Okay, let’s delve into the first type of financial IQ!
Yes,making more money takes the top spot in financial IQ.
Robert explained this concept by sharing his story of landing his first job with Standard Oil of California, where he worked on their oil tankers. However, after just 7 months, he left to join the Marine Corps and fight in the Vietnam War. Despite earning a substantial salary of $47,000—a significant sum for someone just out of college in 1969—he decided to make the change.
Even, He was filled with doubts and self-questioning, with thoughts like, 'What are you doing? Are you out of your mind? You don’t have to go.' The idea of dropping from a $4,000 monthly salary to just $200 a month was troubling him.
But his first and immediate challenge was to make more money. After spending a year in Vietnam and five years in the Marine Corps, he was honorably discharged. He then opted to join Xerox Corporation in downtown Honolulu, starting with a $720 monthly salary, rather than pursuing a career in aviation.
Curious about why he made this decision?
The reason is rooted in the idea of 'INCREASING FINANCIAL IQ.' He aimed to enhance his sales skills because, like many people, he grappled with being 'extremely shy and fearing rejection.
At one point, he was nearly fired due to his inability to sell. Nonetheless, he was determined to become the top salesperson at Xerox's Honolulu branch. After four years with the company, including two years of intensive sales training, he achieved his goal and became the leading salesperson at that branch. He managed to overcome his shyness and fear of rejection, ultimately mastering the art of selling.
Interested in discovering the most exciting detail?
Robert explains that his experience at Xerox taught him a crucial lesson: 'Solving the problem was the key to achieving wealth'
Next, he embarked on a new major challenge: starting a business.
Of course, this introduced the challenge of 'making more money’
Today, it’s common for people to start businesses by leaving their jobs. Is this the best strategy?
Robert emphasizes the importance of understanding the eight key components before starting a business, which he discusses in his earlier book, Before You Quit Your Job.
His Rich Dad consistently advised him, 'Solving difficult problems will boost your financial intelligence,' and Robert considers this the best advice he ever received. Although it was challenging, he found that 'facing these problems and rebuilding the business provided the most valuable education.' It took years to overcome the challenges and reconstruct the business, but this experience elevated his financial IQ from 1 to 5 and made him a more astute entrepreneur.
He referenced the saying, 'If you can’t beat them, join them.' During a challenging period, he cleverly applied this idea by allowing his competitors to manufacture his wallets. This strategy lowered his production costs, reduced legal fees, and provided him with improved manufacturing support. Consequently, his business flourished again, and his products gained exposure on MTV.
His business grew rapidly, and money started coming in again.
Today, the Rich Dad Company is known worldwide. This success comes from the lessons learned from past mistakes and successes. If he hadn't faced and learned from these challenges, he wouldn't have achieved this.
