Are you ready to gain insights into making money?
We often focus on our goals, but what about the journey to achieve them?
Robert points out that many people struggle with their financial intelligence because they desire the money without appreciating the process to earn it.
The reality is, “It’s the process that leads to wealth, not just the money.”
This is why many lottery winners end up broke—they receive money without going through the necessary experiences. Others hesitate to take risks because they prioritize a steady paycheck over personal growth.
Robert notes that everyone has different strengths and weaknesses. While some are naturally good at sales, he struggled with the fear of selling and rejection.
To increase your financial IQ and make more money, the first step is to identify the best approach for you.
Robert advises setting your goal and then outlining your process. Always keep in mind that the journey is more important than the destination.
Emotional intelligence is crucial in this process. Want to know why?
Even Warren Buffett, one of the richest investors, says,“If you can’t control your emotions, you can’t control your money.”
Robert shares that one of the hardest parts of his journey was staying committed during tough times, managing his frustration, and continuing to learn even when he felt like giving up.
Mastering emotional highs and lows, along with postponing short-term pleasures, was key to developing his financial skills.
For instance, many people abandon their dreams due to fear. If they try something and fail, they often quit and blame others instead of owning their mistakes.
This is why those who give up rarely succeed! When challenges arise, they walk away.
One of the best pieces of advice he received from his wealthy dad was, “Stick to the process until you succeed. You can quit when you’ve won, but never quit just because you’re losing.”
While working at Xerox, Robert started a nylon wallet business during his free time. In 1978, he made it his full-time job. Although the business initially thrived, it eventually failed, and he considered quitting. Again, his rich dad reminded him, “The process is more important than the goal.”
Robert explains that there are two main types of money problems: not having enough money and having too much money.
He opted to tackle the issue of having too much money, seeking education over mere wealth. That’s why he chose to work at Xerox instead of pursuing a career as a ship officer or pilot. He believed, “he would learn the most by facing the risk of failure.”
A significant reason many people don’t improve their financial IQ is that “They stick to what they know; instead of embracing new challenges, they play it safe.”
Life is all about learning, and learning is an adventure. True intelligence comes from solving problems to prepare for bigger challenges. It’s about enjoying the learning process rather than fearing failure.
To clarify, Robert shares two diagrams: one showing a financial statement and the other illustrating the cash flow quadrant. These help to understand financial choices.
The diagrams categorize E’s and S’s as people who work for money, relying on steady paychecks
In contrast, B’s and I’s work to acquire assets that generate cash flow or appreciate in value.
Many self-employed individuals don’t actually own a business; they own a job.
Do you know why the rich keep getting richer?
One reason the poor and middle class struggle is that “They work for money and a steady paycheck.”
In contrast, the wealthy continually strive to “Build or acquire more assets each year.”
Every year, Robert and Kim set goals for the new assets they want to acquire!
They learned to manage their own finances rather than letting others handle their money. As Robert’s rich dad said, “Just because you invest or are self-employed doesn’t mean you are an investor or a business owner.”
