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The Oprah Winfrey Show: The Podcast Episode Summary Episode Title: Special: Money Saving Secrets Original Air Date: April 28, 2000 Featured Guest: Robert Kiyosaki, Author of *Rich Dad Poor Dad*
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Episode Overview In this classic episode of *The Oprah Winfrey Show*, Oprah interviews businessman and author Robert Kiyosaki about his bestselling book *Rich Dad Poor Dad*. Kiyosaki emphasizes the importance of changing our mindset about money and shares insights on wealth accumulation, misconceptions about assets and liabilities, and effective financial strategies. The episode also includes contributions from other experts who provide additional money-saving secrets and investment tips.
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Key Themes and Concepts
- Changing Mindsets About Money
- Kiyosaki believes the way we think about money is crucial to financial success.
- He contrasts the teachings of his "rich dad" (his friend's father) with those of his "poor dad" (his biological father):
- Poor Dad's Beliefs: Focus on job security, saving money, and working hard.
- Rich Dad's Philosophy: Encourage entrepreneurship, financial education, and making money work for you.
- Assets vs. Liabilities
- Kiyosaki highlights the misconception that a home is an asset; he argues it is actually a liability.
- He encourages listeners to understand financial statements to differentiate between what is truly an asset and what is a liability.
- Paying Yourself First
- Kiyosaki advocates for the practice of paying yourself before paying bills, which fosters better financial health and discipline.
- This principle is echoed in various financial literature, including *The Richest Man in Babylon*.
- Good Debt vs. Bad Debt
- Kiyosaki explains the difference between debt that can be leveraged for wealth-building (good debt) versus debt that burdens you (bad debt).
- Real-Life Transformations
- Stories of individuals who have adopted Kiyosaki's principles:
- Darla and Perry Anderson: From being $400,000 in debt to generating passive income through real estate.
- Paul Rogers: A firefighter who transformed his finances by starting a home-based business, increasing his income significantly.
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Money-Saving Secrets from Experts
- Gene Chatsky's Tips
- Delay Purchases: Wait a day before buying to avoid impulse purchases.
- Utilize Technology: Use phones to compare prices and negotiate deals without wasting time.
- Buy Used: Especially for big purchases like cars, as they depreciate significantly within the first two years.
- Joseph Dudley's Story
- From a sharecropper's son to a successful businessman, Dudley shares that living on a budget and finding deals (like scratch and dent sales) are key to financial success. He emphasizes the importance of a clear financial plan.
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Conclusion The episode serves as a reminder that financial literacy and mindset play critical roles in achieving financial independence. Kiyosaki's teachings and the shared success stories motivate listeners to re-evaluate their financial approaches, prioritize investing in themselves, and consider long-term strategies over short-term gratification.
Final Thoughts Oprah closes the episode by encouraging listeners to take actionable steps towards financial freedom, highlighting that the journey begins with a change in mindset.
Join us next week for another insightful episode of The Oprah Winfrey Show, the podcast!
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:00Oprah Winfrey:Get in the game with the college-branded Venmo Debit Card. Wreck your team with every tap and earn up to 5 % cash back with Venmo Stash, a new rewards program from Venmo. No monthly fee, no minimum balance. Just school pride and spending power. Get in the game and sign up for the Venmo Debit Card at Venmo.com slash college card. The Venmo MasterCard is issued by the Bancorp Bank N.A. Select schools available. Venmo Stash terms and exclusions apply at Venmo.me slash stash terms. Max$100 cash back per month.
0:30Robert Kiyosaki:Quick, choose a meal deal with McValue. The$5 Mexican meal deal, the$6 McDouble meal deal, or the new$7 daily double meal deal. Each with its own small fries, drink, and four-piece McNuggets. There's actually no rush. I'm just excited for McDonald's. For a limited time, only prices and participation may vary. Not valid for McDelivery. Through 25 seasons, 4 ,561 episodes,
0:51Oprah Winfrey:I believe the Oprah Winfrey Show is one of the greatest classrooms in the world.
0:55Robert Kiyosaki:I really never thought of it that way.
0:57Oprah Winfrey:The aha moments, the breakthroughs, the connections, the occasional ugly cry. I miss him so terribly. I miss him every single minute. The LOLs. The moments that matter. Maddie! The eye-opening life lessons. Never allow them to take you somewhere else. I'm bringing them back. It's time to open the vault. I've personally chosen these classic episodes to share with you again. Every single person you ever will meet shares that common desire. They want to know, do you see me? Do you hear me? Does what I say mean anything to you? You are listening to The Oprah Winfrey Show, the podcast.
1:44Oprah Winfrey:What do the rich teach their children about money that the poor and middle class do not? Robert Kiyosaki teaches people to be millionaires. He teaches people to be millionaires. That's how he earned the nickname, the Millionaire School Teacher. And he says that the rich have a very different way of thinking about money that anybody can learn. His book, Rich Dad, Poor Dad, may change the way you look at your money.
2:10Robert Kiyosaki:I've been rich and I've been poor, and I like rich much better. I found out that the secret to success is not hard work or luck. I found a new way of thinking that works for me. I must say I owe much of my financial success to a man I call my rich dad, who was my childhood best friend's father. He made me realize that there was a very big difference between what the rich teach our kids about money and the poor don't teach our kids about money. My real dad, or my biological father, was the head of education for the state of Hawaii. I call him my poor dad simply because he was a high paid government official.
2:43Robert Kiyosaki:He made a lot of money, yet at the end of every month he was broke. My rich dad, on the other hand, was my best friend's father, and he ultimately became one of the wealthiest men in the state of Hawaii. By the way, my rich dad was a high school dropout. My poor dad believed in job security. He said look for a company that had excellent pay, good benefits such as medical, vacation, and other types of perks. My rich dad said that that entitlement mentality kept people financially weak and financially needy. My poor dad always said find a safe, secure job and work your way up the corporate ladder.
3:14Robert Kiyosaki:My rich dad said, why not just own the latter?
3:18Oprah Winfrey:Well, let's go through some more of Robert's points about what he says. The rich teach their children that the poor and middle class do not. Main difference, you say, between the rich and poor lies in what we teach our children about money. That's correct. Very much so.
3:30Robert Kiyosaki:And it's a mentality.
3:31Oprah Winfrey:It's a total way of thinking, right? Exactly. Yes.
3:34Robert Kiyosaki:And it's really easy to change if you want to change the way you think. For instance, my poor dad was a very good man for Japanese. He was 6 '4", very smart, academic genius. But he always said to me, you know, go to school, get good grades, get a job and work hard. Save money. And my rich dad said, well, if you want to be rich, that's not the way you do it. Instead of working for money, my rich dad taught me how to have money work hard for me. And that's why I've only had a job four years of my entire life. Other than that, I'm building companies or I'm investing, and that's all I'm doing.
4:05Oprah Winfrey:Well, the subject of money is taught at home, not in school, you say, because most of us learn about money from our parents, and it's only good if you have a rich dad mentality.
4:14Robert Kiyosaki:My message to people is, why struggle for money when you don't have to? You know, it's really simple if you have good advice. The problem is money is not taught in school. And so what we do is oftentimes follow in our parents' footsteps. We may do different jobs, but we oftentimes follow in the same financial patterns. And my rich dad used to say, you know, he says, you can't end poverty by giving somebody money. Giving a poor person money keeps them poor longer. Yeah. And that's what breaks my heart, because I want to help people...
4:42Oprah Winfrey:Change the way they think about money.
4:44Robert Kiyosaki:That's all it is. Yeah. And I think one of the most important things is that I noticed when I think my rich dad and my poor dad was the vocabulary. My poor dad, he was a PhD in education, very smart man, but he had the vocabulary of a schoolteacher. And my rich dad had the vocabulary of a rich man. And so when I say to people, what's the first thing...
5:03Oprah Winfrey:What do you mean by vocabulary? Well... I know what the word means, but what kind of vocabulary?
5:06Robert Kiyosaki:I sit around the dinner table and listen to both dads, and one would talk about algebra and geometry and trigonometry. and nothing ever made me any money. And my rich dad would sit there and he'd talk about return on investment, assets, liabilities, discounted cash flows, etc.
5:20Oprah Winfrey:And a lot of people, you know, what you just said about your house is a liability, it's not an asset. Most people think it is their biggest investment.
5:27Robert Kiyosaki:Yes, and that's one of the biggest middle class traps. They say, my banker says my house is an asset. And my rich dad would say, if you can read a financial statement, you'll see, you can read, that your house is actually a liability. I'm not saying don't buy a house. Mm-hmm. And I like big houses, and I like the finer things of life. Just don't call a liability an asset. And what's trapping the middle class is they're buying liabilities they think are assets.
5:48Oprah Winfrey:I like what you say in the book, which this is interesting, too, because I've been, always been a person who lived beneath my means. Now it's kind of hard to say. It doesn't matter. But I've always been a person who, because I just was reading about how the Chevy Chevette was the worst car, one of the worst cars ever made, and I had one of those little tin cans because that was the thing that I could pay cash for and not have to, you know, pay interest and so forth. So I've always believed in living beneath the means until you could really afford to pay for stuff. Mainly because I hate bills. Right.
6:15Oprah Winfrey:Just hate bills. And you say one of the mistakes that middle class and poor people do is they try to look rich. Yes. So those are the first people to go buy the furs, the diamonds, the big TVs, and all the stuff. Correct?
6:29Robert Kiyosaki:Right. My rich dad called it looking good and going nowhere.
6:32Oprah Winfrey:Love that. Yeah. My grandmother used to call it not a pot to piss in. But anyway, that's about it. Kind of the same thing. I'm glad you said that. You heard that too. Okay, I'll edit that somewhere. But anyway, it's the same principle. You have all this stuff. I know when I see people out and they got all the stuff and all the things and they, but then when they go home, what?
6:56Robert Kiyosaki:They have bills. They have bills. And they worry and their health goes down. And, you know, it's not worth it. The thing that I think most people don't realize is that there's only two kinds of money problems, basically. One's not enough money, and one's too much money. And they're both problems. You have to know how to handle too much money, as I'm sure you do right now. Otherwise, if you...
7:19Oprah Winfrey:Watching it all the time. Had a bad week last week. Yeah. But it's a different problem, isn't it? Yeah, it's a different kind of problem. Yeah.
7:27Robert Kiyosaki:So when you have no money, you have to have a plan to eventually have plenty of money. And then when you have plenty of money, you've got to shift plans.
7:33Oprah Winfrey:Yes.
7:33Robert Kiyosaki:And so that's why people who win the lottery all of a sudden they get all this plenty of money, and they go broke again.
7:38Oprah Winfrey:And overwhelmed by it.
7:39Robert Kiyosaki:Right, because they've never understood how money worked.
7:42Oprah Winfrey:Darla and Perry Anderson say that Robert's rich dad, poor dad philosophies gave them a newfound financial freedom and changed their life. Take a look at what happened to this family. Two years ago, Darla and Perry Anderson thought they were living the American dream, buying expensive cars, building a half-million-dollar home, but they were$400 ,000 in debt.
8:02Robert Kiyosaki:The things that I thought we needed to have were just causing us to go further and further into debt. I was having chest pains regularly because of it. The stress was getting to me because I was having to pay the bills and try to juggle things to make things work, and I was just finding that I wasn't happy anymore.
8:20Oprah Winfrey:Then Darla discovered the rich dad, poor dad philosophy and changed her entire approach to money.
8:25Robert Kiyosaki:I stopped shopping. I turned off the cable TV because that was an extra$600 a year, and I started paying off all of our credit card debt. I traded my car in and paid cash for a much smaller car and we stopped the building process of our house and now we have a year to go and we will be completely debt free.
8:52Oprah Winfrey:With their debt under control, they were able to save money. What used to go to bills was now being used to buy homes that were in foreclosure, which would then generate more income.
9:01Robert Kiyosaki:There's lots of ways to create passive income, but I chose real estate. It seemed to be a good fit for me.
9:08Oprah Winfrey:Darla now owns seven properties, which brings in$1 ,700 extra dollars a month.
9:15Robert Kiyosaki:I used to think before that the banks, the creditors, the CPAs, I used to think that they were the ones that were smart. And I realized that they're not the smart ones. I'm the smart one now. And I've taken control of not only my finances, but my life. And it's a great feeling.
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9:36Oprah Winfrey:And so how do you feel now?
9:38Robert Kiyosaki:Free. Free. Totally free. Yeah.
9:41Oprah Winfrey:Don't you think that what you say this in Rich Debt, Poor Debt, that what we do is we are binded by our own mind?
9:46Robert Kiyosaki:That's correct. Yes. But one big point, there's a lot of books out saying that they get debt free. But what most people don't realize is good debt and bad debt. Yeah. And bad debt is the debt you worry about. They're actually getting more in debt, but it's good debt because that debt's making them money. And that's what my rich dad used to teach me, was you had to see both sides of the coin. There's good debt, bad debt, good expenses, bad expenses. And so a lot of people right now are saying, just cut up your credit cards. Well, that's one step. The next step is to know how to use debt to work for you so that you can get wealthier and wealthier.
10:15Robert Kiyosaki:Most people use debt to get poorer and poorer. That's unfortunate.
10:18Oprah Winfrey:Paul Rogers says he changed from a poor dad to a rich dad and now wakes up every day with a new outlook on life. Here's what Paul's story is. Paul Rogers, a divorced father of two, was making$48 ,000 a year as a firefighter and living paycheck to paycheck.
10:34Robert Kiyosaki:By the time I paid the house payment, the child support, the car payment, food and utilities, with the two kids, it was really tough.
10:42Oprah Winfrey:Last year, Paul discovered Robert Kiyosaki's financial plan.
10:46Robert Kiyosaki:He stressed three main things. Number one, set up a home-based business. Number two, get control of your taxes. Number three, take that extra income and buy more assets with it.
10:57Oprah Winfrey:He followed the steps and set up his own home-based business. It was easier than he thought and only cost him$300. With that extra income from his new home business and a pay raise from the firehouse of$300 a month, he started to buy homes that were in foreclosure.
11:16Robert Kiyosaki:You can purchase them under value, go in, carpet, paint them, fix them up, turn and sell them, and even make more money.
11:23Oprah Winfrey:With the money he made from selling those houses, Paul bought stocks, mutual funds, IRAs, and even set up an educational account for his children. It has changed my outlook on life because this has given me more time freedom with my kids
11:35Robert Kiyosaki:and more financial freedom. And the best thing is my income's gone from about$48 ,000 to a little over$100 ,000 in a one-year period.
11:43Oprah Winfrey:Wow. Wow. Wow. I bet you're impressed with yourself.
11:49Robert Kiyosaki:I'm impressed with Rich Dad Poor Dad in the book. It's just an unbelievable book. You're going to have a great response from all your viewers on this.
11:56Oprah Winfrey:Really? You sound like an infomercial, but we're not. So it obviously has changed your life, your outlook, and what you will now pass on to your children.
12:04Robert Kiyosaki:Yeah, really, the educational system that I had growing up didn't teach me about debt, credit card debt, liabilities, college loans.
12:13Oprah Winfrey:So what exactly, because now people are going, What exactly caused you to go from$48 to$100 in a year?
12:18Robert Kiyosaki:Well, that's a very good question. I think what it was was, number one, I sat down and I actually wrote out what my goals were and what my dreams were, and I had never done that before. And when I actually wrote those on paper, I said to myself, well, how am I going to get there? What do I need to do? And that's what probably a lot of the viewers are going to say, yeah, this all sounds good, but tell me the answer. Well, the answer for me was I set up a home-based business. By doing so, it only cost me$300. I'm generating income from that and taking that income, buying real estate, put it into the stock market, stuff like that, buying more assets in my life and having my money work for me.
12:53Robert Kiyosaki:But you also kept your other job. I'm still a full-time fireman. I plan on keeping that. I thoroughly enjoy my job. Yeah, we love firemen. Have me on the singles show.
13:02Oprah Winfrey:Yeah, I will. Wait a minute. You don't need to. I'm here. You don't need a show. So your whole life has changed.
13:12Robert Kiyosaki:Yeah, pretty much I've got just a great outlook. I mean, when I wake up every day now, it's just like there's all kinds of opportunity out there. But it's really taking that first step and saying, you know, why am I here? You know, what do I want to do? The new LinkedIn hiring pro can't undo your last hire, the lone wolf, who you thought was a good collaborator because you didn't have the right candidate insights. But once you hired them, it was all hoarding info, declining meetings, and howling at the full moon? But LinkedIn Hiring Pro can go deeper than just the resume to find you a perfect fit by using insights from the LinkedIn network to give you a short list of best fit candidates.
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14:32Oprah Winfrey:They accept Discover at Renaissance Fairs? Yeah, they do here. Discover is accepted at the places I love to shop. Get it? With the times. With the times? You're playing the lute. Yeah, and it sounds pretty good, right? Discover is accepted at 99 % of places that take credit cards nationwide. Based on the February 2025 Nielsen Report.
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15:25Oprah Winfrey:Well, one of the things you say is that the poor pay their bills first, the rich pay themselves first.
15:29Robert Kiyosaki:That's a really tough one, but it makes people kind of crazy.
15:32Oprah Winfrey:Yeah.
15:33Robert Kiyosaki:Because, you know, the richest man in Babylon says pay yourself first. But what most people do is they pay you the bills first, and they never pay themselves anything. And that's a discipline I had to get into, was I always pay myself first, even when I had no money. And when I have all these bill collectors calling me, I use them as inspiration. You know what I mean? Really? Oh, when they're hounding, the government's hounding you, bill collectors calling you. Because I've been broke, so you understand what it feels like to be broke. When those guys are calling you, instead of, you know, shrinking and going into the shell and eating my pizza, I use it as motivation to go out and make more money.
16:05So I use it, I use my bill collectors as motivation, and that's why I paid myself first, even though sometimes I wasn't paying...
16:11Robert Kiyosaki:What would you pay yourself? I always bought assets. I'd buy a house or I'd put money in the bank or things like this. But it was just a habit. Exactly what you're talking about. It's up here.
16:21Oprah Winfrey:It's about changing the way you think. That's what the whole book is about.
16:23Robert Kiyosaki:That's right. Because we're our biggest asset. We're also our biggest liability.
16:27Oprah Winfrey:We are.
16:27Robert Kiyosaki:Yeah, we are. I know. I read that. Thank you.
16:32Oprah Winfrey:How do ordinary folks achieve extraordinary wealth? What are they doing that most are not? Well, Joseph Dudley went from dirt poor to owning a$30 million corporation. Now wildly successful, he and his wife Eunice have a long list of money-saving secrets that may surprise you. Here's the story of Joe Dudley, a sharecropper's son who grew up in North Carolina, where he shared his room with eight other siblings. This man knew poor. Nowadays, though, he heads up a$35 million beauty empire and lives in this lavish 20-room mansion. Although now multimillionaires, Joe and his wife Eunice live on a tight budget and have some wise money-saving secrets.
17:12Oprah Winfrey:I like to save money on items that I can get from scratch and dent sales.
17:17Robert Kiyosaki:I believe in credit card for its convenience, but believe it, paying for it immediately. Just as soon as that bill comes due, you pay it.
17:27Oprah Winfrey:I look for special prices on items. This is a beautiful cloth that you would normally pay from$50 to$60 that I was able to get for$5 just because the back is missing. Now who's going to worry about the back? Don't buy a new car if you can. Only buy what you can afford. Right after we got married, I decided that we weren't going to waste money on food. So through the years, I've learned to cook in portions according to what we eat. So much so that now my children think it's a disgrace to have any leftovers.
18:04Robert Kiyosaki:My advice to young people, people today that want to really get ahead, you've got to ask What do you want? Why do you want it? And write it down. That's important. So you've got a map.
18:20Oprah Winfrey:You've got a plan. You need a plan. You need a plan. Everybody says that, right? Thank you, Eunice and Joseph. Their story along with many others are featured in the book called Rags to Riches, Motivating Stories of How Ordinary Folks, Ordinary People Achieved Extraordinary Wealth. Okay. According to Gene Chatsky, financial contributor for Money Magazine and the Today Show, there are some very simple money-saving secrets we should all know and use. They are?
18:43Robert Kiyosaki:Number one, wait a day to buy. Put a little time between yourself and the purchase, because research has shown that a full third of us are impulse shoppers. We buy things we don't need. We buy to celebrate. Put it on hold for a day and then come back if you really, truly have to have it. Really?
18:59Oprah Winfrey:Yeah.
18:59Robert Kiyosaki:That is such a good tip. But don't wait more time than that, because procrastinating costs you even more money. Just think about how much it costs you to send things by overnight mail. Next. Work the phones.
19:11Oprah Winfrey:Work the phones.
19:12Robert Kiyosaki:Because your time is valuable. I hate the stories about people who spend hours and hours running around to each individual store to save$3 on Diet Coke. Who cares?
19:22Oprah Winfrey:Gayle King, my best friend. Drive all the way across town to get$3 less on a tank of gas. Right. That makes no sense. Makes no sense to me because our time is valuable.
19:34Robert Kiyosaki:But pick up the phone for 10 minutes and save yourself$100 on a hotel room or$200 on a rental car for the week. Things that will really make a difference in your life. Your phone is incredibly... I'm still on that waiting the day to buy thing.
19:46Oprah Winfrey:That's going to really...that's going to help me. Good. Go ahead. Okay. Buy in bulk.
19:49Robert Kiyosaki:Buy in bulk. Now, I don't mean cereal and toilet paper. I mean birthday gifts for all those parties that your kids have to go through during the year. You find a great present that's perfect for every five-year-old on the planet. It's ten bucks. Buy a dozen.
20:03Oprah Winfrey:Buy used.
20:03Robert Kiyosaki:Yes, especially cars. You've heard it here today a number of times. A used car is about the best bargain on the planet because by the time a car is two years old, it's gone through 60 % of its depreciation but only racked up about a third of its lifetime miles. So buy a used car, drive it into the ground, make sure you get a good warranty. Okay.
20:23Oprah Winfrey:Look over your checks.
20:25Robert Kiyosaki:Yes. Yes. This is a good one. I was so struck. I read an article in New York Magazine. The restaurant critic actually bothered to check his restaurant checks for a full month, found that an astounding number of them were wrong and not in his favor. I started doing the same thing. Waiters make mistakes. ATMs make mistakes. The IRS makes mistakes. You've got to look over the numbers. You're going to save yourself some money.
20:47Oprah Winfrey:I just did that. I ran into some props. Somebody was charging me for some pots. They were, um...
20:52Robert Kiyosaki:Yes. Not again.
20:53Oprah Winfrey:And they were so shocked when I called them up, because I said, I bet you're surprised that I'm looking at the bills. Yes. Yeah, amazing. I think you can just put those charges on there for those pots,$6.95. Anyway, do phone rate checkups. Right.
21:07Robert Kiyosaki:Phone prices, cellular prices, landline service prices, they've come way down in the last decade. But you're only going to get the best rates if you bother every six months, every year to call up your providers and say, check over my bill, make sure that I'm on the best plan for my needs. I just did this. We're so confused about the phone thing.
21:25Oprah Winfrey:You know, it changes all the time.
21:26Robert Kiyosaki:You can't keep up with it. But if you just call the person who's providing your service and say, make sure that I'm getting the best rate for my needs. They have these computer programs. They can do it. I just did it. I'm saving now$60 a month on my cell phone bill alone. That's$720 a year. That's big money.
21:42Oprah Winfrey:What do you do when the people call you at night?
21:44Robert Kiyosaki:And say you want a better deal for switching?
21:47Oprah Winfrey:Well, on the phone thing, because I'm such a chicken. I just put her on hold the other night and left her. I think she's still there. They say, is the lady of the house here? And I go, please hold. Yeah. I know.
21:58Robert Kiyosaki:You know, I think you ask them what sort of deal they can give you that's better, and then you call back your own provider and see if they can beat that deal, because you don't want to get switched around without your knowing. That's called slamming. It's a really bad practice.
22:09Oprah Winfrey:Okay. And what's your interest rates?
22:10Robert Kiyosaki:Right. You need to know what you're paying for the money that you're borrowing on your mortgage, on your credit card, so that every time you get one of those little teaser rates in the mail, you can figure out if this is indeed a better deal for you. We're paying on average 16 % on our credit cards, but there are good cards out there for 10%, 12 % just by switching to one of those cards. What are they? Just regular credit cards. Really? Visas and MasterCards, they are issued. And as long as you have a decent credit rating, you can get yourself a low-rate card if you're willing to make the switch.
22:39Oprah Winfrey:Okay. I'm going back to the best tip, I think. Wait a day to buy. Exactly. I think that's big, don't you? Okay. That's the one that struck the nerve with me. Thank you so much, Jean. Thank you so much. Multi-millionaire Peter Lynch is called one of the most successful money managers in history. When he talks about money, people tend to listen, so we asked him to share his best stock tips.
23:00Robert Kiyosaki:I think as an amateur, you have to look to understand the company. When you buy Dell Computer or you buy McDonald's, you have to understand what they do. If they're doing well, why are they doing well? It's a personal deal. Investing's personal. It's like going to restaurants. Somebody can't say, okay, you're going to get Indian food. you're definitely pasta, uh-oh, fried chicken, you're definitely, you know, you decide. You look at the menu, you decide. That's what investing is. It's a personal issue. You have to work it out. And the brain sometimes is not the key organ, it's the stomach. Personally, I bought my first stock when I was in college.
23:31Robert Kiyosaki:It was a very small amount of money. It was called Flying Tiger Airlines. I bought it because I thought air freight would be big, and I was lucky. It was a lucky break. The Vietnam War came along, they wound up carrying troops and cargo to Vietnam, and the stock was a huge stock and I paid for graduate school in one stock. The reason you make money in stocks is you buy a company. These are not lottery tickets. All you need is a couple good stocks a decade. You don't have to say, oh my god, it's 4 o 'clock in the afternoon, I haven't found a stock yet today. My best stocks have been my second, third, fourth year I owned them.
24:01Robert Kiyosaki:Not second, third, fourth day, not second, third, fourth week. That's gambling, that's not investing. And you should own stocks for a long period of time. People do research when they buy a refrigerator. They do research when they buy a microwave oven. I'm shocked people put$10 ,000 in some stock, you know, on a five-minute tip. That's not a way to win. One of the myths is that you make a lot of money very rapidly. Day trading is very dangerous. Uh, investing in those kind of stocks, you're going to probably get the same kind of results you get in a casino, except for that there's just more paperwork.
24:29Robert Kiyosaki:That's not a way to win.
24:32Oprah Winfrey:Thank you so much, Peter Lynch. Robert Nesson is a successful businessman who realized he had a lot to offer to those less fortunate. His pressing need to help children in trouble led him to enrich his spirit in ways that he never imagined. Take a look.
24:48Robert Kiyosaki:I have been practicing law and have been in the real estate investment business for many years. And I was very eager to work with younger people. Alliance House is a home for delinquent boys, boys at risk. These are boys who have committed crimes, nonviolent crimes. It may involve drug use. It may involve drug possession. It may involve petty theft, car theft, and the like. These kids are in the court system, but they're not rough. They're not frightening. Agost 1500, I was interested in teaching them finance because if these boys understood how the financial system worked, it would give them, frankly, an opportunity that their peers might not have.
25:53Robert Kiyosaki:When I started, I started with the idea of giving a couple of lectures on finance. I found very quickly that the boys caught on. They enjoyed it. They were much more sophisticated than you would anticipate. So I said, let's start a real business. So we've got four of us going into business together. And we're going to take unskilled labor, which is what you guys have, and build it into a skilled business and you guys are gonna make a profit for the first time. The boys really do handyman work and they'll do primarily interior painting. They have been enormously effective in doing what I'll call moving jobs.
26:42Robert Kiyosaki:We have board of directors meeting every Monday. It's followed by a stockholders meeting every Monday. The stockholders and the board of directors are the boys themselves.
26:53Oprah Winfrey:We have 10 new potential clients since the last meeting.
26:56Robert Kiyosaki:Are there any questions? They're all 20 years or under. Last year the boys made close to$50 ,000. They're probably going to make closer to$75 ,000. This year they make$8 an hour, plus they share in the profits and they put 20 % of the gross profits back into the business as capital. For the first time, some of them have their first legitimate job and obviously their first opportunity to own. I didn't think I was going to be graduating high school. Now I'm studying computer engineering in college. It means a real lot to know that Bob cares about myself. If this experience didn't come into of my life I think I would be incarcerated.
27:44Robert Kiyosaki:Now I feel much better about myself inside and out. Alliance All Purpose teaches these young men to respect their customers and therefore respect their community but it also gives them a great deal of self-confidence and self-respect. It's It's a wonderful feeling watching these kids move up through high school, graduate through high school, and in many cases go off to college. An aspiration they never would have conceived of years ago. Great feeling to be part of it. The Monday morning meetings, when I start them, you never know what to expect, but invariably the level of intelligence, the level of interest just engulfs you, just overwhelms you.
28:35Robert Kiyosaki:and by the time I'm done, I'm on what people call a high, and I almost don't want to do anything else for the rest of the day because nothing is going to top it. When I'm asked, what does this do for me spiritually, I think it's best stated in an old saying, who saves one life saves the universe entire. There's nothing better, more uplifting for the spirit than that.
29:03Oprah Winfrey:Thanks to all my guests. Rich Dad, Poor Dad. Thanks to all of you, Paul. Thanks to you who's going to go home now and read the book, figure it out, pay yourself first. Everybody says it. There must be something to it.
29:15Robert Kiyosaki:I've been running for about 10 minutes now, so. Yeah, yeah.
29:17Oprah Winfrey:You can't wait to get out of here to go figure out what to do. Thank you so much, everybody. Thank you so much.
29:32Oprah Winfrey:Join me next week for another Oprah show, the podcast. I thank you for listening.
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30:10Robert Kiyosaki:Having the right people in your corner for life's biggest milestones makes all the difference. Like a friend who's there when you're house hunting or checking out a new ride, State Farm is there too, helping you choose the coverage you need. With a State Farm agent, you know someone is there to help you along the way. And with so many coverage options, it's nice knowing you have help choosing a plan that fits your needs. So you can continue celebrating all of life's milestones. Like a good neighbor, State Farm is there.
From the publisher
Original Air Date: 4-28-2000
Businessman and author, Robert Kiyosaki, discusses his New York Times Bestselling book, Rich Dad Poor Dad. He explains why he believes it’s important that we change the way we think about money. Robert details misconceptions of assets and liabilities, using debt to gain wealth and why we should pay ourselves before our bills. Other experts share money saving secrets and investment tips.
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