Do You Know What Integrity Is?
Robert discusses the meaning of "integrity" and how it is often misunderstood or misused. He explains that integrity has three main definitions:
1. Soundness – Being in good condition.
2. Incorruptibility – Sticking to moral or artistic values.
3. Completeness – Being whole and undivided.
To make this easier to understand, Robert compares integrity to a car. A car has different systems (like brakes, fuel, and electrical), and if one system fails, the car stops working properly. Similarly, integrity means everything must work together without corruption or weakness.
The passage explains that both health and wealth require integrity to function properly. Just as the human body needs all its systems to work well for good health, financial success depends on managing money wisely.
Robert reminds us of the five key financial IQ’s:
1. Earning more money.
2.Protecting money from risks (like taxes and fraud).
3.Budgeting money wisely.
4.Investing and using money effectively.
5. Continuously improving financial knowledge.
If any of these are lacking, financial problems arise—just like health issues develop when the body is not taken care of.
Robert shares an example of his friend who earns a good income but struggles with managing her money. She doesn’t plan for taxes, spends impulsively, and assumes her expensive home will always increase in value. She and her husband, though hardworking and well-educated, lack financial integrity, meaning they don’t manage their money wisely.
As a result, they face common financial problems—credit card debt, worries about paying for their kids’ education, and uncertainty about retirement. However, they don’t acknowledge their financial issues and simply hope things will improve on their own.
In Robert's view, ignoring financial problems won’t make them disappear. Proper money management is crucial for long-term stability.
What Is a Financial Report Card?
Robert also talks about the idea of a financial report card. What does he mean by this?
He explains that most people don’t track their finances properly because they lack basic financial education. Many don’t know what a financial statement is or why it’s important, making it difficult to understand their financial situation or fix any issues.
Robert believes the problem starts in schools, which fail to teach students essential financial skills. If schools had improved financial education when retirement plans changed in 1974, people today would be better prepared to manage their money. The lack of financial knowledge is now causing widespread financial problems.
Robert insists that schools should teach financial literacy so people can manage their money wisely and maintain financial stability.
What Is the Reflection of Financial Integrity?
Financial integrity is reflected in a person’s financial statement, just like academic performance is shown in a report card.
Robert shares what his rich dad said about bankers:
“Banks don’t care about school grades; they care about financial intelligence.”
This financial intelligence includes:
1. Earning money.
2. Protecting money.
3.Budgeting wisely.
4. Investing and leveraging money.
5. Staying informed about finances.
A financial statement shows how well someone manages these areas, helping banks decide if they are financially responsible.
What Happens When There Is No Financial Integrity?
Robert also talks about what happens when someone lacks financial integrity.
If a person mismanages money—takes on too much debt, doesn’t budget, or goes bankrupt—banks will see them as a risky client.
The same applies to financial institutions. In 2007, banks and investment firms lacked financial integrity, focusing on greed instead of responsible lending, which led to the economic crash.
A major issue is that schools do not teach financial intelligence, leaving many adults unprepared to manage their own money or understand the economy.
Robert warns:
“Without financial education and responsibility, both individuals and entire economies can collapse.”
Do You Know About Intrinsic Value? Get Ready to Find Out!
