Just read a great piece on Get Rich Slowly about Robert Kiyosaki’s book called “Increase Your Financial I.Q.”.
In the posting here’s what GRS says:
Kiyosaki divides financial intelligence into five “Financial IQs”:
- 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.
- 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.
- 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.
- Leveraging your money. This Financial IQ is measured by return on investment. How well do you make your budget surplus generate more money?
- 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.
So, what’ is our Financial IQ? This is scary to contemplate…I may need to sleep on this…
