Have an open mindset
The most important thing to becoming rich is for you to have a mindset(精神状态) to want to become rich. The reason I say that is, I wanted to become rich when I played Monopoly(大富翁游戏), that was when I was nine years old. The greatest formula for wealth is found on that board game. When I was nine years old my poor dad, the schoolteacher said, “Ah, put the game away. Study, study, study! You’re wasting your time playing.”
And my rich dad said the formula(准则), “You must open your mind and see the formula right on Monopoly,” he said, “it’s right in front of you.” And I wondered “What’s the formula?” And finally I learned the formula is: four green houses, red hotel, four green houses, red hotel. Today I’m a rich man because all I ever did since the time I was 24 years old was buy four green houses, sell them all, buy a red hotel, four green houses, red hotel. You do not have to go to school to become rich, just play Monopoly: four green houses, red hotel. That is it.
You must look at how people before you have become rich. Do not talk to poor people. Poor people will tell you, “Oh it’s too risky. Don’t do that. Don’t take risk. Save your money. Play it safe!” That is a poor person’s mindset. You must have open mindset, open. And if you have an open mindset you will learn from everything; if you have a closed mindset you will learn from nothing. So I think that is the most important thing.
The difference between money and wealth
No, I don’t have a salary. I only had a job for four years in my life. I don’t want a salary. The middle class and poor, what they want is high income. They think they want money. But they have no wealth because they have no assets(资产). You must know the difference between money and wealth. They’re not the same things. Money will never make you rich. Wealth makes you rich. I have large companies. I have lots of stocks. I trade options(期权). I have real estate, that’s what makes me rich, so the money just comes in whether I work or not.
Bill Gates only makes $500.000 a year. That’s all. I make more than him. That’s all he makes, but he’s worth $20 billion. I’m trying to tell you there is a very big difference between income, money and wealth. So I have spent my life buying assets: businesses, stocks, real estate. That’s what makes you rich, not a job. The reason the rich in America get richer is they pass this on to their kids. My poor dad always said, “High paying job, high playing job, high paying job.” And my rich dad said, “Assets, assets, assets.” That’s the difference.
Conclusion: China’s opportunity for the future
There’s a saying in America, “The world will not change until the old men die.” Like me, you know? So the strength that China has is you have the highest growth rate right now. You also have a young population. In the next ten years you will become, in my opinion, the richest country in the world and you’re in the best place at the best time, I commend you for being brilliant, brilliant students and I wish you the best of luck for the future, so thank you very much, I appreciate it.