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

Saver earns 2% on $100 deposit 
or $100 x 2% = $2
Banker lends the saver’s $100 deposit 10 times at 10% interest
 
or $100 x 10 = $1,000 x 10% = $100
In this example, the bank earns $100 on the saver’s deposit of 
$100 and pays the saver only $2 for the use of the saver’s money.
This is why bankers love savers and love borrowers.
Keeping It Simple
If this is too confusing, all you need to know is that bankers need 
borrowers, not savers. If you and I stop borrowing, the economy stops 
running because today, all money is debt. In other words, “Debt makes 
the world go round.”
Assets
BALANCE SHEET
Liabilities
Income
Expenses
Assets
$100
$100
$1,000
Interest
(fractional reserve)
x 10
$2
$100
BALANCE SHEET
Liabilities
Income
Expenses
INCOME STATEMENT
Banker
INCOME STATEMENT
Saver

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Chapter Three
Unfair Advantage
101
100
3. Learn to invest in real estate.
Learn how to manage debt to achieve wealth.
Rich dad was very aware of Nixon’s change in the rules of 
money in 1971. That is why, in 1972 while I was in Vietnam, rich 
dad suggested I follow gold in the papers and take note of how the 
Vietnamese people responded to the changes in money. In Conspiracy 
of the Rich, I wrote about handing a Vietnamese fruit vendor a $50 bill 
and having her turn it down. She was my glimpse into the future and 
the coming crisis with the dollar, a crisis that is still coming.
When I asked my rich dad to explain why I should take classes in 
real estate investing, he replied, “The dollar is no longer money. The 
dollar is now debt. If you want to be rich, you need to learn to use 
debt to grow your wealth.” 
When I asked if he would teach me, he replied, “No. Invest in 
your education first.” He did not want to waste his time with someone 
who knew nothing about real estate and debt. Encouraging me to 
learn, he said, “I will guide you after you have done your courses. I 
will be your mentor and your coach, but first you must seek your own 
education.”
I left his office a little dejected. I had no idea where to find any 
real estate investor education. I knew there were courses to become a 
real estate agent, but I knew real estate agents are not investors. I knew 
this because my rich dad often made jokes about stockbrokers and 
real estate brokers, saying, “The reason they’re called brokers is because 
they’re broker than you are.” Explaining further, he said, “Most real estate 
brokers take courses to get their license to sell real estate, not invest in real 
estate. A real estate license allows them to sell houses and earn money in 
the S quadrant. Most real estate agents know little to nothing about real 
estate in the I quadrant.” Leaving his office, I knew I needed to find real 
estate education for the I quadrant. I knew I did not want to be a real 
estate broker in the S quadrant.
Late one night, as I prepared for an early morning flight at the 
Marine Air Station, an infomercial came on TV, enticing viewers to sign 
up for a real estate investment course. I dialed the number on the screen 
and signed up for a free preview to be held in a few days. At the free 
My poor dad thought I should fly for the airlines, as most of my 
fellow pilots were doing. When I told him I was done flying, he suggested 
I go back to Standard Oil and sail as a third mate. He told me, “The 
pay is great, and you’ll have five months off a year so you only have to 
work seven months a year.” When I shook my head to that idea, he 
recommended that I return to school, get my master’s degree, possibly my 
doctorate degree, and then get a job with the government. My response 
to that was, “I’d rather go back to fight in Vietnam.” 
I had a problem with my dad’s advice about going back to school 
and working for the government. It was the same advice he had followed 
in his life, advice that did not work for him. At the age of 54, he was 
unemployed and living off his savings. His life’s plan failed when he 
resigned as the head of education for the State of Hawaii to run for 
lieutenant governor as a Republican. The Democratic ticket had his 
boss running for reelection. When my dad lost, he was blacklisted from 
government service in Hawaii.
It disturbed me, listening to him advise me to do what did not 
work for him. He thought I should work for the government in the E 
quadrant. My dad’s unemployment at the age of 54, highly educated and 
hardworking though he was, presented to me a glimpse of the future, the 
future we are in today.
I thanked my dad and drove to my rich dad’s office in Waikiki. I now 
knew which dad’s advice I wanted to follow. I knew that what I wanted 
when I grew up was to become an entrepreneur who operated out of the 
B and I quadrants.