🛒📚 Book: Rich Dad's Guide to Investing
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🛒🇪🇸 Cashflow Spanish (Español)
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🛒🇯🇵 日本 https://amzn.to/3bwnDcN
🛒🇯🇵 日本 https://amzn.to/33KO2Rg
101では主に株式市場が上向きの時期を表しています。
予備基礎知識としてプレイ前に、著書を通じて
①著者が示す「富」とは具体的に何を意味するものか
②著者が示す「金持ち、中流、貧乏の違い」とは具体的に何か
③著者が示す「金持ちの定義」とは具体的に何か
④奴隷制度が現在の給料制度に置き換わった背景
⑤徒弟制度が現在の学校制度に置き換わった背景
この5点を理解しておくと良いです。
===========
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⏩ Rich Dad Poor Dad: What the Rich Teach Their Kids About Money, That the Poor and Middle Class Do Not
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💻 Create Amazon Business Account
⏩ Listen Music on Amazon Music
[Transcription]
hello my name is robert kiyosaki
and be off of the book Rich Dad Poor Dad
and also a creator of the board game
cashflow so I want to thank you for your
interest in the board game cashflow as
well as this new electronic version of
it when I am asked why did I create this
board game I created simply because I
wanted to be able to find a way of
teaching people the same important
financial literacy and financial
intelligence lessons my rich dad taught
me I had to find a way of compressing it
making it short making it fun to
compress basically 30 years of education
into one game board so I'd like to
explain why it was created and also the
two main lessons you can learn from this
game lesson number one is you'll learn
how to be an investor today all of us
need to learn how to invest especially
with these flaky 401k and these risky
mutual funds and the stock market going
up and down we all need to learn how to
become investors on the board game
cashflow you will learn what very few
people learn you will learn about the
four different levels of investor level
number one is a small deal and that's
where most people should start at was a
little boy I started investing in small
real estate and small stock deals level
two is the big deal as you get more
money and become more sophisticated as
an investor in real life in it and on
this board game you do go into the level
two which is big deals the third level
is a level that the rich invest in this
is called the fast-track the 1933
security Exchange Act
defined that only the people who are
rich were allowed to invest on the fast
track you had to be a millionaire and
the fourth level is cashflow 202 which
is which uses the same game bore to play
that game
cash for two or two is what the
sophisticated investors use is called
technical training how to use insurance
when you invest how to make money when
the market goes up and the market goes
down so those are the four basic lessons
about investing you will learn by
playing this game for lessons that most
people never even know exists four
levels of investment that most people
have never heard about so by playing
this game you will learn how to be
investor how to be if you'll be
introduced to the big a really complete
world a complete whole world of
investing that's one of the most
important things you'll learn from this
game the second thing you will learn is
you will learn how to use an income
statement and balance sheet in the words
you'll learn to understand what
accountants know this year's income
statement this is the balance sheet my
rich dad said if you want to be
successful in the world of business and
investing you had to be financially
literate and a financial illiteracy
financial literacy begins with this here
my Rich Dad also said that you know his
banker has never once asked him for his
report card his banker never asked him
if he had good grades or what school he
went to he says in the real world once
you leave school what your banker asks
you for is your financial statement so
the two important lessons you will learn
from this game are one is about the four
levels of investing and two the levels
of accounting given all the check all
the problems we've had the stock market
lately you'll realize that many people
many of the analysts were giving bad
financial advice because the analysts
could not read a financial statement
they could not see the big companies
actually lying and cheating the
investing public so that's why I created
the board game cashflow two main lessons
one the four levels of investing and two
the importance of financial literacy
whoa is the only game that teaches you
both lessons in one game that's the
power of the game that's what my rich
dad taught me and that's why I'm excited
about you taking a look at this game for
yourself either talk to you about the
difficult or the degree of difficulty
ingrained in cash flow - OH - some of
you now I began designing the cashflow
boy game around 1994 and initially the
whole board game was 101 and 202
combined and the problem was when people
got together to play that game 101 and
202 unless you were very sophisticated
investor who understand fundamentals as
well as technicals he couldn't play the
game so we broke the game's apart
leaving 101 as purely fundamental and
then 202 is fundamental plus technical
the reason we made it this way is
because it is more real-life as we all
know markets go up and markets come down
anybody tells you that they're hoping
the market goes up they're actually a
dreamer or a gambler or a speculator and
I hope markets go up but I'm not
counting on I think market can go up
market come down I make money either way
and so that's what professional
investors are looking for on top of that
professional investors actually like it
when the markets crash because things
are at bargain prices you can go in very
easily it is the amateur who thinks only
in market trends going up they get wiped
out so 202 is a lot more difficult
because not only do you have to pay
attention to the fundamentals cash flow
capital gains now you have options the
markets going up trending you have
markets coming down trending but you
also have shorts in there and all this -
o2 is more like real life - OH - if
you're not that bright you can get wiped
out in a split second and you get
everything taken away from you as many
people have especially lately in the
Asian crisis and the Russian crisis and
things like this well they even the New
York Stock Exchange in Nasdaq crash
between 2000 and 2003 so the power of
2000 and of the power of cash flow 202
it is a combination of fundamental and
technical it includes accounting it
gives you options insurance it's higher
risk which means that you have to be
smarter this is not just a game this is
the game for real this is the way the
real markets of the world are played and
what you're getting into the fundamental
and technical skills so that you can be
a much better professional investor in
the real world so play this game a lot
the more you play this game the smarter
you get teach it to more people and the
more people you're challenged the
smarter you get you'll not you'll never
be afraid again if markets going up or
markets coming down because you won't
care because you'll make money going up
as well as coming down so welcome to
cash flow 202 the electronic version
also welcome to improving your the
journey to your financial freedom here
and one way to get to your financial
freedom is to increase your vocabulary
or your use of financial terms as well
as financial tools and vehicles for
those of you moving up the ladder or
becoming more sophisticated a very
important word or part of your financial
education is how you use options I
absolutely love options so many people
think you know you have to invest for a
long term buy you hole you diversify
save money it's that's kind of a very
expensive way to do business the more
sophisticated you become the more
knowledgeable you become the more you'll
want to use options now many people
think options are primarily in the stock
market that is not correct we use we use
options in real estate also you know a
down payment is often an option they say
you go up to a person you say I'm going
to put $10,000 down and you now have the
option to purchase this property and if
you find bank financing off of this but
an options options are use in everywhere
same as in insurance
you know every time you make that
monthly payment on your life insurance
policy that's an option to the insurance
companies betting you're gonna live a
long time and you're kind of betting
that you got a little bit short time so
that's also an option but the option
that we'll be covering more importantly
in 202 are the options in the stock
market
and this here is one of the fastest most
volatile most exciting most fun but also
the most dangerous investment game you
can play so that's why I'm glad you're
here for cash flow 202 because really
what it is is about options use of the
stock market puts and calls basically
that and if you learn learn how to use
puts and calls you won't care if the
stock market goes up or the stock market
comes down because it won't make any
difference to you you can make money
going up and you can make money coming
down and that's one of the power of
options you're not afraid of losing as
much money as most average investor who
are investing for a long term buy whole
diversifying their accounts are so
afraid of losing if you understand
options options aren't like insurance
that means you you won't lose the whole
thing if you lose you'll just lose a
little bit so options are a very
important tool a very important part of
your education and a very important
thing to use on your way to financial
freedom options are very important so
welcome to cash flow 202
[Music]
okay going back to the idea of
professional investors don't care what
markets go up and markets come down you
know go into that but I want to
reiterate one more time when I talk to
people and say the markets gonna crash
the girl oh I don't care what stocks or
real estate or whatever you know they're
not a professional investor because a
professional investor doesn't care
they'll make money going up and they'll
make money coming down so to be
professional you need to have two
different strategies and minimum
possibly three strategies depending upon
the markets as to how you handle the
trends in the market place so let me
give you an example let's say the
market's going up which what most people
like the amateurs love that the
professionals like it and all this at
this point you may just buy the shares
of stock or you could buy an option like
a call option as the market trends up
most people love these types of markets
but as we had you know up until the year
2000 this went up and up and up and
suddenly it couldn't go any higher
and all markets come down there's always
booms and always busts
so that's why professional investors
know you need to have at least two
strategies so when the market started to
get choppy or choppy right around the
year 2000 the professionals shifted
their strategies instead of buying some
of them went into what's called a short
position so meanwhile while the amateurs
were buying holding and praying and are
taking laps around the bean saying oh
please keep the market up the
professionals went short and what a
short means is this let's say the stock
is at $50 here to make it simple what
they'll do is they'll go to their broker
and they'll actually say sell me 1,000
shares at $50 now this is the trick
they're selling 1,000 shares of stock
they don't own another parlance is naked
they're selling something they don't
know so the though so they sell 1,000
shares at $50 the broker deposits in
this person's account $50,000 these
shares are borrowed from another person
who's just holding the money
there are holding the stocks and they
were in their account and let's say this
professional investor is right for that
day and the stock plummets on down like
a horse falling out of a window and then
the reason they say that you make more
money in a down market is because it
takes a long time for the bear to come
the bull to come up the market but the
bear goes out the window comes down
really really fast so so meanwhile the
people that are hoping and praying the
market goes up they're caught
the bear goes out the window it starts
to come down and let's say this stock
now hits twenty five dollars it's down
what this means here is this this person
who went short goes back in and buys
1,000 shares at twenty five dollars so
they put up twenty five thousand dollars
of their money and then they replace
those shares into this person's account
who they borrowed the money from so what
they make is twenty five thousand
dollars profit and minus some fees
because they went short so this is one
way so it's like a know-nothing down
real estate deal it's called making
money without money the price actually
came down they buy the shares back when
it's cheaper they replace the thousand
shares into the person's account and
they keep the difference between the
buying price and the price they borrowed
at and the pricing bought at and make
twenty five thousand so this is an
example of a short of the stock market
again this is very risky because if the
price had gone up they might have lost
everything so this is a 202 or a more an
advanced type of investor type of
strategy nonetheless it is used commonly
in the stock market all this shows that
a person can make money on the market
goes up and they can make even more
money faster than the market comes down
but to do that requires you investing
more and more time into your financial
education and your experience
[Music]
so moving further along into the subject
of stock options we're going into the
two basic types of options use in the
stock market puts and calls and again
I'm gonna reiterate something whenever I
say to an amateur investor the market
might crash and they can all upset they
may argue with me and all this I know
they're an amateur at that point because
they then they don't understand puts and
calls for options and if because a
professional investor doesn't care if it
goes up and doesn't care if it comes
down because they will protect their
position either way another word for
options is the word insurance and the
stock markets is also called a hedge
means you're a little protection you
don't put some barrier around your your
value of your pot of your stock so let
me give you an example against this very
simple extremely simple oversimplified
in fact but the subject of puts and
calls as far as options girls can isn't
one of the more complex and sometimes it
takes you know massive amounts of brain
power that I don't have to explain it
but let's keep it very simple for the
start right here so let's just say you
buy a stock at $10 and over time the
stock goes up and let's say it's $50 and
now you're afraid the market starting to
look like it can't go any higher
at this point a professional investors
say I don't want to lose my $50 position
at this point a professional investor
may buy what's called a put option the
key word is that they will buy this
option and what if what a put option
allows you to do is this as insurance in
case the stock does as they suspect
complimenting down back to $10 they
don't lose everything they've had
they've gained in this area so what a
put option in this case would allow you
to do if he purchased it would be would
allow the buyer to sell
stocks at $50 so a pork option allows
you to sell a stock at $50 so even
though the stock today is at $10 the
foot option as your insurance in
somebody has to pay you $50 for
insurance so that's my options are so
important and especially in the stock
market because you don't want to ever
invest without insurance you don't drive
a car without insurance you don't own
the house without insurance and many
people invest without insurance that's
that's that's ridiculous it's also
called being naked means you're out
there exposed moving along to call
options let's say the stock chugs along
and you say I think the stocks going to
go back up again some certain things are
happening in the company people are
going to exciting about it you don't
want to you don't want to miss the move
up at this point a person may buy again
key word is buy a call option so what
happens is let's say you're right and
the stock when a call option may cost
you $1 or $2 put-put may be the same
price not very expensive and let's say
this price suddenly goes up back again
to $50 again what a call option allows
you to do report allows you to sell a
call allows you to buy the share at $10
even though the stock is at $50 a day so
this is a very simple way of how special
investors either buy or sell and their
use of options puts or calls is
extremely simple took me a while to get
my head around it so please take your
time and understanding if you need to
rewind and look at this again please do
so it's very important to understand how
professional investors use puts and
calls once again in this in this
situation by buying a put if the stock
fell down to 10 the put allows me at
this point to sell my share it's still
50 dollars even though prices at 10 and
in this case if the stock market moved
up to 50 the call option will allow me
to buy shares of the stock at $10 even
today the prices at 50
so options are a very important way that
professional investors invest and these
are the two basic ways puts and calls
and options thank you we're now going to
be talking about one of my favorite
subject some of the reasons I love real
estate and that's called a real estate
1031 exchange let me give you an example
of how it can contrast to the stock
market let's say I buy a stock at $10
and it goes up to $20 so I have a $10
capital gain from 10 to 20 today I'd
have to pay either 35% prior to 35% of
short-term gains or 15% on the short
term gain I think my gains my capital
gains is tax with real estate one of the
beauties of it as this is 1031 it's not
a tax free but it's a tax-deferred
exchange so let me explain how this
works
let's say I buy a piece of property for
$100,000 and a couple of years later it
goes up to let's say $300,000 so
suddenly I sell it and I have a $200,000
capital gains here and if this was
traditional capital gains
I would pay 15% today in America I pay
15% of that to the government which is
not bad if I had done this in less than
a year it might be 35% taxable rate of
$200,000 but the beauty of real estate
is I can put this money with what's
called a qualified and we used to call
them exchange agents they don't really
call that it goes into this fund and
this is handled by the persons of
specialists in the 1031 the money
there's $200,000 capital gains where
this whole transaction goes in here and
then I can pull outside of here the
$200,000 and I can buy let's say another
piece of property let's say a
million-dollar property using that
$200,000 downpayment without paying any
of the taxes upon my gains over here so
very simply when a 1031 allows me to do
is I can I cannot I can defer my taxes
having to pay them which means I could
get more of my money over time
eventually technically you're supposed
to pay the taxes on it but most people
don't they just keep pushing it forward
until they don't need the money anymore
so one of the powers of real estate is
is an America called the 1031 exchange
this here is somebody who specializes it
and go in the phone book or ask a real
estate broker about these people and
they will help you acquire more property
without having to pay that much in taxes
and so that's one of the advantages of
real estate over paper assets such as
stocks bonds and mutual funds you can
actually sell but not and not have to
pay the taxes immediately we're now
going into one of them or favorites or
subjects also one of the hottest and
sometimes the most controversial subject
when it comes down to the world of
investing most people when they invest
they invest for capital gains and you
can hear that in their vocabulary when
they say oh I bought a stock and I think
it's gonna go up I bought it for ten I
think about a 20
they're holding for capital gains people
do that too with real estate they say I
bought a house for a hundred thousand I
expected to go to two hundred thousand
again that's capital gains or somebody
says my net worth was gone out because
my house is appreciated in value again
that's capital gains and there's nothing
right or wrong with it but as a
professional investor professional
investments are investing for cash flow
not capital gains capital gains if
you're holding a stock or a piece of
property or business for capital gains
that's really speculation also another
word for gambling you know you're hoping
something will happen in the future for
myself I'm always holding for cash flow
I don't I generally do not buy something
unless it puts money in my pocket every
month that I mean cash not earnings not
all that stuff I want cash flow so it
becomes a very important subject and the
more you look into the world of
investing you'll find out why the riches
investors invest for cash flow while the
amateurs invest
or gains nonetheless there are times
when I do invest for capital gains and
including I do that sometimes that real
estate alone and sometimes I do that in
real estate myself one way of doing it
is what I was taught by my rich dad was
that the formula for great wealth is
found on the board game Monopoly and the
footwell know the formula the formulas
for green houses 1031 into a red hotel
for green houses red hotel so a lot of
times we get into the market buying
small things that we're going to flip
for quick cash for the capital gains but
eventually you want to transfer it into
cash flow because cash flow that steady
cash flow is what really gives you the
freedom many times this doesn't give
your freedom it gives your worries
because stock was up the price goes down
because it goes up down down what I want
is this in the long term over here in
the stock market they call it gamma
shift people into bonds for income and
things like this but as you know bonds
today are paying what seven seven
percent and down it's not for a high
cash flow so it's very important to
understand the power of capital gains so
a lot of times what I'll do is if the
trend again the trend is important let's
say that the real estate trend is this
way that means people are moving into
town at a high rate of speed that means
housing prices have to go up because
more and more people coming in if if
people are moving out the price will go
down or go this way as per say but a lot
of times what I'll do and in this game
cash flow 202 you'll have what's called
starter homes and a starter home is a
great place to begin your investment
portfolio strategy in the real estate
market you look for starter homes at a
low price low downpayment the federal F
the FHA likes to lend people on starter
homes or duplexes or for plexus and make
it very easy get ninety percent
financing on those things it's a good
way to take advantage of a rapidly
moving up trend which we've had in real
estate for the last ten years going this
way this so that's what you do is you
buy it
you sell it for capital gains you buy it
you sell it for capital gains hopefully
put it into a 1031
don't always have to do that but what
you're looking for is enough capital or
cash so you can eventually buy the red
hotel that gives you the cash flow the
beautiful thing for me as a young boy
starting age 9 I saw my Rich Dad start
with small starter homes and in less
than 10 years he owned the big red hotel
right on Waikiki Waikiki Beach so I
actually saw my Rich Dad playing this
game called monopoly in real life and I
was nine years old yet little green
houses and by the time I was 19 he owned
one of the larger hotel blocks on
Waikiki Beach and that hotel today is
gone but his family still owns the land
under that big hotel it took them 10
years and so that's the power of
starting small making your mistakes
early and you will make mistakes don't
be afraid of that but don't take huge
financial risk don't shoot for the moon
or swing for the back field right away
the ballpark right away
start small get some get some experience
hopefully the markets continues this
trend and eventually you'll shift your
investments over into a larger deal or
cash flow
[Music]
previously we covered options when they
came to the stock market and generally
people use puts and calls there but
options are also used in real estate
quite extensively and from my point of
view one of the most famous plays people
use options is a down payment
so let's sing up buy a house for let's
say $100,000 and I go and I put $10,000
down some people call this a down
payment but what this 10,000 means to
you know and then the bank has been 90
thousand I'm gonna use the bankers money
to get rich reason I look at this as a
down as an option by anything else is
because if the price goes to $120,000 I
know the option to sell it for a higher
price the risk is if it goes down then I
can't get in trouble it's as true with
any kind of option so that's one of the
ways that options are used in real
estate and again for me from my
perspective on it they down a real
estate downpayment is an option to
either buy this property later on or
refinance it or and the and the beauty
of real estate is this if the price of
this property goes up the bank still
only gets 90 thousand dollars let's say
it goes to $150,000 you get the $50,000
the banks will get the knife yourself
that's why I actually love real estate I
love the idea of options in it another
way an option can be used is he can go
up to a seller or somebody as a house
and say look in three years I want to
buy your house for ten thousand dollars
or something like you know ten thousand
dollars more than you all right now and
here's my paper but they give me the
first right to buy it and generally the
generally had to give them something
like $1,000 for that right for that
option that's not the way it's used
another way options are used in real
estate which I use quite often is let's
say I go up to a project and they say
we're going to break ground in one year
on this apartment condominium project
and you can buy a condominium right now
before it's even built so it's called a
pre-construction purchase it's also
called buying off of the plants in other
words and I don't recommend this
wholeheartedly but off the plans means
the building's not even built yet but
you go up to the developer because they
have to sell so many of these projects
they have to sell so many units or get
so many buyers committed to them so
let's say I give them $1,000 down the
price is $50,000 today and three years
from now when the project is completed
the project's worth $150,000 at that
point I don't have to buy the project I
don't have to finance this hundred fifty
thousand dollars what I can do is just
basically sell my position my option to
somebody else for the hundred thousand
dollars and they can buy the property
also so I do all I do all these types of
options and real estates and even at
right now I'm buying six units off the
plants and buildings aren't even built
yet but I'm putting an option down in
three years hopefully into speculation
not investing because inspecting the
price will go up the option just assures
me this a certain price today and I'm
hope I'm betting that the price will be
higher in the future so these are the
types of ways options are used in real
estate also thank you
before getting to the details of the
boardgame cash flow I'd like to explain
some of the bit larger features of it
you may notice that there's two tracks
here the reason those two tracks is my
Rich Dad said in real life there are two
tracks for example when my poor dad said
to me go to school so I can get a job
work hard buy a house save money my rich
my poor dad was basically sentencing me
or saying to get into what's called a
rat race of life and this is where I
would say ninety four percent of the
population spends their life
when you say to a child you know what do
you want to be when you grow up well
what do you want to you know go to
school and get good grades and get a job
that's where most people wind up in the
rat race they get up go to work get up
go to work get up and go to work round
and around and around and given the
state of the economy and the different
types of investment plans today most
people met they're not most of many
people will never ever gaol this rat
race they'll get in here and die here so
my poor dad said to go his advice was
basically go into the rat race my rich
dad said go into the fast track so this
is where the rich invest is how the rich
operate from so what is found on the rat
race here are things like paychecks you
get downsized as you know we have very
little control over job security today
there's also charity and things like
this the object of the game is to be
able to get out of the rat race and onto
the fast track
and the way you get on to the fast track
is proving you know you have a good at
you're a good investor and you're high
financial IQ which requires the
financial statement and that's where the
game was created in this way with two
tracks this is the track of my poor dad
is the track of my rich dad I'd like to
take a moment to discuss in detail
something very important for those of
you serious about becoming a rich
becoming financially free and that is
these importance of a person called your
auditor oftentimes called a bookkeeper
or your accountant or your CPA my Rich
Dad said this if you're going to become
rich become a professional investor or
in business you must have a bookkeeper
or accountant or an auditor the reason
for that is they check your work they
keep your honest they keep your records
neat timely and accurate you may ask any
banker ask them if a person shows up and
the banker says kill me your financial
statements and you don't have any or
they're not timely or they're not kept
your banker will automatically know that
you are not serious about becoming rich
and they'll automatically discount your
credibility at that time they may hand
you a simple one-page financial
statement but by not having accurate
records for three years or more accurate
timely neat records for three years or
more your banker knows you're not
serious so that's why my Rich Dad said
your auditor is a very important person
to have on your team your auditor checks
your records so the beauty of this
electronic game the computer is your
auditor but it's also that it reminds
you in the real world have an auditor
have a bookkeeper have an accountant
keep accurate records if you're serious
about becoming rich your auditor is a
very important part of that team and
that's what there's therefore that's we
remind you of that important
[Music]
I'd like to discuss the importance of
charity charity was very important to my
rich debt my poor dad always said I'll
give money when I have money
and what my rich dad said the reason
your dad doesn't have money is because
he doesn't give in other words my Rich
Dad believed the law reciprocity you can
call it you know Newton's law give and
you shall receive where for every
actions equal and opposite reaction or
the Asian patients a karma give what you
want
so my rich that explained to me if you
wanted a smile the best way to get a
smile is the first give one you also
said if you wanted a punch in the mouth
the best way is to give one first also
so he said if you want money give money
today I hear I hear many people saying
why I don't give money I give my time
the palm of that thinking is you get
back what you're give if you give time
you get back time so charity is very
important if you want to get rich and
get on to the fast track you need to
give what you want if you want money you
need to give money you meet first give
and then you can receive that's my
charity was so important to my rich debt
charity was a very important part of my
rich - financial and business plans
early on in my life I had to make a
decision not to follow my poor dad's
footsteps and do what he had did which
was give a safe secure a job even though
I was high paying with the government
instead of decided to follow my rich dad
footsteps and go into the big quadrant
now most of us know the failure rate is
fairly high in the B quadrant
I think the stats say nine out of ten
fail and this was fail in the first five
years and that was true for me so I
recommend this you may want to keep your
daytime job and start up you know
part-time business like a network
marketing company the entry point
financially is very low less than five
hundred dollars where you can buy a
franchise and the franchise will give
you the system to be a business order or
you can do what I did and just do a
trial and error if you do a trial and
error
I recommend this give yourself at least
five years in the B quadrant because it
takes some time to learn the mental
emotional and technical skills to be a
successful business owner
[Music]
I mean many people say well you know
what if I fail I'll just tell you my
point of view and the bay quadrant since
the chances are you're gonna feel mad at
ten times I just made a decision that I
was going to start 10 different
companies so it really does skin with a
context of a mindset or an attitude at
which you taking this on I have failed
many times and many businesses failed to
be quadrant but I've always learned
something new and today for me the V
quadrants the only place I would like to
be and now I want to go into a subject
of near and dear to many people's hearts
and that's the subject of debt or
borrowing money from the bank I hear
many people say cut up your credit cards
and get out of debt and I would say for
probably 90% of the population that's
very good advice simply because most
people just will not talk much about
money or accounting or investing in
school that's good advice
but if you're going to become rich you
must need to know the district a good
debt and bad debt or how to use your
bankers money or other people's money to
become rich so a successful financially
successful person knows how to use debt
to get rich where most people use debt
to get poor when you look down at a
financial statement is very simple to
see here there's assets and liabilities
what most people are doing is they're
borrowing money either for expenses
where they're borrowing money for
liabilities that's bad debt if you want
to become rich you need to borrow money
to buy assets assets are you can sell
you in other words you're borrowing
money or 20 into debt to get rich most
people are trying to pay off debt which
is I could move like I said because they
borrowed money for expenses and for
liabilities in this board game you'll
find the interest rate is 120 percent
now most people say well that's too high
or that's usury and
but the reason we made the interest
rates so high in this board game
cashflow is to demonstrate to you if you
know how to invest you can borrow money
at a high interest rate and still make
money that is the lesson of this game
and that's how you use debt there's a
good debt and bad debt the choice is up
to you which one you use the higher your
financial intelligence the more good
debt you can use and get out of this rat
race and get on to get on with your
dream probably the most exciting aspect
of the rat race and the reason so many
people stay in the rat race all their
lives is this card here dudettes doodads
are the things that make life worth
living for instance having a nice car
nice clothes nice watch jewelry going
out to dinner new stereo equipment
the problem with dude asses doodads keep
most people broke and this is why they
buy due to a sinking their assets as it
goes back to the financial statement
here in traditional accounting you're
allowed to count a dudette as an asset
when it's really a liability for example
let's say I buy a boat your banker will
allow you to list your boat as an asset
when it really is a liability the reason
people do that is because they've not
been trained financially to look to
actually read a financial statement and
many people think their house is an
asset when it's really a liability you
know when your banker says to you your
house is an asset your bankers not
really lying to you he's just not saying
who's asset it is your house is really
your bank's asset so that's why the dude
dad card is so important the way my rich
dad taught me to enjoy the good things
of life because I don't believe in
living frugally and don't believe I'm
living below my beans I don't believe in
saving money I believe first and buying
assets and then my assets will buy my
doo-dads that's how the rich do it the
middle-class unfortunately on the poor
they buy doodads first and never have
any money left over
by acids for example a number of years
ago I wanted a new Porsche
I had $50,000 in cash on the savings
line here instead of buying the cash
buying the Porsche with the cash I went
out and bought a piece of real estate
that piece of real estate then gave me
the cash flow via which I could buy my
Porsche so today I have my Porsche which
is still a liability because I have up
here but upkeep on like insurance and
repairs entirely gasoline but I also
still have my piece of real estate and
in many ways I still have my $50,000 so
the way you can buy all the doodads you
want all the wonderful toys of life all
you have to do is first by asses first
do that second that's the way you get
rich and enjoy the good life I
personally do not believe and leave it
below my leave means being frugal or
denying me the wonderful things that
Life offers me if you want a boat have
your boat but buy an asset first boat
second and that's the secret to getting
rich and having all the doodads you want
so we can keep up with the Joneses and
pass in the cash flow
I want to talk about another word again
vocabulary and you were the sort of
crept into our society in the last 20
years that word is downsizing so
question is when you look at the cash
flow quadrant the employee self-employed
a small business business owner investor
who does the work
downsizing effect the most and in this
case it's the employee because the
reason employees are afraid of the word
downsizing is the truth of the matter is
today there is no job security and I go
back to my poor dad always say to me go
get a safe secure a job well that was a
good idea in his time but not my time so
all of a sudden all these people who
Dennis or at all they went to school
have good scholastic grades or good
professional grades there are a lot of
afraid now because they're not in
control so downsizing affects the HP one
of the beauties of the cash flow game is
even though you're downsizing you'll sue
you'll soon find on the game yeah even
if your downsize you're not out of the
game because you're still investing so
the purpose of the cash flow game is to
take train you with the business skills
to become business owners and investors
so keep playing this game even here
downsize you'll find out that even as an
investor you're still in the game
so downsize the only affects employees
who do really have no controllers are
Boston control and it affects people
with 401ks again that they have no
control of their mutual funds so the
purpose of this game is to have you not
be afraid of that new word called
downsizing
[Music]
so let's start the game the first step
is to choose your dream people say well
why is choosing you dream the first step
because it's the reason you want to play
this game you see I know so many people
who don't go for their dream simply
because they say I don't have the money
or they think they can't afford it but
they don't have the education one of the
reasons for playing this game over and
over and over again that's number one to
open up your mind and then give you new
ways of thinking the fundamental basic
education so that you can invest wisely
regardless of how much money you have
and then have the money to buy your
dreams and so dreams are very very
important in other words why live life
if you don't have your dreams so the
very first step is choose your dream
that is very important first step
because that's what that's we always
start with the end in mind you always
start with your dream and work backwards
that's what's your first let us choose
your dream
another aspect of playing this game here
because you may land on what's called
the market car when you go to the market
card you'll actually draw this the
significant of the market is that you're
paying attention to the trends it's like
reading the newspapers watching the
television and all this but the market
is basically telling you markets going
up or Marcos going down who's buying
what it was this the market card on this
board game is very important because if
you're going to be a professional
investor you must pay attention to the
market and that's why the market card is
here
I'll take a moment to discuss mutual
funds mutual funds are the most popular
of all investment vehicles in history
I'm often asked you know why don't I
recommend them and I'd like to explain
that right now mutual funds are designed
primarily for people who have this type
of education as I said earlier there's
three basic types of education which are
required for financial success in the
real world that's academic professional
and financial our school system has very
little financial or investment investor
education so my poor debt in was the man
who always said you know this is very
important education my Rich Dad said
this was important education so the
answer the question on mutual funds this
is the way it goes if you have only this
type of education academic and
professional the mutual funds are
perfect for you that's who they were
designed for if you want to invest in
other investment vehicles that in most
cases it will require more financial
education and it's not financial
education you can learn in the classroom
is financial education that is mental
technically you know emotional as well
as physical you have to do something so
mutual funds are great for these people
but I personally would not invest in
them and their orbit my financial future
or my retirement of mutual fund and the
reason for that is this
as we have all found out just recently
but we most of us known for years or
professional destiny as of now any
market has three basic trends an uptrend
downtrend and a sideways trend this is
called a ball let's call it bears called
a channel market mutual funds in most
cases do well in a bull market and they
take a hammering in a bear market so
that's why I don't like them the mutual
funds I know lost lost so rapidly in the
crash after march of 2000 the problem of
mutual funds that they give you no
personal control over your financial
future the market goes up you do well
market comes down you lose you lose the
channeling market so that's why don't
lose like mutual funds they give you no
control if you want control over your
financial destiny and you have to have
financial education and that's where
Rich Dad dot-com comes in it gives you a
financial education to take control of
your financial destiny
[Music]
in the cash flow game I purposely put in
some of the real estate deals negative
cash flow what that means is basically
you're losing money or your tenant is
not paying enough money to cover all
your expenses now in the real world I
personally do not recommend people
starting off with negative cash flow
deals yet if you as you improve your
investment skills there are times with a
negative cash flow deal may make sense
and it may make sense if the property
values the areas are appreciating right
here so that what you're gonna get from
it is the property will appreciate you
might lose a few dollars a month but the
appreciation is far greater than the few
dollars you lose a month let's say it
was a hundred dollars a month but the
property is appreciating by ten thousand
dollars a year in that case and only in
that case would I recommend negative
gearing
so as you play in the game look out
watch out for negative cash flow deals
because it might just be a great deal if
there's a lot of appreciation
I'm often asked why do I recommend
network marketing especially since I'm
not in the network marketing business
and like many people early on I had a
very negative or close-minded attitude
towards network marketing but I've
changed my mind I've opened up the way
they think and I've looked at the
network marketing industry and I find
some things that extremely beneficial
especially for people who are looking to
make some changes from the E and the S
over to the right side of the quadrant
one of the beauties of network marketing
it actually teaches the mental emotional
and technical skills to be in the B
quadrant because the beep somebody
network marketing has the potential of
building a system with over 500 people
in it plus unlimited income the things
that network marketing teaches you is
the most important skill in the B
quadrant is ability to sell my run the
reasons I worked for the Xerox
Corporation when I got out of the Marine
Corps was to learn how to sell my rich
dad said if you go be in the business
quadrant and become big business you
must learn how to sell or communicate to
employees to specialists to investors to
raise capital as well as to my customers
so communication or sales skills are
essential for somebody into B quadrant
and the network marketing industry not
all of them but some of them have
excellent training program to teach you
how to sell how to communicate how to
build businesses the other thing is
beautiful about the network market
industry it teaches you self-confidence
there's a reason many people are not go
to the big water is they're afraid of
rejection
and network marketing teaches you handle
the own fears overcome your fear of
rejection and build that self-confidence
but that's he's essential for the B
Quadrant also it gives you time in the
real world when I worked for Xerox
employee for four years if I didn't sell
I was fired
the beauty of network marketing industry
is they'll work with you you can take as
much time as you like to develop those
skills as your skills increase so does
your income take one year two years five
years it takes time to develop those
skills and network market industry gives
an education and the time to build that
self-confidence once you have your
business up the reason the cash flow
game is so important and you have all
this excess money coming in business
then you can invest your money into real
estate and stocks and bonds and that's
what the cash flow game teaches you how
to do is how to be a successful
proficient investor especially an
investor on the fast track the fast
track is where the rich invest so the
beauty of network marketing works really
handed and it builds you up teaches you
how to increase your income builds the
self confidence and the cash flow game
teaches you how to invest and that's why
I recommend network marketing and that's
why I work hand in hand with so many of
those businesses
[Music]
so let's get into some of the more
details I'm actually playing the game
for example you get on the you get on
the rat race you roll around they lend
them opportunity cards when you land on
the opportunity kardia basically two
choices
one is a small deal and one is a big
deal small deals are investments of
5,000 and below and big deals are 6000
and above the interesting thing about
this game as games actually reflect
people's behavior I'll say that again
because it's important games actually
reflect people's behavior like I've seen
savers just save I've seen cheaters
cheat in the game
whatever is going on well you will come
up in this game and when it comes to the
small deal and big deal oftentimes I'll
meet people I'll see people playing this
game they have no money even though they
have no money they think they have to be
the John Wayne of investing and they'll
take a big deal card even though they
have no money so the beauty of this game
here is you get to see the behavior
another beautiful thing as I said
there's four to four levels of investing
small deals big deals fast-track and
then cash flow 202 the beauty of this
game is you can get rich on small deals
and big deals fast track and 2 or 2 it
makes no difference so anyway the funny
thing about this game is I we I made
these as totally men they think they
have to do a big deal card even though
they have no money and that's a
reflection of the behavior
[Music]
I'm often asked what should I invest in
before I answer that question I'd like
to go back again to the basics of
financial literacy of financial
intelligence this here is an income
statement and balance sheet also called
a financial statement my poor dad was a
man who thought a high paying job or a
salary was everything in life my rich
dad said the asset column was more
important so my my rich dad trained me
to become an investor in the assets and
what he taught me was three basic types
of assets that you can invest in the
reason my wife and I could retire young
and retire rich and we didn't have a job
instead we spent our lives developing
assets over here so these are the three
assets that are available in the world
of business today we're investing one is
a business the second is real estate
third is paper in my opinion the reason
there are so many people in my opinion
the reason there's so few business
owners is because of all the asset
classes this is the toughest one it
takes the most mental emotional and
physical power to acquire as well as
prepares like Bill Gates or Michael Dell
they built great big businesses that's
why they became so rich real estate is
number two in our real estate investment
project the product the six steps to
becoming a successful real estate
investor there's more to real estate
than just buying it just managing it
financing it so all those six steps are
important the third class is paper in my
opinion and the people will debate this
the reason the masses of people are in
paper assets paper assets as stocks
bonds mutual funds is because this is of
all the asset classes this is the
easiest one to get in also the users
wanting to get out of it takes the least
she'll so-called financial training to
acquire and manage so right now as you
sit and look at this program right here
rich dad's cash flows game is designed
to give you the fundamentals that you
can make the choice for yourself whether
you want to acquire businesses real
estate
paper many people say I'm a real estate
person that's inaccurate
I have businesses real estate and paper
and so each one requite all of them
requires some degree of financial
education and financial literacy of all
of them though this is the one that
requires the least we've passed off one
more secret to how people get rich many
people keep their daytime jobs and start
a part-time business that's what network
marketing does but you can also start a
part-time franchise where people like
Henry Ford started a part-time business
in his garage which became Ford Motor
Company Michael Dell started Dell
computers in his dorm room and other
people have started their businesses on
a kitchen table so one of the ways the
rich get rich is or recommend getting
rich is keep your daytime job and start
your part-time business as it also said
earlier the tax laws are different for
each of these quadrants when you're in
the B quadrant you have the best tax
advantages of the rich so keep er
daytime job start a part-time business
gain the best tax advantages available
to any of the quadrants and then invest
your money that's how the rich get
richer
[Music]
we go to further detail about the rat
race this is where all players start you
enter here what you'll find on the rat
race or opportunities here with choices
small tails or bait deals
there's also paycheck period this is how
you get additional money
there's doodads and what most people
spend their lives buying are these
doodads could be a new boat you house
you watch you clothes and that's where
that's reason most people don't get out
of the rat race is because two dads are
number one in their lives
there's also charity and also market
cards the object for the game like I
said is to prove your your ability to
invest should we have a high financial
acai queue and get out of the rat race
and I get on to the fast track where the
rich really invest what I'm gonna go
into the pros and cons of these three
assets as I said in my opinion it's just
my opinion to be an entrepreneur to
build a business takes massive probably
more emotional skills and people skills
so if you're very good with people
know how to sell know how to raise
capital know how to go on the market
talk to employees business is the one
for you but again for me it took five 10
20 years of training to become a
business owner second is real estate
real estate has many advantages the
number one advantage of all is that it's
all the investment categories it's the
easiest one for the banker to give you
money you know if it's tough to get a
loan for business sometimes and I've
never met a banker yet who have given me
a thirty-year 5% loan for a mutual fund
but in real estate it has advantages I
use my bankers money they're easy to
finance and the great thing about real
estate it's
it doesn't move so if you really know
which what you're doing with real estate
in my opinion is the best one for the
masses of people
the reason paper is such an attractive
asset again is because it's so easy to
get into and make it very 50 dollars you
can buy one it takes very little
intelligence very little maintenance a
problem with that paper asks us you know
again is volatility markets go up
markets go down and Marcus beside ways
and the problem of paper assets for most
people they have no protection from the
downside protection paper assets
generally do well in the market goes up
they lose everything coming down it's
reviewing again the reason I like real
estate is number one is my banker will
give me money for it and number two the
tax laws are most favorable for real
estate owners and business owners so
those are some of the basic differences
between the three different types of
assets rich calm his design is committed
to give you base basic information so
that you can do well at all three assets
so the question is how does a person get
out of the rat race and onto the fast
track and that's where this part of the
game comes in the income statement and
balance sheet also called a financial
statement as I said earlier you learn
two primary skills in this game one of
the skills to be the investor and to the
general principles of accounting so very
early on my life my rich dad said you
have another between assets and
liabilities simply put assets are our
investment houses or stocks real estate
or businesses that put money into your
pocket whether you work or not
and liabilities or things that take
money from your pocket whether you work
or not the reason most people don't get
out of the rat race is very simply
because they're buying liabilities they
think are assets like a house most
people think their house is
when it really is a liability so the way
you get out of out of the rat race in
this point game cash flow is simply
learning how to invest taking your
income investing in either stocks real
estate or businesses and that income
flow flows into your income column
without you working the moment you're in
passive income that is income without
you working passive income is income
this comes from your investments a
passive income income coming from your
assets is greater than your expenses
once you're past the victim is created
in your expenses BAM you're out of the
rat race and you're on to the fresh drug
the moment your passive income is
greater than your expenses your
financial intelligence has gone up and
that's the object of the game going
further into the power of options and
again I say we're only scraping this the
surface of this can be a very complex
subject it to me is one of the most
exciting subjects as far as being a
professional investor as a power of
options but one of the other strategy
alike are covered call strategies and
cover call strategies work really well
when the market is kind of not going
anywhere it's kind of flat here so for
those of you who may have a portfolio of
stocks let's say you have 1,000 shares
of a blue chip stock like Microsoft or
IBM or something like this but the
problem is the stock price isn't going
up and isn't going down the question is
how can you use an option to option
strategy to make you some money so one
way you can do that let's see if a
thousand shares what you can do is sell
we'll write a covered call so cover it
means you actually own the stock naked
call would mean you don't own anything
and you're still selling a call or a put
on it I don't recommend naked positions
yet some people make fortunes doing that
so let's say we're very safe let's say
you have a thousand shares that you own
already let's say the price is
approximately trading around $25 a share
on average that's going up and down like
this the question is how do you compile
you make some money at this and one of
the ways is by writing covered calls so
let's say the call cost $2
call option because here 1,000 shares
you call you broker up and you say I
want to write a write means I'm going to
sell covered calls on a thousand shares
at $2 immediately at that moment the
stock broker deposits in your account
two thousand dollars in other words two
dollars for the option that you sold
that somebody else bought times a
thousand shares so you made a few may
two thousand dollars like that and
that's one of the ways to convert a kind
of a stagnant or a non-performing asset
into cash flow now let's say it's a
30-day option you made two thousand
dollars then you go another 30 days you
make another two thousand and so on
there's a lot to learn in this please
don't start doing this because of this
short little introduction to cover calls
but this is one of the ways that
professional investors use options very
safely to make money even though the
stock price isn't going up and down
[Music]
so I'm going to take options just one
more step I don't mean to confuse
anybody because but sometimes I get
confused and just to reiterate options
are a very important aspect of anybody
who wants to be a professional investor
be it stocks bonds insurance or real
estate or business options are very
important when people when most people
think of options they think of buying
options my first example people buy
option but they might buy a put option
as an insurance package so so the stock
doesn't fall down below it but what
really professional investors do they
don't buy options what they do is they
sell options and this is one of the more
lucrative or most powerful ways of
professional investors make money in the
market so let me give you a very simple
example again one's a stress most people
buy options but the real pros sell
options to people who want to buy them
let's say the stock prices has drifted
on down it was $50 it's now $10 at this
point what a person might do especially
when it's down around ten what the
professional investment might do is they
might sell put options and so they sell
to this person who's afraid that the
price will go down lower so they say
I'll pay for your stock I'll pay you ten
dollars if it goes lower so they sell
the option let's say four to two dollars
and let's say times 100 shares which is
a contract in a options portfolio so you
charge $2 times 100 shares that means
you make $200 right there
and if the stock goes down lower below
10 at that point you as the person who
sold the option you have to then pay
this guy $10 so you better be very
careful make sure that you don't think
it's going to go much lower here but
this is cash flow this person has made
money selling something for $2 they
don't have any any money in the deal but
it's almost like free money if you know
what you're doing is it's highly risky
if you know what you're doing you can
make $200 like this selling the option
but call it the put option
but not buying it on the flip side of it
let's say it what happens is this way
the stock goes up and it plateaus off
and let's say you've bought some shares
I recommend buying them in this case
when the stock is up here like this what
you can do is also at that time sell a
call option what's selling a call option
means is this so let's say you sell this
times $2 also times 100 shares you've
now made $200 what that means is let's
say the stock price at this point is $20
and you say a call option means if the
price goes to $25 you would have to sell
them the stock at 20 you know so this
type of strategy a vestment straight of
selling options works good when the
market is not going up not going down as
sort of stable it's called a channel
market over here so you sell call
options all day long you're making $200
$200 you sell a thousand shares it's
$2,000 and all this this is again this
is highly speculative highly risky you
should know what you're doing but this
is the way that most professional the
real professional investors and options
make their money they don't buy options
they sell options because most options
expire without ever being exercised and
all that but again this is part of your
education there's a lot to learn in
either buying or selling options yet
just for you to understand but this is
where the real big money is made and
this is where the professional investors
make their money in options they don't
buy them they sell.