Transcript for 'Real Biz': 20th anniversary of 'Rich Dad, Poor Dad'
I am EC news's chief technology. Scores on it here at my office for real is Rebecca Jarvis. An incredible guest with us today welcome out. Thank you I'm honored to have you'd been outlined in selling. Finance book of all time written by this guy's Robert is Saki. The book he has he has a number of books at this point at this originally written twenty years ago reached at port at you're now updated it. Correct to the current era because so many things in this twenty years badly written about what 25. Two dozen additional books overtime. More important than money for Gore's team. And why the rich are getting richer I think that's a question a lot of people are asking. You're answering here with real advice yes let's talk about this last couple of decades. And what has changed in your thinking and we of the world and in the way. How people can better themselves. Well I wrote. This book rich dead poured out because I concede this crisis coming which hit around the year 2000. Social came out in 1997. And it was kind of a risky shot because the knife united seven economy was booming. And that knowledge and those kind of struggling and people trying to recover. So this book has not changed at all I just change what has changed the book states to say so it's what it's an update. So this is elementary school this is elementary school out of it became. Funny as there this book was coming out and a couple weeks is call the why or why the rich are getting richer. And what is financial education. Really. And that's. Just two books. I want only is now we are also taking questions so if you have a question for Robert let us know obviously. Robert you spend your time all over the world as a motivational speaker. There yet here phenomenal podcast people are. They're going to you for your kernels of wisdom let's talk about why the rich getting richer and what's and that's why. Tell the number one thing the number one reason why the Richard getting richer and what people out there can due to pack it left me. Well I think the real real question is what is financial education rarely and he. And for most people when I was growing up it was caught a school get a job work hard save money by a house get out of debt investment. The dust 41 K. If you look at every single one of those things that really doesn't take much education do. Like a takes no education to save money. And it takes not much education of a 41 K. Order diversify and all that. So. What this book is this is what. I have to Lar. And my education began as a nine year old kids of those raising my hand and elementary schools they pay one dollar about money. Huge. Yeah the and the teachers what went on picture about money. I isn't shocking it is and not allowed a local book I'm I'm glad you did because I alleys. As somebody who I worked in this industry now for twelve years. And my mom is a financial journalist she's a personal finance columnist and she was the one talking to be about money can't but it always. Astounds me how little information is known and you you made the point about you know you know to outsmart you save money or put money into formally kick. Still the number of people who aren't doing those things they're not experimenting. It's it's tiny amount and since the financial crisis that number has gone down even more. Correct and I am on the old guy among among baby boomer. And 66% of my generation earned trouble. And the works for hate to say this but there are out of time. Yes you the most valuable asset all of us have as part time. So I cut our wrote this book care because what why what is financial education is that what. You have basically three classes of people war. Middle class and rich. I hate to say at the middle class and poor relatives serve Schobel and middle class is shrinking. But the rich keep getting richer. And what makes me a richer this financial education for example. I use debt as money. Use debt is not about how do you have nobody. You know that's why should. Get educated before you do right okay Kelly you're saying that you have to people sometimes we'll hear debt as money and let me thank all well. OK well if Roberts at that was a good idea I don't go into debt. Obviously that debt especially if it's high interest debt. I'm credit card correct or if you're putting that into something that has no shot at ever paying back. Is is a really bad. And that's financial education because look at Dave Ramsey is a friend of mine and Gillis of love death rate. And I'm of the other side of calling looking like a whack job. Send in us interest rates dropped in 2008. Yup I borrow 300 million dollars. 300 million song I'll just Lockett to a bank it. Asked ahead. Today because. Yes. Don't do that. So one of the reasons people like me getting richer as the person is trying to save money and and guys like me are using debt and so I don't want to I don't recommend doing what I do I just think people should know. The differences between what is real financial education. And what his thing and the other thing that's as you know. Mitchell pay tax. As because they have great accountants and there's so many correct and it's sad correct. But because. What I and best and the government allows me not pay tax on and so but also some of the things I write about look at and like not a most popular guys president from product of friends. With the same ball cut. When same. People we use realistic when used that we don't tax. So if I wrote this book here whether rich getting richer not to encourage people can do it. But that give them another point of view of seeing this world of money and select you know when Barack Obama ran against Mitt Romney. For us Obama. Paid 30% taxes me. Romney got crucified. Because only pay twelve points. And and and and sort of people asking well how does a guy like Romney pay less than a guy like Obama people got very angry. And many people say Romney lost the elections office. And hop. Preston trumped by the usually tax returns and because of such a ball such. The subject and people out there we're getting some questions Taylor has a question. So pat just for people out there couldn't hear pat wants to know the inherent value of gold in building wealth. I love gold I sort of investment goal in 1972. As a pilot in Vietnam and that's why so the price of goal goal from 35 about 78. Now some big spike you know almost 10100%. My aunts I got curious about gold. So I in fast and call because that's real money. And if you look at long term while expressing European well. The Europeans have intergenerational wealth like thousand shares. Because all is where else goal. You see it as a store of value. Yeah when you look if you look at people for what and I don't isn't passed that's okay efforts. OK so let's I wanted to ask you about that so what are you clarify that because. When you look for example the stock market you can look at a certain span of time and look at the stat stock market and goal. And sometimes gold is going to outperform the stock market but if you look at it. Over a lot of its period of time traditionally speaking the stock market out performs. Yeah that's not the case here in it has different games right up again in my place got it like people out there about bitcoin while I'm I'm an old guy. Here's an announcement by epic fight now I don't understand it I'm just telling you that because of using so much debt Somalis hedging vehicle. That's so I have a different strategy. I love gold by the way I recommend people take some other things and Whitney's son. To produce. Just I just get as much as I can at the price drops and despite some more. More questions yeah. 00. Chris like people get their financial matters. An in school. That's very good question literacy depends upon what they look who wannabe or middle class or rich. Other sleigh if you wanna be a rich you have to study. Harder. Or study different subjects for example 83% of all Americans think financial literacy means saving money. And if you read wrenched at Puerto that's savers are losers. The reason I say that that's because the banks are paying 2% interest today inflation's floating at 4%. So no matter how much you saved a loose in 2%. And so four person like me it makes no sense now if that's the best to contingency money. Well and and again I want to come back to this idea of bear and you spends money if you're taking on debt. We are you spend that debt is what scriptural. To all of this because it's not a ballot. You know beaten napping is seen her in going out just saying blonde and a blow it all I'm sneakers and T shirts and whatever else at a new car. It's about using that money to. Improve yourself in for your job prospects. In content. Other areas of your life a kick and asked my wife you know one you're bored of it when I met my wife you know issues. I realized tells falling along with her she's just as she's gonna excerpts about her. So most guys give her girlfriends and jewelry air trips themselves. McKay my wife and accounting course. Actually coast. As. It's if you wanna play play put me. Counting whose major you have to understand financial stakes semantic. Well but now what if you look at her home. You know how well off and but most people don't learn rich at port it to space in the book and accounting at all. Income statement balance should stay in affect cash flow. So it's through the level of your financial education determines your returns. And it's a good thing most people are trying to get a Catholic and while buy low and sell high. That's not my game I want colonies yet. And I want to use minimal taxes. And have cash flow come from that. Animal taxes holes. So the reason I wrote this book here not to encourage people to do it. What to make people more aware. Of how the game is being played really been plays that's like and it was not most popular guy but prop as my friend. It's our game. That's how the rich really play that game. More questions. Here. Asking for a after this something that after the thump and a puts money in your pocket whether you work or not. So for example. My name and residence as a liability. Here and those were a couple of million dollars. Because every month even though has no debt on that it cost me money and maintenance upkeep taxes. Whereas the apartment houses which is a 100% debt to apply. Those apartment house was always putting money in my pocket. And on top about that kind of debt coming from realist there's no tax. I I completely out announced. IL I wonder if you or twenty years of weakness. Well even more than that but twenty year since the book. Do you like it questions have gotten smarter do you feel like that masses getting more or less today than they did when you start it. That's a tough question to ask me you know because what I love is love somebody comes up to balance on a plane goes coming over here in New York woman says. I never thought I could do it don't treehouse is now and one shoeless and and two shipments I have connected to it. That's what turns me on this when you kind of a shift in your attitude your point of view your mindset thing. So some people are getting it the reason I really appreciate being on your show here. Is that when I first started out you know where people were and the 41 K mindset. Everything I suppose blasts. Enriched at port atlas which don't work for money savers alone serves no house and missile. It was. Just like Bill Clinton. Announced not a house. But then the market's crash in 2007. And everything I said came true and in frustrations plummeted after 2008. So I just kept buying and I kept borrowing more money to buy more real thing because interest rates are coming on the cost of money was going to. For the people so. In the case for example a lot of people managed trouble in two or 72008. Week high they went out. And not interest rates were relatively low as low as they are today but went mortgage rates were relatively low they went out about real estate they. Purchased apartments and thought they could run and how great purchased. You know foreclosures and thought they could turn them around panel of people lost everything because the Margaret didn't go their way. Correct. And that's why would they were helium -- say take real estate courses take stock courses. If got a fresh investor at this moment. And that's what I make no money on any investments adults all investments. In the money I make my books goes to feed my company to pay for my employees to work. I don't need the money. But Wendy we do need financial education. And that's what's so this is what the Richard. And I encourage people to invest and this first before they invest that money unfortunately as you know most people don't. Whittier early jobs was you raise your acts salesman correct and you created a company that created velcro wallet. 44. Or worse. So your entrepreneurial from the early stages. Correct. Correct I mean. I got a job it's Iraq's because I'm extremely shy. Really yeah. And Alice a marine pilot come back from Vietnam and it's okay that the marriage that meant my report wanted to get my MBA. Right you know and then I think I don't think that's not work for me. What leverage does for us that the member Michelle wannabe and arch Benoit so it's gonna sell. And you know my family my family's all my poured. Academics. And Seles a four letter word and outside Crennel I don't wanna sell them I'm Fred you know I don't like rejection. And emirates to its that the missiles while on July of life. I threw easier because you can't tell. I haven't they will buy heard it. Okay we're getting great but okay. I'm asked that question all the time but this remember I'm an old guy. And I don't know anything about bit clients I'd rather not say anything I don't know anything about I've heard good things and bad things. But like anything else solace in the same same responses if you're interest study at first this lot of great information on the web. About anything you do. And then find out somebody was really successful at a person summit selling him the bird. Yet and may make that clear how do you differentiate between the charlatans. Or try to make money out of something and that's why they're selling vs the ones who have. We'll put that old saying if water frogs. No RA. To Neil asked about investing be beyond our case and plus. That's a very good question the real question of how how far do you wanna go if you're happy when fellow classical for a one Cahill probably catcher. But I didn't wanna work all my life I wanna to be freight. So away you know my wife was 37 and should never have to work again knowledge for its summer about the work again without that we don't work. But we didn't have to and so when I when I said a young people is that at what age do you want to be. Way and no longer need to work it doesn't mean. You don't work. It means you no longer have to. All it doesn't mean in my opinion can I do what my Ian MacFarlane K I have been putting money in my borrowing pain he said early on. In this conversation sign is your best friend. So starting early. As a habit of putting that money into your 401K. Means that you have that security blanket and safety net because. Doing some of these riskier things they're not always been a pan out for the best putting money into a 401K. There's going to be up yours and down years but over time historically that's gonna return something like six to 7% year over year. I haven't seen it but it's possible it should that's an opponent to be both respectful. I can get an infinite care. I mean things have put no money into a deal and I get money out that's infinite. You're in a position to do but it took me years it's exactly and that's all I'm saying so the question is. When I talked to young people what you love going I say. What you want out of your life is what you put into your head almost that's nothing more important as your education unfortunate not taught in schools. So you gotta be careful we are teachers. That is probably number. You know you have a poor person teaching area public record vice. I often ask people my favorite question is what's the worst advice you ever make and what is the worst advice you ever. I don't really know that at any really worrisome place. Because I've I've first sought out my teachers first. And the teachers aren't selling at fights you know I mean and I'm not real religious but those of one of those stores about the Bible was three wise men. Words seeking. Star. And not religious but I'm saying a wise person that's all seek. And it there's an imperfect I don't ever stop learning and asked my my wife and I we're always studying Rollins learning. We enjoy what we do what we also looked teaching. Because both of our fathers Meyer my father and my wife's father or fire. That career. And that affect them really really really deeply when I met my wife. I asked her what she wanted to do purchases vicious 124. All Juan. And so that can't determine what we have power. That's I think the same thing the young people what do you hope party one goal on life financially. And hand and then we teacher whom. This question kind of relates to that time. Are being asked how would you recommend starting to learn how to sell as a freshly high school graduate. When acknowledge gunshot depends on a level of threshold or rejection. I have also I have low sulfur is taking stuff. It's it you know you can atop an us retail stores Salerno take known face to pay. And just practice that yeah because. Eventually becomes a number one's skill is how willing to communicate another human being with a very important skill but you'll self esteem of a lot to do. And I think it's a great question arena your recent high school graduate sounds like adults earlier news star the easier it gets when the stakes get higher. Yeah I thought the Girl Scout Cookies with those and ethnic. I come out of and moved him out of Safeway and his little girl scout Phelan is something that elects a Jewish market panel bites. Pretty pathetic that experience. Kept asking about national patents. Loans thoughts I think it's absolutely criminal that we charter students so much money I just think. Going to be disaster we paid more for another fifty years then. More than a trillion dollars in student debt right now they're eager student debts outstanding than any other type of debt and around what type of debt that. It always follows you can file for bankruptcy you still have your student debts to pay out which way you got it the worst thing they could to advocates. So what do you think what you recommend for students there's a lot of kids right now lower. I want calling kids anymore here graduated from high school you're thinking about your next year or are already in high school and at college. How do you think through that at this. Well if you're gonna have a Kimmel X two no loan debt the worst thing and it was drop out school. Yes you know if you yelled complete the process. And usually you get a degree. Yes and that there's three types of education young people have to have today. Number one as academic reading writing arithmetic. He can't do that. Discusses the by second as professional education. The doctor a lawyer something with a license to. Real estate Asian massage therapist something you can earn money certification yes yes and then Korea's financial and that's where I stepped down. And that's Russo wrote that whether rich are getting rich as she understand as a whole other world of money. Outside the middle class well let's play. The young prussian should decide to under rich poor middle class and at what year do I want to be free. Because that's all I asked myself like here to a wanna be free this. Site I don't ever have to work weekends likened to what I really want to do. And with important questions every young person's path. Eric says that retirees get anything more than a few percentage points on their fixed income annuities. Yep fixed income is a tough area if you had your money in a bank account them. For the last ten years you're getting paid 0% basically their CD's. Patent almost nothing as well. I don't have it much advice for that because again you have to invest time and your brain and who to figure something out. If you're not losing money that's right now pretty good first rate duet it is better than than. Taking a big gamble and losing that's that's insane. And for young people old all of us number one asset we have a short time. So I speak to young people overly happy a high school professor question us because I felt down many times. But I had time to stand up. When there are over 65 you know how much I understand that topic and that's why time actually becomes your greatest asset. So if you're young start young. And could. Make a decision which wild life I just didn't wanna work for the rest of my life who worked hard. But I don't want to need to work to prepare for me. He. Question. Now but. Lowering costs yeah. That popped my book again it here every day it hit now and here. That is called rich dad TVS. And that's that's like a Ted talks I have ten like Ted talks because a lot of people learn better from TV of them rating. Those rich that it is afraid. You know and he'll listen to my. Guys that I actually listen to ward might future. And the last example if I don't along Miami. Below year apartment. But what I mean by about it. Alas example. I want to buy porch. Now the first and the wife but say you can't afford it right but my wife doesn't exactly definition if you and vast first. And you can crate the cash flow of the income. To afford the porch you can have pork. So it's just a mindset how you you for a squash what's announced a liability. And most people buy liabilities first. What I was taught to do was buy assets for so and this book lesson number ten. Is how I bought a Porsche. By buying a little mini storage first and the mini storage paid from my porch. And the porch was paid off I got tax breaks all over the place because of it. And then. I still have that many historic and still making about 3000 a month income from a mini storage proportions paid off. So I got richer because nice Porsche but now I have to Ferrari's they come out want something new. My all my life's lessons go find an asset sly dig around for a while I'm by and that's. Do you ever worry that that message. Well works for you and left somebody is executing. To the degree that you have acts X and Q. That it could send somebody on the complete opposite path that rather than being able to afford the porch. Instead they're deep in debt they have an asset that isn't paying off the way that they expect it and they can't make payments on the home. That they needed to make payments always that or the port exactly exactly. That's salsa it's and that's why you don't I don't I don't sell anything. I just really recommend. That people invest in those perks that that's why I appreciate your shelves and all this because the people or. Our low are feeling ill are actually interest Hank. And that's the most important things have to be interest yet how many people are not feeling they show the once I'm concerned about who read my book and go to some of those stupid. There were questions. I'd like that question Allen and so which double causes the next crisis. I don't once that OK first of all what do you use you do think there's about when student loans you think it has pulled out all over the place right now technology. Where else. Mark Lester got. An and how much do you think that it is a is. Results. The vary 0% interest rates Angel you and many others in your position to bar out. If if you what made me Richards spent the rest of the country Chris. That's right. Let me play elections right kidnapped me very rarely for you to borrow at 0% interest rates right where in my neighborhood that's my concern. Is your concern there's other guys get wiped out and that's my concern. That's why a right that's why I do what I do. But I also warned people. Questions solved balance we're sitting on the biggest bubble in world history. You know when the doll you know when the dial crash in 1920 when there was that big to Dallas is hot it's Africa and its high. And with at three crashes in a row since 20020072000. Nate. And this next one also worked ten years into it we're now in for another crash which ones book crashed first idol now. But what that person was asked and so is and I. Com talk to people out there be careful right now be very very careful in Amazon's thousand dollars rightly attacked about the second morning America today. Is that good news or baton peninsula depends you know. If you're getting and today it's that if this if you got in at twenty dollars has got here is very happy today yes yes it's all relative. But there but that's the that's my concern. I'm concerned that my generation the baby boomers lot of them all not good cleaned now. Basra because of their time tying yes. It. Which. By the way. Reminds me a little bit about this but I brought it more important than money and entrepreneurs team yet so how do you come up with a business plan and strategy. Well please get this book her. I don't I write this book isn't my advisors. I don't. Those poor middle class and rich rich don't have an excellent buys. We accountants attorneys and it's different ways of the world's will be is somewhere real allies. They're not adults older and wise and all that they are real guys so on the back of homilies debt. Next taxes. Now how to market you know things like this. But both those skills have let's which are. Over. Our or for any organization correct where you are you're not thinking about building something with your work. I would I would start and I can't pump a book because I'll make Obama for this book. But I. We write all my friends and I write these books because. We have to have education. Not necessarily schools or it's too expensive schools that might. That's. I have a friend whose son dropped out of school of the three years of college and now he can if people that we can find jobs. That's the worst possible situation yeah so he starts from behind everybody right now. I think it's criminal probes of schools don't teach money but that's much much. That's what we're trying to do right here F that's actually doing with your career. Robert Sasaki thank you so much for joining me thank you speaking with you rate questions to all of you remember you can find. A lot more contact like this here on FaceBook ABC news dot Robert people find more about you leveraged at dot com please remember. You have it inside if you use your job to bring it out. Great advice they skies have a great day.
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