gate, Steve job, mark zukerbeg just can talk as they are real rich man..well this Robert is just a debtman

  9. I m a student in commerce. My question is that is accountancy subject necessary for starting a business.

  10. Love robert but dam, that girl is the most annoying, most fake, most robotic thing ive ever seen. Just hearing her talk like a brainwashed sheep makes me want to smash her face in. I know im not the only one. Fuck sake.

  11. To say Bitcoin was only a shiny object, is like to say, people who investet in Amazon are stupid, indifferent to the profit they make.

  12. "It takes no intelligence to buy bitcoin" correct! And it takes no intelligence to invest in silver, appartements and companies!

  13. In this Video i saw the real face of mr Kiyosaki. He is a selfish, narcissistic guy who LOVES to hear his self talking.

  14. That was superb! I'm so pleased since can pay up my monthly bills thanks to this site FunOnlineWork .Com (remove space)

  15. I feel lucky that I read your book in 2005 when I was 21. It made me avoid doing unnecessary financial mistakes and today I could build my assets in a better way and shy away from liabilities. Thanks, Mr. Kiyosaki. I would love to pass on this information to my kids.

  16. They just talk so damn slow.. what is the point get to it already. I don’t need charts and graphs even his book is slow he needs to spit it out.

  17. So basically get enough money to get an asset and from that asset get more assets and then get bigger investments/assets ………….

  18. oh I can relate 100% now. I was a drug addict for almost a decade and I am 67 days clean today clean and sober. I just reunited with my twin flame my soulmate the love of my life Jose Aguilar. He is a veteran a war veteran. He opened the door and Iraq and a bomb went off in his face. And it's so hard for me to go see him it's costing $500 and I just started working again. I was in a coma and God brought me out of it. God is good all the time. A month ago I was in the hospital I went to the ER because my blood pressure was 155 over 113. I've always had perfect blood pressure I don't understand why. But it's amazing because my man my future husband is my best friends first love. And he took her virginity. He also slept with my sister LOL. It's a beautiful story it's f**** poetic you know. I don't mean to cuz I'm just really excited about living my best life now. As soon as I can get $137 scraped up I'm looking in my couch for quarters that's how desperate I am right now. I'm asking my friends for help. But unfortunately life is hard it's hustle and struggle everyday. And we have to put on a mask and try to survive. That's why I did drugs that's why I drink alcohol because I didn't know who I was. I was trying to find happiness in all the wrong places with all the wrong toxic people. I've cut so many people out of my life I can't believe I survived surrounding myself with all that garbage and toxicity. I want to start motivational speaking I want to travel the world I just don't have the money. I barely have a home my home is falling apart my washer and dryer doesn't work. I don't have a lawnmower. We have to scrape money together to have our lawn look decent so we don't look like an outsider that can't afford to pay our bills you know it's sad. We're in the pawn shop. My mom will probably be mad that I am telling you this. But it needs to be heard. Too relatable.

  19. Whenever you listen to this, it seems to have an impact on you at once, but the problem is that it vanishes from a time. Youth today want to be entertainers and earn than finding it difficult for that long journey to wealth.

  20. I really want to know the answer in this simple question: how would i get that Big business if i born as a simple man not having that huge capital ? He also always saying that getting a job is for loser

  21. Olivia – Doesn't feel genuine when the correspondence is scripted. Feels scammy. Still filled with usable info.

  22. I bought my first investment property in 1997 for $65k, todays it worth around…$150k. Meanwhile, $180k invested in Amazon at that same time (Aug 1997) would be worth about $250 million (quarter billion) today. Let that sink in.

  23. I would take taxes if that means i do what I love for the rest of my life. I think some of your points are wrong and maybe a little confusing. I dont want to be filthy rich and look at money more than just an object, i dont need that nor do i want it. I dont want to love money, i want to do what i love and live off that for the rest of my life and maybe have more money than i need. But i think you're painting the wrong picture with some of your messages, if it isnt out of passion, it is not worth money

  24. This was high-quality! I am truly thankful because have the ability to pay off my loans thanks to this website PaidHomeEasy.Com

  25. If your self employed for let’s say, online marketing, and then use your passive income to invest into Realstate, isn’t that the same? You say self employment won’t make it, but if you invest into other assets and other income producing assets then what’s the difference?

  26. I am deeply grateful that our teachers didn't teach us how to be PARASITES in the society and be hardworking responsible citizens!! Guess what Mr. Genius if everyone followed your advice you wouldn't have a doctor to treat you when you're sick or a teacher to teach your children and so on…..and on top of all there wouldn't be anyone to rent your 6500 apartments!! Society would collapse if everyone was a parasite like you! There's a problem with the system that rewards the likes of you instead of honest hardworking people not a problem with our teachers!!

  27. You need to fix the sound quality of the video and it will be much better if you change the girl. There is a huge problem with her voice only on one channel (right) and it can be fixed with just one click but the video guy just didn`t do his job to listen the video before it is uploaded… like in the 8:41 minute – https://youtu.be/s7nO19BKNDA?t=521

  28. you are forgetting cryptos…… there is not only BTC….. it takes a lot of research to invest in the right crypto…..

  29. Hi, I was recently watching one of your videos and you said that you learned how to use debt and taxes. Can you please explain step by step with detail on how you use debt and taxes to your advantage? Thank you. I will be looking forward to your answer

  30. She need to put her hands down , talking about bit coins make your own coins just don't sell them in chucky cheese

  31. pat for social programs from rent fo real esate including hotels because the value is from people proximity…….lower gov spending 99% and deregulate…cancel pensions and most tax payouts, only have tax money goto defense cops courts and 99% less cash to cops courts do dirt cheap demand evidence or do nothign no more alimony or baby payment

  32. manufaturing and mass produced housing tax rent over 100 per room per month so have huge cheap dorms in middle of city and no mroe luxury hotesl etc…..

  33. These first couple of months in 2019 have been nothing short of blissful. i've been raking in profits and my bitcoin investment with Andrew Lewis maximum dividends. i wish to bring knowledge of his services to anyone who would be interested. contact him email:andlewis86 @ yahoo. com

  34. I have been here long enough to say that this is the worst video on YouTube, she's not even trying to think of a question

  35. Wow. Thank you for this knowledge. It was very informative. I would love to hear how attained your first big loan to start investing. Show us the secrets.

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