This book is in many ways Part II of my book, Rich Dad poor Dad for those My rich, but une Rich Dad's Conspiracy of the Rich. Pages·· FINANCIAL IQ. Get Smarter with Your Money. By Robert T. Kiyosaki. Special Thanks to Jake Johnson for collaborative editorial work. NEW YORK BOSTON. Many of our global economic problems started in when President Richard Nixon took the U.S. off the gold standard. Throughout history, when a.
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Get Free Access To | Robert Kiyosaki Increase Your Financial Iq PDF Now. ROBERT KIYOSAKI INCREASE YOUR FINANCIAL IQ. Download: Robert Kiyosaki. Rich Dad's Increase Your Financial IQ by Robert T. Kiyosaki PDF, Download ePub Rich Dad's Increase Your Financial IQ: Get Smarter with. Download & Read Online with Best Experience | File Name: Robert Kiyosaki Increase Your Financial Iq PDF. ROBERT KIYOSAKI INCREASE YOUR.
Refuse to live below your means, Kiyosaki writes. Instead, increase your means. It represents the core of Kiyosakis financial philosophy, yet its not presented in a way that makes it relevant to average people like you and me.
Leverage borrowing money to increase the power of your own cash is good, Kiyosaki says, if you have the financial intelligence to control the investment. But if youre not in control of the investment, then leverage is risky. Most of the people being hurt by the real estate meltdown are people who were counting on the real estate market to keep going up and increasing their homes value, he writes.
They borrowed against their homes inflated value, but had no control over whether the housing market rose or fell. This is a lack of financial intelligence.
Instead, Kiyosaki argues, one should use leverage to make low-risk investments, investments in which you, as the investor, have control. This sounds great, but he doesnt provide any relevant examples. How does the average person make leverage work for her? This is one of the interview questions I submitted to Kiyosaki I still havent received a reply. Buffett and his partner, Charlie Munger conduct extensive research for every decision they make.
Before they download a company, they want to know everything about it. Obtaining this information allows them to invest with confidence.
By contrast, Ive made some really dumb investments. Ive downloadd stocks on the hope that they would increase. These sorts of decisions are not based on information theyre based on emotion.
In order to improve your financial information, its important to: Separate fact from opinion. Many gurus are happy to offer their opinions gold is going up! Base your decisions on facts. Verify information. Dont trust just one source of information, but seek confirmation from other parties.
Know the rules. If you dont understand how an investment works, dont make it. Rules provide a valuable source of information about how the game of money is played, Kiyosaki writes.
Understand trends. Trends are historical facts. Smart investors can use trends to make informed decisions. However, its important to note that trends do not project to future facts only to opinions about possible futures. Still, trends are valuable sources of financial information. Ultimately, Kiyosaki writes, it is not the asset that makes you rich.
Information makes you rich. Developing Your Financial Genius Though an overview of the five Financial IQs forms the bulk of this page book, its actually the last fifty pages that hold the most value.
It is in these three chapters that Kiyosaki discusses the integrity of money and explains how to develop your financial genius. He offers interesting recommendations, such as the importance of producing personal financial statements.
He writes about bringing your financial actions in line with your beliefs. He writes about the psychology of money, giving special attention to fear of failure.
He writes about the power of financial environments. If you want to become richer and more successful, he says, it becomes critical that you find an environment that allows you to grow and develop. The book fills a niche about which little has been written. Its motivational. I love Kiyosakis Big Ideas. Theyre a breath of fresh air, offering a perspective often missing in personal finance discussion.
I also like that his writing always motivates me to action, pushing me to pursue my goals. However and this is a big however Im often frustrated by the specifics in his books. Increase Your Financial IQ is no exception. Its not just that I disagree with him; I actually believe hes wrong.
Lets look at an example. Kiyosaki does not believe in diversification. He spends a lot of time criticizing financial experts who recommend a well-diversified portfolio of mutual funds.
The problem with that advice is most advisors dont know if it will work over time, he writes. I want to ask the expert, Will you guarantee that this financial strategy will work? Im puzzled. Why condemn the conventional wisdom for a weakness you admit your own methods possess? At least proponents of index funds have a long history of facts and trends to support their assertions. Isnt this one of the very components of financial intelligence this book purportedly praises?
Its stuff like this that prevents me from recommending Kiyosakis books without reservation. Diversification isnt a hoax. It isnt a scam. Other than Kiyosaki, its embraced by almost every financial author Ive ever read.
Diversification is a central tenet of modern portfolio theory. Its backed by facts, not opinions. The richest investor in the world, Warren Buffett, does not diversify, Kiyosaki says. His implication is that you should not diversify either, but thats completely counter to what Buffett believes. Buffett does not diversify because hes a professional. His life work is investing.
Its disingenuous of Kiyosaki to pretend otherwise. There are other problems of the same nature in Kiyosakis books. That doesnt mean they dont have value. They do. Many people and Im one of them have found the Rich Dad series a powerful motivator.
I just think its important to read these books and all personal finance books, for that matter with an active filter, questioning what you read, picking the parts that apply to your life and discarding the rest.
To me, thats real financial intelligence. Cash Money Life Like me, Patrick has mixed feelings about the book. The Obamacare act was greeted with admiration and delight. Robert Kiyosaki asserts that the real instigator of Economic Slumps is our external-makeover mindset. What does it mean? Appearing is much easier, than actually being, to say the least! Second Chance, as an aspect, must be brought into line with the process of metamorphosis.
Can you turn into a butterfly and, fly away?
We all have this potential, but not everyone is cognizant of its abilities. So, the real question is — What is holding you back? Robert brings up the importance of being able to read your financial statement. These days, people prefer to look richer by distorting the actual reality.
It took us 25 years to get out of the Great Depression , and the Federal Government did nothing in particular to appease the suffering. New policies were enacted in the 30s, and the WW2 period, but to no avail. What does that tell you? They try to own the means of production; they are not in pursuit of higher wages, etc.
In other words, they are entrepreneurs from top to bottom. They nurture an entrepreneurial spirit which helps them to see the world through the lens of possibilities. In any financial statement, there are four basic asset-classes you can stumble upon: Business Paper Commodities Just take a moment, and find out which one of these appeals to your entrepreneurial nature, the most. And last but not least — find out the game that could bring you money or the one you love to be a part of.
History has shown us that a blend of commitment and passion increases the likelihood of a positive outcome. The Future Why does the education system skip the part about managing finances? The fact that students learn nothing about money is why they end up drowning in debt upon graduation. When you deny education to certain groups like slaves or women in the past , you are in control of their destiny. In some parts of the world, this practice is still around. Believe it or not, the person who signs the paycheck exerts a lot of influence over the receiver.
Because the more you earn, the tax-percentage gets bigger. Are the rich gaming the system? Poor Dad teaches you to work for money; Rich Dad teaches you to acquire assets. If you are working to produce Cash Flow, you are on the right track. However, if you are more into getting a higher paycheck, then you have the mindset of the Poor Dad.
You want to watch out for debt and taxes because they will rise proportionally with your paycheck. Robert Kiyosaki is a great fan of playing games that could help you think critically.
In the meantime, you are getting ready for the actual world. Mistake-learning method is the only one that can be deemed effective.
But what about education? When it comes to the United States of America, which of the following poses a greater menace to national security?
The future is not pretty with regards to the US economy.