Why ‘Living Below Your Means’ Is Keeping You Poor
The growing gap between the rich and the poor is one of the most pressing issues of our time. In this video, I break down why the middle class is shrinking, how outdated school systems fail to teach financial literacy, and what you can do to break free from the cycle of poverty.
You'll learn:
Why "living below your means" is a myth that keeps people poor.
The difference between assets and liabilities (and why it’s so important).
How the rich think differently and use assets to fund their dreams.
The dangers of student loans, poor financial education, and outdated societal advice.
Practical tips on how to think like an entrepreneur and start building wealth.
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Disclaimer: The information provided in this video is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity.
The content presented here is based on the speaker's personal opinions and research, which may not always be accurate or up-to-date. Financial markets and investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any financial decisions.
Thank you Robert and your family! You changed my live!! My perspective on what money is changed the moment I started reading your books!! I buy multable at the same time and give em away to anyone who is interested! We all should know!! All the best for the new year!!
My self danish khan I am from India main app ko 2 saal se follow kr rha hun aure app ki books rich dad poor dad cash flow coordinate bhi read kiye hun main 10 class ke baad se school droup kr diya hun aure debt aure tax ke bare main learn kr rha hu. So itnna Sara knowledge Dene ke liye sukriya ❤❤
I would love to meet you, Mr. Robert! Thank you, for helping us!!
Poor people are mostly focused on buying groceries and paying bills rather then buying assets. It’s easy to say that you should just buy assets that pay off your liabilities when you can actually do that, but most people simply don’t have the capital to buy it, no matter how long they play the board game.
They need to live below their means to be able to buy assets. Robert forgot that part
Guilty 🙋♂️
The purpose of inflation, is to keep you from
being able to buy assets that will in turn,
pay for your liabilities.
Then there’s the government definition of asset.
Anything that you possess is; according to the
government, an asset, even if it is not putting
money into your pocket.
Right.
And you don’t have a TV (or two?), the latest cell phone, more than two pairs of shoes, a car payment, Netflix, and you never buy Starbucks?
You could find the money to invest if you wanted to.
You can buy a vending machine for under $3,000. Buy cans of soda or bags of chips at Costco for 25 cents apiece and sell them for $1.35 or more. How long would it take the machine to pay for itself? How many machines would you need to pay your electric bill or your cell phone bill?
You could buy a 3 bedroom house and rent out the other two bedrooms.
The difference between rich and poor isn’t what’s in your wallet, it’s what is in your mind. When you learn to “see” rich, it’s hard to stay poor. Public education in the U.S. is designed ON PURPOSE to teach you to only see poor.
@marcosct86
Actually Robert did address that part. In fact he called us ‘fkn stupid for living below our means’
Robert, I have followed you for years. I listen, learn and take it all in. I know your philosophy is to borrow, be in debt and own assets from that borrowing. However, for me, I respectfully disagree with not living below your means. I lived below my means and invested almost every penny between my cost of living and my income. That is what allowed me to purchase assets and become financially independent. Could I have more assets today if I used other peoples money? Yes, but my goal was not to spend my life getting rich but to live a full life. I have accomplished that goal. Having ‘more’ money was not that important to me. If your goal is to get rich and have more money than you need, then by all means, use other peoples money and you can do that. It all depends on your personal priorities in life
i think the only time you can live above your means, when youve mastered using debt to acquire assets, only if you have assets that generate income
that could pay for your future compounding debt, then by that time you can live a little bit above your means
like when you have 11 apartments you live in 1 and you rent out the other 5
then you can use a portion of the other 5 apartment earnings to get more loans to get more apartments, then next u got 15 apartments, 15 becomes 20 and so on and if you mastered that, like robert claims to be, then its ok
Your way makes more sense. Living below your means does not necessarily make you poor, or mean that you are going to be poor.
I lived below my means for 4 years when I started off life and someone stole all of my savings ! Then I met Robert Kiyosaki by his book rich dad poor dad . I mortgaged my car for a downpayment on a property . Then flipped it and made a great profit . There was no turning back after that . Thanks Robert !
People really don’t understand the importance of Living ABOVE Your Means, because it’s not about living above what you can afford! It’s about living above what you’ve been programmed to settle for!!!
I don’t understand this thought process because settling has never been in my programming.
No OP it’s BS to have 800+ car payments for 7+ Years on at least two cars which is what most people aspire to.
That’s just one example.
Sounds like a bunch of nothing.
What you’re programmed to not settle for , all comes up in bankruptcy court. Scales of justice.
@@waynehendrix4806 please speak more plainly because what I take from you is that it’s okay to have debt and not own anything and it’s okay to go bankrupt also
just about 10 minutes. huge better than at school 10 years. Thanks, sir
9:58 minutes. Not 10.
I bought the three book set, then Increase Your Financial IQ. Moat recently, bought Midas Touch, about to start it this month. It has been WELL WORTH the cost of a few books and the time reading them. I learned a lot, and I’m writing income statements and balance sheets for my small biz and household for the first year ever in 2025. Thank you, Robert!
Kiyosaki used to be more level headed, as we all age we lose our filters and we tend to become a little cooky which is what we are seeing here, same with Trump when he was young he was level headed and more measured in his speech. I respect Kiyosaki for his past works and words, Rich Dad, Poor Dad is an excellent book, I had all my kids read it, these days he’s just constantly flying off the rails. Basically if you take a person that has ZERO money, wealth, assets and label them at 0 on a scale from 0 to 10, and 10 being a billionaire, what he’s doing is he’s shouting from level 10 straight to level 0 asking them why are you at 0, why aren’t you a 10?? I mean you can’t do that, it’s not fair, there’s a bunch of reasons why the poor are poor, he’s right when he says the schools suck because they do, but at the same time you can’t expect miracles, easy for him to say what he says from his position.
1. Poor people have POOR mindsets
2. I spoke to a young man yesterday whom I have not seen in 26 months. He looked a lot older, more stressed and guess what? He was STILL smoking.
3. Let’s do some math: The kid has a $500 a month habit.. of smoking. Multiply that by 26. THERE’S his money for an asset
i am older, permamently disabled and have volunteered my time for years, attempting to teach proper money strategies to young and old and I can tell you that 10000 per cent of the time, each and every time I go into low income neighbourhoods (even middle income neighbourhoods now) there is one thing that the poor always do, they always develp POOR HABITS. We can blame our schooling, our chidlhood, you name it BUT what sets someone APART from everyone else is……….desire. Desire to rise above it all, shut everyone out, SEARCH OUT people you want to be like, stop making excuses.
A few days ago, an older couple from my area recognized me and started talking about the economy, how they were “barely getting by” and the woman told me that she and her husband decided to cut out either coffee or eggs. The coffee won out so the eggs went bye bye. However, I noticed they had LOTS of pet food. Now, follow me here. You are SO broke, you have to choose between eggs or coffee BUT you have tons of pet food in your shopping cart? Here was her answer:”I’ll skip one meal a day or a few a week but I told my husband I refuse to give up my dogs or any of my animals!”
“Oh, how many do you have?”
“Enough!!” was her reply.
One thing I know that they don’t is that I happen to know they frequent my local food bank. They don’t HAVE to. They DO have money to pay for their things. They just don’t WANT to cut out anything.. except eggs while those who ARE in need have no pets and HAVE to go to those food banks. I have volunteered for a few of those people (cancer, strokes)
The problem with westerners, americans in particular is we do not know the difference between need vs want. We NEED everything. No one needs 3 dogs, 2 cats, a bird and complain that they have no money or can barely hang on. I have worked with people who came from nothing who saved and saved and finally were able to buy that asset or assets
We need to stop complaining about the rich and “those who have everything while the rest of us get poorer”, drop that mindset and figure out HOW to get that asset.
He also stands by accumulating most of his wealth through lots and lots of debt, apparently he loves debt because it’s tax free.
Debt is NOT an asset, it’s a LIABILITY, so he’s contradicting himself.
That’s why I wouldn’t take this guy’s words for gospel, he’s all over the place.
@@Longlostpuss Problem is he’s trying to give advice to the wrong people. He’s not giving advice to the working poor, when he says he has debt and uses debt to make himself wealthy he’s really talking about a strategy that the wealthy already use. There are also legal loopholes as to why one would opt for debt vs. owning something outright like when you lease or finance a car, if you get sued and there’s a judgement entered against you and you don’t have enough money or assets to cover the judgment they will go after cars you own outright as there are no liens to have to satisfy, they won’t go after your financed car.
@@justacinnamonbun8658 I 100% get what you are saying, but the rental car is still a liability, it’s an overhead you don’t need.
You are effectively overpaying for a rental car rather than just buying a good reliable 2nd hand car outright and saving yourself the monthly outlay.
Advocating debt as if it’s an asset doesn’t make sense. If you become insolvent and you have no assets, you will have to declare yourself bankrupt.
For some people who are connected, it won’t really matter, but for the average Joe on the street, bankruptcy can absolutely finish you i.e. you will lose any credit score you spent years building up and some employers/insurers won’t touch you.
Debt is just not good full stop. If starting a sustainable business, I do understand that most won’t have much of a choice though and that’s IF they can even secure the loan.
Alot of people hustle for their start up capital, I don’t believe you can be rich and clean at the same time. Alot of funny business goes on for people to become that super powerful.
@@Longlostpuss If the debt is used to buy assets that gives more cashflow than the interest on the debt it makes you richer.
Liberated me when you said You don’t need 3 cars but god says you can have them.
Honestly great thoughts by someone who is earnestly on a mission.
This brings tears to my Aquarian eyes. All my life I had a nagging feeling about what my family/religion/society told me about the frequency of money was wrong. That’s all I heard “live below your means” “you have to work hard if you want to be rich/wealthy” that never say right with my Eumelanin soul. I like to work smart and not hard. ♒️ I need to be around like minded people. The way I think is futuristic. I want to live in a smart city with smart walls. ♒️ If I was around the right people, I’d be a multimillionaire by now. (Amazon stock 2008) I had won a settlement and had I invested in it I’d be fine right now. You live and you learn.
Now I have another chance and I need your help. I will never take financial advice from poverty minded people that live paycheck to paycheck and don’t own any assets. I swear being poor is like a mental illness. 👁️
And I love Trump. Something about that man is very special I feel it in my soul👁️
There is always Bitcoin also! I knew about it around 8k and if I had bought then I would be wealthier then I am now 😅
I’m so pissed I went to college and am thousands of dollars in debt with nothing to show for it.
Did you at least earn your degree? And what did you go for? You can always pivot.
What degree did you get?
Good ol Robert polluting common advice to create controversy. You have to live below your means and resist lifestyle inflation every time you get a salary increase. However the piece that Robert is missing is that leftover take home pay you need to invest in your future – investments, career up skilling, etc.
I listened to him on buying gold 4 years ago, and now the price is up. I wish I bought a lot more. Also, I can sell it without been taxed.
Same here
You first have to buy assets and then the assets can buy you cars and other liabilities. He failed to mention the way you accumulate assets is by saving money to invest with first.
Don’t simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments…
It’s really heartbreaking to see how inflation and recession impact low-income families. The cost of living keeps rising, and many struggle just to meet basic needs, let alone save or invest. It’s a reminder of the importance of finding ways to create financial opportunities. You’ve helped me a lot sir Ricky! Imagine i invested $50,000 and received $190,500 after 14 days
Absolutely! Profits are possible, especially now, but complex transactions should be handled by experienced market professionals.
Some persons think inves’tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that’s why I’m lucky to have seen someone like mr Ricky Wen.
Ricky Wen demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
nice! once you hit a big milestone, the next comes easier. How can i reach him, if you don’t mind me asking?
Wow this man needs a spiritual awakening. Fast. From somebody who’s had all the money in the power as a teenager up into my mid 20s and realized it’s all vanity and pathetic. The only thing that matters is love, family creating memories in learning about the nature of reality in drawing closer to God.
😂
This video is a game-changer! So much helpful information packed into one clip. I personally don’t like promoting anything in comments, but I simply have to share with you a book called The Gilded Nexus of Prosperity, that book changed my approach to money, the methods in that book are impressive
I used some techniques from that book to make money, and I can truly say I’m earning more now
I’ll buy you dinner for this recommendation
Thank you for all of your work and the great information you provide. I’m retirement age and am taking management of my own retirement funds. It’s a bit daunting, but leaving them in Bank or savings has not proven very profitable. I also have a shark mentality, keep moving…keep learning. I have learned so much in the last 2 years about investing, Options, and Crypto but still have mountains more to learn. It’s not as daunting when I come across someone like you who is wanting to share your knowledge to help others and truly cares about bringing others along with you……. I have managed to grow a nest egg of around 210k to a decent 732k in the space of a few months… I’m especially grateful to Francine Duguay, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
She’s mostly on Telegrams, using the user name
Francineduguay
The pump and dump has been a perfect eyeopener for us all to really see how unpredictable the market can be and the need for us to be trading not just seat and hodl.
Got a chance to benefit from her services a few weeks ago and it has been a very smooth experience.
Thank you…. I have searched her up Google I think I am satisfied with her experience.
I’m retired at 38, went from Grass to Grace. This video here reminds me of my transformation from a nobody to good home, honest wife, $75k biweekly and a good son full of love🤍🤍❤️❤️❤️❤️
Big thanks to Mrs MILDRED EVELYN ROONEY
She’s a licensed broker here in the states 🇺🇸 and finance advisor
I raised 305k and Mildred Evelyn Rooney is to be thanked. I got my self my dream car a just last month, My journey with her started after my best friend came back from New York and saw me suffering in dept then told me about her and how to change my life through her. Mildred Evelyn Rooney is the kind of person one needs in his or her life! I got a home, a good wife, and a beautiful son Note!: this is not a promotion but me trying to make a point that no matter what happens, always have faith and keep living!!
I’ve always wanted to be involved for a long time but the volatility in the price has been very confusing to me. Although I have watched a lot of YouTube videos about it but I still find it hard to understand.
Can i get in touch with her directly? Life has been really challenging for me lately.