What Schools Will Never Teach You About Money By Robert T. Kiyosaki

Are You at Investor Level 3?
This level is similar to Level 2, except that this level invests in riskier 
instruments, such as stocks, bonds, mutual funds, insurance, and 
exchange-traded funds.
Again, the risk with this level is that, if everything is lost, the investor 
loses everything—and learns nothing.
sales-training program. Again, this was all part of my rich dad’s
educational program to train me to become a capitalist.
By 1994, Kim and I were financially free, never needing a job or
a company or government retirement plan. Rich dad was correct:
My education could set me free—but not the education found in
traditional schools.
When the markets began to crash in 2007, rather than crash with 
the rest of the economy, our wealth skyrocketed. As the stock market 
and real estate markets crashed, great deals floated to the surface, and 
banks were more than eager to lend us millions of dollars to buy and 
take over their investments gone bad. In 2010 alone, Kim and I
acquired over $87 million in real estate, using loans from banks and 
pension funds. That year was our best year so far. 
As rich dad often said, “If you are a true investor, it does not matter 
if the markets are going up or coming down. A true investor does
well in any market condition.”
Where Are You?
Take a moment and assess where you are today. 
 
Are You at Investor Level 1? 
If there is nothing in your asset column with no income coming in 
from your investments and you have too many liabilities, then you 
are starting at the bottom level, ground zero.
If you are deeply in bad debt, your best investment might be
to get out of bad debt.
There is nothing wrong with being deeply in bad debt, unless you 
do nothing. After I lost my first business, I was nearly a million 
dollars in debt. It took me almost five years to reach zero. In many 
ways, learning from my mistakes and taking responsibility for my 
mistakes was the best education I could have asked for. If I had not 
learned from my mistakes, I would not be where I am today.
Kim and I put together a simple program and workbook
explaining the process we used to get out of hundreds of thousands 

---

Five Levels of Investors
Unfair Advantage
227
226
I did not want to climb a corporate ladder in the E quadrant
either, nor did I want to be a very special specialist in the S quadrant.
So I took the path less traveled and decided to become an
entrepreneur and professional investor. I wanted the freedom to
travel the world, do business, and invest.
It was my choice. I do not recommend that path to everyone.
But I do recommend that a person choose. That is what freedom is:
the power to choose.
I encourage you to look at the five levels of investors and make
your choice. Each level has its pros and cons, its advantages and
disadvantages. Each level has a price greater than money.
If you choose Level 1, 2, or 3, there are many other people and
organizations qualified to support your investment life at those levels. 
In 1997, Kim and I created The Rich Dad Company to provide
educational games, programs, and coaches for those individuals who 
seek to be Level-4 and Level-5 investors.