Episode 40 - Rich Dad’s Increase Your Financial IQ: Get Smarter With Your Money By Robert Kiyosaki

Hello, Self Developers and welcome to The Patrick Kelly Podcast for Self-Development, where I will be reviewing  audible books on Self-Development that can change your life for the better this year, and years to come. It is said that if we keep on doing what we always did, we will keep on getting what we always got. In other words, to change our output, we first have to change our input.

Today is October 17, 2021, and This is Episode 40, and today, we will be reviewing the Audible Book, “Rich Dad’s Increase Your Financial IQ: Get Smarter With Your Money” By Robert Kiyosaki. This audible book will teach you how to increase your financial I.Q., so never have to think about the lack of money again. The love of money is not the root of all evil. It is the lack of money that leads to the root of all evil. Money by itself is not evil. Money is neutral. Money allows good people to do more good, and bad people to do more bad. The lack of financial education can cause People to do stupid things with their money and invest with stupid People. Your house is not an asset. Your house is a liability. Why because if you are paying the mortgage on your home, that home is a liability. If someone else, like a Renter is paying your mortgage, and after the mortgage is paid, there is money left over, then your house is an asset. Assets put money in your pocket. Liabilities take money out of your pocket. Money alone does not make you rich. Financial education makes you rich and keeps you rich, as long as you continue to learn. Many people believe that it takes money to make money. This is not true. Always remember that if you can lose money investing in gold, you can lose money in anything. Ultimately, it is not gold, stocks, real estate, hard work, or money that makes you rich—it is what you know about gold, stocks, real estate, hard work, and money that makes you rich. Ultimately, it is your financial intelligence, your financial IQ, that makes you rich and, keeps you rich.

Chapter 1: What is financial intelligence: The World is filled with highly educated poor People who have jobs. A job does not solve your money problems because it is one source of income. For many people, the letters J.O.B. means “just over broke”. There are millions who earn just enough to survive but cannot afford to live. Financial intelligence is that part of our total intelligence we use, to solve financial problems. If our financial intelligence is not developed enough to solve our problems, the problems persist. When your financial intelligence grows, you become richer. The root of the problem is a lack of financial intelligence, and the problem caused by a lack of financial intelligence is an inability to solve simple financial problems. Financial intelligence can only be achieved by solving financial problems.

Chapter 2: The Five Financial IQs: There are five basic financial IQs. They are:

Financial IQ #1: Making more money.

Financial IQ #2: Protecting your money.

Financial IQ #3: Budgeting your money.

Financial IQ #4: Leveraging your money.

Financial IQ #5: Improving your financial information.

What is the difference between financial intelligence and financial IQ?” “Financial intelligence is that part of our mental intelligence, we use to solve our financial problems. Financial IQ is the measurement of that intelligence.

Chapter 3: Financial IQ #1: Making More Money: Most of us have enough financial intelligence to make money. The more money you make, the higher your financial IQ #1. In other words, a person who earns $1 million a year has a measurably higher financial IQ #1 than a person who earns $30,000 a year. And if two people each make $1 million a year, and one pays less in taxes than the other, that person has a higher financial IQ, because he or she is closer to achieving financial integrity, by utilizing financial IQ #2: protecting your money.

Chapter 4: Financial IQ #2: Protecting Your Money: A simple truth is that the world is out to take your money. But not all who take your money are crooks or outlaws. One of the biggest financial predators of our money is taxes. Governments take our money legally. If a person has a low financial IQ #2, he or she will pay more in taxes. An example of financial IQ #2 is someone who pays 20 percent in taxes versus someone who pays 35 percent in taxes. The person who pays less in taxes has a measurably higher financial IQ.

Chapter 5: Financial IQ #3: Budgeting Your Money: Budgeting your money requires a lot of financial intelligence. Many people budget money like a poor person, rather than like a rich person. Many people earn a lot of money, but fail to keep much money, simply because they budget poorly. For example, a person who earns and spends $70,000 a year has a lower financial IQ #3 than a person who earns $30,000 and is able to live well on $25,000 and invest $5,000. Being able to live well and still invest no matter how much you make, requires a high level of financial intelligence.

Chapter 6: Financial IQ #4: Leveraging Your Money: After a person budgets a surplus, the next financial challenge is to leverage their surplus of money. Most people save their financial surplus in a bank. Today’s bank interest rates are at a low 00.25%. This was a smart idea before 1971—before the U.S. dollar became a currency. Also, after 1974, workers needed to save, for their own retirement. Millions of workers did not know what to invest in, so they invested their financial surplus in a well-diversified portfolio of mutual funds, hoping this would leverage their money. While savings and a diversified mutual fund portfolio are a form of leverage, there are better ways to leverage your money, when you increase your financial intelligence.  If a person is truthful, he or she has to admit, it doesn’t require much financial intelligence to save money and invest in mutual funds.

Chapter 7: Financial IQ #5: Improving Your Financial Information: You need to learn to walk before you can run. This is true with financial intelligence. Before people can learn how to earn exceptionally high returns on their money, they need to learn to walk; that is, to learn the basics and the fundamentals of financial intelligence. One of the reasons so many people struggle with financial IQ #4: leveraging your money, is because they are taught to turn their money over to financial “experts,” such as their Banker and their mutual fund manager. The problem with turning your money over to financial experts, is that you fail to learn, fail to increase your financial intelligence, and fail to become your own financial expert. Learn to ask your financial experts questions, so you can learn, while you earn.

Chapter 8: the Integrity of Money: Webster’s dictionary offers three definitions for “integrity.” They are:

1. Soundness: An unimpaired condition.
2. Incorruptibility: Firm adherence to a code of especially moral or artistic

values.

3. Completeness: The quality or state of being complete or undivided.

All three definitions are required to discuss money and integrity. Your Banker will never ask you for your high school report card. But they will ask you for a financial statement. A financial statement is a reflection of your financial integrity. It is the equivalent of your financial report card. Bankers are looking for answers that relate to the five financial intelligences. Obviously, they want to know how smart people are at making money, protecting their money, budgeting their money, leveraging their money, and how informed they are. A financial statement will give the bank the information it is looking for. If a person is out of financial integrity—as shown by excessive debt, not budgeting well, spending more than he or she earns, foreclosures, and bankruptcies—the Banker will probably not want this Person as a Client. It is a matter of professional integrity.

Chapter 9: Developing your financial genius: Financial experts advise people to live below their means and diversify. To many people this sounds like smart advice. The problem with following this advice is that you wind up average, because it is average advice. It is not bad advice. It’s just average financial advice. “A” students work for the “C” students, and “B” students work for the government. Our schools do not teach much about money. We are all taught as children to go to school, get good grades to later get a good job. This philosophy does not work out well for most People. One of the reasons poor people remain poor, is because they have a poor person’s subconscious mind. To Change Your Life . . . Change Your Environment. Science is finally finding out what many of us already knew; to change your life, first change your approach. if you want to become rich, you need to find an environment that is conducive to becoming richer. Consciously and intelligently challenge yourself to improve your standard of living, by increasing your financial intelligence.

Chapter 10:  Developing your financial IQ: Consciously and intelligently challenge yourself to improve your standard of living, by increasing your financial intelligence. Success requires some degree of mental and physical toughness. One learns from mistakes, not successes. The Rich don’t quit they learn, and by learning, they grow richer. If you can train your left brain to understand the subject, engage your right brain to come up with creative solutions, keep your subconscious brain excited rather than fearful, and then take action, while being willing to make mistakes and learn, you can create magic. You can develop your financial genius.

Closing Thoughts: On scale of 1 to 5, I would give this audible book, a super solid 5, for providing detailed instructions on how to increase your financial I.Q., and how to get smarter with your money.  

*To find out more about this audible book, Go To: www.audible.com and download this audible book, or go to www.richdad.com to find out more information about the Author.

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