This video explores the key concepts of investing by drawing inspiration from Robert Kiyosaki's teachings. It breaks down Kiyosaki’s ideas on the three types of income—earned, portfolio, and passive income. It emphasizes the importance of understanding these income streams to improve financial planning and cash flow, aligning with the goal of financial freedom. The video also delves into the strategic use of debt, which the wealthy utilize to create wealth, contrasting it with conventional advice to avoid debt.

financial education emerges as a vital component for successful investing. The discussion points out that schools often do not teach financial literacy, yet it is crucial for navigating the challenges posed by job scarcity due to technological advancements and increasing taxation. With comprehensive financial education, individuals can make sound financial decisions, manage risks effectively, and secure their financial future, even in a rapidly changing economic landscape.

Main takeaways from the video:

Please remember to turn on the CC button to view the subtitles.

Key Vocabularies and Common Phrases:

1. portfolio income [pɔːrtˈfəʊliəʊ ˈɪnkʌm] - (noun) - Income derived from investments such as stocks or real estate, distinct from earnings from work. - Synonyms: (investment income, dividend income, capital gains.)

And the second type of income is portfolio income.

2. passive income [ˈpæsɪv ˈɪnkʌm] - (noun) - Income earned with minimal effort or active involvement, often recurring. - Synonyms: (residual income, unearned income, automatic income.)

But the income that the rich work for is called passive income.

3. financial education [faɪˈnænʃəl ˌɛdʒʊˈkeɪʃən] - (noun) - Knowledge and understanding of financial principles and skills, crucial for personal financial management. - Synonyms: (financial literacy, economic education, fiscal education.)

Why is financial education so important?

4. diversification [dɪˌvɜːrsɪfɪˈkeɪʃən] - (noun) - The process of allocating investments among various financial instruments, industries, or categories to reduce risk. - Synonyms: (variety, assortment, multiplicity.)

But if you spread your money across different types of investments, like stocks, bonds, real estate and mutual funds, you reduce the impact of any single investment's poor performance.

5. long-term investment [lɔːŋ tɜːrm ɪnˈvɛstmənt] - (noun) - Investment strategy focused on holding assets for an extended period to gain returns. - Synonyms: (enduring investment, sustained investment, extended investment.)

That's how you invest for the long term in a well diversified portfolio of stocks.

6. Zero Interest Rate Policy (Zirp) [ˈzɪrəʊ ˈɪntrəst reɪt ˈpɒləsi] - (noun) - A monetary policy in which a central bank sets nominal interest rates at or near zero to stimulate the economy. - Synonyms: (non-interest rate policy, nil interest policy, flat interest rate policy.)

Why would you invest for the long term when they're printing trillions of dollars and zerpinal zero interest rate policy?

7. raise capital [reɪz ˈkæpətl] - (verb) - To gather monetary resources or funding to start or grow a business or investment. - Synonyms: (generate funds, secure funding, gather financial resources.)

The reason I say only lazy people use their own money is because it takes much more intelligence to raise capital.

8. risk management [rɪsk ˈmænɪdʒmənt] - (noun) - The practice of identifying, assessing, and prioritizing risks and applying resources to minimize control and mitigate the impact of unfortunate events. - Synonyms: (risk control, risk mitigation, risk assessment.)

Yes, all investments carry some risk, but not all risks are created equal. There are ways to manage and even minimize these risks.

9. passive management [ˈpæsɪv ˈmænɪdʒmənt] - (noun) - An investment strategy that seeks to replicate the performance of a specific index or benchmark. - Synonyms: (index investing, buy-and-hold investing, bench-marked management.)

Finally, there is passive income. This is the money you earn with little to no ongoing effort.

10. secure future [sɪˈkjʊər ˈfjuːtʃər] - (noun) - A stable and predictable financial situation or lifestyle in the coming time. - Synonyms: (stable future, assured prospects, guaranteed future.)

With the right knowledge, you can make informed decisions, avoid common financial pitfalls, and create a secure future for yourself and your family.

How to Invest in 2024 (The BEST Way to Get Rich) - Featuring Robert Kiyosaki

Are you ready to dive into the world of investing, but are not sure where to start? Don't worry, we've got you covered. Today, we're unlocking the secrets to successful investing with insights straight from the master himself, Robert Kiyosaki. We will dive into four tips from Kiyosaki to help investors get started.

So the reason the rich don't pay taxes is because there's three types of income. They'll never teach you this in school. The fake teachers, never. Number one type of, there's three types of income, okay. Number one type of income is earned income. That's earned income. It's when you work for money, it's earned. So that earned income shows up here.

So these are the guys that pay tax. So when all the guys are screaming taxed are rich, well, you can't tax them because they don't have jobs. That's awesome. It's kind of funny, isn't it? You're going to tax the rich. Oh, yeah. Good luck. And the second type of income is portfolio income. And portfolio income is from flipping houses. Or you buy a stock for like $10, you sell it for $20. That's portfolio income.

Okay, I don't do that. Trump doesn't do that. So most guys who are flipping houses and all that, buying stocks and flipping, you're getting this type of income. So this income is about 20% today? Some of that. But the income that the rich work for is called passive income. passive income is also known as cash flow. That's the name of our game, cash flow. And that income is income that's flowing from here to here. It bypasses taxes.

What some people may not know is that there are different types of incomes you can earn. As Robert explains, the three types are earned income, portfolio income, and passive income. Earned income is the money you make from working a job or running a business. It's your salary, hourly wages, or profits from your own company. Basically, it's the income you earn by trading your time for money.

portfolio income comes from investments like stocks, bonds and mutual funds. When you buy shares in a company and the value goes up, that increase is your portfolio income. It's money your money makes for you by growing over time. Finally, there is passive income. This is the money you earn with little to no ongoing effort. Think rental income from properties, royalties from books or music, or earnings from a business you don't actively manage. It's the ultimate goal for financial freedom.

By understanding all three of these incomes, it can help you increase your cash flow and allow you to grow your investments. And what's happening for most people today is, you know, they follow that age old mantra, go to school. What do you learn about money in school? Nothing. Get a job. Well, jobs are disappearing. Not only that, is that with artificial intelligence and ge five coming, more jobs are getting wiped out.

Plus, with driverless cars, more jobs are getting wiped out. So why would you go to school to get a job and then work hard for money and pay taxes? Taxes are going to keep going up. Sports fans, they have to. Somebody's going to pay off this massive mountain of debt stacking up all over the world. And the only way they pay off debt is via taxes.

And then they tell you to get out of debt. Oh, God. Debt is money. Please understand me. In 1971, when Nixon took the dollar off the gold standard, money became debt. So the rich know how to use debt to get rich. And that's what I do, my friend. Donald Trump. I know some of you hate the guy. More power to you, you know, but we use debt as money, and other guys will tell you get out of debt.

Well, you choose the rich use debt to get rich, and the poor and middle class get wiped out because they're in debt. That's because of the lack of financial education. And that's how you invest for the long term in a well diversified portfolio of stocks. Buys mutual funds and ETF's. The key word in there is invest for the long term. Why would you invest for the long term when they're printing trillions of dollars and zerpinal zero interest rate policy? They're paying you nothing for your money.

Why is financial education so important? Well, think of it like you wouldn't try to drive a car without learning how. Right? The same goes for managing your money. financial education helps you understand how to make your money work for you, rather than the other way around. With the right knowledge, you can make informed decisions, avoid common financial pitfalls, and create a secure future for yourself and your family. It's all about gaining control and confidence in your financial life.

Remember, getting financially educated isn't something you do once and forget about. It's an ongoing process. The more you learn, the more confident you'll become in making smart financial decisions. The first way you understand risk is you look in the mirror. It's who's looking back at you. You're the risk, not the investment. For example, I invest in a lot of real estate and say, oh, real estate is so risky, I think I'll buy ETF's.

So you play it safe. But you'll learn more by investing in real estate. Right, because you'll make more mistakes. Yeah. So that's the difference there. So it's not real estate that's risky, it's your risk. Yes, all investments carry some risk, but not all risks are created equal. There are ways to manage and even minimize these risks.

Imagine you have all your money in one stock and it suddenly tanks. Scary, right? But if you spread your money across different types of investments, like stocks, bonds, real estate and mutual funds, you reduce the impact of any single investment's poor performance. Another important thing to understand is that investing is like planting a tree. You don't expect it to grow overnight. Historically, the market has shown to recover from downturns and grow over the long term. So if you're in it for the long haul, you're likely to see positive returns.

So the reason I say only lazy people use their own money is because it takes much more intelligence to raise capital. And so I've never been able, ever since my rich dad, since a little boy, my rich dad forbade me from ever saying I can't afford it. He says, figure out how you can afford it. How can you do something? Figure out how you can do something. So over my lifetime, most of the projects I've started, I've never had any money. I like not having money because it forces me to think.

I get creative. I have to educate myself. I have to talk to rich guys. How'd you do this? How'd you do that? How you do that and what has happened to me? And I just turned 72, I've never needed money. Investment opportunities can pop up at any time. Whether it's a promising stock, a real estate deal, or a new business venture, having access to capital means you can seize these opportunities when they arise.

Raising capital is also essential for scaling up your investments. If you've started small and seen success, additional funds can help you expand your investment portfolio and increase your potential returns. Some ways you can raise capital is by getting loans, starting a partnership with another person or company, investing some of your personal savings, or even reinvesting your returns. Before making any investment decisions, it's important to do your own research and consider seeking advice from a trained financial professional.

Financial Education, Investing Strategies, Passive Income, Business, Economics, Education, Business Motiversity