RICH VS POOR MINDSET

The most obsolete idea is to go to school, get a job, work hard, save money, get out of debt and invest for the long-term in the stock market. See, why would you save money when they're printing trillions of dollars? The gap between the 1% and 99% is massive. You see it's not just money, you have to step back and look at the bigger picture. So what do you do? In every one of us there's a poor person that wants security they want that steady paycheck. And there's also a middle-class person that wants security they want that steady paycheck too. But then there's also a rich person inside us who want even more than that.

One of the most important things you're taught in school is to get a job and earn a paycheck. Rich Dad Poor Dad teaches you how to become rich on your own by refusing to pay me my share of the profits. He says that taking a paycheck makes you an employee, and that's the mindset you need to have as an entrepreneur. So if my rich dad had refused to pay me, I would've just tried another business. Federal employees need entrepreneurs, so I wouldn't have been too upset if he'd left the country.

Entrepreneurship is a mindset and skill set that is needed to succeed in any business. Because small businesses operate under different rules than big businesses, the entrepreneur is not just the business. The entrepreneur is really the mindset and the skill sets that are needed to succeed in any business. Employees operate under different rules than small businesses, so the mindset and skill sets of an entrepreneur are different as well.

What would you tell someone who has never been an entrepreneur but is considering taking the risk to become one if you could only give them one piece of advice?

I suppose I'll just tell them what happened to me.

My last paycheck, which I still vividly recall, was given to me by my boss while I was working for Xerox in Puerto Rico. It wasn't a paycheck; rather, it was a bonus check, and the only drawback was that it was taxable and I believe it was around 30,000 dollars.

So when I received this check, I exclaimed, "Holly mackerel."

I was thrilled, but I was also troubled, you understand.

As a result, another man approaches me. His name was John, and he tells me, "You're going to be back." I questioned "Why?" to which he said, "Because you're going to fail."

I turned to face him and said, "Look... a few expletives."

Because he left Xerox, failed, and then returned, that is what he did.

I remarked, "Look... You failed and you returned, but I'm going to fail and I'm never coming back."

- Do you understand what I'm saying?

That's what you'll do if you say, "Well, if I fail, I'll go back to mommy and daddy."

Therefore, if you fail, that's when I started my own business because I lacked funds.

For years, I was indigent.

Yes, I was not receiving a paycheck.

But my wealthy father encouraged me to do that.

He claims that when you don't have this income, you become more intelligent and hungry, and it tests your moral character to see if you'll turn into a thief. Will you start being unreliable?

Are you going to steal and lie?

Or are you going to develop into a better person?

So in essence, discovering your true self as an entrepreneur is a gain.

when you are empty-handed.

As a result, you must always consider the big picture.

"Well, what's, what's going to happen to me?" is a question that far too many people ask.

When you consider the big picture, you'll also realize that even bad things eventually lead to positive outcomes.

However, you must be ready for whatever is to come.

You're going to lose money if you believe the next 20 years will be like the last 20.

You see, when you and I visit the grocery store, we purchase a carton of milk.

We constantly look at the expiration date.

However, the majority of people do not consider their brains' expiration date.

I relapse into debt rather than managing my debt.

I recently refinanced $300,000,000 in debt.

I made a fortune after switching from 5% to 2.5% interest.

Because my cost of money has decreased, I receive more money each month.

Therefore, while some financial professionals advise getting out of debt, I advise learning how to use debt.

See, the first thing my wealthy father told me after I returned from my service in Vietnam in January 1973 was, "Go to school to learn how to invest in real estate."

It wasn't real estate; rather, it was how to use taxes and debt to enrich the wealthy.

The poor and middle class go poorer because of debt and taxation.

In other words, all the wealthy men who work as lawyers, doctors, or other professions are getting ripped off, and they have no idea why.

They do earn more money, but their take-home pay is lower.

My physician just yelled at me while beaming, saying, "Oh, guess what, I finally made a million dollars."

Yes, this was only three weeks ago, I responded.

I responded, "Yeah, well, how much do you pay in tax?"

His words are, "$750,000 in taxes."

His earnings were so around $400,000.

That's not awful, but I only keep a million dollars when I make a million.

And the reason is that I don't survive by doing labor for pay.

See if you are taxed if you labor for money.

Consequently, Rich Dad's first lesson is this. Rich people don't work for money, thus poor dad.

As entrepreneurs, we instead start new businesses.

We aquire property.

I have no stock market holdings.

As an entrepreneur, I therefore have more control over my income, how much I earn, and how much tax I must pay.

tor.

Since I have a 4 to 1 step up, whenever I make, say, a million dollars as an entrepreneur, I immediately invest it in real estate.

So, after investing a million dollars in real estate, the bank gives me four million.

I adore banks because of this.

However, the banks are mistreating everyone else, which is terrible but beneficial to me.

I understood you to have meant that while printing is excellent for you, it's bad for those who depend on it for a living.

Because when you print, both savers and people who work for a living lose money.

Additionally, I pay no taxes because I am both an entrepreneur and a real estate investor. We produce outdated outcomes when we have outdated concepts.

So what's occurring is that most people are thinking about going to school, finding employment, working hard, saving money, paying off debt, purchasing a home because it's an asset, and making long-term investments.

It's out of date.

Since President Nixon removed us from the gold standard in 1971, when money became debt, the world has altered.

What would happen if we abolished education altogether?

Would a complete lack of an educational system be preferable?

Not at all; I'm just stating that education used to be more significant.

There is a law called Moore's law that asserts that information doubles every 18 months.

Alternatively put, everything has been outdated for 18 months.

This is a recent phenomenon, therefore.

Since you become outdated as soon as you graduate from college, I'm the old guy around my friends because I attended Harvard.

In other words, because they have printed too much money, the banks don't want your money.

And for this reason, there are bubbles in stocks, real estate, and other areas as well.

People are discarding their money.

Because, as I said in this article, "Cash is trash and savers are losers," people still say things like, "Well, I want a high-paying job."

That's an old idea, I guess.

Get out of debt; keeping debt is a bad decision.

You should get knowledgeable about debt. How can I utilize debt to my advantage?

And they won't ever instruct you on taxes.

Because inflation and taxes occur when money is printed, the 1% is way up here and the 99% are moving in this direction.

It is destroying them.

And every business owner who believes they will just establish a firm, make a lot of money because that is what we discuss

Man, they really need to stop and smell the roses.

You know, the real businesspeople don't operate like that.

There are 28 million small business owners in America, the majority of entrepreneurs.

There are 24 million sole proprietors.

Non-employee entrepreneurs are those people.

Because of this, and because this is what occurs when people don't fully comprehend what an entrepreneur does.

Since most people work for themselves, they are not true entrepreneurs.

Nobody informs the self-employed that they pay the highest taxes of all.

Yes, it is also known as the entrepreneurial spirit, but what we are referring to is different.

No such thing as a terrible economy exists.

You and I both have an external economy, as you are aware.

However, we also have an internal economy, and we have the willpower to change it.

I can therefore see both the good and the terrible, but I don't really care.

because I'll be wealthy regardless.

However, someone with poor personal finances

They will only be able to observe a poor economy.

because they have no idea how to profit in any economy.

A middle-class individual wants a decent house, a reliable source of income, a job, and a car because their economy is middle-class.

So it's a catastrophe when you take their job away from them.

An entrepreneur doesn't need a job, thus it's not a huge deal.

What Bucky Fuller taught me is all I'm expressing to folks.

You understand what I mean when I say that there are always at least two sides to every story.

In other words, if you believe that the economy is awful, it is because it is.

If you believe that stable employment is crucial, you will witness a jobless economy. You're economy

The internal economy and the exterior economy.

Where you have control versus where you don't, I have control Yes, it is referred to as an internal focus.

versus having an outside focus.

Since the true entrepreneur has an internal focus, they will say, "Oh, this is good because I'm going to go up higher," if they fail.

The typical individual will collapse and declare, "Oh, I'm going to take some Prozac," you know.

Or, if someone makes mistakes, it doesn't really matter what they are.

Mistakes are important because they show you were ignorant of something.

But a true businessperson can always rise, even if they fall or move.

They can rise again and ascend further.

that despite their circumstances, they have grown stronger, better, smarter, and happier.

However, a person with a weak internal mindset is one who is constantly afraid of what might occur.

In the same way that, you know, individuals who are frightened of losing their jobs typically do lose them.

- You understand what I mean, thus everything passes through you, without a doubt.

So the first task of an entrepreneur is to maintain control over the present.

You become an employee the moment you accept the payment. You must be more resilient than that.

It's all about internal power.