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.

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

  1. 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.

  2. 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

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

  4. 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.

  5. 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

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

  7. 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?

  8. 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

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

  10. 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

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

  12. 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

  13. 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…..

  14. 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

  15. 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

  16. 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.

  17. this tutorial brings to everyone a big lesson about life … just be humble to learn and your life will change soon or later

  18. Thanks a lot Mr. Kiyosaki, only a few people understand and follow your way of life, and in this way it gives my business vitality of sort out of their unmindful EXPENSES!

  19. Quickest way to get rich without any assets is to come a world famous entertainer and then invest your money in real estate

  20. This explains why my friend's mentor has had 25+ businesses. He looks at what he is interested in. Creates a business in that niche. Enjoys it for a bit, sells the business and begins again.

  21. Love this Stream.. The only issue is ethics.. When you sacrafice right and wrong for results. such as most Tech companies now look at bottom line dollar over values then you sacrafice your soul to make the income.. I believe there must be balance and limits.

  22. Love this Stream.. The only issue is ethics.. When you sacrafice right and wrong for results. such as most Tech companies now look at bottom line dollar over values then you sacrafice your soul to make the income.. I believe there must be balance and limits.

  23. while I agree with the shinny object theory I think btc was a bad example. As much as those in control want us to believe btc is a fad or a bubble they are wrong btc is a solution to ending the control banks have over our capital by putting the individual in charge.

  24. This guy is a total and complete fraud, and is constantly lying. That's what makes financial people among the lowest life forms on Earth….they always charge something and you get nothing! The duplicitous nature of the banksters and wall-streeters cannot be equaled, except by politicians.

  25. i don't know much about what i love but one thing i know i love is to make money through building assets. That's my passion

  26. biggest mistake is listening to a bullshit artist hack like Kiyosaki who wrote probably one of the lamest piles of shit ever conceived.

  27. I'm 24 and I'm poor, for now…
    I'm learning because I don't want to work for money, I'd rather have it the other way around.
    I love technology, except technology is something you constantly have to work on for the field is ever changing and evolving with new components as well as techniques. Although I'm new to the field I love tinkering with components and looking at waveforms finding out why it happens(math involved).
    I've learned that everything in life comes by with two crucial decisions(your choice) one must abide by in order to do something(anything), and those are: Sacrifice and Compromise.

    You work for what you want.
    Work is either learning something or doing something that takes time out of your life but it can also be doing something you love as a hobby.
    Getting from point a to b is work.
    A to b can be anything moving from present to future for anything that occurs is in a linear fashion.

    You sacrifice time for a new endeavor.
    Compromise is always there, we have to communicate with other humans in order to do many things such as expand on an idea or generate a bigger social circle.
    Everything that occurs in life is an opportunity to learn from whether from a failure or a success.

  28. im 16 years old and i know what i want to do, i know i want assets rather than liabilitys and school doesn't show anyone how to do it, yes they show you how to count it, add it, and subtract money, but not how to make it "work hard and save your money" that is bs.I know how to properly manage money and other things but on how to start my own business, not sure how to. Im really interested into investing in real estate but how would i get started?

  29. He forgets her name and calls her Olivia at 14.14 but introduced her at the start as Alex LOL. Not very good that…

  30. How about we get a little bit to the ground without all these real estates, bitcoins, amazons, facebooks n shit.
    Do what you love – bake cakes, make hot dogs, craft beer or whiskey. You sell your product, you make money.
    Invest in what you love – invest in cakes, hot dogs, beer whiskey? How? Buy shares at some local cake shop and pray for dimes in dividends? With what? You have no money in the first place that is why you get a loan and open business. Some people are content with making cakes and hot dogs and that is perfectly fine.

  31. After reading Rich Dad Poor Dad, I felt that this concept of career was not at all addressed so this video sort of fills the lacuna. However, it would make sense if Robert would say one sentence; "You can be an investor, get wealthy and practice your career with no income but just pure passion"

  32. Great insight, but not everyone can own real estate, or invest big, there has to be money first to make money. What if everyone has a big company? you would not have any employees.
    In fact he is talking so bad about the other people that do not go to the B and I section, but what about his own employees?

    Its like today almost everyone goes to the university getting doctor degrees, well good luck finding anyone to work for you if we are all managers and ceo.

  33. A “bitcoin” is not a shiny object. It’s literally nothing. Put a bitcoin in your actual physical hand and tell me what it looks like.

  34. The girl is stupid! She pretends to know what he is talking about about. Change the host! Get someone young who actually understands.

  35. Mr Kiyosaki only advocates on making the biggest possible amount of money. It gives the impression that's all that matters. The be ALL and end ALL. Good gracious, is that what life has been reduced to? Where is the element of not losing one's health, integrity, happiness and contentment come in? It is all very well wanting to achieve a certain level of financial freedom but at what cost? How does it tie in with one's billions of dollars amassed (and not getting taxed for it; hurrah) and what one's life purpose is. If it's just to get rich and richer then one is missing something. It is not wrong to work towards financial success but this talk is bordering on the abandonment of other attributes in the human life. Hmmm ….. an extremely biased and unbalanced view.

  36. My dad and family tell me not to worry because I’m still young but I ignore them and I’m trying to work super hard to be successful I’m working right now, have an amazing relationship, and I workout every day and my physique is amazing so far. But I’m not happy where I’m at I want to do more I want to get into business and I want to be really successful. I’m about to get 16 an hour at a new job at only 18 so it’s a good start to help me build my own company and to get married

  37. Don't really agree with the bitcoin also the way she's looking real estate is a shiny object for "Example:You get a property worth $500K vs This other person getting a 60K property That 500K may look better and has all the bells and whistles but that 60K will overall sell faster"
    So Bitcoin Is A Risk as well as a real estate investor She just didnt understand bitcoin

  38. He says he gets passive income, from somewhere presumably real eatate. Aren’t there property taxes involved there along with all the other pitfalls associated with owning property?

  39. He is a great teacher though. The girl seems clueless about the lecture, this can spark an enormously educational conversation. She is super lucky to even be near this man, put some personality and enthusiasm into it dammit.

  40. Mr. Kiyosaki, in another video, you were saying that you support diving into a passive income because it is not taxed. With that said, do you promote trading in the foreign market?

  41. Love it, cracks me up! "Frank, there's nothing there!", "I could have told you that", "How bad do you want it?" I"M LAUGHING SO HARD!!! Robert you're the best. Glad I discovered your videos! This is why I broke out of the box and started my business. You inspire me to do more!

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