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

UNfAiR ADvANTAgE #4
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FAQ 
Is real estate a good investment?
Answer 
I don’t know. Are you a good real estate investor?
FAQ
Are stocks a good investment?
Answer 
I don’t know. Are you a good stock investor?
FAQ
Is a business a good investment?
Answer 
I don’t know. Are you a good entrepreneur? 
You get my point. Without financial education, you will lose your 
money, regardless of what you invest in.
Extreme Risk
On a regular basis I hear, “I just hate risk. I’d rather play it safe. I have 
enough challenges.” In their avoidance of risk, people lead lives of 
extreme risk.

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Oxymoron
The definition of oxymoron is: “Words that contradict each other.” 
Examples are: jumbo shrimp, government service, painless dentist, 
honest politician and holy war.
In the world of money, the following are also oxymorons:
1. Job Security
2. Saving Money
3. Safe Investments
4. Fair Share
5. Mutual Fund
6. Diversified Portfolio
7. Debt-Free
People who seek to avoid risk the most use these oxymorons the 
most. These oxymorons guide them into a life of extreme risk.
Those with financial education know why these words are financial 
oxymorons. To those without financial education, these oxymorons 
sound like financial words of wisdom. I will explain:
1. Job Security
When I graduated from high school, many of my classmates 
did not go on to college. They did not have to because there 
were many high-paying jobs waiting for high school graduates. 
Many of the thousands of jobs on the pineapple and sugar 
plantations were high-paying jobs for heavy equipment 
operators, cannery workers, and clerical workers. Most were 
unionized jobs with good pay and great benefits. 
Today, most of those plantations are gone. My classmates either 
work for McDonald’s or became entrepreneurs in “tropical 
agriculture,” aka marijuana. Many are doing just fine as outlaw 
farmers. Obviously, they do not pay much in taxes. To the 
outside world, they look like poor people collecting welfare, yet 
they drive late-model pickup trucks paid for in cash.
Ironically, due to the current economic crisis and technology, 
many of my classmates who went on to college are the ones in 
financial trouble. One of the smartest and prettiest girls in my 
school, a few years younger than I am, a graduate of an elite 
small college in New England, is now unemployed and lives in 
the woods of rural Hawaii, almost a hermit. She is waiting to 
be old enough to collect Social Security and Medicare.
Once President Nixon opened trade with China, jobs flowed 
overseas as our dollars helped China build new factories. As 
China built massive factories for low-wage workers, high-
priced laborers in the United States were no longer needed. 
Middle-management positions for college graduates also began 
to disappear.
Not only are low-wage jobs flowing overseas, but technology 
is also eliminating high-paying jobs. Technology is a growing 
reason for job security to be an oxymoron. In the 1920s, over 
2 million Americans worked for the railroads. Today, railroads 
operate efficiently with fewer than 300,000 workers. Fewer 
workers mean increased profits for the owners of the railroads, 
owners like Warren Buffett, who in 2009 paid $34 billion 
to buy Burlington Northern Santa Fe railroad. Advances 
in technology eliminated jobs, and the reduced labor costs 
translated to profits for the owners. Why did Buffett buy a 
railroad rather than a hot new technology company? The 
answer is simple: steady cash flow.
Jobs will continue to be lost because American workers are 
paid 40 times more than the lowest-wage workers in the world. 
This means jobs are not coming back. Even China, once a low-
wage country, is in trouble as Chinese workers want higher 
wages. As Chinese workers earn more, jobs migrate to even 
lower-wage countries such as the Philippines, North Korea, 
Kyrgyzstan, and Indonesia.
With breakthroughs in technology, it is the owners of businesses 
who win and the employees who lose. Even in Silicon Valley, 
where much of the new technology is created, manufacturing 

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takes place outside of America. The computer I use to write this 
book was designed in the United States and manufactured in 
China. As I am writing this book, I know that in a few months 
it will be on sale in several different languages in e-book and 
hard-copy format. After this book is written, my costs drop as 
income comes in from the asset I created.
My business is expanding worldwide with fewer employees 
than in years past. Technology is a growing unfair advantage 
for those in the B quadrant and sometimes a disadvantage for 
those in the E and S quadrants.
Those with job security will pay more and more in taxes. With 
growing national debt, governments will be raising taxes. The 
quadrants with the least wiggle room in minimizing taxes are 
employees in the E quadrant and specialists like doctors and 
lawyers in the S quadrant. In 2010, the government increased 
tax breaks for those in B and I quadrants but increased taxes 
on those in the E and S quadrants.
Rising unemployment is not just a problem in the United 
States. It is a problem worldwide, even in China. Prolonged 
unemployment leads to social unrest, political revolution, and 
then overthrow of the government. This is why most countries 
will do almost anything to steal jobs from other countries.