HOW DEBT CAN GENERATE INCOME -ROBERT KIYOSAKI

HOW DEBT CAN GENERATE INCOME -ROBERT KIYOSAKI


(upbeat music) – Okay I’m here with Alexandra and we’re doing another Millennial Money. And very excited about this program so thank you for tuning in. This will be one of 10 and we don’t know which order they’re comin’ in so. What are some of your
questions when people say get out of debt, what comes to your mind? – When people say get out
of debt, I think about credit card debt, the student loan debt, all that negative debt that people use for shopping and personal things. – And is your idea of debt good or bad? – I have a very negative idea
or connotation towards debt and that’s because that’s
what we were taught in the school system and the
traditional education system, that it’s not so great. But because I have, I work
here and I have these resources and I’ve gone to your seminars, I understand that debt can be powerful and it can be used in a good way and it can generate you money. – So for those listening, debt is a four letter word for most people. There are many people in my position, so called financial gurus who
say live totally debt free. And there’s other people who
say cut up your credit cards. And you know that’s good advice
for certain types of people so you should definitely
cut up your credit cards if you don’t know, you
can’t control your spending. You should definitely. But I don’t know how people
live without credit cards, I don’t know how you
can check into a hotel, rent a car, or go shopping, go
out for dinner, you know, so. But you should cut up your credit cards if you’re a shopaholic,
that’s good advice. And the other thing about debt, there’s good debt and bad debt. So this is gonna be the lesson today, is there’s good debt and bad debt. And if you only have bad debt, which I classify student
loan debt as bad debt. The main reason it’s bad debt is because it’s the worst
possible type of debt. You see if I get into trouble
as a business man with debt I can declare bankruptcy and I’m clean. But the trouble with student
loan debt, you can’t do that. You know, it hangs around your neck for the rest of your life. So if you’re a student,
you shouldn’t take on student loan debt unless you
absolutely 100% guaranteed that you will commit to graduating. Have you seen a lot of
kids drop out of school? – Oh yeah. – And so the problem
with student loan debt is a person has to know what
are they going to study. – You know I have two friends,
they’re both medical doctors. And they came out of school
with $500,000 in medical debt, I mean in student loan debt. But they paid it off in five years because they’re medical doctors. They had high paying jobs. And so they delayed having
families and all this and they’re whole objective was to pay for becoming a doctor. But I think you have friends who have no idea what they’re going to school for. – Yes I have this friend
and she’s changed her major like three different times,
from business to now nursing and it’s a lot of money
and she still has no idea what she wants to do and she tells me, she’s like Alex I want to
change my major from Nursing but I’m already practically done and I can’t pay back this debt so she’s stuck with the nursing career and she doesn’t even like it. – You know when I was your age,
like I think I said earlier is that my classmates were
making like 110, 120,000 a year. Which is not much money,
but for my generation if I made 20,000 that was a lot of money. Do you know what I mean?
Is this out of proportion? So we were the highest
paid graduates in the world and my starting pay was
about 47,000 a year. My classmates were making
three times as much as me. But it’s a choice we make, I didn’t really want
to do what they did so. I had to join a labor union. As ships officers we had to join the MM&P, Masters, Mates, and Pilots. Which meant we were labor union guys. So labor union guys make more money and nothing personal but I
don’t want to be a union member. So I joined Standard Oil of California as a shipping officer and then I didn’t have to join the labor union. But I only got 47,000 a year,
that was the difference. The difference is standard
oil was still sailing and a lot of those labor
union jobs are gone because the pay got too high. – You know what I mean, so
there’s always a good and bad and it’s hard to understand
that when you’re younger but I knew when I was 22 years old, I didn’t care if they
paid me 100,000 a year, I wasn’t gonna join a union,
it was just principle. My father, poor dad, was
head of the teacher’s union and for what I saw (laughs) I
didn’t want to be a teacher, I didn’t want to be a union member, so it was kinda youthful
exuberance on things. But anyway, today it’s
harder because you don’t know what is this mysterious high paying job. And even lawyers today
are having a hard time because they don’t need that many lawyers which is a good thing and
there’s artificial intelligence which is replacing a lot
of the high end jobs. Like even accountants today,
they don’t need accountants because artificial intelligence can do a lot of the work for them. So that’s why for your generation, student loan debt I would say is possibly one of the most important
things you need to decide before you take on the debt. Number one are you going to graduate? And number two what are
you going to graduate as? – [Alexandra] Exactly. – Any comments on that,
anything you want to talk about? – So my dream and passion has always been to be an entrepreneur. But when I started studying it, I told my dad it was the
last thing I would ever do because I thought that
what they were teaching me was what I was gonna be
doing on a day-to-day basis. But these teachers don’t,
aren’t actually practicing what they’re teaching and so they give you this wrong conception
of what you’re studying and reality is the traditional
education, it’s obsolete. What mattered back then does not apply to how you’re gonna run your business now. – You know today, if I
was in your position, you know I was pretty
clear when I was about 15, I wanted to sail the
seas, I sailed huge ships you know throughout the world. But that was a dream of a kid, you know. By the time I was 22, I
was tired of it, you know. I didn’t want to sail the world anymore. So I understand you know
what it’s like to keep, what they call it is finding
your way in life, right? – [Alexandra] Yeah. – That’s not easy. So I commend you guys and
that’s why we’re doing the Millennial Money is because
as these programs progress you’re gonna find out, in my opinion, you guys have a harder road
to go through than I did. For me it was really easy,
there was a lot of jobs, economy was booming and all this. And it was easier so you guys
have got to be smarter, okay? So as far as the subject of debt, there’s good debt and bad debt. Again it goes back to
the financial statement, income, expense, asset, liability. So debt falls in here. So I’ll review, let’s say I’m gonna buy you know everybody says
I’m gonna buy a house. And everybody says my house is an asset. That’s not true, your
house is a liability. I don’t care if you put
no debt on it or not, a house is a liability. Same as if you have a car. A car is a liability and
the reason for that is as we’ve talked about earlier, the six words that are basics of financial education,
financial intelligence, income, expense, asset, liability. And the two other words are cash flow. So when you look at the average person to have a job, money comes in here, they pay for their house,
and the money goes to a bank, through a mortgage, so it’s not an asset because the cash is flowing
out, so it’s a liability. So the definition of liability, does it take money from your pocket? And for an asset does it
put money in your pocket? So when I have a rental property here, it puts money in my pocket. So if I live in the house it’s a liability because even if I have no debt on it, I still have taxes, depreciation, repairs and upkeep,
insurance and all this. When I rent a property, I’ve
done a good job buying it and structuring it, every
month it sends me money. So I started off when I was 25, I had a little one bedroom condo and it put 25 bucks in my pocket, it was a start. So this was good debt, you see, the debt also went out and paid but it also put $25 in my pocket. So net, net, I was making
money from my little house. So today my wife and I own 6,500 of ’em. And every month 6,500 houses
put money in my pocket, my people who live in
’em love me and all this because they have a place to live. But all of this comes from debt. So we don’t, we have they’re 100% financed there, it’s all debt. So this is good debt. And what makes it good debt is are the two most important words, cash flow. Does that make sense to you? – [Alexandra] Yeah. – Any comments on this? – So numerous people my age
actually think debt is horrible and you just showed us a
perfect example of cash flow and how debt can generate income. And many entrepreneurs use this formula to make money on a day-to-day basis. – So what most people do is
they have student loan debt, SL, and that debt is going out this way. You know it doesn’t put
any money in your pocket. You can say well I have a job, well there’s still you working for it. So I don’t work for
any of this money here, I do this job once, set the deal up. Every year I add more
and more and more in it, I’m borrowing money from here, it’s coming here, and going this way. So the debt is putting money in my pocket and bad debt is taking
money from my pocket. So the problem is, if
you’re gonna use debt you’ve got to be much smarter
than this person here. You’ve got to be very, very smart. That’s why I took real
estate classes when I was 25 and I’ve never stopped
taking real estate classes. Because you buy a piece of real estate and you make a mistake,
this turns into a liability. And this, if I get, the
renter leaves the place, this goes here that fast
and the cash flows that way. And it’s going out of my pocket. So it has nothing to do with real estate, nothing to do with the car,
that there was student loan. It has to do with these two words here. So good debt again, is
debt when I borrow for this and it puts money in my pocket. If I had a car and I
borrowed money from it and somebody rented from me
as an Uber driver or something and I put money in my
pocket it would be an asset. My wife and I have a boat and
you know most boats lose money but our boat makes money
because it’s in a charter, you know people rent my boat all the time. So it has nothing to
do whether it’s a boat, student loan debt, a
house, a car, or whatever. It has to do with these two words here. And so most of the time, you know you’ve had accounting classes, they don’t talk much about this do they? – This is something they’ve never mentioned to me in college.
– Why is that you think? – Like you mentioned before, I mean, there’s people that are
actually teaching students something that they don’t
apply in their daily life, something that they barely
have knowledge about and they only learned through a textbook. – But you have, you’ve taken
accounting classes right? – Yeah exactly, I did. – You made A’s in it? – Well I did finally get a high grade the second time around but that was because I had a
real accountant teaching me the real applications of accounting. As opposed to a fake teacher, right? So your advisor, Tom Wheelwright
taught me in one hour what I could have learned
the entire semester with this one teacher that wasn’t even an accountant in his real life. – A big lesson for you is
that it’s nothing to do with the house, the car, the student loan, it has to do with
where’s the cash flowing. If the cash is flowing in
to your income statement, into your pocket, it’s
an asset, it’s good debt. But if it’s taking money from
your pocket, it’s bad debt. About debt, there’s
good debt and bad debt. Any comments on that? – Well I think just like Trump, you know how to apply the rules of debt and he calls himself
the king of debt, right? – If you’re gonna be successful at whether you’re employee or entrepreneur, you’ve got to control the
direction of your cash flow. So like most people here,
we’ve talked about earlier, they got a job and the
cash flows out here, it goes to the government, called taxes. Trump doesn’t do this, I
don’t do this, legally. The reason’s ’cause we’re
entrepreneurs, not employees. Employees have this, entrepreneurs don’t. Because it’s a type of asset. Any other thing? – [Alexandra] I’m good. – So what would you like to say to the young millennials
listening to this? – I’d say don’t be afraid of debt and if you know how to use it, use it. – Good debt puts– – Money in your pocket. – Could a credit card be good debt? – Well it just depends what
you spend the money on, right? So if you spent it on something that’s gonna produce income for you, like an asset then it’s good debt but if you spend it on let’s say a jacket that you wanted
from Burberry, then it’s not. – First property there, it was
in Maui, Hawaii, the 1970s. I bought it with a credit card. – Wow. – Property was $18,000 my first, but I’ve taken several real estate classes and so I knew what to look
for, I found this one property. It took a long time, when I found it, I just broke out my
credit card and bought it and it put $25 in my pocket. It went from this little,
janky little thing. This was years ago, $25. It was good debt, I wish
I had never sold it. I don’t, you know it was
a big mistake to sell it because today it’s probably
worth four or 500,000 and that’s a whole ‘nother story. That’s why I don’t flip properties, you know, I don’t like to do that stuff. So anything else, so good debt, what? – Money in your pocket. – And bad debt what? – Takes money out of your pocket. – That’s all there is.
– Yeah. – Thank you.

100 thoughts on “HOW DEBT CAN GENERATE INCOME -ROBERT KIYOSAKI

  1. I love these videos I feel dumber and dumber for choosing my "craft" and choosing to do manual labor for a living…🤷👩‍🏭🤦…

  2. So basically get a student loan but don't waste it on the "false" teachers who don't really know anything because all they have done is go through school then college then teacher training and think they are the ultimate???? No spend it instead on a property and rent it out then you will have enough income to pay your student loan off and start your real estate empire and not wasting your time in college/university and becoming an employee instead of an entrepreneur. Also may be good idea to rent out your newly acquired property to your student friends who took out a student loan but wasn't as smart as you. You retire at 55 they retire at 85. All makes sense to me now.

  3. How much should we make per month profit after loan payed expenses for a single family home rental for it to be good?

  4. "colleges don't teach us about cash flow?" I learned that in the ACCT 101 first semester of college… the entire accounting, finance, entrepreneur, etc. degrees, classes evolve around "cash flow" it's the backbone of everything else involved in the courses and in world of business overall..

  5. Not to discredit Kiyasaki in the slightest…..but I'm fairly sure that girl is literally just repeating things he's said in other videos lol

  6. This ppl are talking bullshit.. What I really wanna know is what moves do I have to make in order to get the assets starting with nothing..

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  8. Thank you for taking the time out of your day to make these videos. I have just recently bought Ebook Rich Dad Poor Bad. I going to get the actual soft back copy and the game soon. Thank you again!

  9. Thank you for taking your time to teach us about money,because in school they don't teach us about wealth or money.

  10. If you want more information about how to get a passive income with cryptocurrency just write you email below!

  11. While what he says is true, and it's important to understand this. What is problematic about it? We have a system that tolerates this in the first place. When someone owns 6500 apartments he isn't working harder and it means he can drive up(artificially inflate) rent or housing prices. The consequence? Many hard working people can't afford their first home or possibly housing at all. Yes, this is the way wealth is created right now and I understand if you don't want to be a sinking ship then yes, play this game. At the same time, as a collect we need to recognize that this wealth accumulation is what is driving up the cost of living and putting too many American families on the streets – that number has started to rise again in the last 2 years -lose your job it really could mean you.

    Today, work remains the hardest way to make money, so if you think you're going to get ahead just by work you are already a fool. Millionaires & billionaires don't make money from work (that money is a bonus for their hobbies), they make it from these forms of investments that DO take away from everyone else. Should we applaud them ? 3 men collectively own more then half of all wealth in America and if you aren't one of them, it's very likely YOU are getting less. EVERY BILLIONAIRE IS A POLICY FAILURE.

  12. So if you're making money off of rental Properties that is earned income how are you not tax On money entering your pocket. You're either Tax Evasion Or you lie about your Income. So once again please explain to me why you are allowed to not pay taxes on money that is being given to you By people pay for a good and service such as A apartment or house.

  13. "The first house I ever bought was on a credit card – it put $25 in my pocket. However, the monthly interest on the CC was $175"

    "I blamed this all on my poor dad"

    WOW!!!!!

  14. Hello Mr K may you donate one home to me so it can jump start my financial growth? only 1 mr k. thank you.

  15. I’m sure this will get lost in the comments but who in the world is your optician and why can’t they fit your glasses properly? They need to be loosened at the temples and adjusted behind the ears. The glasses are a phenomenal choice but the fit is mama Mia.

  16. What i really need to getis this, how would you get money to purchase an asset. would you have to work? Why i need to know is because here in my country not everyone is applicable to get a loan.

  17. Schools don't advertise this stuff because there are a lot of people that would take out loans and never successfully pay them back.

  18. The way he goes through those giant markers & pads 3M shares are quite appealing lol..Jokes aside, I read RDPD over 13 years ago. It’s changed my life. Key message for me was get a financial education. What he described here in this video is the basis of every successful business. Treat your finances like a business through cash flow management. You Inc..Starts now..!

  19. Kiyosaki left out that 6500 rental properties costs a fortune in maintenance- AND it costs a fortune in property management, and when your rental properties are vaccant. He looks like he got rich because everyone bought a book… Kiyosaki is the author of more than 26 books, including the international self-published personal finance Rich Dad Poor Dad series of books which has been translated into 51 languages and sold over 27 million copies worldwide. As of 2019, Robert Kiyosaki's net worth is roughly $80 million dollars…. Do the math. 27 million copies @ $15 Looks like he got rich selling poeple on a pipe dream- how to get rich…

  20. Foolish bugger. You don't have to repay the loan taken to fund a rental property? And who will fund you without a job or other income?

  21. $1800 cc debt and your $25 cash flow was enough to pay the minimum payment on the CC 'good debt'???

    I'm rethinking buying any book from this debtor

  22. People used to go to college to become a lawyer or whatever, then end up filing bankruptcy, to get rid of their debt. Once the Government caught on, they changed things.

  23. So was the little house that put money in your pocket a rented house? Paid off house, or acquired house?
    The gal that is being interviewed is a little bit off from the sample analysis. How can I convert my students loan to be an asset?

  24. What Kiyosaki does not understand is the economics itself. What we need is not more income and wealth inequality by having "more rich", but we need more equality – if you work hard you have a better life, that is what we need. We stop focusing on creating values themselves that we only focus only on money accummulation and printing. Kiyosaki talks in a way that it makes you think that if you are a worker, you are nothing and the only honest job is being a businessman. But let me tell you this, if there were no "ordinary workers" those rich people would have nothing to spend their money on, so their riches would be worthless, because all that stuff is manufactured by ordinary workers. So every person is important and every worker in the economy is very important. We need people especially that create values, not people that are extracting it – Kiyosaki is extracting values, not creating them, he is just a rent-seeker, an idle landlord. What we need is better monetary system and better value that citizens get for their taxes – meaning if you pay taxes you get a house (without mortgage – the government should pay the construction costs), you only pay the running costs. You should be paying only for running costs of your houses, houses should be built by taxes, there is no point in owning it, because if you gonna die one day and that house is going to be used by someone else anyway. If you pay taxes, you get proper housing, you get proper healthcare, if you pay taxes, you get proper education. But I know what you gonna say, it sounds socialist if you want something for you taxes, but it never sound socialist if this money is spent on military or for bailing out big corrupt enterprises such as some banks.

  25. Ok novice questions re the example of property rental income from a current UK perspective.
    So, keeping it simple, you raise a ‘buy to let’ type mortgage agreement and you buy a property that has an attainable monthly rental income of £500. Monthly mortgage repayment is £300, then there’s maintenance, insurance and I’m sure TAX as the HMRC are surely seeing this as income, so not seeing a great margin unless of course you had a lot of properties running. However, I don’t see how a bank would provide multiple loans to and average Joe trying to do this while working a regular job. I’m struggling to see how this model is achievable without having an initial cash lump sum. I’ve known a couple of people who’ve had privately rented properties who have jacked it in because high maintenance costs and constant hassle with late and non paying residents. Apologies if this overly naive or simplistic.

  26. Lots of assumption's here. What about bad tenants. If you are 100% mortgaged and a few tenants miss payments you will soon be in trouble. If your tenants are trapped in bad debt even if you are not and the bubble bursts. As it always does, then they will take your empire down. You are preaching greed at the expense of the tax paying public which is really nothing to be boasting about. Money is a tool that makes life easier, but to be all consumed by having more than anyone else is a life wasted.

  27. Ya, my grandma saw me one day worrying about a financial debt I had and asked me " do you owe them?" I replied yes I owe them. She replied " then let them worry!".

    Look around and see for yourself what this socio-economic model has done to the world around us. Everything this guy is talking about perpetuates a system that destroys the world. Who the hell cares about defining liabilities and assets when it is pretty clear that the only true asset anyone of us has is our life and the Earth that provides for us all. You want to talk about liabilities? You should start by saying the whole current BS model is a liability to us all. Good debt, bad debt? Sheer nonsense.

    Talk about depreciation and amortization and consider how that applies to a finite planet when discussing your little good debt bad debt scheme. Wake up all, The Matrix has you…

  28. So, when he was 25 with his one bedroom condo he was renting out, where did he live? And alllll that income coming from those 6,000 rentals has got to be used for management, maintenance, mortgages on the property, etc. What does he live on, then? Anything above the cost of the upkeep/debt is still income and will be taxed.

  29. Why would you teach this in school? That would be like the makers of Botox giving away the recipe. They'd lose the pharma. (Get it? Farm… Pharma…) . Ha ha.

  30. That house he bought on visa wasn't good. He made 25 but what did he pay in interest. How much money did he fork over for maintenance insurance etc etc

  31. Wow that's all what we need to learn …..damn the schools are a huge failure without financial knowledge…..at least they have to tell us what we shall to do once we lose the job not only graduate get a job and do saving …!

  32. Ok, so I love learning but I also challenge things as well. You explained if you have a house paid off and you live in it, it's a liability, is the same true if it costs you less to live in your own property v.s. rent? Renting in my area would be 1350, paying my house off and living in it would cost me 300, 500 with saving for fixtures, that would free up cash to buy another property to rent out, am I on to something or am I wrong?

  33. Alexandra is saying all the things that she was told to say. Hire a better actress. She’s seriously fucking up the “show”.

  34. The ONLY!!! way that u CAN generate debt To BECOME income, is WHEN u REALISE!!! that getting into DEBT is digging ur OWN grave!

  35. She's too dumb to run a business. That's something nobody ever mentions. Running a business isn't for everyone.

  36. Lol. She couldn’t pass her accounting class. While I don’t agree with student debt, it always seems the to be the ones who were too dumb to ever go to college anyway talking about it.

  37. So how does he not work for all his rental properties? Who worries about maintaining, repairing, and renovating them? And if he ignores them, it's even worse, cause he will end up owing even more for repair and renovation…if he hires people to manage them then he still needs to work to make sure the expenses are not too high

  38. The only "good debt" I can think of is when you utilize the 0% APR period (15-18 mo) to buy forms of investments that will grow and move your business forward (assets?). All while managing cash flow so that you can pay off the cards before the interest period kicks in. It's a very powerful financial tool but must be taken advantage of wisely. I'm doing it now, actually. A tremendous help. Oh, and last night tallied $2176 in rewards cash paid back to me via the cards since beginning of 2018. I haven't paid a single penny in interest or fees from any bank.

  39. Robert I enjoy your insights in your videos. I have several rental income properties(5) in my name at the current time. Your video on LLC and Incorporation vs Sole proprietorship give me a jolt to explore protecting myself and these assets
    .
    In the the videos, you indicated that all assets should be protected by an LLC, Incorporation, etc. When this is done, how does one pay themselves? Did you make yourself and employee of the Corporation/LLC, thus withdrawing a salary? In the same video you mentioned that no taxes are paid by the Corporation due to the loans to acquire properties, employment you create, etc. How is personal income tax and the corporate tax separate themselves annually? Do you prepare separate personal and corporate returns annually?

    Thank you….WS

  40. I am 32 and I want to own multifamily rental properties. I never bought a house before. Who would lend me the money for let's say, a 3 family house? If I wouldn't have not even 5 percent for a down payment?

  41. Well Said.. And they should be.. Hide all the assets, Gold bars, SilvA, TwitCoin..Hide it MAKE THE MATZABALL GREEDY BANKERS SUFFER

  42. funny how they now mention a second last name for the hot girl hinting thats she is married.. must be to get rid of all horny man (like me) trying to get her hahaha

  43. Debt is simply a method of gripping peopl by their crotches. Listen to storytellers n thats what happens. Wake the hell up

  44. It's because of people like rob and trump that banks no longer gives you a loan without a deposit. Thanks alot guys.

  45. Your video just came on by total accident when I was working out and listening to something completely different, and I think i've learned more about finance in the last 3 videos of Robert's than I've ever known in my life. Thanks!

  46. I’m just now starting to dabble in this mindset. My question would it be considered bad debt if I purchased a rental in which I could only charge enough rent to cover the mortgage and associated HOA’s’? I think I know the answer, but I may not be seeing the big picture here.
    Thanks

  47. Hi, Robert, I have a question. If you have purchasing power, why do you still go for 100% finance for a property. I am not understanding this.

  48. Wonderful message, but I can only DREAM of just buying an income producing rental property for $1800 down. In my state of California I can't buy even the most modest rental unit without dropping at least $100,000 (and even that's a 1BR in a dangerous ghetto) assuming I have to put 20% down. I did buy my own duplex, rent it for 5 years, then sell it for a profit so I'm not making excuses, but it was literally 50x cheaper to start a rental empire in the 70's. These days you need to already be rich to pull it off.

  49. I don't know exactly why…. But I feel like this guy… And guus like him…. Are responsible for our life ( people who don't live thinking at cash flow ) being shit!! I feel like without those guys, my rent would be lower, and middle class and artisans, who really work and have passion, could have a better life instead of having just the bare minimum to survive while trump and friends literally swim in gold… Just my feeling

  50. When you read the book or listen really close to Robert's view of a home as an asset or a liability he is correct, but in his context of what an asset is. To explain, Robert defines an asset similar to how businesses define fixed assets. Fixed assets are those that generate income…a piece of machinery that produces a product, an office building that allows employees to work and produce. So, is a personal home an asset……it isn't when you ask the question "Does it produce income and provide cash inflow. However, taking equity from your home not to consolidate debt, but to purchase assets that do produce a return….does make it an asset by Robert's definition. It's not black and white. I support Robert's point of view and for most people who hear his liability/home theory, they assume he is suggesting to not purchase a home. He never says that…..what he does say is not to consider your home as an asset….essentially it's a place to live, not an investment.

  51. You give good information but realistically this is creating housing bubble. You keep doing this formula and eventually it will pop. What happens when you don't have renters or they can't make payments. Now your stuck with all that debt obligation then others smarter or faster start dumping their properties on the market before you. Now assets are depreciating your sitting on your assets with no buyers and 6000 debt payments due. Then follow the rest of people and declare bk dumping your debt on banks and govt.

  52. How can I get communicated with Robert? I am from Myanmar and I really need to ask some advice. Please help me.

  53. Assets put money into your pocket; Liabilities take money out of your pocket. Never buy any liability. Understand and control the direction of Cash Flow. Schools do not teach you financial literacy.

  54. It's all fine get an asset .. and let it make money for you .. but in order to be able buy an asset or create an asset you inadvertently have to work from paycheck to paycheck and for a middle-class guy it may take years … And sometimes it's still not enough .. so they never get out of the circle

  55. I was born in India. Not a native English speaker . But I would like to ask if you buy a house and rent it. How is it called a debt. Isn't it an asset

  56. Wait, if you buy a house with cash, it is an asset. The mortage is a liability but if you buy it with cash, it is certainly an asset

  57. Also, using the same example of the rented house, if a student loan open you the gate to a salary that otherwise was closed for you, the cashflow (monthly salary minus monthy student loan payment) will be positive. When teaching millenials or anybody else is important to be accurate

  58. But at the end Alexandra summarizes it very well (y), she is smart. Hope she thrive as entrepreneur, she has very good real teachers

  59. I figured out that Debt is a great asset after I bought a few rental properties for my parents to generate cash flow. My parent didn't teach me that debt is a good thing, they show me it is.

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