1 00:00:00,160 --> 00:00:02,679 Speaker 1: If you could sit down with two legends of personal 2 00:00:02,720 --> 00:00:05,280 Speaker 1: finance at the same time, would that help you make 3 00:00:05,320 --> 00:00:06,519 Speaker 1: better financial decisions? 4 00:00:06,880 --> 00:00:09,080 Speaker 2: And if so, what would you ask them? 5 00:00:09,320 --> 00:00:13,160 Speaker 1: Well, Dave Ramsey and Robert Kiyosaki are arguably the biggest 6 00:00:13,240 --> 00:00:16,360 Speaker 1: names in personal finance, and I'm going to bring their 7 00:00:16,360 --> 00:00:18,759 Speaker 1: biggest lessons. I'm going to compare them against each other, 8 00:00:18,920 --> 00:00:20,880 Speaker 1: and I'm going to give you what I think is 9 00:00:20,920 --> 00:00:23,239 Speaker 1: the best of both worlds. If you're just tuned in 10 00:00:23,239 --> 00:00:25,760 Speaker 1: you're listening to the Mark Moss Show. We're always talking 11 00:00:25,760 --> 00:00:27,680 Speaker 1: about the way the world is changing as we look 12 00:00:27,680 --> 00:00:31,040 Speaker 1: at it through the lens of politics, finance, and technology. 13 00:00:31,320 --> 00:00:32,159 Speaker 2: And today I. 14 00:00:32,120 --> 00:00:36,159 Speaker 1: Want to break down two of the biggest names in finance, 15 00:00:36,240 --> 00:00:38,479 Speaker 1: in money making, in investing, and we're going to look 16 00:00:38,520 --> 00:00:41,319 Speaker 1: at what they're investing strategies are. We're going to look 17 00:00:41,320 --> 00:00:44,040 Speaker 1: at how they both approach risk and how you should 18 00:00:44,040 --> 00:00:46,680 Speaker 1: think about both depending on where you sit on this spectrum. 19 00:00:46,760 --> 00:00:49,680 Speaker 1: We're going to talk about why they disagree with each 20 00:00:49,680 --> 00:00:52,400 Speaker 1: other and there's been some hard words exchanged, and then 21 00:00:52,400 --> 00:00:54,640 Speaker 1: we're going to look at what you should know if 22 00:00:54,680 --> 00:00:57,600 Speaker 1: you want to have success with your money and investing. 23 00:00:58,280 --> 00:01:00,440 Speaker 1: All Right, We're going to cover a lot of There's 24 00:01:00,480 --> 00:01:01,680 Speaker 1: going to be a lot going on. You do not 25 00:01:01,720 --> 00:01:04,440 Speaker 1: want to miss this, so make sure you buckle up, 26 00:01:04,920 --> 00:01:07,800 Speaker 1: buckle in, I should say, and let's get going. So 27 00:01:08,120 --> 00:01:12,000 Speaker 1: the two titans of business investing finance that I want 28 00:01:12,040 --> 00:01:16,320 Speaker 1: to talk about today are Dave Ramsey and Robert Kiyosaki. 29 00:01:16,440 --> 00:01:18,200 Speaker 2: All right, now, Dave Ramsey. 30 00:01:17,920 --> 00:01:20,120 Speaker 1: And Robert Kiyosaki, like I said, are arguably, I don't 31 00:01:20,120 --> 00:01:21,680 Speaker 1: even know if it's arguably. I mean, they're pretty much 32 00:01:21,680 --> 00:01:26,039 Speaker 1: the biggest names. Robert Robert Kiyosaki has written numerous bestsellers. 33 00:01:26,080 --> 00:01:28,720 Speaker 1: Of course, his main book is The Rich Dad, Poor Dad, 34 00:01:29,160 --> 00:01:31,160 Speaker 1: which was written over twenty five years ago. It's one 35 00:01:31,200 --> 00:01:33,360 Speaker 1: of the best selling books of all time. It's a 36 00:01:33,360 --> 00:01:36,720 Speaker 1: book that really influenced my life and put my life. 37 00:01:37,160 --> 00:01:39,240 Speaker 1: I'd say it's probably one of the maybe two or 38 00:01:39,240 --> 00:01:44,040 Speaker 1: three most influential books on my business and investing career. 39 00:01:44,360 --> 00:01:47,280 Speaker 1: So there's other books on other topics, but certainly for 40 00:01:47,360 --> 00:01:50,160 Speaker 1: business investing finance, Robert Kiyosaki's reached that board is probably 41 00:01:50,160 --> 00:01:52,880 Speaker 1: the most influential. And of course we have Dave Ramsey, 42 00:01:53,120 --> 00:01:56,800 Speaker 1: who has sort of taken over the world on radio 43 00:01:57,240 --> 00:02:00,280 Speaker 1: and Now he's big on podcasts and YouTube as well, 44 00:02:00,600 --> 00:02:04,240 Speaker 1: and he also takes a different approach on how to 45 00:02:04,240 --> 00:02:06,360 Speaker 1: build wealth and how to get out of debt and. 46 00:02:06,320 --> 00:02:06,840 Speaker 2: Things like that. 47 00:02:06,920 --> 00:02:09,320 Speaker 1: All Right, So Robert Kiyosaki and Dave Ramsey, now they 48 00:02:09,360 --> 00:02:12,359 Speaker 1: sit on opposite spectrums, and like I said, there's been 49 00:02:12,400 --> 00:02:15,359 Speaker 1: some hard words exchange back and forth here. So let's 50 00:02:15,360 --> 00:02:16,760 Speaker 1: break this down. So the first thing I want to 51 00:02:16,800 --> 00:02:18,880 Speaker 1: do is we'll just look at Dave Ramsey and sort 52 00:02:18,880 --> 00:02:21,880 Speaker 1: of a high level overview of what his approach is. 53 00:02:21,880 --> 00:02:24,800 Speaker 1: We'll look at Robert Kiyosaki's. Then we'll dig deep into 54 00:02:24,840 --> 00:02:27,320 Speaker 1: those and let you know the differences and how you 55 00:02:27,320 --> 00:02:30,600 Speaker 1: should think through this. Okay, So obviously we'll start with 56 00:02:30,680 --> 00:02:35,080 Speaker 1: Dave Ramsey. Alphabetically he goes first, but he has a 57 00:02:35,240 --> 00:02:39,320 Speaker 1: very debt adverse approach, right, So he's renowned for his, 58 00:02:40,160 --> 00:02:43,160 Speaker 1: you know, his views of basically, don't take on debt, 59 00:02:43,280 --> 00:02:45,240 Speaker 1: get out of debt as fast as you can. He 60 00:02:45,280 --> 00:02:48,639 Speaker 1: advocates for aggressively paying off any debts that you have, 61 00:02:49,240 --> 00:02:54,040 Speaker 1: and that you should be building wealth through savings. Build 62 00:02:54,120 --> 00:02:57,280 Speaker 1: building wealth through savings and investments, and he likes to 63 00:02:57,320 --> 00:03:00,000 Speaker 1: put people into mutual funds all right, we're going to 64 00:03:00,160 --> 00:03:01,480 Speaker 1: dig into this, but we're just going to keep going. 65 00:03:02,040 --> 00:03:05,640 Speaker 1: He's very conservative when it comes to investing, so again, 66 00:03:05,840 --> 00:03:09,799 Speaker 1: very risk averse, so he's debt averse. He's also very 67 00:03:09,800 --> 00:03:11,520 Speaker 1: averse to any risk in investing, so he wants to 68 00:03:11,520 --> 00:03:15,799 Speaker 1: be very conservative. He recommends using very conservative investment strategies, 69 00:03:16,120 --> 00:03:20,320 Speaker 1: focusing on mutual funds and avoiding risky your ventures like 70 00:03:20,720 --> 00:03:26,720 Speaker 1: individual stocks, like picking stocks, picking sectors, or real estate speculation. 71 00:03:27,000 --> 00:03:28,799 Speaker 1: He's not a fan of that at all. He's sort 72 00:03:28,800 --> 00:03:33,400 Speaker 1: of known for these seven baby steps, very well known plans. 73 00:03:33,520 --> 00:03:36,400 Speaker 1: What he's known for, which basically is like a methodical 74 00:03:36,400 --> 00:03:41,080 Speaker 1: it's a systematic way to provide financial stability. We're going 75 00:03:41,120 --> 00:03:43,240 Speaker 1: to go through those seven steps, but basically it starts 76 00:03:43,280 --> 00:03:46,040 Speaker 1: from creating an emergency fund to investing up to fifteen 77 00:03:46,040 --> 00:03:48,720 Speaker 1: percent of your household income and retirement accounts, which I 78 00:03:48,760 --> 00:03:54,040 Speaker 1: think is pretty good. Obviously, all wealth comes from savings first, 79 00:03:54,080 --> 00:03:57,400 Speaker 1: so you have to make money, you have to spend 80 00:03:57,480 --> 00:03:59,640 Speaker 1: less than you earn, so you have some savings, and 81 00:03:59,640 --> 00:04:02,360 Speaker 1: then you need to invest that savings for growth. He 82 00:04:02,400 --> 00:04:05,760 Speaker 1: thinks you should be investing in fifteen percent grant cardone 83 00:04:05,800 --> 00:04:09,440 Speaker 1: says that you should be investing forty percent of your wealth. Now, 84 00:04:09,600 --> 00:04:13,040 Speaker 1: some of you might say, well I can't invest fifteen percent. 85 00:04:13,120 --> 00:04:15,200 Speaker 1: I don't make that much money, or I can't invest 86 00:04:15,240 --> 00:04:18,080 Speaker 1: forty percent like grand Cardon, I don't make that much money. 87 00:04:18,279 --> 00:04:21,760 Speaker 1: Well you can one make more money, or two you 88 00:04:21,800 --> 00:04:23,840 Speaker 1: can cut your expenses down. And of course you can 89 00:04:23,880 --> 00:04:26,160 Speaker 1: do both of those things. We're going to come back 90 00:04:26,200 --> 00:04:29,440 Speaker 1: to that all right now. Framing up Robert Kiyosaki's philosophy 91 00:04:29,560 --> 00:04:31,040 Speaker 1: sort of like it's over, you're gonna dig deep into 92 00:04:31,080 --> 00:04:33,400 Speaker 1: these I want to break him down. But he's into 93 00:04:33,560 --> 00:04:35,880 Speaker 1: using debt, and as a matter of fact, he likes 94 00:04:35,920 --> 00:04:40,600 Speaker 1: to leverage debt. So it's an exact opposite view of 95 00:04:40,640 --> 00:04:43,760 Speaker 1: what Dave Ramsey is, the author of The Rich deb 96 00:04:43,839 --> 00:04:47,280 Speaker 1: portad views debt as a tool for wealth creation and 97 00:04:47,320 --> 00:04:50,640 Speaker 1: he encourages using debts, particularly in real estate. Now, I 98 00:04:50,680 --> 00:04:53,280 Speaker 1: do want to say Robert Kasaki talks about good debt 99 00:04:53,720 --> 00:04:56,960 Speaker 1: versus bad debt. There is certainly bad debt and he 100 00:04:57,000 --> 00:04:57,599 Speaker 1: frames that up. 101 00:04:57,640 --> 00:05:00,800 Speaker 2: We'll talk about this in a minute, and he's avoid 102 00:05:00,839 --> 00:05:01,600 Speaker 2: that at all costs. 103 00:05:01,640 --> 00:05:04,240 Speaker 1: So sort of he's in agreement with Dave Ramsey on 104 00:05:04,400 --> 00:05:06,760 Speaker 1: bad debt, but Robert Kiyasaki believes there's good debt and 105 00:05:06,800 --> 00:05:10,320 Speaker 1: Dave Ramsey doesn't make that distinction. Robert Kiyosaki talks about 106 00:05:10,360 --> 00:05:16,120 Speaker 1: building assets, so his strategy revolves around generating or building assets, 107 00:05:16,160 --> 00:05:20,120 Speaker 1: specifically assets that generate income. He also believes in financial 108 00:05:20,240 --> 00:05:24,560 Speaker 1: education to understand what you're doing. I like to say 109 00:05:24,600 --> 00:05:27,039 Speaker 1: that if you don't have an edge in the market, 110 00:05:28,000 --> 00:05:30,040 Speaker 1: then you're not going to succeed. You don't have an 111 00:05:30,120 --> 00:05:33,760 Speaker 1: edge in public equities in the stock market. The high 112 00:05:33,800 --> 00:05:35,839 Speaker 1: frequency traders in Wall Street, they have an edge. 113 00:05:36,040 --> 00:05:36,520 Speaker 2: You don't. 114 00:05:36,520 --> 00:05:38,360 Speaker 1: But we can pick up our edges in other areas. 115 00:05:38,400 --> 00:05:40,560 Speaker 1: But a lot of that comes from our own education. 116 00:05:40,640 --> 00:05:41,520 Speaker 1: We're going to come back to that. 117 00:05:42,040 --> 00:05:44,040 Speaker 2: But if you don't know what your edge is. 118 00:05:44,760 --> 00:05:46,800 Speaker 1: That means you don't have one, and if you don't 119 00:05:46,800 --> 00:05:50,120 Speaker 1: have one, you probably shouldn't be investing. If you don't 120 00:05:50,120 --> 00:05:51,599 Speaker 1: know what you're doing, you shouldn't be investing. A lot 121 00:05:51,600 --> 00:05:53,000 Speaker 1: of times people ask me Mark, what should I do. 122 00:05:53,200 --> 00:05:55,039 Speaker 2: It's like, well, if you don't know, you probably shouldn't 123 00:05:55,080 --> 00:05:58,200 Speaker 2: do anything because it's too much risk. 124 00:05:58,640 --> 00:06:00,720 Speaker 1: It's like I use it are you surfing as an 125 00:06:00,720 --> 00:06:03,120 Speaker 1: analogy at the time because I'm a surfer from southern California. 126 00:06:03,560 --> 00:06:06,120 Speaker 1: If you showed up to pipeline in Hawaii where the 127 00:06:06,160 --> 00:06:08,320 Speaker 1: waves thirty feet tall and it breaks on just four 128 00:06:08,360 --> 00:06:10,560 Speaker 1: or five feet of water, and you might say, Mark. 129 00:06:10,680 --> 00:06:12,159 Speaker 2: I'm not sure how to paddle out and catch one 130 00:06:12,200 --> 00:06:13,360 Speaker 2: of those waves. Tell me what to do. 131 00:06:14,960 --> 00:06:17,280 Speaker 1: No, the answer is no, do not paddle out and 132 00:06:17,320 --> 00:06:18,640 Speaker 1: try to catch one of those waves. You don't know 133 00:06:18,640 --> 00:06:20,880 Speaker 1: what to do, and so you start small. It's very 134 00:06:20,880 --> 00:06:24,880 Speaker 1: small waves and very you know, soft bottoms, let's say, 135 00:06:24,960 --> 00:06:27,520 Speaker 1: with sand bottoms, and you work your way up. 136 00:06:28,040 --> 00:06:29,360 Speaker 2: Okay, So you wouldn't. 137 00:06:29,000 --> 00:06:30,360 Speaker 1: Show up to a pipeline and say how do I 138 00:06:30,400 --> 00:06:32,440 Speaker 1: paddle out and catch a wave? And you shouldn't ask 139 00:06:32,440 --> 00:06:34,920 Speaker 1: that with investing either, specifically when it comes to more 140 00:06:34,960 --> 00:06:39,800 Speaker 1: complex strategies we'll talk about. Also, Kiyosaki likes to has 141 00:06:39,880 --> 00:06:43,440 Speaker 1: likes diverse investments. Unlike Dave Ramsey, which says just put 142 00:06:43,480 --> 00:06:46,680 Speaker 1: it at mutual funds, he likes to diversify his investment approach, 143 00:06:46,839 --> 00:06:50,120 Speaker 1: including real estate and businesses and some commodities. We're going 144 00:06:50,200 --> 00:06:53,479 Speaker 1: to talk about the core differences there, and like I said, 145 00:06:53,560 --> 00:06:57,200 Speaker 1: there's just a very stark contrast, right, Ramsey is don't 146 00:06:57,320 --> 00:07:02,160 Speaker 1: use debt, have a very very conservative to investing. And 147 00:07:02,279 --> 00:07:05,159 Speaker 1: Robert Kyosaki on the other side, is an advocate of 148 00:07:05,240 --> 00:07:09,880 Speaker 1: using debt, an advocat of using a few different asset classes. 149 00:07:10,360 --> 00:07:14,360 Speaker 1: And you know, both people have had massive success. But 150 00:07:14,440 --> 00:07:19,360 Speaker 1: I want to point out the difference here. Kyasaki urges 151 00:07:19,680 --> 00:07:23,760 Speaker 1: or advocates you using debt and building assets. Specifically, he 152 00:07:23,880 --> 00:07:27,440 Speaker 1: likes real estate, some commodities, and he's so gold. He's 153 00:07:27,440 --> 00:07:31,040 Speaker 1: been a big proponent of gold, commodities, real estate, and businesses. 154 00:07:32,000 --> 00:07:35,280 Speaker 1: Dave Ramsey says, save your money and invest it into 155 00:07:35,400 --> 00:07:39,720 Speaker 1: mutual funds and don't use debt. But both of them 156 00:07:40,360 --> 00:07:46,240 Speaker 1: really built their wealth through businesses. See Dave Ramsey tells you, well, 157 00:07:46,320 --> 00:07:49,280 Speaker 1: Kiyosaki tells you to invest into businesses. And Kyosaki has 158 00:07:49,360 --> 00:07:51,560 Speaker 1: businesses and his businesses has made him a lot of money, 159 00:07:51,960 --> 00:07:55,480 Speaker 1: whereas Dave Ramsey made his money in businesses. But he's 160 00:07:55,480 --> 00:07:57,480 Speaker 1: not telling you to invest into businesses. 161 00:07:59,000 --> 00:08:01,000 Speaker 2: So there's a pretty big diference there. We're going to 162 00:08:01,040 --> 00:08:01,480 Speaker 2: come back to that. 163 00:08:01,760 --> 00:08:03,600 Speaker 1: So let's set the stage. This is what we're going 164 00:08:03,680 --> 00:08:05,640 Speaker 1: to dig into here. We're going to compare these two 165 00:08:05,640 --> 00:08:07,680 Speaker 1: giants I'm going to dig into each of these strategies. 166 00:08:07,720 --> 00:08:10,360 Speaker 1: I'm going to go through Dave ramsey seven steps. I'm 167 00:08:10,360 --> 00:08:14,080 Speaker 1: going to look at Robert Kiyosaki's philosophy. There's six things 168 00:08:14,080 --> 00:08:18,080 Speaker 1: that i want to break down and I'm going to 169 00:08:18,120 --> 00:08:20,560 Speaker 1: give you my opinions on them. Now, briefly, you know 170 00:08:20,880 --> 00:08:22,560 Speaker 1: this is the Mark mass Show, so obviously this is 171 00:08:22,600 --> 00:08:24,800 Speaker 1: the Mark Moss Robert Kyosaki has been my mentor for 172 00:08:24,800 --> 00:08:26,920 Speaker 1: twenty five years via books. He's now one of my friends. 173 00:08:26,960 --> 00:08:29,760 Speaker 1: You can see me many mini videos on his show 174 00:08:29,840 --> 00:08:31,000 Speaker 1: Rich Dad Radio. 175 00:08:30,880 --> 00:08:32,120 Speaker 2: If you go onto YouTube. 176 00:08:32,240 --> 00:08:34,079 Speaker 1: He's been on my show a couple of times as well. 177 00:08:34,120 --> 00:08:36,560 Speaker 1: We've done lots of things together, and I do want 178 00:08:36,559 --> 00:08:39,600 Speaker 1: to just disclaimer real quick here. I'm going to show 179 00:08:39,640 --> 00:08:43,800 Speaker 1: you different strategies and they work for different people, so 180 00:08:43,840 --> 00:08:45,319 Speaker 1: it's not a one size fits all. I'm going to 181 00:08:45,400 --> 00:08:48,040 Speaker 1: tell you who they work for and how you can 182 00:08:48,080 --> 00:08:50,400 Speaker 1: go from one category to the next. So again, if 183 00:08:50,400 --> 00:08:52,400 Speaker 1: you're just tuning in, you're listening to the Mark Moss Show. 184 00:08:52,800 --> 00:08:56,160 Speaker 1: We're always talking about the changes in the world as 185 00:08:56,160 --> 00:08:58,800 Speaker 1: we look at through the lins of politics, finance, and technology. 186 00:08:58,800 --> 00:09:00,199 Speaker 2: Today we're breaking down. 187 00:09:00,240 --> 00:09:04,840 Speaker 1: Two titans in business and personal finance and investing, Dave 188 00:09:04,920 --> 00:09:07,640 Speaker 1: Ramsey and Robert Kyosaki, and we're going to break them 189 00:09:07,679 --> 00:09:08,319 Speaker 1: down side by side. 190 00:09:08,320 --> 00:09:10,120 Speaker 2: I'm gonna be back with more in a minute. I 191 00:09:10,200 --> 00:09:11,880 Speaker 2: got to take a very quick break, so don't go away. 192 00:09:11,920 --> 00:09:12,680 Speaker 2: I'm right back. 193 00:09:12,720 --> 00:09:14,280 Speaker 1: All right, Welcome back. If you're just tune in, you're 194 00:09:14,280 --> 00:09:17,240 Speaker 1: listening to the Mark Mass Show. We're talking about the 195 00:09:17,360 --> 00:09:21,160 Speaker 1: side by side comparison. We're pitting two financial titans of 196 00:09:21,240 --> 00:09:24,360 Speaker 1: business investing in personal finance against each other. We're talking 197 00:09:24,360 --> 00:09:27,360 Speaker 1: about Robert Kyosaki and Dave Ramsey. All right, so we 198 00:09:27,440 --> 00:09:29,520 Speaker 1: sort of framed it up. Now let's dig in here. Okay, 199 00:09:29,520 --> 00:09:32,160 Speaker 1: So let's start with Dave Ramsey again alphabetically, He's a D. 200 00:09:32,320 --> 00:09:36,679 Speaker 1: He starts first, and let's look at his process and 201 00:09:36,720 --> 00:09:39,520 Speaker 1: his really approach to risk. Now, he has a seven 202 00:09:39,640 --> 00:09:43,880 Speaker 1: steps and really again he promotes a very risk free, 203 00:09:43,960 --> 00:09:48,040 Speaker 1: risk adverse strategy, avoiding debt, focus on mutual funds, and 204 00:09:48,120 --> 00:09:51,160 Speaker 1: really this is suitable for those who really want to 205 00:09:51,200 --> 00:09:57,160 Speaker 1: prioritize security and are not really worried about returns. Now, 206 00:09:57,600 --> 00:09:59,760 Speaker 1: one thing that I do like about this is that 207 00:10:01,080 --> 00:10:04,520 Speaker 1: we'll get into diversification. But if you don't really focus 208 00:10:04,559 --> 00:10:05,240 Speaker 1: on investing. 209 00:10:05,280 --> 00:10:06,199 Speaker 2: You don't use debt. 210 00:10:06,520 --> 00:10:09,200 Speaker 1: All you do is earn money, save it and stick 211 00:10:09,200 --> 00:10:10,320 Speaker 1: it away into mutual funds. 212 00:10:10,360 --> 00:10:11,559 Speaker 2: I don't think that's the best way to do. 213 00:10:11,480 --> 00:10:14,120 Speaker 1: It, but it allows you a lot of extra time 214 00:10:14,120 --> 00:10:16,080 Speaker 1: that you could just focus back on your business and 215 00:10:16,120 --> 00:10:18,679 Speaker 1: making money. You see, when you start to diversify, when 216 00:10:18,720 --> 00:10:20,440 Speaker 1: you have to start to learn about all these different stocks, 217 00:10:20,440 --> 00:10:25,680 Speaker 1: different commodities, different trading strategies, cryptocurrencies, etc. It takes away 218 00:10:25,720 --> 00:10:27,960 Speaker 1: a lot of time, energy, effort, and focus that you 219 00:10:28,000 --> 00:10:30,640 Speaker 1: could just be spent focusing on your business or your 220 00:10:30,720 --> 00:10:33,280 Speaker 1: income to get your income higher. Remember we talked about 221 00:10:33,320 --> 00:10:35,840 Speaker 1: saving fifteen to forty percent of your income, and so 222 00:10:36,080 --> 00:10:38,640 Speaker 1: maybe some of you need to make more income. And 223 00:10:38,720 --> 00:10:42,000 Speaker 1: so if you're not worried about all this investing, you 224 00:10:42,040 --> 00:10:43,880 Speaker 1: can do that. So to Dave Ramsey, let's give him 225 00:10:43,920 --> 00:10:46,320 Speaker 1: a win on that side. He makes it very simple, 226 00:10:47,880 --> 00:10:49,839 Speaker 1: so you can just focus on making money. Now he 227 00:10:49,840 --> 00:10:52,240 Speaker 1: doesn't talk about that specifically, We're going to come. 228 00:10:52,080 --> 00:10:52,480 Speaker 2: Back to that. 229 00:10:53,200 --> 00:10:57,079 Speaker 1: And again, Robert Kyosaki encourages taking calculated risk taking, and 230 00:10:57,080 --> 00:10:59,160 Speaker 1: I want to say calculated. He definitely makes the difference 231 00:10:59,200 --> 00:11:01,080 Speaker 1: between good and bad debt. 232 00:11:01,559 --> 00:11:04,479 Speaker 2: But he argues that if you use proper. 233 00:11:04,280 --> 00:11:07,680 Speaker 1: Risk taking, because you have used education to educate yourself 234 00:11:07,679 --> 00:11:10,600 Speaker 1: to de risk the situation. Going back to pipeline surfing, 235 00:11:10,600 --> 00:11:14,280 Speaker 1: the pipeline and Hawaii, if you, you know, someone who's 236 00:11:14,320 --> 00:11:15,280 Speaker 1: never surfed before. 237 00:11:15,040 --> 00:11:17,000 Speaker 2: Were to paddle out there, you would probably die. 238 00:11:17,520 --> 00:11:20,040 Speaker 1: But yet at a time of this recording, right now, 239 00:11:20,080 --> 00:11:22,880 Speaker 1: they're running a contest that pipeline, and those guys surf 240 00:11:22,880 --> 00:11:24,920 Speaker 1: over there all the time, and really nobody ever dies 241 00:11:25,360 --> 00:11:28,319 Speaker 1: because through their education, or I should say, through their experience, 242 00:11:28,360 --> 00:11:30,640 Speaker 1: they've been able to de risk that situation. You see, 243 00:11:30,880 --> 00:11:35,200 Speaker 1: risk is always in the investor and not the investment. 244 00:11:36,760 --> 00:11:39,440 Speaker 1: So if you went to go surf Pipeline and Hawaii, 245 00:11:39,520 --> 00:11:41,760 Speaker 1: the risk would be on you, not the wave. I mean, 246 00:11:41,800 --> 00:11:44,080 Speaker 1: sure the wave is risky, but through that education and 247 00:11:44,080 --> 00:11:46,959 Speaker 1: through that training and through that experience, they have de 248 00:11:47,080 --> 00:11:47,880 Speaker 1: riskless situation. 249 00:11:48,280 --> 00:11:49,840 Speaker 2: All right, And if you're able to do that, you 250 00:11:49,880 --> 00:11:52,080 Speaker 2: get higher returns. All right. 251 00:11:52,600 --> 00:11:55,440 Speaker 1: So let's break this down now. A key piece here 252 00:11:55,640 --> 00:11:58,480 Speaker 1: we'll keep. We're going to come back to is businesses, 253 00:12:00,080 --> 00:12:03,800 Speaker 1: real estate, and taxes, all right, So we're going to 254 00:12:03,840 --> 00:12:06,440 Speaker 1: break that down now. I do want to say just 255 00:12:06,480 --> 00:12:08,880 Speaker 1: real quick. Something I've been talking about is a reverse 256 00:12:08,960 --> 00:12:11,160 Speaker 1: market crash. You've been hearing me talk about this lately. 257 00:12:11,800 --> 00:12:13,839 Speaker 1: Everyone's been afraid of a market crash for the last 258 00:12:13,880 --> 00:12:16,040 Speaker 1: two years, but the market keeps going higher and higher 259 00:12:16,080 --> 00:12:19,439 Speaker 1: and higher. But there's two types of crashes. There's a 260 00:12:19,520 --> 00:12:21,680 Speaker 1: crash where things go down, but there's also crash where 261 00:12:21,720 --> 00:12:25,040 Speaker 1: things go up. Now, when it goes up, a reverse 262 00:12:25,080 --> 00:12:27,720 Speaker 1: market crash is actually worse in the long run for 263 00:12:27,840 --> 00:12:30,160 Speaker 1: most people, but for those of us that take advantage 264 00:12:30,160 --> 00:12:32,320 Speaker 1: of it, it is our opportunity for a lifetime. And 265 00:12:32,360 --> 00:12:34,959 Speaker 1: I'm having a live presentation. We're going to break this 266 00:12:35,120 --> 00:12:38,240 Speaker 1: whole market reverse market crash down. I got about thirty 267 00:12:38,360 --> 00:12:39,679 Speaker 1: charts I want to show you, so we're going to 268 00:12:39,720 --> 00:12:41,079 Speaker 1: do it live. I'm going to show you the charts. 269 00:12:41,240 --> 00:12:43,280 Speaker 1: I'm going to show you exactly what I'm doing about it. 270 00:12:43,360 --> 00:12:45,720 Speaker 1: Three different asset categories that I think are the ones 271 00:12:45,760 --> 00:12:47,679 Speaker 1: we want to be in this reverse crash. If you 272 00:12:47,679 --> 00:12:50,199 Speaker 1: want to check it out, go to go dot one, 273 00:12:50,240 --> 00:12:54,480 Speaker 1: Markmoss dot com slash reverse again. Go dot one, Markmoss 274 00:12:54,520 --> 00:12:56,160 Speaker 1: dot com slash Reverse. 275 00:12:56,400 --> 00:12:59,360 Speaker 2: It's free. Coming out with me, check out the presentation. 276 00:12:59,080 --> 00:13:01,160 Speaker 1: And I'll answer all your questions live, so you can 277 00:13:01,200 --> 00:13:02,840 Speaker 1: get a chance to talk to me live. All right, 278 00:13:02,880 --> 00:13:06,120 Speaker 1: Now jump into Robert Kyosaki after Dave Ramsey. Again, he 279 00:13:06,200 --> 00:13:08,680 Speaker 1: focuses on I don't want to say a diverse range 280 00:13:08,679 --> 00:13:11,400 Speaker 1: of assets, but different assets. So he likes real estate, 281 00:13:11,880 --> 00:13:15,840 Speaker 1: he likes businesses, and he likes commodities, and he believes 282 00:13:15,880 --> 00:13:19,959 Speaker 1: in direct control over the investments. And if you think 283 00:13:19,960 --> 00:13:22,520 Speaker 1: about it, like Warren Buffett, you know, arguably the most 284 00:13:22,559 --> 00:13:26,080 Speaker 1: famous investor in the world, he says that he doesn't 285 00:13:26,080 --> 00:13:29,559 Speaker 1: buy stocks. Warren Buffett doesn't buy stocks, which sounds sort 286 00:13:29,559 --> 00:13:33,280 Speaker 1: of ridiculous. He says, I buy companies. I buy businesses. 287 00:13:33,640 --> 00:13:36,840 Speaker 1: They just happen to be public. And so when you 288 00:13:36,840 --> 00:13:39,040 Speaker 1: think about it from that perspective, Robert Kyoski is talking 289 00:13:39,040 --> 00:13:43,199 Speaker 1: about buying businesses. Warren Buffett buys businesses, not stocks. They 290 00:13:43,200 --> 00:13:46,120 Speaker 1: buy businesses. And then also there's the real estate edge 291 00:13:46,160 --> 00:13:49,920 Speaker 1: as well. Now for long term wealth building. Dave Ramsey 292 00:13:50,000 --> 00:13:53,160 Speaker 1: again doesn't like debt. Robert Kiyosaki does like debt. We're 293 00:13:53,160 --> 00:13:56,559 Speaker 1: going to break that down, but let's just go ahead 294 00:13:56,600 --> 00:13:59,720 Speaker 1: and look at a couple scenarios here so we can 295 00:13:59,760 --> 00:14:01,800 Speaker 1: store sort of dig into this, And I do want 296 00:14:01,800 --> 00:14:04,080 Speaker 1: to say, first of all, I was on a show 297 00:14:04,080 --> 00:14:07,520 Speaker 1: with Robert Kyosaki and we talked about Dave Ramsey, and 298 00:14:07,800 --> 00:14:12,360 Speaker 1: Robert Kyosaki said that actually Dave Ramsey is right for 299 00:14:12,520 --> 00:14:13,200 Speaker 1: most people. 300 00:14:13,960 --> 00:14:15,520 Speaker 2: And that's the key piece there, that's the new ones 301 00:14:15,720 --> 00:14:17,439 Speaker 2: for most people. What does that mean? 302 00:14:17,480 --> 00:14:20,520 Speaker 1: He was saying that Dave Ramsey and him telling everybody 303 00:14:20,600 --> 00:14:21,760 Speaker 1: you know, don't. 304 00:14:21,520 --> 00:14:24,760 Speaker 2: Use debt, He's right for most people. 305 00:14:25,200 --> 00:14:27,920 Speaker 1: And the reason why is because most people don't have 306 00:14:28,040 --> 00:14:31,320 Speaker 1: the financial education, the financial mindset, the experience to use 307 00:14:31,360 --> 00:14:35,080 Speaker 1: debt properly. Remember, because risk is in the investor, not 308 00:14:35,120 --> 00:14:39,440 Speaker 1: the investment, And so I liken it to fire. Right, 309 00:14:39,480 --> 00:14:43,000 Speaker 1: So debt is leverage, and leverage is dangerous. Leverage can 310 00:14:43,080 --> 00:14:45,640 Speaker 1: help you build wealth much faster, but can also help 311 00:14:45,640 --> 00:14:48,360 Speaker 1: you loose wealth much faster. I liken it to fire 312 00:14:48,440 --> 00:14:51,760 Speaker 1: because with fire, I can warm up my house. But 313 00:14:51,800 --> 00:14:54,600 Speaker 1: if I don't contain that fire properly, I'll burn my 314 00:14:54,680 --> 00:14:57,440 Speaker 1: house down. You know, if you have kids, you know this, 315 00:14:57,520 --> 00:15:00,200 Speaker 1: but you don't want kids to play with fire. Why 316 00:15:00,200 --> 00:15:03,360 Speaker 1: shouldn't kids play with fire? Because they're not old enough, 317 00:15:03,360 --> 00:15:06,640 Speaker 1: they're not experienced enough to know how to handle it. 318 00:15:06,760 --> 00:15:08,640 Speaker 1: As you get older, you play with fire all the time. 319 00:15:08,680 --> 00:15:09,080 Speaker 2: I light my. 320 00:15:09,080 --> 00:15:11,360 Speaker 1: Barbecue every night, the cook steaks. I light my fireplaces 321 00:15:11,400 --> 00:15:13,840 Speaker 1: right now it's wintertime, and so we use fire all time. 322 00:15:13,880 --> 00:15:16,760 Speaker 1: But I can use it responsibly. But Robert Kiyosaki is 323 00:15:16,760 --> 00:15:19,720 Speaker 1: making the point that most people have not built up 324 00:15:19,720 --> 00:15:23,800 Speaker 1: their financial education to the point in which they're responsible enough. 325 00:15:23,600 --> 00:15:24,480 Speaker 2: To use debt. 326 00:15:25,520 --> 00:15:28,080 Speaker 1: So he's right, And he says Dave Ramsey is right 327 00:15:28,160 --> 00:15:30,280 Speaker 1: for most people. But I don't want to be like 328 00:15:30,280 --> 00:15:32,280 Speaker 1: most people. I want to be above average, and so 329 00:15:32,400 --> 00:15:34,640 Speaker 1: I need to learn how to use fire. I don't 330 00:15:34,640 --> 00:15:36,360 Speaker 1: want to eat cold salad every day. I want to 331 00:15:36,360 --> 00:15:37,960 Speaker 1: be able to cook my steak, and so I had 332 00:15:37,960 --> 00:15:39,840 Speaker 1: to learn how to use fire. And you should also 333 00:15:39,960 --> 00:15:41,840 Speaker 1: learn how to use debt. Now why should you learn 334 00:15:41,880 --> 00:15:44,280 Speaker 1: how to use debt? Well, one, as I said that 335 00:15:44,400 --> 00:15:48,320 Speaker 1: leverage helps us grow faster. But two, most importantly, most 336 00:15:48,360 --> 00:15:50,720 Speaker 1: people don't understand. 337 00:15:50,320 --> 00:15:53,120 Speaker 2: The game of money, if you'll call it that right. 338 00:15:54,120 --> 00:15:56,680 Speaker 1: Tony Robbins wrote a book called Money, Master the Game, 339 00:15:56,880 --> 00:15:59,800 Speaker 1: and that is, if you want to master the game, 340 00:15:59,880 --> 00:16:01,960 Speaker 1: you have to understand money. And so the first step 341 00:16:02,000 --> 00:16:04,400 Speaker 1: is to understand that we are in a debt based 342 00:16:04,920 --> 00:16:07,240 Speaker 1: monetary system. Most people don't even know what that means. 343 00:16:07,240 --> 00:16:08,960 Speaker 1: And if you don't know what that means, then you 344 00:16:09,000 --> 00:16:11,560 Speaker 1: shouldn't use debt. But what that means is that all 345 00:16:11,760 --> 00:16:15,360 Speaker 1: money is created through debt issuing. So you know, we 346 00:16:15,360 --> 00:16:17,600 Speaker 1: talk about the meme of the Fed printing money money 347 00:16:17,600 --> 00:16:20,560 Speaker 1: in printer go burr, that's not how it works. Money 348 00:16:20,640 --> 00:16:23,720 Speaker 1: is created into existence by the issuance of debt. 349 00:16:23,760 --> 00:16:24,480 Speaker 2: When you go to the bank to. 350 00:16:24,440 --> 00:16:26,440 Speaker 1: Get a house, of car, boat, or motorcycle, loan, whatever 351 00:16:26,520 --> 00:16:29,200 Speaker 1: it is, that loan creates the money. 352 00:16:29,280 --> 00:16:30,160 Speaker 2: It's a money tree. 353 00:16:30,440 --> 00:16:32,360 Speaker 1: Instead of going to the backyard and pulling money off 354 00:16:32,360 --> 00:16:34,440 Speaker 1: the tree, I just get on the internet and go 355 00:16:34,480 --> 00:16:36,840 Speaker 1: to my bank and they give me money anytime I want. 356 00:16:37,760 --> 00:16:39,960 Speaker 1: As a matter of fact, I just got six figures 357 00:16:39,960 --> 00:16:41,680 Speaker 1: of money from the bank for a new car for 358 00:16:41,800 --> 00:16:43,680 Speaker 1: my wife. I didn't want to use my money. I 359 00:16:43,720 --> 00:16:45,240 Speaker 1: wanted the money tree, and they gave it to me. 360 00:16:45,760 --> 00:16:48,360 Speaker 1: And so we can do that, and that money is 361 00:16:48,360 --> 00:16:51,000 Speaker 1: created to an existence. And so if I want unlimited 362 00:16:51,040 --> 00:16:52,000 Speaker 1: amount of money, how do. 363 00:16:51,960 --> 00:16:54,280 Speaker 2: I get that? I get it through debt. 364 00:16:54,320 --> 00:16:57,200 Speaker 1: Because we're in a debt based monetary system and in 365 00:16:57,240 --> 00:17:00,960 Speaker 1: a debt based monetary system, it destroys cash. So Dave 366 00:17:01,040 --> 00:17:03,960 Speaker 1: Ramsey is all about not using debt and instead saving. 367 00:17:04,760 --> 00:17:06,760 Speaker 1: But the problem is in a debt based monetary system, 368 00:17:06,840 --> 00:17:09,200 Speaker 1: you need the debt to get rich, and the debt 369 00:17:09,280 --> 00:17:12,760 Speaker 1: actually destroys the savings, so it's actually opposite. 370 00:17:12,840 --> 00:17:13,800 Speaker 2: So it works. 371 00:17:13,840 --> 00:17:15,840 Speaker 1: Okay if you just want to live a very meager 372 00:17:15,840 --> 00:17:17,440 Speaker 1: life and grow and you want to be very safe, 373 00:17:17,440 --> 00:17:19,040 Speaker 1: and you don't want to build, you don't want to 374 00:17:19,040 --> 00:17:20,719 Speaker 1: take the time to build your financial acumen. 375 00:17:20,720 --> 00:17:22,720 Speaker 2: You'd rather watch Netflix and chill, I suppose. 376 00:17:23,200 --> 00:17:26,560 Speaker 1: But if you want to get wealthy, then you have 377 00:17:26,680 --> 00:17:29,440 Speaker 1: to master the game like Tony Robbinson's and you have 378 00:17:29,520 --> 00:17:32,840 Speaker 1: to learn how money works and how to leverage that all. 379 00:17:32,880 --> 00:17:34,320 Speaker 1: Right now, if you're just tune in, you're listening to 380 00:17:34,359 --> 00:17:38,800 Speaker 1: the Mark Mass Show. We're pitting to financial titans, two 381 00:17:39,080 --> 00:17:43,080 Speaker 1: titans of personal finance and investing together, Dave Ramsey and 382 00:17:43,600 --> 00:17:47,080 Speaker 1: Robert Kiyosaki, comparing their two strategies. And I'm giving you 383 00:17:47,119 --> 00:17:49,320 Speaker 1: my commentary. I got a whole lot to cover when 384 00:17:49,320 --> 00:17:51,520 Speaker 1: we come back, when I dig into the actual seven 385 00:17:51,600 --> 00:17:54,639 Speaker 1: part Perlan from Ramsey, the sixth part plan from Robert Kyosaki, 386 00:17:54,920 --> 00:17:55,560 Speaker 1: don't go away. 387 00:17:55,600 --> 00:17:57,239 Speaker 2: I'll be right back, all right, Welcome back. 388 00:17:57,280 --> 00:17:58,800 Speaker 1: If you're just tune in, you're listening to the Mark 389 00:17:58,840 --> 00:18:01,800 Speaker 1: mass Show, always talking about the changes in the financial 390 00:18:01,840 --> 00:18:05,639 Speaker 1: system and the world. And we're talking about to investing 391 00:18:05,840 --> 00:18:09,119 Speaker 1: in personal finance legends, titans. We're talking about Dave Ramsey 392 00:18:09,119 --> 00:18:13,160 Speaker 1: and Robert Kiyosaki, their differences in their philosophy. We're pitting 393 00:18:13,200 --> 00:18:15,679 Speaker 1: them against each other, and I'm giving you my commentary 394 00:18:15,760 --> 00:18:16,920 Speaker 1: on how you should think through this. 395 00:18:16,960 --> 00:18:18,200 Speaker 2: All right, So let's just keep going. 396 00:18:18,359 --> 00:18:20,760 Speaker 1: So going back to Dave Ramsey first in his corner 397 00:18:20,880 --> 00:18:23,560 Speaker 1: again alphabetically he goes first. He is something he calls 398 00:18:23,600 --> 00:18:26,520 Speaker 1: the seven Baby Steps. So this is investment philosophy. So 399 00:18:26,560 --> 00:18:28,200 Speaker 1: if you want to invest like Dave Ramsey, this is 400 00:18:28,200 --> 00:18:30,000 Speaker 1: what you would do, is what he'd tell you if 401 00:18:30,080 --> 00:18:33,680 Speaker 1: you worked with him directly, the seven Baby Steps. And 402 00:18:34,600 --> 00:18:37,600 Speaker 1: let's let's dig into it. So number one, save one 403 00:18:37,680 --> 00:18:40,399 Speaker 1: thousand dollars for your starter emergency fund. 404 00:18:40,520 --> 00:18:40,800 Speaker 2: Great. 405 00:18:40,960 --> 00:18:43,520 Speaker 1: I applaud that with good job, Dave. You should certainly 406 00:18:43,600 --> 00:18:45,199 Speaker 1: do that. As a matter of fact, you should be 407 00:18:45,200 --> 00:18:48,240 Speaker 1: more than one thousand dollars. Obviously the more the better. 408 00:18:48,440 --> 00:18:50,880 Speaker 1: But I guess you know, set that as your first goal. Now, 409 00:18:50,960 --> 00:18:54,080 Speaker 1: if you don't have savings, you're a slave. And I 410 00:18:54,200 --> 00:18:57,400 Speaker 1: mean that because if you have no savings, you can't 411 00:18:57,480 --> 00:19:01,440 Speaker 1: quit your job. If you have a month worth of savings, 412 00:19:02,040 --> 00:19:04,199 Speaker 1: you know, a month worth of expenses saved up, you 413 00:19:04,200 --> 00:19:06,320 Speaker 1: could quit your job and then go find a new 414 00:19:06,400 --> 00:19:08,400 Speaker 1: job in that month period or two months or three 415 00:19:08,400 --> 00:19:10,200 Speaker 1: months or whatever that is. If you have no savings, 416 00:19:10,240 --> 00:19:14,000 Speaker 1: you cannot quit your basically slave, So I do applaud that. 417 00:19:14,080 --> 00:19:16,480 Speaker 1: I would like to say, you know, thirty days at least, 418 00:19:16,480 --> 00:19:18,919 Speaker 1: if not up to ninety days of savings for me 419 00:19:19,560 --> 00:19:21,040 Speaker 1: having gone through what I went through in two thousand 420 00:19:21,040 --> 00:19:23,560 Speaker 1: and eight, like twelve months of savings. But you figure 421 00:19:23,560 --> 00:19:25,600 Speaker 1: out what you need to have there. But you need 422 00:19:25,640 --> 00:19:28,959 Speaker 1: to have that emergency fund. The number is changing, but 423 00:19:29,040 --> 00:19:33,359 Speaker 1: something about forty percent according to Bankrate, forty percent of 424 00:19:33,400 --> 00:19:38,720 Speaker 1: Americans cannot afford a one thousand dollars emergency. 425 00:19:38,280 --> 00:19:40,680 Speaker 2: Expense right now. All right, so it's a big deal. 426 00:19:40,800 --> 00:19:42,800 Speaker 1: You should do that step number two, he says, to 427 00:19:42,840 --> 00:19:46,240 Speaker 1: pay off all your debt except for your house. He says, 428 00:19:46,320 --> 00:19:48,240 Speaker 1: except for the house, but pay off all your debt. 429 00:19:48,280 --> 00:19:50,720 Speaker 1: He's just something called the debt snowball, which is basically, 430 00:19:50,800 --> 00:19:53,359 Speaker 1: you list all your debts small to large, and you 431 00:19:53,400 --> 00:19:55,760 Speaker 1: start paying off the smallest one first and then to 432 00:19:55,800 --> 00:19:58,439 Speaker 1: the largest one. And that works because of the psychological wins. 433 00:19:58,480 --> 00:20:00,480 Speaker 1: You know, you start seeing some action knock off a 434 00:20:00,520 --> 00:20:03,520 Speaker 1: couple payments, which you know makes it easier, and then 435 00:20:03,560 --> 00:20:06,640 Speaker 1: you can grow from there. I would rather pay off 436 00:20:06,680 --> 00:20:10,560 Speaker 1: the most expensive debt with the highest payment, not the payment, 437 00:20:10,600 --> 00:20:12,879 Speaker 1: but the highest interest rate. If I have a twenty 438 00:20:12,920 --> 00:20:15,240 Speaker 1: two percent credit card and a six percent credit card, 439 00:20:15,240 --> 00:20:17,280 Speaker 1: I should pay off the twenty two percent debt first, 440 00:20:17,640 --> 00:20:18,640 Speaker 1: not the six But. 441 00:20:18,600 --> 00:20:19,240 Speaker 2: That's his plan. 442 00:20:20,720 --> 00:20:23,360 Speaker 1: Another stat for you, the American, The average American has 443 00:20:23,640 --> 00:20:27,560 Speaker 1: ninety two thousand dollars in consumer debt. That's per experience, 444 00:20:27,680 --> 00:20:32,000 Speaker 1: ninety two thousand, almost six figures. Then step three is 445 00:20:32,119 --> 00:20:35,240 Speaker 1: now after you've got a thousand, you've paid off your debt, 446 00:20:35,320 --> 00:20:38,760 Speaker 1: then you save three to six months of expenses, and 447 00:20:38,880 --> 00:20:40,600 Speaker 1: he wants you to put this in an emergency fund 448 00:20:40,800 --> 00:20:43,720 Speaker 1: to ensure financial security in case anything happens, like a 449 00:20:43,800 --> 00:20:47,480 Speaker 1: job loss or medical or emergencies, things like that. All right, 450 00:20:48,080 --> 00:20:52,200 Speaker 1: Number four, Now you want to start investing fifteen percent, 451 00:20:52,200 --> 00:20:55,119 Speaker 1: assuming you've got these things done, start investing fifteen percent 452 00:20:55,200 --> 00:20:58,639 Speaker 1: of your household income into your retirement, and again he 453 00:20:58,720 --> 00:21:01,560 Speaker 1: suggests investing in tax bandage retirement accounts like four oh 454 00:21:01,600 --> 00:21:05,760 Speaker 1: one k's roth iras, focusing on mutual funds. Mutual funds 455 00:21:05,840 --> 00:21:07,520 Speaker 1: is basically, I just give my money to somebody else 456 00:21:07,520 --> 00:21:10,639 Speaker 1: and they figure it out for me. It's diversified against 457 00:21:10,640 --> 00:21:12,879 Speaker 1: a whole bunch of assets, and I don't have to 458 00:21:12,880 --> 00:21:13,439 Speaker 1: worry about it. 459 00:21:13,760 --> 00:21:14,720 Speaker 2: I don't like that plan. 460 00:21:14,840 --> 00:21:17,080 Speaker 1: I think with a little bit of education, a little 461 00:21:17,119 --> 00:21:19,600 Speaker 1: bit of focus, you can do much much better, which 462 00:21:19,680 --> 00:21:23,080 Speaker 1: pays massive dividends, seven figure dividends over the future. But 463 00:21:23,119 --> 00:21:26,480 Speaker 1: again I do like it because again basically, you put 464 00:21:26,520 --> 00:21:29,480 Speaker 1: no thought, no effort into it, which allows you to 465 00:21:29,480 --> 00:21:32,040 Speaker 1: go focus on making money. Now, if you're taking that 466 00:21:32,119 --> 00:21:34,760 Speaker 1: extra time, effort, energy, and focusing on making more money, 467 00:21:34,960 --> 00:21:37,760 Speaker 1: you might come out ahead. You probably will. If you're 468 00:21:38,040 --> 00:21:40,440 Speaker 1: instead taking all that extra time so you can watch 469 00:21:40,480 --> 00:21:43,080 Speaker 1: more Netflix and chill, you're going to get further behind, 470 00:21:43,200 --> 00:21:46,080 Speaker 1: all right, So you need to consider that. Then finally, five, 471 00:21:46,320 --> 00:21:48,639 Speaker 1: you want to start saving for your children's college fund. 472 00:21:49,320 --> 00:21:51,560 Speaker 1: This is what Dave says, not me. He wants you 473 00:21:51,600 --> 00:21:53,919 Speaker 1: to save money into an education plan like a five 474 00:21:54,000 --> 00:21:56,320 Speaker 1: two nine plan for me. I don't want my kids 475 00:21:56,320 --> 00:21:58,080 Speaker 1: to go to college. Specifically, don't want them to go 476 00:21:58,080 --> 00:22:01,840 Speaker 1: to college. Oldest daughter, it just graduated. She is not 477 00:22:01,880 --> 00:22:03,680 Speaker 1: going to college, and I don't expect my youngest to 478 00:22:03,680 --> 00:22:05,480 Speaker 1: go either. If they want to go, they're welcome to go. 479 00:22:05,520 --> 00:22:07,040 Speaker 1: They want to be a doctor and an attorney, Sure, 480 00:22:07,160 --> 00:22:07,560 Speaker 1: go ahead. 481 00:22:09,000 --> 00:22:09,560 Speaker 2: We don't go to. 482 00:22:09,480 --> 00:22:11,840 Speaker 1: College for college sake. I would rather I pose the 483 00:22:11,920 --> 00:22:13,399 Speaker 1: question to my daughter. We'll get back to this with 484 00:22:13,520 --> 00:22:16,080 Speaker 1: Robert Kyosaki, But I said, would you rather me spend 485 00:22:16,080 --> 00:22:18,240 Speaker 1: two hundred and fifty thousand dollars for you to go 486 00:22:18,280 --> 00:22:20,480 Speaker 1: to a four or five year college and when you 487 00:22:20,480 --> 00:22:22,280 Speaker 1: get out you can hopefully get a job for fifty 488 00:22:22,400 --> 00:22:25,400 Speaker 1: or fifty thousand dollars a year. Or would you rather 489 00:22:25,680 --> 00:22:28,520 Speaker 1: I use the two fifty and buy you real estate 490 00:22:28,560 --> 00:22:30,840 Speaker 1: with it that pays you fifty thousand for the rest 491 00:22:30,840 --> 00:22:33,960 Speaker 1: of your life? She said, I like the real estate option. 492 00:22:34,000 --> 00:22:36,440 Speaker 1: I said, good choice, right, And so that's what we're 493 00:22:36,440 --> 00:22:40,320 Speaker 1: doing anyway. Keep going Number six. Now you start to 494 00:22:40,359 --> 00:22:43,359 Speaker 1: pay off your home early. His goal is to become 495 00:22:43,440 --> 00:22:46,600 Speaker 1: completely debt free by paying off the mortgage early. Now 496 00:22:46,760 --> 00:22:49,199 Speaker 1: this again, I don't like this, And the reason why 497 00:22:49,240 --> 00:22:51,320 Speaker 1: I don't like this is a couple of reasons. One, 498 00:22:51,560 --> 00:22:53,960 Speaker 1: by paying that debt off, I don't have some tax 499 00:22:54,040 --> 00:22:55,600 Speaker 1: ride offs that I might need, you know, write off 500 00:22:55,600 --> 00:22:58,639 Speaker 1: the interest on my debt. But number two, assuming that 501 00:22:58,680 --> 00:23:00,800 Speaker 1: I have that debt, about nine two percent of mortgages 502 00:23:00,840 --> 00:23:03,000 Speaker 1: are locked in below five percent. I think forty percent 503 00:23:03,040 --> 00:23:06,000 Speaker 1: of mortgages are locked down below three percent mortgage. So 504 00:23:06,160 --> 00:23:08,199 Speaker 1: if you have a three percent interest and you have 505 00:23:08,240 --> 00:23:12,399 Speaker 1: a five percent six seven eight percent inflation, inflation is 506 00:23:12,480 --> 00:23:14,960 Speaker 1: paying your debt off. So I have a thirty year loan. 507 00:23:15,040 --> 00:23:18,399 Speaker 1: So let's say right now, for easy numbers, it's taking 508 00:23:18,440 --> 00:23:21,360 Speaker 1: one thousand dollars for me to pay off my mortgage 509 00:23:21,359 --> 00:23:23,920 Speaker 1: every month. But in ten years from now, my pay 510 00:23:23,960 --> 00:23:28,000 Speaker 1: will have probably gone up, and that thousand dollars will 511 00:23:28,040 --> 00:23:31,400 Speaker 1: be more like six hundred dollars. And in twenty years 512 00:23:31,440 --> 00:23:33,359 Speaker 1: that thousand dollars, because my payment is still fixed at 513 00:23:33,359 --> 00:23:35,680 Speaker 1: one thousand dollars, it'll be now like paying like four 514 00:23:35,760 --> 00:23:38,160 Speaker 1: hundred bucks a month, And so that inflation is paying 515 00:23:38,160 --> 00:23:39,800 Speaker 1: off my debt, which is again why we're in a 516 00:23:39,800 --> 00:23:42,600 Speaker 1: debt based monetary system. They want to inflate away the debt, 517 00:23:42,640 --> 00:23:45,240 Speaker 1: but it also inflates away my debt. So I would 518 00:23:45,320 --> 00:23:48,240 Speaker 1: rather invest my money and make ten fifteen percent and 519 00:23:48,320 --> 00:23:50,679 Speaker 1: keep my three percent mortgage, unlike what Dave says, but 520 00:23:50,760 --> 00:23:53,760 Speaker 1: I get it. It's like leverage. If you have no debt, 521 00:23:53,800 --> 00:23:56,240 Speaker 1: you're a little bit safe off number seven. Finally, now 522 00:23:56,280 --> 00:23:59,080 Speaker 1: you build wealth and then you give generously. I applaud 523 00:23:59,160 --> 00:24:01,560 Speaker 1: him on that. Giving is a big piece of what 524 00:24:01,640 --> 00:24:04,040 Speaker 1: I do. I think everyone should be doing it, if 525 00:24:04,080 --> 00:24:07,080 Speaker 1: not even just for the smallest piece and start building that. 526 00:24:07,480 --> 00:24:09,639 Speaker 1: So I applaud Dave Ramsey for that. All right, now 527 00:24:09,760 --> 00:24:13,520 Speaker 1: let's turn to Robert Kiyosaki. He has six points to 528 00:24:13,560 --> 00:24:15,480 Speaker 1: see if I can get through these. The first one 529 00:24:15,560 --> 00:24:17,480 Speaker 1: and this is going to turn everybody upside down on 530 00:24:17,480 --> 00:24:19,560 Speaker 1: their head. And again, go read the book Rich Dad, 531 00:24:19,600 --> 00:24:22,240 Speaker 1: Poor Dad. It was, like I said, probably the one 532 00:24:22,240 --> 00:24:24,280 Speaker 1: of the top two or three most influential books on 533 00:24:24,320 --> 00:24:28,800 Speaker 1: my business and investing career. He has one the rich 534 00:24:28,960 --> 00:24:33,280 Speaker 1: don't work for money. They don't work for money. Now 535 00:24:33,280 --> 00:24:35,560 Speaker 1: there's two things in this. So first of all, they 536 00:24:35,560 --> 00:24:38,960 Speaker 1: don't work for money. They have money work for them. 537 00:24:39,160 --> 00:24:42,159 Speaker 1: You see, I work really hard for money. And I 538 00:24:42,200 --> 00:24:45,040 Speaker 1: want my money to work even harder than I do, 539 00:24:45,440 --> 00:24:47,600 Speaker 1: So I want my money to work hard. And two, 540 00:24:47,680 --> 00:24:50,119 Speaker 1: I don't actually work for money, mean, I don't trade 541 00:24:50,119 --> 00:24:51,840 Speaker 1: time for money. And I think this is probably the 542 00:24:51,920 --> 00:24:54,879 Speaker 1: biggest thing that holds people back from ever branching out 543 00:24:54,920 --> 00:24:58,280 Speaker 1: and having a big success is most people just can't 544 00:24:58,440 --> 00:25:00,800 Speaker 1: imagine working without being paid. 545 00:25:01,480 --> 00:25:02,159 Speaker 2: They won't do it. 546 00:25:02,400 --> 00:25:05,160 Speaker 1: You see, the wealthy like, what I've done is I've 547 00:25:05,160 --> 00:25:10,200 Speaker 1: worked for years for free, learning new skills, trying new things, 548 00:25:10,280 --> 00:25:14,600 Speaker 1: developing new strategies in the hope that one day those skills, 549 00:25:14,640 --> 00:25:17,280 Speaker 1: that time I put in will get me something later. 550 00:25:17,320 --> 00:25:20,720 Speaker 1: And I'll work for years doing that without getting paid. 551 00:25:20,760 --> 00:25:22,880 Speaker 1: But see, most people are used to working for an 552 00:25:22,960 --> 00:25:27,200 Speaker 1: hourly wage and they can't imagine working for months or 553 00:25:27,320 --> 00:25:30,720 Speaker 1: years and not getting paid. So rich don't work for money. 554 00:25:30,840 --> 00:25:34,440 Speaker 1: Number two financial literacy. Now, when you talk about when 555 00:25:34,520 --> 00:25:37,720 Speaker 1: he Kiyosaki talks about financial literacy, he's talking about it's 556 00:25:37,800 --> 00:25:41,639 Speaker 1: not how much you make, it's how much you keep. 557 00:25:42,359 --> 00:25:45,440 Speaker 1: You See, rich people think about how much income. Poor 558 00:25:45,440 --> 00:25:49,400 Speaker 1: people think about how much income they have. But it's 559 00:25:49,400 --> 00:25:52,280 Speaker 1: not about income. It's not about the income, it's about 560 00:25:52,280 --> 00:25:54,560 Speaker 1: how much you keep it that goes into your savings 561 00:25:54,640 --> 00:25:57,879 Speaker 1: or really builds up your assets. And you need to 562 00:25:58,040 --> 00:26:02,040 Speaker 1: understand that at the difference between assets and liabilities. You see, 563 00:26:02,040 --> 00:26:04,239 Speaker 1: like most people think that I have my house, but 564 00:26:04,359 --> 00:26:06,600 Speaker 1: he explains that your house is not an asset. Your 565 00:26:06,600 --> 00:26:10,280 Speaker 1: house is a liability. Why because assets put money into 566 00:26:10,320 --> 00:26:12,800 Speaker 1: your pocket. Liabilities take money out of your pocket. So 567 00:26:12,880 --> 00:26:15,840 Speaker 1: just ask yourself for your home. Does your house put 568 00:26:15,880 --> 00:26:16,280 Speaker 1: money in. 569 00:26:16,200 --> 00:26:18,600 Speaker 2: Your pocket or out? It takes it out obviously. 570 00:26:18,760 --> 00:26:21,240 Speaker 1: Now if you have a rental property, that puts money 571 00:26:21,320 --> 00:26:23,960 Speaker 1: into your pocket. Right, So there's a difference there, but 572 00:26:24,000 --> 00:26:26,159 Speaker 1: you really have to understand what that difference is and 573 00:26:26,240 --> 00:26:28,639 Speaker 1: really you see that on your balance sheet. So in 574 00:26:28,680 --> 00:26:30,800 Speaker 1: the book he breaks down how to use a balance 575 00:26:30,840 --> 00:26:33,720 Speaker 1: sheet and how to look at the income and the 576 00:26:33,760 --> 00:26:35,400 Speaker 1: expenses and the assets there. 577 00:26:36,080 --> 00:26:36,920 Speaker 2: This is the cheat code. 578 00:26:36,920 --> 00:26:39,399 Speaker 1: As a matter of fact, I have a template for 579 00:26:39,560 --> 00:26:42,400 Speaker 1: a balance sheet. Just go to one Markmoss dot com 580 00:26:42,400 --> 00:26:44,560 Speaker 1: and you can download it for free. It's what I 581 00:26:44,600 --> 00:26:46,920 Speaker 1: call a scorecard. You see, everyone's focusing on how much 582 00:26:47,000 --> 00:26:49,639 Speaker 1: money they make. It's not about how much money you make. 583 00:26:49,680 --> 00:26:51,880 Speaker 1: In California, you can make a million dollars and still 584 00:26:51,880 --> 00:26:52,160 Speaker 1: be broke. 585 00:26:52,200 --> 00:26:52,760 Speaker 2: It's crazy. 586 00:26:53,280 --> 00:26:56,240 Speaker 1: It's not about how much you make, it's about what 587 00:26:56,280 --> 00:26:59,920 Speaker 1: your balance sheet shows. It's about what your scorecard shows. 588 00:27:00,000 --> 00:27:01,200 Speaker 1: So I have a free download. You can get it 589 00:27:01,240 --> 00:27:03,000 Speaker 1: if you want to go to one Markmass dot com 590 00:27:03,119 --> 00:27:05,119 Speaker 1: download it for free. Fill that out and if you 591 00:27:05,280 --> 00:27:08,920 Speaker 1: track that every single month, we'll get measured, get managed. 592 00:27:09,240 --> 00:27:13,360 Speaker 1: If you measure that every month, it will grow. All right, 593 00:27:14,080 --> 00:27:16,600 Speaker 1: All right, now number three, so we're going through six 594 00:27:16,640 --> 00:27:17,560 Speaker 1: things of Robert Kiyosaki. 595 00:27:17,600 --> 00:27:19,200 Speaker 2: I gotta take a break. I'm going to come back. 596 00:27:19,240 --> 00:27:23,120 Speaker 1: I'll cover the next three and then we'll finally summarize 597 00:27:23,200 --> 00:27:25,159 Speaker 1: and pit them up against each other. But I'll be 598 00:27:25,240 --> 00:27:27,720 Speaker 1: right back more with the next three points of Robert 599 00:27:27,760 --> 00:27:29,600 Speaker 1: Kiyosaki's philosophy. You don't want to miss it, don't go 600 00:27:29,640 --> 00:27:31,480 Speaker 1: await I'll be it back. All right, welcome back. If 601 00:27:31,520 --> 00:27:33,400 Speaker 1: you just tune in, you're listening to the Mark Mass Show. 602 00:27:33,440 --> 00:27:36,960 Speaker 1: And we are pitting up the two titans of personal 603 00:27:37,000 --> 00:27:40,680 Speaker 1: finance and investing, Robert Kyosaki and Dave Ramsey against each other. 604 00:27:41,000 --> 00:27:45,400 Speaker 1: We broke down Dave Ramsey's seven baby steps, his philosophy 605 00:27:45,480 --> 00:27:48,600 Speaker 1: to becoming financially free and independ him and now we're 606 00:27:48,600 --> 00:27:51,360 Speaker 1: going through Robert Kyosaki's We covered the first three. I'm 607 00:27:51,359 --> 00:27:53,280 Speaker 1: going to break down the next three for you. If 608 00:27:53,320 --> 00:27:56,480 Speaker 1: you've missed any of this, I'm sorry. We've given out 609 00:27:56,520 --> 00:27:59,960 Speaker 1: so much, so much advice, so much money making information 610 00:28:00,080 --> 00:28:02,040 Speaker 1: and alpha, as we call it. If you missed it, 611 00:28:02,040 --> 00:28:03,720 Speaker 1: you can catch it on the podcast. Just go to 612 00:28:04,720 --> 00:28:07,520 Speaker 1: the Mark Mas Show on your favorite podcast player. And 613 00:28:07,600 --> 00:28:09,480 Speaker 1: while you're there, would you please. 614 00:28:09,560 --> 00:28:10,320 Speaker 2: Give me a review. 615 00:28:10,359 --> 00:28:11,960 Speaker 1: I'd love it if you could just rate and review 616 00:28:11,960 --> 00:28:14,280 Speaker 1: this on your favorite podcast player mean the world to me. 617 00:28:14,520 --> 00:28:16,240 Speaker 1: You can also watch this and listen to me at 618 00:28:16,240 --> 00:28:18,520 Speaker 1: the same time on YouTube at Market Disruptors. Okay, so 619 00:28:18,560 --> 00:28:20,679 Speaker 1: let's get back into the last three of Robert Kyosaki. 620 00:28:21,119 --> 00:28:25,320 Speaker 1: The third one is mind your Own Business. So again, 621 00:28:25,400 --> 00:28:29,720 Speaker 1: the rich focus on their assets. The poor focus on income. 622 00:28:30,200 --> 00:28:32,800 Speaker 1: How much money am I making? Can I get a 623 00:28:32,920 --> 00:28:35,879 Speaker 1: higher paying job? They focus on their income as opposed 624 00:28:35,920 --> 00:28:39,480 Speaker 1: to the assets that they buy with their income. Am 625 00:28:39,480 --> 00:28:41,719 Speaker 1: I buying the right asset? Is this the right asset 626 00:28:41,760 --> 00:28:43,959 Speaker 1: to buy at this time? How can I get this 627 00:28:44,040 --> 00:28:45,719 Speaker 1: asset to go up in value? How can I get 628 00:28:45,760 --> 00:28:48,800 Speaker 1: this asset to pay me more income? Instead of focusing 629 00:28:48,800 --> 00:28:53,240 Speaker 1: on my income. They also understand mining your own business 630 00:28:53,360 --> 00:28:57,840 Speaker 1: is that talented people are typically poor because they're focusing 631 00:28:57,880 --> 00:29:00,000 Speaker 1: on let's say the improved. 632 00:29:00,280 --> 00:29:00,920 Speaker 2: So let's say like. 633 00:29:01,040 --> 00:29:04,920 Speaker 1: McDonald's, they're focusing on how to make a better hamburger 634 00:29:05,480 --> 00:29:09,160 Speaker 1: and not about building the hamburger business and creating systems 635 00:29:09,200 --> 00:29:13,920 Speaker 1: around it's what runs automatically systematically without me. You see, 636 00:29:14,360 --> 00:29:17,320 Speaker 1: how can I do this better as opposed to how. 637 00:29:17,160 --> 00:29:18,960 Speaker 2: Can I build the business to do this for me? 638 00:29:19,880 --> 00:29:21,920 Speaker 1: The fourth thing is, and this is a big piece 639 00:29:21,960 --> 00:29:24,400 Speaker 1: that Dave Ramsey just leaves out completely, and it's a 640 00:29:24,440 --> 00:29:27,120 Speaker 1: massive fell in my opinion. This is back to Robert 641 00:29:27,160 --> 00:29:30,520 Speaker 1: Kysaki Number four. The rich understand taxes. Now, you have 642 00:29:30,560 --> 00:29:34,160 Speaker 1: to understand the irs is your partner, whether you like 643 00:29:34,200 --> 00:29:36,280 Speaker 1: it or not. They take and put on your tax 644 00:29:36,280 --> 00:29:38,000 Speaker 1: bracket and where you live. If you're in the top 645 00:29:38,000 --> 00:29:40,960 Speaker 1: tax bracket in California, they take about half of your income. 646 00:29:41,000 --> 00:29:43,280 Speaker 2: They're your partner fifty to fifty and. 647 00:29:43,240 --> 00:29:44,880 Speaker 1: So it's a pretty good idea if you have a 648 00:29:44,920 --> 00:29:47,680 Speaker 1: business partner, to understand what your business partner wants, what 649 00:29:48,440 --> 00:29:49,120 Speaker 1: they're trying. 650 00:29:48,880 --> 00:29:51,160 Speaker 2: To do, and how you can work together with them. 651 00:29:51,400 --> 00:29:54,360 Speaker 1: And so Robert Kaysacki talks a lot about using taxes 652 00:29:54,400 --> 00:29:57,600 Speaker 1: properly and specifically lowering your taxes. It's your single biggest expense. 653 00:29:57,840 --> 00:30:00,120 Speaker 1: Remember back to saving fifteen percent to forty percent of 654 00:30:00,120 --> 00:30:02,400 Speaker 1: your income. You can either make more income or you 655 00:30:02,440 --> 00:30:05,040 Speaker 1: can cut your expenses. Well, one of the biggest ways 656 00:30:05,640 --> 00:30:07,480 Speaker 1: if you're going to cut expenses is cut your single 657 00:30:07,520 --> 00:30:12,880 Speaker 1: biggest expense, which is taxes. So the way it typically works, 658 00:30:12,880 --> 00:30:16,800 Speaker 1: and Rober Kiyosaki points out, is that owners earn income, 659 00:30:18,360 --> 00:30:22,000 Speaker 1: then they spend whatever they want to spend, and then 660 00:30:22,080 --> 00:30:25,800 Speaker 1: they pay tax on the money that's left over, Whereas 661 00:30:25,840 --> 00:30:29,600 Speaker 1: employees earn and then they pay taxes and then they 662 00:30:29,600 --> 00:30:32,520 Speaker 1: get to spend whatever's left It's a big difference. Now 663 00:30:32,600 --> 00:30:35,640 Speaker 1: back to Robert Kyosaki talking about real estate. If you 664 00:30:35,680 --> 00:30:37,240 Speaker 1: don't want to pay tax is one of the best 665 00:30:37,280 --> 00:30:41,240 Speaker 1: ways to not pay taxes is with real estate and businesses. 666 00:30:41,240 --> 00:30:44,960 Speaker 1: You see again they're your partner. So for example, the government, 667 00:30:45,000 --> 00:30:48,360 Speaker 1: it's not loopholes. The government has incentives, not loopholes incentives. 668 00:30:48,720 --> 00:30:51,320 Speaker 1: Why is that different? A loophole is like a way 669 00:30:51,320 --> 00:30:53,640 Speaker 1: to get out of something, and incentive is working in 670 00:30:53,720 --> 00:30:56,440 Speaker 1: alignment with what you want. So For example, the government 671 00:30:56,720 --> 00:31:00,880 Speaker 1: needs places for people to live, right, They need housing 672 00:31:01,360 --> 00:31:02,800 Speaker 1: and apartments for people to live in. 673 00:31:02,880 --> 00:31:04,520 Speaker 2: So they can't provide that. 674 00:31:04,640 --> 00:31:06,640 Speaker 1: But if you are willing to do that, if you're 675 00:31:06,680 --> 00:31:09,080 Speaker 1: willing to buy a house or an apartment building and 676 00:31:09,120 --> 00:31:12,720 Speaker 1: have rented out, then they'll give you an incentive to 677 00:31:12,800 --> 00:31:16,040 Speaker 1: do that. They also need employment. As a matter of fact, 678 00:31:16,080 --> 00:31:18,959 Speaker 1: it's one of the two FED mandates to have full employment. Well, 679 00:31:19,000 --> 00:31:21,200 Speaker 1: how does the FED give employment or the government? 680 00:31:21,200 --> 00:31:21,640 Speaker 2: They don't. 681 00:31:21,720 --> 00:31:24,480 Speaker 1: They can't, but you can if you start a business. 682 00:31:24,480 --> 00:31:26,880 Speaker 1: So the government wants you, They need you to start 683 00:31:26,920 --> 00:31:30,120 Speaker 1: a business, and if you do, they have an incentive. 684 00:31:30,720 --> 00:31:33,280 Speaker 1: They incentivize you to do the things they want, like 685 00:31:33,320 --> 00:31:35,520 Speaker 1: start a business and buy real estate. That's why you 686 00:31:35,560 --> 00:31:37,000 Speaker 1: don't pay tax. So you need to learn that. 687 00:31:37,600 --> 00:31:38,120 Speaker 2: Number five. 688 00:31:38,240 --> 00:31:42,560 Speaker 1: The rich create money. I call this wealth creation. See 689 00:31:42,600 --> 00:31:44,600 Speaker 1: Dave Ramsey wants you to save your way to wealth. 690 00:31:44,760 --> 00:31:47,040 Speaker 1: It's not how it works. You don't save your wealth. 691 00:31:47,040 --> 00:31:51,080 Speaker 1: We have to create wealth. How do the rich create wealth? 692 00:31:51,080 --> 00:31:53,280 Speaker 1: How do they create money? Well, it starts with your mind. 693 00:31:53,680 --> 00:31:57,440 Speaker 1: It starts with your ideas. Robert Kyataki talks about it as. 694 00:31:57,320 --> 00:31:58,280 Speaker 2: An infinite return. 695 00:31:58,360 --> 00:32:01,160 Speaker 1: You have an unlimited amount of ideas that you can have. 696 00:32:01,480 --> 00:32:03,240 Speaker 2: So it starts with your mind. You have to have ideas. 697 00:32:03,520 --> 00:32:05,640 Speaker 1: Then you have to turn those ideas into actions, and 698 00:32:06,000 --> 00:32:07,960 Speaker 1: you need the skills in order to do that. 699 00:32:07,960 --> 00:32:09,560 Speaker 2: You have to have skills in order to develop that. 700 00:32:10,160 --> 00:32:12,440 Speaker 1: I call this I talk about it in three different 701 00:32:12,520 --> 00:32:12,960 Speaker 1: levels of. 702 00:32:14,760 --> 00:32:15,240 Speaker 2: Capital. 703 00:32:15,600 --> 00:32:18,959 Speaker 1: So most people only focus on one form of capital, 704 00:32:19,000 --> 00:32:22,200 Speaker 1: which is actually the hardest to get and the least 705 00:32:22,240 --> 00:32:25,400 Speaker 1: effective to use, and that's financial capital. I don't have 706 00:32:25,520 --> 00:32:28,280 Speaker 1: enough money. It takes money to make money. I can't 707 00:32:28,280 --> 00:32:30,000 Speaker 1: do anything because I don't have any money. They don't 708 00:32:30,000 --> 00:32:32,680 Speaker 1: have the financial capital, so they spend all their time there. 709 00:32:32,760 --> 00:32:35,240 Speaker 1: They think they're stuck there. But it's not financial capital 710 00:32:35,240 --> 00:32:38,280 Speaker 1: that really matters more. It's actually the mental capital. 711 00:32:38,320 --> 00:32:40,440 Speaker 2: It's the skills. Was Robert Kizzack. 712 00:32:40,480 --> 00:32:42,840 Speaker 1: He says, we create money with our skills if you 713 00:32:42,840 --> 00:32:44,880 Speaker 1: have the skills to make more money. And then third 714 00:32:45,000 --> 00:32:49,120 Speaker 1: is the relationship capital. You know people, So I know 715 00:32:49,200 --> 00:32:51,840 Speaker 1: people who give me opportunities, and I have the skills 716 00:32:51,880 --> 00:32:54,720 Speaker 1: to back that up. It doesn't take me any money. 717 00:32:54,840 --> 00:32:57,840 Speaker 1: So it starts with your mind. We can create wealth 718 00:32:58,960 --> 00:33:02,840 Speaker 1: by having the idea, having the skills to develop that 719 00:33:03,320 --> 00:33:05,280 Speaker 1: and then of course continue to plant the seeds that 720 00:33:05,320 --> 00:33:09,080 Speaker 1: continue to grow. Robert Kiasaki the sixth to one is 721 00:33:09,600 --> 00:33:13,239 Speaker 1: work to learn, not to earn. So he says that 722 00:33:13,720 --> 00:33:16,440 Speaker 1: education is more valuable than money. That's the point I'm 723 00:33:16,440 --> 00:33:19,120 Speaker 1: just making right now. Education is more valuable than money. 724 00:33:19,160 --> 00:33:21,840 Speaker 1: You See, if I have the education of how to, 725 00:33:22,560 --> 00:33:24,880 Speaker 1: if I can come into your business and make you 726 00:33:24,920 --> 00:33:26,760 Speaker 1: a million dollars, would you give me one hundred grand? 727 00:33:27,280 --> 00:33:29,680 Speaker 2: Like? Of course you would. But how could I do that? 728 00:33:29,760 --> 00:33:31,560 Speaker 1: Well, only if I have the education, if I have 729 00:33:31,600 --> 00:33:34,160 Speaker 1: the skills in order to do that. So the skills 730 00:33:34,200 --> 00:33:36,680 Speaker 1: you need to figure out is how to make more money? 731 00:33:36,840 --> 00:33:38,480 Speaker 2: How do you do that? Well? 732 00:33:38,600 --> 00:33:42,360 Speaker 1: I want to learn sales, marketing. Sales and marketing, that's 733 00:33:42,440 --> 00:33:44,720 Speaker 1: the rain maker, that's how you drive money. I want 734 00:33:44,760 --> 00:33:48,400 Speaker 1: to learn speaking and negotiating. I need to be able 735 00:33:48,440 --> 00:33:51,280 Speaker 1: to present myself. I need to present my ideas. I 736 00:33:51,320 --> 00:33:53,160 Speaker 1: need to have persuasion. I need to need to be 737 00:33:53,160 --> 00:33:55,720 Speaker 1: able to negotiate things. And this goes whether you're trying 738 00:33:55,720 --> 00:33:59,960 Speaker 1: to negotiate with your kids, your wife, or a business deal. 739 00:34:00,880 --> 00:34:03,280 Speaker 1: And we also need to learn how to learn. I 740 00:34:03,280 --> 00:34:05,280 Speaker 1: talk about this quite a bit. We need to learn 741 00:34:05,360 --> 00:34:07,600 Speaker 1: how to learn, and we also need to learn how 742 00:34:07,640 --> 00:34:10,239 Speaker 1: to teach. We need to do both of those, and 743 00:34:10,280 --> 00:34:13,759 Speaker 1: so we need to work to learn, not to earn. 744 00:34:14,120 --> 00:34:15,520 Speaker 1: And this goes back to you kind of the first 745 00:34:15,520 --> 00:34:18,640 Speaker 1: point about the rich don't work for money, right, I'm 746 00:34:18,680 --> 00:34:21,680 Speaker 1: working to learn because if I learn and advance my 747 00:34:21,719 --> 00:34:23,600 Speaker 1: skills and make more money, I'm not working for the money. 748 00:34:24,880 --> 00:34:28,960 Speaker 1: And then so that's that's Robert Kiyosaki six points. Now, 749 00:34:29,000 --> 00:34:31,359 Speaker 1: let's let's break these down a little bit. All right, Now, 750 00:34:31,920 --> 00:34:35,240 Speaker 1: Robert Kiyosaki, if I compare these two, the big differences 751 00:34:35,280 --> 00:34:38,160 Speaker 1: are Dave Ramsey is very risk averse. Get rid of 752 00:34:38,200 --> 00:34:40,879 Speaker 1: all of your debt, don't use debt and just put 753 00:34:40,920 --> 00:34:42,520 Speaker 1: your money into a mutual fund, just give it to 754 00:34:42,560 --> 00:34:44,000 Speaker 1: somebody else and let the manage it for you. Pay 755 00:34:44,000 --> 00:34:46,080 Speaker 1: off all your debt and just give someone else your money. 756 00:34:46,239 --> 00:34:49,560 Speaker 1: And as Robert Kiasaki said, that works great for most people, 757 00:34:49,920 --> 00:34:53,680 Speaker 1: because most people aren't smart enough, and I would add, 758 00:34:53,760 --> 00:34:57,759 Speaker 1: don't have enough motivation to do anything else. They would 759 00:34:57,880 --> 00:35:00,440 Speaker 1: rather just have no debt, have no ri give someone 760 00:35:00,440 --> 00:35:02,320 Speaker 1: off my money. And so I just watching that Netflix 761 00:35:02,320 --> 00:35:05,440 Speaker 1: and chill every day. But for those of us like 762 00:35:05,560 --> 00:35:08,600 Speaker 1: me and you who want more from our lives, then 763 00:35:08,760 --> 00:35:11,719 Speaker 1: we need more. And how do we get more? Well, 764 00:35:11,800 --> 00:35:13,520 Speaker 1: then we're going to have to spend more time to 765 00:35:13,680 --> 00:35:16,319 Speaker 1: learn to build our skill set. And once we've been 766 00:35:16,360 --> 00:35:18,040 Speaker 1: able to learn and build up our skill set, our 767 00:35:18,080 --> 00:35:20,960 Speaker 1: mental capital as I call it, then we and we 768 00:35:21,040 --> 00:35:22,680 Speaker 1: learn the difference of good debt and bad debt. 769 00:35:22,800 --> 00:35:24,879 Speaker 2: Then we can use debt in. 770 00:35:24,880 --> 00:35:29,560 Speaker 1: Order to build our assets. We can start businesses, and 771 00:35:29,680 --> 00:35:32,120 Speaker 1: we can buy real estate. And this doesn't have to 772 00:35:32,120 --> 00:35:35,360 Speaker 1: be risky. As a matter of fact, I've started dozens 773 00:35:35,360 --> 00:35:39,240 Speaker 1: of businesses and I've never once taken a large amount 774 00:35:39,320 --> 00:35:39,920 Speaker 1: of capital. 775 00:35:40,120 --> 00:35:40,759 Speaker 2: You see, when you. 776 00:35:40,719 --> 00:35:44,040 Speaker 1: Start service based businesses, it doesn't require capital. It only 777 00:35:44,200 --> 00:35:48,080 Speaker 1: requires your time and your skill set. So, for example, 778 00:35:49,120 --> 00:35:52,080 Speaker 1: you could probably go start a pressure washing business. You 779 00:35:52,080 --> 00:35:53,759 Speaker 1: can go to home depot buy a pressure washer for. 780 00:35:53,719 --> 00:35:54,359 Speaker 2: Three hundred bucks. 781 00:35:54,360 --> 00:35:56,600 Speaker 1: You could probably even rent one, and you could probably 782 00:35:56,640 --> 00:35:59,480 Speaker 1: go to your neighborhood or go to a wealthy neighborhood 783 00:35:59,520 --> 00:36:01,399 Speaker 1: with a big house and you could probably charge two 784 00:36:01,400 --> 00:36:04,719 Speaker 1: to four hundred bucks to pressure wash their driveway and 785 00:36:04,800 --> 00:36:08,080 Speaker 1: you could build that up pretty quickly. It doesn't take money, 786 00:36:08,160 --> 00:36:11,239 Speaker 1: it takes time and skill set. Now the bigger your 787 00:36:11,280 --> 00:36:14,000 Speaker 1: skill set and the bigger market you can apply to, 788 00:36:14,200 --> 00:36:16,719 Speaker 1: the more money you can make. But I like Robert 789 00:36:16,760 --> 00:36:20,320 Speaker 1: Kyazaki's approach. I would rather spend the extra time, effort, energy. 790 00:36:20,520 --> 00:36:22,479 Speaker 1: I want to increase my income. I want to grow 791 00:36:22,520 --> 00:36:24,919 Speaker 1: my wealth faster. Understand that it takes me more time. 792 00:36:25,000 --> 00:36:27,200 Speaker 1: But if you're the Netflix and chill kind of guy, 793 00:36:27,239 --> 00:36:29,160 Speaker 1: you want to live in your parents' basement, watch Netflix, 794 00:36:29,920 --> 00:36:32,680 Speaker 1: any Cheetos, then go for the Dave Ramsey approach. But 795 00:36:33,000 --> 00:36:34,960 Speaker 1: maybe I'm too harsh. Let me know what you think. 796 00:36:35,000 --> 00:36:37,480 Speaker 1: I'd love to hear from you. Come to my live 797 00:36:37,520 --> 00:36:39,120 Speaker 1: event and tell me. We're gonna do a live Q 798 00:36:39,239 --> 00:36:41,640 Speaker 1: and A. I'm going to show you this reverse market crash, 799 00:36:41,840 --> 00:36:45,080 Speaker 1: how it's going to affect the world, and what you 800 00:36:45,120 --> 00:36:47,239 Speaker 1: could or should be doing about it. So come hang out, 801 00:36:47,640 --> 00:36:50,319 Speaker 1: check it out. Go do one Markmoss dot com or 802 00:36:50,400 --> 00:36:53,520 Speaker 1: go dot one Markmoss dot com slash reverse, go dot 803 00:36:53,560 --> 00:36:56,120 Speaker 1: one Markmoss dot com slash reverse. 804 00:36:56,400 --> 00:36:57,320 Speaker 2: I hope to see you there. 805 00:36:57,480 --> 00:36:59,319 Speaker 1: If not, hit me up on social media at one 806 00:36:59,360 --> 00:37:01,000 Speaker 1: Mark Moss and that's what I got. Thanks so much 807 00:37:01,000 --> 00:37:01,440 Speaker 1: for listening.