Rich Dad’s Increase Your Financial IQ Summary Pdf for Free
Brief Summary of Rich Dad’s Increase Your Financial IQ
In this summary of Rich Dad’s Increase Your Financial IQ book, we will see the famous sequel of Rich Dad Poor Dad’s book coming directly from the renowned author Robert T. Kiyosaki.
Time to check what new does Robert T. Kiyosaki has to tell us when it comes to the nature of money.
The introduction was written by an old friend, Donald Trump, who is giving accolades to the author about the new book and challenges readers to have his book as well.
Does Money Make You Rich?
In Rich Dad’s Increase Your Financial IQ book summary Pdf for free, you can find many things that circle the intrinsic value of money. The author believes that money itself does not make you rich.
However, you need to find a way to earn that money and make it work for you.
You can thoroughly analyze the gold price frenzy that ended in the burst of the golden bubble in the early 1990s and how the author managed to get some profit before it was too late.
Later on, we see some more pieces of information about debates in Golf courts and how information can be a lot more useful than money itself.
Chapter 1: What is Financial Intelligence?
Here, the author is trying to define financial intelligence, showing that the very sense of money in the USA has changed forever. He states that after Nixon’s ban on the gold rule in 1971, the dollar is no longer money anymore but a currency.
In this Rich Dad’s Increase Your Financial IQ book summary Pdf for free, you shall find all you need for your financial prosperity in a controversial world where nobody knows precisely what financial intelligence means.
It’s interesting to see that financial intelligence is different for poor and for rich people. Rich kids are trained and educated to view the world a lot differently than poor kids, which is why the lack of financial intelligence ends up in unhappy people who look desperate.
The gap between the rich and the poor is because the poor cannot view the economic world like the rich can. The author insists on making a new point that everyone should play the game of money and finally succeed, although each one should find their own solution to their financial problems.
There are no magical ways for governments to resolve the economic issues of citizens, and the reality is different for rich, poor, and middle-class people.
Robert T. Kiyosaki also shares some personal memoirs of his father and mother and how their life was in Hawaii after they dealt with numerous health issues.
Chapter 2: The Five Financial IQs
Besides the financial IQs, the author talks about the other types of intelligence, that is, the academic, the professional, and the health, and mentions that not everyone needs to learn about financial intelligence.
The difference between financial intelligence and financial IQ is that both could be present in a person, and the same person lives in harsh economic conditions. Or the same person to be more prosperous than ever before.
Also, there is an introduction to the CASHFLOW quadrant with the E (employee), B (big business with 500 employees or more), S(small business, self-employed, specialist), and I (investor)parts.
People who wish to operate in the B and I quadrants need financial intelligence more than others, as they are in a highly demanding part of generating money and value compared to the others.
Chapter 3: Financial IQ#1: Making More Money
In this chapter, the readers can expect the author to provide a short story about employment in the oil industry during the Vietnam War years and the fact that the author avoided the military draft even though he was working for less money than his peers.
As we mentioned before, Rich Dad’s Increase Your Financial IQ book summary is what you need to read to have a precise glimpse of what is inside this precious book.
Then we get some great advice on what an entrepreneur should do before leaving his prior job as an employee and how the author struggled with himself to put his mind together after falling his first business to bankruptcy.
It is also essential to follow specific processes to achieve a goal, as this is a major component of financial IQ#1 value to create more money.
Then, you can see how people remain different in fundamental parts of their personality and how the development of emotional intelligence is as important in businesses as it is in the financial one.
Also, there is no good in being a quitter as you will never win in the long run, so readers are expected to stick to their business plan and wait a long time to succeed.
Creating a plan to get even more money on the table is the remedy for having a high IQ#1 in the financial intelligence spectrum.
Then, a short description of active and passive income comes, explaining why rich people have more chances to be richer and how making more money is the only way to provide you with actual success in the economic sector.
Chapter 4: Financial IQ#2: Protecting Your Money
At this point, the author needs to give tangible advice to the readers about how to protect their hard-earned money from people or entities who want to take part in their cause.
There is an analysis of the seven Bs: Bureaucrats, Bankers, Brokers, Businesses, Brides and Beaus, Brothers-in-Law, and Barristers, who all want a potential stake in your money.
Moreover, the chapter has a thorough analysis of taxation, especially in the United States, mentioning that physical persons are heavily taxed for any income they get, while corporate entities don’t, and that’s totally legal.
The author tries to make it easier for readers to address all their financial illiteracy and explain the 401k and other financial instruments that the US government has deployed to collect more tax money.
Chapter 5: Financial IQ#3: Budgeting Your Money
At this point, the author wants to teach his audience about the meanings of budget deficit and budget surplus, which are essential for each person to have concerning their finances.
There comes a simple explanation of the main differences between the budget deficit of a government, a business, and a person. The same goes for the budget surplus and the real meaning of budgeting your money when we are talking about individuals trying to improve their financial IQ in terms of budgeting.
It is essential to understand that a surplus should be a priority for all people or entities. The surplus should always be invested in assets that bring back money to us, and that is the leading way to become prosperous in the long run.
The difference between good debt and bad debt is also significant in knowing if we need to run a surplus or a deficit budget. Rich Dad’s Increase Your Financial IQ book summary is all you need to achieve this goal as well.
Chapter 6: Financial IQ#4 Leveraging Your Money
In chapter six, we can see the introduction of two new terms: control and leverage, which Rich Dad’s Increase Your Financial IQ synopsis can shed more light on.
It all begins with the 2007 story of the stock market crash in New York City and the efforts to pump more liquidity from the Federal Reserve Bank to the system that was trembling.
The author says that we need to have leverage and control over our investments, and that is the only way to keep them flourishing in the foreseeable future.
After explaining how the market has been crushing for a long time, leveraging your money is also essential to have direct access to what is going on in the micro-environment that is around your investments.
Our portfolio value is not based on inflation or net worth, and leverage is not risky when we have the information to perform the proper transactions at the right time.
The author now analyzes the control part of financial intelligence, which is comprised of several columns, such as income and expense.
Property management is another key component of control, making it more straightforward to follow your investments and make the necessary amendments to ensure the proper viability of your plan. It is essential to know which assets and liabilities are within your portfolio.
It is also good to know that:
- There are numerous types of leverage.
- Most investors invest in paper assets that they have little control over.
- Increasing your investment returns does not necessarily mean an increase in risk, either.
- The majority of financial advisors are not active investors themselves.
- If you want to be high in financial intelligence development, it’s wise to increase your financial education.
- Leverage can either make you poor or rich; you decide which direction you want to go.
- Diversification of investments means a lot more than simply choosing different stocks in the market.
Capital gains and cash flow are also necessary to understand what they mean, especially if you want to grow your investment portfolio.
Having an exit strategy from any financial agreement is also indispensable to allow you to have long-term success in the economic environment.
Chapter 7: Financial IQ#5 Improving Your Financial Information
After analyzing all the various types of intelligence, the author concludes that financial information remains a fundamental pillar of the successful investor’s attitude.
In this Rich Dad’s Increase Your Financial IQ summary we can see the example from the author’s personal life and early stages of work relationships leads to the exploration of the four ages of humanity: hunter-gatherer, agrarian, industrial, and information.
As we go on, we can see a thorough analysis of the super-rich lifestyle and the types of information needed to classify all the incoming data having to do with financial integrity and independence.
Moreover, information is further analyzed in terms of time, credibility, classification, relative information, and deceptive information.
Then, we can read some dialogues that help readers understand how to divert facts from fake information and follow trends to become even more prosperous.
Various trends of precious metals and commodities are explained to the fullest extent through paradigms.
Chapter 8: The Integrity of Money
Going on with the Rich Dad’s Increase Your Financial IQ summary and chapter eight, which starts with analyzing the meaning of integrity.
Money integrity is compared directly to car and health or wellness to give readers easy-to-understand terminology.
On the other hand, it is one of the best financial report cards for all people.
Moreover, readers can view the intrinsic value of money in terms of leverage, niche, expandability, and predictability, and then comes the meaning of cash flow, which is one of the fundamentals we view in this book.
The author also makes some points about the Government’s financial integrity, and some advice about how to put your house in order, invest in assets with intrinsic value, and a deep analysis of the real estate market.
Also, how it has become one of the most powerful tools for financial development and independence.
Chapter 9: Developing Your Financial Genius
In this controversial chapter, the reader can easily see the author giving him the advice to live like a rich man if they wants to be financially independent and robust.
So the advice is don’t live below your financial means, and diversify all your assets and investments without investing all your money in the stock market or real estate.
There are also stories about smart guys who have failed to deliver solid economic growth. After that statement, we see some stories of people who falsely thought their investments and assets were diversified and how you could avoid that mirage effect.
The author suggests that readers search for and find their genius type. Then, we could analyze multiple intelligence genres, such as linguistic, logical-mathematical, musical, bodily-kinesthetic, spatial, interpersonal, and intrapersonal.
After all this analysis, we can see the need for security that many people have and understand the three parts of the brain: left, right, and subconscious.
Finding which part of your brain controls your money is the sole way to lead in financial supremacy and get to the highest levels of economic intelligence.
Finally, the cone of learning is one of the key take-home messages from this chapter, explaining both the process of education and the way we can quickly master our impulses and become more conscious of money.
Chapter 10: Developing Your Financial IQ
As we are close to finishing the summary of Rich Dad’s Increase Your Financial IQ, in one of the final chapters of this book, the author gives the audience some assumptions concerning the institutions that forge our financial IQ.
Among them, there is school, church, military, network marketing, business, seminars, coaching, and, of course, the well-known cash flow club.
Then, there comes a discussion about the true meaning of being an entrepreneur; the main two characteristics are ignorance and courage. The significance of asking for active feedback from people who you know have proven experience in business is a true benefit for all those who seek to develop their financial IQ and thrive in life.
Cash Flow Clubs
The author gives tangible examples of cash flow clubs and suggests at least one of them for his readers.
Robert T. Kiyosaki is the one to address his audience and make them eager to learn more by participating in a community of experts who all want to become better and improve their financial IQ.
Rich Dad’s Wisdoms
It’s time for some famous quotes from the author who makes people think out of the box and ensures they understand the power of words.
Looking at the summary of Rich Dad’s Increase Your Financial IQ, you need to think again about the real meaning of debt and whether you can buy good or bad debt, which could be beneficial or not for your financial position.
Our financial vocabulary must be enriched to ensure that our brains remain stimulated and ready to accept the meanings of actual economic improvement.
Famous FAQs About Rich Dad’s Increase Your Financial IQ
At this point, we are going to discuss some of the most common FAQs you can find online in famous search engines concerning this book:
What are the five financial IQs addressed in the book?
According to the author Robert T. Kiyosaki, there are five significant financial IQ points that everyone should have in mind to improve:
- Make more money: It includes the strategic efforts and planning you need to plot, as well as the actual action plan to attract more money and increase your cash flow.
- Protect your money: It has to do with the legal ways you can use to safeguard your money from taxation and inflation.
- Budget your money: With budgeting, you can forecast all your future needs and liabilities to ensure you have a clear plan of where you stand financially and where you want to be by the end of each calendar year.
- Use leverage for your money: It is the way you can utilize debt to pay zero taxes and, at the same time, have a higher standard of living, buying money-making assets instead of investing in liabilities that take money away from you.
- Improve financial information vehicles: The author suggests learning more and more in the financial sector and being aware of the new opportunities having to do with financial investments and other facts that improve your wealth and knowledge.
2. How does this book differ from Rich Dad and Poor Dad?
The first book of Robert T. Kiyosaki had to do with a biography of the author, with many anecdotal stories having to do with financial literacy by the last quarter of the 20th century in the United States.
We could say that this first book was an introduction to the basics of financing and planning.
On the other hand, this book gives more tangible advice on financial IQ and ways to improve yourself to achieve economic independence through the manipulation of your assets versus your liabilities.
The synopsis of Rich Dad’s Increase Your Financial IQ is a totally different book offering diverse information, even for the most financially naive readers.
3.Is the content applicable to individuals outside the United States?
We could say that the content derives from the traditions and ways of life in the United States; however, it could be reflected in the world environment.
It is helpful to people outside of the United States as it gives some advice on what to do with assets and how to leverage income to ensure it always has a positive outcome, increasing our wealth and keeping us ahead of all the happenings.
4.Does the book provide actionable steps for improving financial IQ?
By reading this book, you can learn from the experience of Robert T. Kiyosaki, which gives you a clear opportunity to understand what you need to do to become financially responsible.
Follow the steps provided and suggested in this book.
You will gradually develop a solid financial IQ that will give you a lot more to think about and make you conscious of your weaknesses to ensure you take all the necessary steps for remedies and increase your wealth.
5. Who would benefit most from reading this book?
People who want to learn more from examples and like to follow simple steps to create a financial strategy.
Readers who like to forge a strong financial IQ by planning for the future and learning how to discern assets from liabilities.
Leveraging money and protecting it from inflation and other non-money-producing investments may be the highest benefit from reading this book.