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Financial IQs

Financial Intelligence – Increase your financial IQ by Robert T. Kiyosaki

“It is not real estate, stocks, mutual funds, businesses, or money that make a person rich,” Kiyosaki writes. “It is information, knowledge, wisdom, and know-how, a.k.a. financial intelligence, that makes one wealthy.” He notes that buying a new set of golf clubs won’t improve your game, but paying for lessons will. It’s his hope that Increase Your Financial IQ can help readers improve their money “game”.

Kiyosaki divides financial intelligence into five “Financial IQs”:

  1. Making more money. This is measured by how much money you earn. If you make $100,000 a year, you have a higher Financial IQ than someone earning $30,000 a year.
  2. Protecting your money. Once you earn your money, you need to hold onto it. Protecting your money, especially from taxes, is the second Financial IQ.
  3. Budgeting your money. “Being able to live well and still invest no matter how much you make requires a high level of financial intelligence,” Kiyosaki writes. This Financial IQ is measured by how much money you have left after expenses.
  4. Leveraging your money. This Financial IQ is measured by return on investment. How well do you make your budget surplus generate more money?
  5. Improving your financial information. Financial information doesn’t just mean knowledge of basic financial concepts — it also means detailed knowledge of the investments you make.

 Below video, Robert Kiyosaki talks about Financial IQ