This publication is designed to provide competent and reliable information regarding the subject matter covered. However, it is sold with the understanding that the author and publisher are not engaged in rendering legal, financial, or other professional advice. Laws and practices often vary from state to state and if legal or other expert assistance is required, the services of a professional should be sought. The authors and publisher specifically disclaim any liability that is incurred from the use or application of the contents of this book.
Copyright 2008 by Robert T. Kiyosaki
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First eBook Edition: March 2008
Quotations from the following sources appear in this book:
Eleanor Laise, What Is Your 401(k) Costing You? Wall Street Journal, March 14, 2007.
Justin Lahart, How the Quant Playbook Failed, Wall Street Journal, August 24, 2007.
ISBN: 978-0-446-51591-7
Rich Dad Poor Dad
What the Rich Teach Their Kids About Money that the Poor and Middle Class Do Not
Rich Dads CASHFLOW Quadrant
Rich Dads Guide to Financial Freedom
Rich Dads Guide to Investing
What the Rich Invest In that the Poor and Middle Class Do Not
Rich Dads Rich Kid Smart Kid
Give Your Child a Financial Head Start
Rich Dads Retire Young Retire Rich
How to Get Rich Quickly and Stay Rich Forever
Rich Dads Prophecy
Why the Biggest Stock Market Crash in History is Still Coming... And How You Can Prepare Yourself and Profit from it!
Rich Dads Success Stories
Real-Life Success Stories from Real-Life People Who Followed the Rich Dad Lessons
Rich Dads Guide to Becoming Rich Without Cutting Up Your Credit Cards
Turn Bad Debt into Good Debt
Rich Dads Who Took My Money?
Why Slow Investors Lose and Fast Money Wins!
Rich Dad Poor Dad for Teens
The Secrets About MoneyThat You Dont Learn In School!
Rich Dads Escape from the Rat Race
How to Become a Rich Kid by Following Rich Dads Advice
Before You Quit Your Job
10 Real-Life Lessons Every Entrepreneur Should Know About Building a Multimillion-Dollar Business
I first met Robert Kiyosaki in 2004. We wrote a bestselling book together in 2006. As we head into 2008, its become even clearer to me that what Robert talks about and teaches is more important than ever. Financial education is crucial to this country at this point, and Roberts acumen in this area cannot be disputed.
Just look at what was discussed in our book, Why We Want You To Be Rich, and then take a look at what has happened since then. Id say we knew what we were talking about. Robert is taking you one step further with Rich Dads Increase Your Financial IQ and I have every reason to believe he will be as prescient as we were in 2006. I would advise you to pay attention to what he has to say.
Robert and I have shared concerns and we have traveled similar paths as teachers and businessmen. Both of us had rich dads who helped to shape our lives, our spirits, and our many successes. We are both entrepreneurs and real estate investors, and we are successful because we had financial education. We know its importance and are serious when it comes to financial literacy. Robert has said, Its financial education that enables people to process financial information and turn it into knowledge... and most people dont have the financial education they need to take charge of their lives. I couldnt agree more.
One thing I noticed immediately about Robert is that he is not complacent. Hes very successful alreadybecause he loves what hes doing. Thats another thing we have in common. Thats fortunate for you, because he has a lot of very good advice to give. As I said in Why We Want You To Be Rich, whats the point of having great knowledge and keeping it to yourself? Robert answers that question with every book he writes, and youre lucky hes sharing it with you.
One of the first steps to getting richer by getting smarter with your money is to take advantage of opportunities when they present themselves. Right now you are holding a great opportunity. My advice to you is to read Rich Dads Increase Your Financial IQ and to pay attention. You will be on the right path to financial freedom, and on the right path to big success. By the way, dont forget to Think Big. Well see you in the winners circle.
Donald J. Trump
Money Is Not Evil
One of the greatest failures of the educational system is the failure to provide financial education to students. Educators seem to think that money has some sort of quasi-religious or cultlike taint to it, believing that the love of money is the root of all evil.
As most of us know, it is not the love of money that is evilit is the lack of money that causes evil. It is working at a job we hate that is evil. Working hard yet not earning enough to provide for our families is evil. For some, being deeply in debt is evil. Fighting with people you love over money is evil. Being greedy is evil. And committing criminal or immoral acts to get money is evil. Money by itself is not evil. Money is just money.
Your House Is Not an Asset
The lack of financial education also causes people to do stupid things or be misled by stupid people. For example, in 1997, when I first published Rich Dad Poor Dad and stated that Your house is not an asset... your house is a liability, howls of protest went up. My book and I were severely criticized. Many self-proclaimed financial experts attacked me in the media. Ten years later, in 2007, as the credit markets crumbled and millions of people were in financial free fallmany losing their homes, some declaring bankruptcy, others owing more on their house than it was worth as real estate dropped in valuethese individuals painfully found out that their homes are indeed liabilities, not assets.
Two Men, One Message
In 2006, my friend Donald Trump and I wrote a book entitled Why We Want You To Be Rich. We wrote about why the middle class was falling behind and what we thought the causes of the decline were. We said that many of the causes were in the global, government, and financial markets. This book was also attacked by the financial media. But by 2007, most of what we said had come true.
Obsolete Advice
Today, many financial experts continue to recommend, Work hard, save money, get out of debt, live below your means, and invest in a well-diversified portfolio of mutual funds. The problem with this advice is that it is