Collection: Financial Literacy - #11 Robert Kiyosaki 'The Game Of Money'



[Transcript]

ROBERT KIYOSAKI 00:00

Now, I'm going to get into a thing my Rich Dad talked about is called 'The Game of Money.'


And the reason we say it is a game is very simply because of this – And some of you may not be sports fans, but I love sports, in football, a game consists of four quarters and so my Rich Dad said, life is also, your financial life is in four quarters also.


So we can have it up here on the prompter on the plasma. The Game of Money, we have a thing called the 'Pre-Game Show,' okay?


And the next thing is that we go into the first quarter. So age 25 is generally when most of us kind of get out of school and we sort of figure out what we're going to do. So age 25 to 35 is the first quarter.


The way we come up with this, is a 10 years is because our working life is generally 40 years long, 25 to 65, right? So the first quarter is 25 to 35, then what happens?


Second quarter is 35 to 45, got it, you know, things like this. By then you should be married or you want to be married, your career should be taking off and you have a house and a little bit in debt and all this stuff.


And then we go into 'Half-Time,' you know. And at that point sometimes in our lives is called midlife crisis, you know. We say, oh my goodness, I'm not getting ahead, I'm not getting promoted, I'm getting...


And panic sets in, and then we go into the third quarter which is 45 to 55, okay?


And then age 55 to 65 is the fourth quarter.


And if you haven't acquired enough wealth, like I talked about this between wealth and being rich. Wealth is very simply measured in time. So we have recurring income coming in for as long as you live here.


So if you don't have enough recurring income from wealth, you go into what's called 'Over-Time.' And Over-Time means that you may be on Social Security – what my Japanese friend calls it 'so-so security.' You know, cause it's so-so.


If you haven't quite got it yet – (Laughs) – you haven't quite got it yet, Over-Time means would you like that super-sized? (Laughter) Would you like a giant sized Coca-Cola with it or stuff like this.


And then you go into what's called 'Out of Time.' (Laughter) And I think this is why people are terrified right now of running out of money during retirement because when you're Out of Time that often times your body gives up and all this.


And a lot of times what people say is that you spend your health gaining wealth and then the last few years of your life, you spend your wealth trying to hang on to your health. And they say so many people, their fortunes get wiped out in the last two years of their lives if they don't have enough.


As I said, the biggest problem in America is not Social Security, it's Medicare – 64 trillion dollars in debt right now. So if you – And so that's why I said, I thank all of you who were born, you know after 1964 because you're going to be paying for all the old guys who are Out of Time, especially right now.


Pre-Game Show, you know, Paris Hilton was born, I think with three hundred million dollars net worth. She won the game before she was born, you know.


How many people wish you were, you know, born rich and all that kind of stuff? You know, I always did, but I wasn't. So, there are certain people who were born with a silver spoon in their mouth, and they are so fortunate. I wasn't.


My wife Kim won her game in the first quarter of her life. She was about 35 years old when she retired, she had acquired enough wealth – enough passive income that she never had to work again. So she won the game first quarter.


and I was 47, so I won at just in the second quarter of my life that meant I never had to work again. Not that I was rich but I was wealthy. I had money coming in every month from my investments that I never had to work again.


So then I took two years off, suffered my midlife crisis and then came back, and when I was 50 years old, I wrote a book called 'Rich Dad Poor Dad.' And the thing took off and a whole new career opened up.


And now I'm in the fourth quarter of my life and thank God, I don't have to worry about going into Over-Time or Out of Time because acquiring wealth is just fun for me. I love investing, it's not frightening, it's control. I have all that. Does that makes sense to you guys here? It's just fun.


So my question is to you right now, is what quarter are you in? How many people are in the first quarter? Okay. How many people second quarter? How many people third quarter? Fourth quarter? Nobody's raising their hand on that one – (Laughter) – a couple of you. And I won't ask about Over-Time and Out of Time.


But the question is this, sometime, like it or not, every single one of us needs to win the game. Regardless of who you are, we need to win the game. If we don't, we go into this part over here [Over-Time & Out of Time].


(Source: https://youtu.be/0854UWAv8xA)

 

[YAPSS Takeaway]

The Game of Money;

  • Pre-Show Game

  • 1st Quarter 25-35

  • 2nd Quarter 35-45

  • Half-Time

  • 3rd Quarter 45-55

  • 4th Quarter 55-65

  • Over-Time

  • Out of Time

Which quarter are you in?