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

Pressure Test the Plan
In 1994, we retired early because we wanted to pressure test our 
retirement plan. We wanted to make sure it could survive in good 
times and bad times. If our plan did not work, we were still young 
enough to correct and rebuild our investment base.
Early Retirement Ends
Two years later, bored and tired of retirement, Kim and I got back 
to work and produced CASHFLOW, our financial education game. The 
game is designed to be a seminar in a box and to teach the financial 
lessons my rich dad taught me. Like my rich dad, the game does not 
give you answers. The game challenges you to think. Every time you 
play the game, the game is different, because the players and challenges 
are different. The game also comes in three levels: the fundamental 
version, CASHFLOW 101; the advanced version, CASHFLOW 202; 
and CASHFLOW for Kids, a version for children 12 and under. 
In 2004, the New York Times did nearly a full-page article on the 
game, stating that there were CASHFLOW clubs all over the world 
with people teaching people the lessons my rich dad taught me. Today, 
the game is in published in 15 languages. It is also played worldwide 
via the online versions of the game.
In 1997, Rich Dad Poor Dad was published. In the book, I repeated 
rich dad’s lesson, “Your house is not an asset.” Howls of protest went up, 
especially from real estate agents. In 2007, as real estate crashed, millions 
of people are discovering the value of rich dad’s lesson.
The Value of Financial Education
Kim and I were married in 1986. Like many newly married 
couples, we did not have much money or credit. Adding to our 
financial challenges, I was still carrying nearly a million dollars in 
debt, money owed investors from the crash of my first entrepreneurial 
venture, the nylon-and-Velcro surfer wallet business.
On October 19, 1987, the Dow Jones Industrial Average fell 508 
points, a 22 percent drop.
In 1988, George Herbert Walker Bush was elected president of 
the United States. That year, the savings-and-loan industry crashed, 
followed by a real estate market crash. Much like the subprime crisis, 
the destruction spread across the United States and the world. Millions 
of people lost their jobs and their homes, and the economy headed 
into a severe recession.
In 1989, as pessimism spread, I said to Kim, “Now is the time to 
start investing.” 
Being newly married, deeply in debt, without traditional jobs, 
and in the process of building a business, it seemed impossible to 
find someone who would lend us money to invest. To make matters 
worse, interest rates for investors were running between 9 percent and 
14 percent. We were turned down many, many times. Bankers did 
not understand why we wanted to be investors in one of the worst 
economies in decades. Most bankers did not like our explanation that 
we were playing Monopoly in real life.
In spite of the rejection, Kim kept studying, taking classes, reading 
books, and looking at hundreds of properties. Her goal was to buy 
two houses per year for ten years, for a total of 20 houses. At first the 
process was slow, but once she caught on, she achieved her goal of 20 
houses in just 18 months. Although she achieved her goal eight years 
ahead of time, she did not stop investing. She was excited. She was 
learning more and more with each deal, especially the ones that did 
not go her way. The more she learned, the more she realized how little 
she knew. Her desire to learn more drove her on. 

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Chapter One
Unfair Advantage
37
36
In 2006, I appeared on many programs, including a news segment 
with KTLA in Los Angeles, warning people that the market was about 
to collapse. 
In 2006, Donald Trump and I published Why We Want You to Be Rich. 
The book was about the crash that was imminent and why the middle 
class would be wiped out. We began writing the book in late 2004. Our 
position was that poverty was about to increase. Millions in the middle 
class would move down the economic ladder. Given the choice between 
being rich or poor, we think being rich is better, hence the title of the 
book. Donald and I want you to be rich.
As you know, the market began to crash in 2007. 
In 2008, with Wolf Blitzer sitting in for Larry, I went on CNN’s 
Larry King Live and predicted Lehman Brothers would go down. 
In 2008, Conspiracy of the Rich was released. It was initially 
launched free as an online book. Writing Conspiracy was a trip because 
the book was being written as the world financial markets were 
crashing. The book is about the “Federal Reserve Bank,” which is not