Personal Finance Education In Schools

Do you want to avoid paying taxes?

What if I told you the McDonalds formula of business could make you rich?

Let’s learn how we are all programmed to be poor by our corrupt education system and how we are passing these behaviours and mindsets on to our children so they grow up to be poor too.

You Are Programmed To Be Poor

Check out the video by ‘Rich Dad Poor Dad’ author Robert Kiyosaki who explains how we are programmed at an early age in school to be poor:

The video has been put together here nicely by FightMediocrity youtube channel and strongly recommend you subscribe to it if you have not already.


“The school system will never teach you about money”

The school system was designed to teach you to be an employee, but never about money. What most people lack is real, business knowledge like our County, you know, like debt, like taxes. You gotta know that stuff, but they don’t teach it in school to anybody. You see, most teachers in school, they’re out of ethics.

They teach subjects, they themselves don’t practice. I have the same problem in my MBA program. I got into arguments with the marketing teacher because the guy didn’t have a business. And then I got into arguments with accounting teacher because the accounting teacher didn’t know accounting.

Fake vs Real teachers

I knew more about condoms because I actually worked in bookkeeping at my rich dad’s companies. And so I’m not an account, but I understand accounting. So that was end of my school years because I understood what a fake teacher is. A fake teacher is somebody who just wants a job. They’ll teach anything, you know, they teach you how to shine shoes. You get paid on more money, but they really don’t know what they’re teaching.

And that’s why in life, one of the things I suggested people, you’ve got to find a real teacher versus a fake teacher and a fake teacher is somebody doesn’t do what they teach, and a real teacher is doing what they teach every day. So my accountants, my attorneys, they’re in it every single day, that’s how I learned because every day I’m solving problems in my business.

I have accountants and attorneys and bankers and all these people on speed dial because I’m solving problems with my team. Or a school systems are making our students weaker. So in school, they have this thing that’s called doubt trigger effects so you can’t, as a teacher, you can’t say anything that might upset the student.

Trigger mechanisms

They don’t want anything that might jar their point of view. So if I went into school, I’d be thrown out because Id threatened them. And to me isn’t school about opening your eyes and minds to new ideas? But that’s now out of a system that everybody’s gotta be PC, you know, politically correct now and it’s killing us. It’s killing the brains of our kids they are going backwards.

But in their minds, there are more enlightened. If I didn’t have ideas that shook me, I wouldn’t learn anything new. But now these trigger mechanisms, you know like they don’t let you have peanuts anymore so that they found out if you do take peanuts away from a child, their propensity to have peanut allergy goes up. So you say to the child you can’t have peanuts. 17% will find out they’re allergic to peanuts. But if you gave kids peanuts, only 3% would be allergic to peanuts.

And that’s kind of the metaphor. We’re actually making our students weaker in school.

“Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime”

Rich dad, Poor dad

I don’t believe in giving to the poor. You see people say, well, why don’t you give the poor money? The only problem with that is this creates more poor people. You give a man a fish, you’ve got a lot of people that want more fish, you know? Well, you teach them to fish. But you know, unfortunately, the poor, the poor will always be amongst us. As it starts up here, it’s in their words, you know, and the words become flesh when they say, I can’t afford it or I can’t do that.

They become what they say and I’ve met so many people, I don’t, I can’t afford it. You think I’m made of money?, my PhD dad. He says, what do you think? I have made up money. I can’t afford that.

“A question opens a mind, a statement closes the mind”

It’s the poor that are greedy

And my rich dad would say, that’s why he’s poor. Poor people say I can’t afford it. I can’t do that. I don’t have time because this is an escape. It’s an escape, you know what I mean? It’s easy to say I can’t afford it. Oh, I’m too tired, or I can’t go to the gym. You know when, when you could go to the gym, but no I can’t. Truth is I’m just too lazy to go to the gym.

A question opens a mind, a statement closes the mind, how can I afford it? How can I do that? You know, what would it take or why should I do that? So you need to say, I can’t afford it. Your mind shuts down and you become what you say. But the thing is, is that we’ve become creatures of our own habits and until we break the habit, we don’t change.

The word does become flesh. I’ll never be rich or the favourite one is the red shark. Greedy. It’s the poor that are greedy. And if you think about it, because to be rich, you have to give something. I have to produce books and games and I purchased real estate. I provide housing, provide jobs and all that. That’s why I’m rich. But greedy people produce nothing.

Oh no, it’s the rich that are greedy. Well, the way you get rich, you solve other people’s problems. If you could cure cancer today, you’d be a trillionaire, an instant trillionaire, Nah, I’m just too busy to work I think ill play golf instead.

“Poverty is passed on”

What we teach our kids

It’s taught in your families and middle classes taught in families and saw the people right now who are sitting at home who are struggling financially or worried about money or unhappy, they may be making a lot of money, but are unhappy with what they’re doing, It was probably taught to you, your superego was taught, get a job or a card or you’ll or you’ll never be rich or the rich are evil or whatever.

If you’re poor, you’ll always be poor. Money will disappear that fast, just like most pro athletes, you know, they make millions of dollars but 65% are bankrupt five years later. It’s because they come from poor families. Now you tell them that they get very angry at you, it’s the rich fault, you know, as you guys ripped me off, the government ripped me off, it’s passed down genetically.

That’s the frightening thing and have to change what we teach our kids, you got to have the basic knowledge of taxes, debt, financial statements and all that. If you don’t want to learn it, I can’t help you. My poor dad never wanted to learn what my rich dad was teaching me.

Failing is good

You know, I have bad luck too. I’ve, I have, I’ve had a financial crash and so I’ve had people stab me in the back, but they’re all good because I grow from it. You know, people who are afraid of making mistakes like they teach in school, they don’t ever grow. Most people want to be right. Well, you can’t have that. That’s not reality.

Every time I failed and was like, good, I said, okay, what have I learned? And the average person, the reason they’re poor is they haven’t failed. You know, they play it so safe. They haven’t made any mistakes like they taught in school.

That means they don’t learn anything. That’s why the school systems actually fundamentally corrupt. It’s anti-education don’t make mistakes and don’t ask for help. If I didn’t ask for help, I have my accountants, my attorneys, my bank crumbs on all of that.

“That’s why the school systems actually fundamentally corrupt”

Play the game

I go into business like a rugby team, but the average guy is oh I’m a straight-A student, I’m going to, I’m going to do this all on myself, and I got a bunch of rugby players run you over and you go, well, they’re not playing fair and what you’re not, you’re playing stupid. You should have a team, should have a counsel, attorneys and bankers and all that stuff, but that’s not the game I want to play, I said then don’t play the game.

You know the game of business is played with accountants. Attorneys, bankers hate to say it. Politicians, you know, you’ve got to know the game. So what I say to young people, you know, you find your game.

So my game financially is business number one, second is real estate, and that’s why I pay no taxes. That’s why Trump pays no taxes, legally its a combination of business and real estate that gives us an unfair advantage over our employees because they don’t know what to do.

“Trump pays no taxes”

The McDonalds Formula

So otherwise, those three things is appreciation, amortization, and depreciation. Though the way guys like Trump and Cushner and the rich guys do it is called the McDonald’s formula of business.

So McDonald’s has a business, right? They have hamburgers and when they interview Ray Kroc, the founder of McDonald’s, he gave the formula away. The business of McDonald’s is not hamburgers, the business of McDonald’s is real estate and that’s the formula.

So every time you go past a McDonald’s stand, Oh, you know you deserve a break today, eat at McDonald’s, but they’re not seeing the real game. The game is that little hamburger stand is buying the most expensive real estate in the world. But today McDonald’s owns more real estate than the Catholic church, you know, but they are like oh the rich are evil and all that. They just can’t see it.

“McDonald’s formula of business”

How to avoid paying tax

So I have the rich dad company though, let’s say I make $1 million dollars, I don’t want to tax on that. So I take that million dollars instead of spending it on something stupid, I buy a piece of real estate, so let’s say for 5 million. I go from 1 million to 5 billion, then I appreciate, depreciate and amortize that 5 billion and that offsets my $1 million in tax.

And I speak to average people that goes, it’s the law. It’s available to everybody in every country, all over the world. And I, you know, I travel all over the world and they go, Oh, it’s good for you in America, but you can’t do it here. And I say, see the McDonald’s? Yeah, he’s doing it.

No, no, no, no, no, no. They’re not doing it. I said, you know McDonald’s is not on cheap real estate, but the average person is so blinded because they went to school and they were taught by poor people and it’s handed down for generations. And that’s what Trump and I, and Nomi Prins and Jim records that I had tried to break.

I’m against the school system because it’s actually teaching people to be poor.

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I find it fascinating personal finance is not part of the curriculum in schools. But why is this the case? Have you ever questioned this to your teachers/parents/yourself? Why are we taught to find jobs and pay our taxes?

Is our schooling system really corrupt? is it really killing the brains of our kids? our future generation?

The section around how ‘the poor will always be poor’ I find fascinating.. mindset really is a powerful ability to dictate the way you live your life. The poor really are greedy yet we are taught this fact about the rich… who in effect give much more and constantly fail time after time to be able to learn and grow.


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