The right mindset for an investor is the key to success. In order to understand this, Robert Kiyosaki & Donald Trump’s advice is far more important in this context.

#1 Borrow to Invest

I always borrow to invest. I use debt to invest. but to be able to do that, you’ve really got to have a lot of financial education. I don’t recommend it but it’s the best way to get rich. President Trump, you know my friend, I know some of you guys hate him, a lot of people hate the guy but he’s very smart. He’s a capitalist. Obama, socialist, communist. Hillary, crook.

So anyway be very careful right now because I use debt, Trump uses debt. The more debt we use, the less taxes we pay. That is why I love real estate. I can use debt and pay no taxes to make a lot of money so that’s really what I teach. I don’t recommend it. But for those of you who understand what’s called an infinite return, it’s the best way to get rich but you have to have a lot of financial education.

#2 Educate Your Self In Investing

And I really want to talk to you about the most important subject for all of us today, rich, young poor, and old. It’s called financial education and as you know our school systems teach us nothing about money. It’s pathetic. They have financial literacy courses today, but well that’s not financial education. It’s really pathetic and what’s happening for most people today is they follow that age-old Mantra, “go to school”.

What do you learn about money in school? Nothing! They teach you to get a job while jobs are disappearing not only that but with artificial intelligence and G5 coming, more jobs are going to be 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. 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 use debt as money and other guys will tell you to get out of debt. well, you choose. The rich use debt to get rich and the poor middle class get wiped out because they’re in debt that’s because of the lack of financial Education and they tell you to invest for the long term.

A well-diversified portfolio of stock bars, mutual funds, and ETFs. 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 zerp zero interest rate policy? They’re paying you nothing for your money and you’re gonna hold for the Long Term and you’ve got HFT, high-frequency trading.

You know they can trade a thousand pieces of stock in a second and you don’t have a prayer. You’re training against a machine, a robot. So all this financial advice people are giving out there is a recipe for disasters.

#3 Withstand Pressure

Donald Trump:  what’s been very interesting because recently somebody asked me the definition of an entrepreneur? Now it means a lot of different things. You have to have an idea, you have to never quit, and you have to do a lot of different things. But something I’ve added over the course of the last few years you have to be able to withstand pressure. I know a lot of people that are very smart that have great ideas everything’s good but they can’t handle pressure and if you can’t handle the pressure you cannot be a great entrepreneur.

Robert:  I think you almost have to thrive on it. you know like you say you have to do what you love but I think I do it there are a lot of things that I do when you do I don’t love I do it because of the challenge of it because without that I do it for the pressure. It makes me stronger, better, and smarter.

I know if I solve this problem I’ll be smarter at the end of the problem. I think that’s what the pressure that I like about this is because we’re creating out of nothing. What did we know when you created this building? There was nothing and you said now there’s going to be a building here and you go wow!

#4 Investing Isn’t Risky

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 estates and say oh real estate is so risky. I think I’ll buy ETFs so you play it safe but you’ll learn more by investing in real estate right? Because you’ll make more mistakes so that’s the difference here. So it’s not real estate that’s risky it’s your risk.

Questioner: and sometimes it’s ironic because I think about it like so blindly turning your money away to someone you barely know isn’t risky or let’s say I don’t know maybe just depending on this job where your employer can fire you any day isn’t risky either you know it just it makes you think a little what Truly is risky for you? How do you define it?

Robert: Yeah! and you look at all the pensions of the school teachers firefighters and all guys with 401ks they’re all bankrupt because wall street stole their money from them you know in the federal reserve bank they’re run by PhDs. and Ph.D. stands for poor helpless and desperate.

The FED has not been right in years everybody worships the Federal Reserve Bank the other day somebody says what do you think about artificial intelligence. I said oh! Are you talking about the Federal Reserve Bank? You know they’re a criminal operation they’re the guys stealing from our pension systems. It’s horrible! What’s going on! Because we have all these PhDs, poor helpless, and desperate people who are risk-averse. It’s funny, isn’t it?

Let me tell you what risk is. So when you go to your banker your banker does not ask you for your report card so here is the cash flow game and this is called the financial statement. So the cash flow is the only game with a financial statement.

It’s really simple, when you look at a financial statement there’s income, expense, assets liabilities. There’s one more thing in the cash flow game on the financial statement. You’ll see it’s the most important statement of all called the statement of cash flow.

If you’re going to be an entrepreneur or a capitalist, you have to have one of these. you’re going to be rich you have to have one of these but 99% of all high school students who live in school and college have no idea what this is.

You have fine scores but you don’t know what this is. So when a banker asks you for your financial statement they want to see how smart you are here.  let me tell you why school makes Students poor. Really simply is this, let’s say I have a master’s in arts Master of Arts degree right? Or a Bachelor of Arts degree.

Do I learn anything about income here? what about Greek mythology that’s very important about income and we wonder why kids are leaving school or a young generation looking for that high-paying job.

But now let me ask you this if you have a degree in technology do you learn anything about assets? Never! So you could be a techie and you know nothing about this. You see when a banker looks at your financial statement they’re looking at the mirror of you this is a reflection of you. And if you got jack here and jack here then you’re not that smart financially.

So the reason the cash flow game is such an important game, it teaches you what is important to your banker or for a capitalist or for an entrepreneur is that entrepreneurs got to know how to increase their income and an entrepreneur has got to know how to create assets. if you don’t know those two things you Should not be an entrepreneur you should be an employee which is why so many young people come out of school and have massive student loans and debt over here. But they don’t know anything about this and that’s risky.

#5 Always Use Debt

Donald and I love real estate. I love real estate I think it’s the best thing going better than sliced bread. But if you’re not smart with it, it’s like a loaded gun! You know you can protect yourself or kill yourself with it.

So real estate to me is the best vehicle but you’ve got to be smart with it because we’re using debt and debt is a two-way sword out there. So you use debt I use debt but the more debt you use actually you have to be smarter. So you can use debt to get richer. You can also use debt to wipe you out.

So that’s why I continue on saying we need financial education to just say to somebody get out of debt. Well that’s not accurate you use debt, don’t you?

Donald Trump: Debt is a great thing and to be big and to be very successful, debt is a very useful weapon but you have to be very careful.

Robert: So the other thing with when people say live below your means. You don’t like to live below your means. I think when you say to somebody life below your means, you wipe the spirit out. It’s like saying to somebody if you want to lose weight go on a starvation diet. It doesn’t make you healthier to starve yourself.

So I would rather get financially educated that’s why I read books because I want this. It’s my greatest asset. I want to feed my brain so that I can expand my means without getting into excessive debt or where I start to lose because debt I could say is a two-sided sword. But telling somebody to live below your means is almost inhumane I never felt good doing it.

I wanted to strive to do better every day. I want to do better every day I liked a good life.

Donald Trump: Well I have a friend who was not successful at all but was really up and coming and he had a thing he would only fly first class. I’m not saying do this because for somebody it won’t work but he needed that mentally. Right he wanted to fly first class because mentally He wanted to think he was the best and that’s it. And even though he didn’t have much money at the time. This is years ago he would always use to criticize him but it put him in a good state of mind and he became a very successful guy.

And I’ve always remembered that he would never fly coach he would always fly first class even though he didn’t have the means to fight so look it’s complicated but whatever it takes to train that. But something I’ve added over the course of the last few years you have to be able to withstand pressure.

Robert:  whatever makes you feel better about yourself stronger, more confident to want to do better and I think really that’s the issue and we’re at the stage of our lives right now we ask for more is not really it, but to do better to feel better about ourselves is still important, it is very important.

Summary

• Borrow to Invest
• Educate Yourself in Investing
• Withstand Pressure
• Investing Isn’t Risky
• Always Use Debt