Three Types Of Income By Rich Dad

You know most people say, "Go to school, and get a good, safe, secure job, and put in a 401K or a mutual funds." And all this. What they should be teaching people, and what makes the Rich Dad Company different, is we educate people the point of view of there's three different types of income. There's earned income, portfolio income, and passive income. When you say to somebody, "Go to school and get a safe, secure job." That's earned income.

When say to somebody, you know, "Buy this house, 'cause the price may go up." Or, "The stock may go up." That's portfolio income, it's also called capital gains. Earned income, is the most highly taxed of all incomes, in the U.S. it's at least 50% for most people. Portfolio, today, is about 20%, and passive, if you're smart and you know what you're doing, you can get it down to 0% legally, and I do emphasize doing it legally.

So since tax is your highest expense, then why not work hard for passive income? Unfortunately, if you're an E or an S, then you're primarily working for earned income. If you put your money into savings or a 401K retirement, that too is earned income. So for most people who are following traditional advice, they're working for the most expensive of all incomes, it's earned income.

The Rich Dad Company teaches people to be B's and I's, and the advantages of working hard for a portfolio and passive income, and that makes a very big difference since taxes are your greatest expense. So part of your financial education is learning the different types of income, the different types of taxes, 'cause taxes are not fair, they always incentivize the entrepreneur and the investor. Learning to be a B or an I, is what the Rich Dad Company stands for.

Best known as the author of Rich Dad Poor Dad—the #1 personal finance book of all time—Robert Kiyosaki has challenged and changed the way tens of millions of people around the world think about money. He is an entrepreneur, educator, and investor who believes that each of us has the power to makes changes in our lives, take control of our financial future, and live the rich life we deserve.

With perspectives on money and investing that often contradict conventional wisdom, Robert has earned an international reputation for straight talk, irreverence, and courage and has become a passionate and outspoken advocate for financial education.

Robert’s most recent books—Why the Rich Are Getting Richer and More Important Than Money—were published in the spring of this year to mark the 20th Anniversary of the 1997 release of Rich Dad Poor Dad. That book and its messages, viewed around the world as a classic in the personal finance arena, have stood the test of time. Why the Rich Are Getting Richer, released two decades after the international blockbuster bestseller Rich Dad Poor Dad, is positioned as Rich Dad Graduate School. Robert has also co-authored two books with Donald Trump, prior to his successful bid for the White House and election as President of the United States.

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