Int US 199 Folder Collection
After playing the video, you can click or select the word to look it up in the dictionary.
Report Subtitle Errors
(upbeat music)
(speaking in foreign language)
- Advanced Lessons in Millennial Money.
(speaking in foreign language)
Today, my favorite guest joins us, Kim Kiyosaki.
She is Robert Kiyosaki's better half,
and an internationally renowned speaker,
entrepreneur, real estate investor,
and the author of "Rich Woman" and "It's Rising Time!"
She wrote her book "Rich Woman"
for the woman who insists on being financially
independent, and not depending on a man,
company, government to take care of her.
I recently sat down with the queen of cash flow
to talk about the difference between investing
for cash flow and investing for capital gains.
And how we millennials can prepare for
our future and live our best lives.
My first question for Kim was about we millennials
should be thinking about when it comes to retirement?
Let's take a look.
- There's a lot to that question.
First of all, what is retirement?
'Cause back in my parents' days
dad would work at one or two jobs,
mom was a schoolteacher, and at 65, 66
they retired to a nice little resort,
and he played golf and she went to the beach,
and she did her thing and he did his thing.
But, that doesn't apply today,
and especially with millennials,
with all the changes happening in the world.
There probably will be no pensions, my dad had two pensions,
there probably will be no pensions.
There's no job loyalty.
Millennials aren't gonna be working at one or two jobs,
they're gonna have one or two jobs a year,
not throughout their lifetime.
So, I kinda question what retirement is,
or what I'm seeing more and more millennials do
is they're actually incorporating a lifestyle
that I think is really healthy, because for example,
my niece, she has a very successful business.
And she and her husband, every February
they take the month off.
They go to a new location they've never been before,
usually outside the U.S.
So, they're kind of incorporating,
not retirement but a lifestyle
that is more, has more leisure
and more education,
they get to see new cultures and explore.
- I agree with Kim here.
Millennials do incorporate more leisure
into their lifestyle, unlike some older generations.
We like to play hard, but also work hard.
Here, Kim gives her opinions on the boring advice
we've all heard about retirement and 401Ks.
I like her fresh and contrasting perspective on this.
- This is the key.
So I've actually been online looking at
putting together millennials and retirement,
and it drives me nuts.
I see the same freaking advice all the time.
Save money, and invest in a 401K.
They've been saying that for generations,
ever since the 401K came into being.
And just a little side note, the 401K was never meant as
a big retirement plan, a 401K was developed
because after the Depression,
people were not getting back into the stock market.
So they created a 401K to make it easy
for the average person to get into the stock market.
So you've really gotta do some, I mean everybody,
all of us, need to really do our research
when we're looking at
just blindly accepting advice from somebody.
So, I don't think today you can save yourself
to retirement, I mean, the interest rate's 2%, right?
It was almost negative because it was zero something,
and the fees you're paying brings you negative.
So, if you're saving money,
are you trying to build as big a nest egg as possible
to live off of?
And who knows what's going to happen with inflation,
deflation, there's so many factors.
So, I don't think saving and a 401K
is a good financial retirement plan at all.
I think it's probably some of the worst advice
you could get today.
And if they keep printing money,
your money is gonna be worth less
and less and less, so all this money you're saving
could be worth very little in years to come.
- Yeah, I agree, and I think most people
are relying on just their 401K to secure their future.
And like you mentioned before, I mean it was invented,
which is crazy, 'cause I hadn't even thought of like,
okay, what was the purpose behind the 401K?
It was invented for people to start getting back into it,
not to secure your future.
- No, so the stock brokers could make fees
off of your investments.
That's why it got invented.
- Yeah, if you think about it too,
I mean, the stock brokers make money
whether it goes up or down. - That's right.
- You're the one who suffers the consequences,
so I mean, for me it's crazy that people
would consider having that as securing their future.
- And you know, it's that most people,
and not just millennials, all generations,
don't know that there's other options,
because they've been inundated.
All the ads, all the magazines,
all the online, all the social media.
They talk about saving, get out of debt,
invest in a 401K, invest in the stock market,
that's all they're taught.
So they don't even know there's other options,
much more profitable, viable options
than turning your money over to somebody else to manage.
Which is the worst thing somebody could do.
I mean, you've gotta get smart with your money.
Nobody's going to look after your money better than you.
And if you don't take the time to get educated
and the next thing you know your money
that you've turned over to somebody is gone,
there's nobody to blame but yourself.
- [Alexandra] That's terrifying.
- You've got to get educated about money, you got to.
And it's not rocket science, it's not that difficult.
A lot of it is just vocabulary,
just start looking up some of the words,
start learning, start asking questions.
- There are dozens of forces working against us
when it comes to building wealth to live the life
we've dreamed of when we retire.
Things like rising taxes, inflation,
devaluation of the dollar, and so much more.
So I asked Kim if there's a way we can protect ourselves
from these factors.
- I think entrepreneurship is one of the best job securities
you can have.
Now, there's no guarantees and it's not easy,
but it's easier now with online, you can be
international within seconds.
When I started, no, it wasn't seconds.
It took a long time to get international,
it took a long time just to get yourself known
domestically, nationally, even just in your state.
But there's so much opportunity.
You can just start an online business.
I know somebody right now,
they're looking at starting an online business,
they've had some success, they're making two, 3,000 a month.
They're probably gonna start making five, 6,000 a month
with not a ton of
overhead, there's not the overhead,
not a ton of financial outlay.
So I think job security in entrepreneurship
is a big plus.
Then when you get into the investing world,
you need to look at what interests you.
And for me, what interests me is freedom.
I wanted to be financially free.
I got fired twice from my first job outta college.
Twice, not once, twice. - Oh, gosh.
- Twice, and when I looked at it,
after I stopped blaming everybody else
and started looking at it and saying, what?
How come I got fired twice?
I hated being told what to do.
So I wanted the freedom not to be told what to do.
And that's how I got into entrepreneurship.
And I started very small, tiny little, tiny little venture,
I started with a project, it started to grow and grow.
That's what was important to me, was the freedom
not to be told what to do.
So for everybody it's different,
some people thrive in a corporate environment.
Some people thrive as employees, and that's great.
So you've gotta find out
where you're gonna thrive, what kind of environment
you're gonna thrive in, number one.
Because too many people are working at jobs they hate.
- [Alex] Yeah, I know.
- And that's a crime.
- Yeah, it's where you spend the majority of your time.
So, it's kind of sad when you see people
who complain about their jobs
and what they're doing on a daily basis.
And I was listening to a podcast the other day,
and it says like, we're all self-made,
whether we're in a bad situation or a good situation.
But, the only people that are willing to recognize
that they're self-made are the people
that are in a good situation.
And I think as opposed to the people
that are in a bad situation,
where they're not willing to admit that they are
where they are because of themselves.
And I think it's awesome that when you got fired
you didn't take it like, okay, I'm fired,
this is what it is.
I'm not fit out for anything.
But you took it to reflect and it actually opened up
the doors to something incredible, like your freedom today.
- Yeah.
Well I go under the idea that if you're in that situation
that you're not happy with,
you either change it, or you leave it,
or you endure it, those are really the three choices.
And if you're enduring,
and you really don't want to be there,
you really need to leave that situation.
And trust that there's something out there better.
- And now to why we're here,
investing for cash flow or capital gains.
Here's how Kim describes the difference.
- There's four asset classes, and different things
that you can invest in.
So there's businesses, you can invest in businesses,
you can invest in real estate.
You can invest in paper assets, stocks bonds, mutual funds,
and you can invest in commodities, things like gold, silver,
oil, gas, corn, the soybeans, all that stuff.
Avocados. - Yeah, avocados, all that.
- So first of all you've gotta kinda find that niche,
that area that just kind of speaks to you,
that you're really interested in.
Because if you're not interested, you're not gonna study,
you're not gonna learn,
you're not gonna go seek new answers.
For me, I wanted to be financially free,
because as long as I was dependent upon somebody else,
whether it's a job and a boss,
or Robert, my husband, or my family,
from my financial life, I would never be fully free.
So there was always a goal to be financially free.
So if that's a goal for you to be financially free,
then you really gotta do what it takes and do your homework,
and study, and get some experience, and get in the game.
So, there's two things people can invest in.
One is capital gains, and one is cash flow.
So capital gains is, you buy a stock for $20,
it goes to $30, you sell it,
your profit is called capital gains, okay?
You buy a house for $100,000, you put $20,000 fix it all up,
you sell it for $150,000,
your profit is called capital gains.
So any time to realize capital gains,
you must sell something, okay?
You must sell, so most people they will,
they're looking for a market that's gonna go up, okay?
They always want the market to go up, because if I buy here
I want the price to go up.
And then I sell and then I get a profit
and that's called capital gains.
Cash flow on the other hand, which is my favorite two words,
cash flow is,
let's say I buy a stock that pays a dividend every quarter.
So that dividend, I buy the stock, that money stays there,
and I get a dividend every quarter, that is cash flow to me.
Or, my number one asset is real estate.
I love real estate, rental properties,
I started with a little one bedroom, two bath house.
And in real estate, I buy the,
say, the first house I bought,
I bought it, it was 1989, it was $45,000.
So I put $5,000 down, I had a loan, and I rented it out,
and every month I would collect the rent,
I'd pay the mortgage, I'd pay the expenses,
and the bottom result was $25 positive cash flow.
So cash flow comes from rental properties,
cash flow may come from a business.
You invest in somebody's business, and every month,
every quarter, every year,
it throws off a distribution to you,
that's called cash flow.
So cash flow is more of a, you buy it and you hold it,
where capital gains is you sell it.
- And it's awesome because the first time
I ever even heard about capital gains or cash flow
was when I was a little girl, and we would play
the Cash Flow board game for kids.
And so I remember that being my first example
of like capital gains and cash flow,
and what's the difference and what do you want?
And so it created a whole discussion in my family
and I'm never going to forget the best piece of advice,
not the best piece because you've given me very good advice.
- Oh, you're kind.
- But, one of the greatest was when you told me
just to start small, and so I actually did,
I started investing in like two stocks,
it made me, since I had a little bit in,
it made me want to learn more about it.
Now I'm not saying stocks is my thing, but.
- Just because you put some money down,
your interest goes up.
- That little ping of like,
okay, so my paycheck is going into here,
I might as well look at it.
And so it made me learn a lot about stocks,
and it was actually fun and exciting.
And here at the company
we all started investing in these stocks,
and just like having fun with it and learning about it.
And so, I'm thankful I did that because I got to learn.
I still haven't made any capital gains on it,
but I distinguished the difference between okay,
if I do sell this,
I'm going to be making some capital gains,
but what I really want is the cash flow.
We obviously all want to know
Kim's secret formula to freedom,
so pay close attention to this next clip.
- And the formula is very simple, because to keep buying
and like, flipping houses, it's a lot of work,
and you gotta keep finding new property
and finding a property is tough enough.
When I find it, I want to hang on to it.
So our formula has always been to acquire cash flow
that's greater than your living expenses.
At that point, you're financially free.
So in 1994 Robert and I were officially financially free.
And people thought oh,
you must have millions of dollars stashed away,
and we're like no, we don't have all of that.
What we had is we had some apartment buildings,
and every month the monthly cash flow
was about $10,000 a month.
And I started with a little two bedroom one-bath house,
$25 a month, so now we got it up to 10,000
a few years later.
But our living expenses were only 3,000.
So at that point we were financially free,
and that goes back to my whole love of being free
and being financially free.
So what happens is over time we keep reinvesting
the cash flow into new properties, new projects,
whatever the investment, we have commercial properties,
but we keep reinvesting it so the cash flow keeps coming.
So that was my way of becoming financially free,
was through cash flow.
Versus acquiring a chunk of money
and hoping and praying that the chunk of money would last me
until the end of my life.
This way I don't need a chunk of money,
I just need so much money coming in every month
that I can depend upon, and if I manage the properties well,
and look after my money carefully,
then that money will last me,
as we talked about from the very beginning,
that becomes my retirement.
So officially, Robert and I retired, I was only 37.
- [Alex] Oh, wow.
- Because I was financially free at that time.
So for millennials, you can retire whenever you want
if you want to go through the cash flow scenario
that I went through with Robert.
- What do you think is the one thing
that has stopped the majority of us from investing?
Yep, that's right, risk.
We avoid investing because we think it's too risky.
Luckily, Kim shares how she's made investing
less risky for her.
- And that's the key word, is control.
You don't have control over stock, when you buy a stock,
you don't have control over what they do with it.
You don't have control over your 401K.
You have control over a piece of real estate you buy,
you can touch it, you can knock on the door, you can see it,
and feel it and you can decide what expenses
you wanna spend and how much you wanna charge,
and all of that.
Same with your business.
If you have a small business, and a small online business,
you can generate a nice little cash flow
on a small, online business that you don't have to put
a whole lot of time into.
If you're working full time,
start a part-time business online,
and have that start to see that cash flow coming in.
When you start to see, and I know you have, Alex,
you see a little bit of money coming in
without a whole lot of effort after a while,
it takes a while to set it all up, but after a while
it starts to self generate, that's exciting!
And that's fun.
- This next clip I wrap up my conversation
with Kim about investing.
- Rule number one is I invest for cash flow.
Now, let me preface it by saying this.
Let's say you're just starting out,
and you don't have money to invest.
When I started out, I had no money to invest.
And actually, it was the best thing
that ever happened to me, because it forced me
to get very very creative.
So I would say, find the investment you wanna buy,
and then you'll figure out how to find the money.
So, for some people, what I've seen them do
is they've bought a property and fixed it up
and sold it, they flipped it,
and then they took the proceeds, or the capital gains
from that sale, and put it into a cash flowing property,
or a cash flow investment.
So one of my rules is I only buy, pretty much only buy
investments that cash flow.
Number two, never ever ever invest in anything
you don't understand.
There are so many people out there
that wanna sell you something,
and they'll make it sound so complicated.
Which is again, kind of a tip for anybody
that wants to learn investing is to learn the vocabulary.
If you want to get into real estate,
learn the vocabulary of real estate,
learn the vocabulary of stocks and bonds,
or learn the vocabulary of entrepreneurship,
because people wanna dazzle you with their BS, right?
And they wanna throw out all these fancy words
and these fancy brochures of properties.
I've had so many people come to me with
a investment, that I could not figure out
for the life of me what the hell they were talking about.
And they kept saying, oh, you're gonna make a lot of money,
you're gonna make a lot of money.
I'm like, but I don't understand the deal,
I don't understand the investment.
So never ever invest in an investment,
never turn your money over
unless you fully understand the investment.
Which goes to rule number three,
is you gotta know your numbers.
You gotta know your numbers.
And I'm gonna tell you, it doesn't matter,
male or female, but women are fantastic with the numbers.
And the numbers are fun, the numbers tell a story.
I can look at the numbers of a property and I can tell you
without ever going to that property
what's happening with that property,
but that comes over time.
But you've gotta know your numbers, your income,
your expenses, if you're gonna, what is your return?
If you're going to turn over money to buy stocks
what's your return gonna be if the stock does this,
what's your loss gonna be if the stock does this,
you gotta know your numbers.
And number four is never, ever, ever,
blindly turn your money over to somebody else to manage,
never, ever, ever.
I've seen so many people lose so much.
I had a girlfriend who was in the tech .com bubbles,
and her company went off the charts,
and she as a worker there, she was an employee there,
made a million bucks.
And she went to their company planner, financial planner,
and he said I'll take care of it,
and she gave him the million bucks.
A couple years later she got her statement
and it said zero, zero!
They went through all of it!
They took all of it through fees and management,
and all of this.
So again, I'm gonna say
nobody is going to look after your money more than you will.
So it's so simple, just it's a matter of getting educated,
learning, studying, doing your homework,
taking seminars, taking classes.
I know you're taking a real estate class right now,
so smart.
And then you experiment, you put a little money into a deal,
and you watch what happens.
- And I think that's the best piece of advice
'cause it's like, even right now
that I'm taking this course, just putting in that money
for the course, it's coming from a good source of pain.
It's good pain.
But it's like okay,
well now I have to actually take accountability
for what I'm doing and make sure I take action,
and this course will actually provide
something valuable in my life.
And like you said, I mean,
I've seen people that are close to me also be hurt
because of blindly just giving their money to someone else
and thinking it's a good deal.
So it's just I think the best thing is
like you've always told us, financial education
and just being in charge of our own money because
no one's gonna know the sacrifices
we've made for every penny.
- That's right, that's right, and you can start right now.
If you have a 401K, open up your statement,
what's in my 401K?
Do you have any idea what's in the 401K?
Do you have any idea what you have financially?
I mean, start there.
Final story is I had a girlfriend and she did that,
she finally opened up her account
and it was a stock bond account and in the height,
when the market was going through the roof,
her portfolio was losing money.
And she went to her financial advisor and he said
there's nothing we can do.
And she's like there must be something, and he's like no,
there's nothing we can do at this point.
So as she's walking out the door, the financial planner
turns to her and says, oh, there is something you can do.
And she's like finally, yes, okay, tell me
so I can start taking action.
He goes, you can marry a rich man.
- Oh, no.
- And she turned and she said, you are so fired.
- That's right ladies,
your plan should definitely be to marry a rich man.
I saw a bunch of comments from you guys
telling me to find a sugar daddy,
maybe I'll consider it,
What's more liberating than to know
you can depend on yourself
no matter what the circumstance is?
This is for men and women
who insist on being financially free,
and not depending on a spouse, family, company,
or worst of all, government to take care of them.
Financial education gives you that freedom,
and that's it for this episode.
If you want to learn more about investing,
click below to download your free e-book,
"7 Levels of Investors."
Thank you guys so much for watching.
(speaking foreign language)
Now remember, if you want to keep seeing our videos,
subscribe to our channel,
and click the notification bell to get notified,
because if you don't, you're the one missing out
on your financial education.
Thank you guys, bye!
(upbeat guitar music)
    You must  Log in  to get the function.
Tip: Click on the article or the word in the subtitle to get translation quickly!


The Secret Formula to Financial Freedom -Kim Kiyosaki (Millennial Money)

199 Folder Collection
up1217home published on August 17, 2019
More Recommended Videos
  1. 1. Search word

    Select word on the caption to look it up in the dictionary!

  2. 2. Repeat single sentence

    Repeat the same sentence to enhance listening ability

  3. 3. Shortcut


  4. 4. Close caption

    Close the English caption

  5. 5. Embed

    Embed the video to your blog

  6. 6. Unfold

    Hide right panel

  1. Listening Quiz

    Listening Quiz!

  1. Click to open your notebook

  1. UrbanDictionary 俚語字典整合查詢。一般字典查詢不到你滿意的解譯,不妨使用「俚語字典」,或許會讓你有滿意的答案喔