What is Financial Intelligence?
Financial intelligence! Does it play a significant role in achieving our dreams and getting rich? Let’s explore Robert's perspective on financial intelligence!
Robert explains the importance of financial intelligence through his personal experience. When he was 5 years old, he had a serious ear infection, a complication from chickenpox. At the same time, his three siblings were also rushed to the hospital. That year was tough for his dad. Although he didn't run out of money, the medical bills left his father with a crippling burden of overwhelming medical debt!
His father was a brilliant graduate student at the University of Hawaii with dreams of becoming a college professor. However, due to the mounting debt, he had to settle for a position as an assistant superintendent of schools.
As time went by, his father became unemployed in his 50s, and his mother passed away. He withdrew his retirement savings to invest in a national ice cream franchise, but unfortunately, he lost all his money
His father’s life concluded with him expressing frustration, saying, 'I devoted my life to teaching the children of Hawaii, and what did I get? Nothing. My wealthy classmates grew richer, while I ended up with nothing.' At 70, he passed away from cancer without fulfilling his dreams.
He describes his father as a remarkable man, a loving husband and father, and an outstanding educator. However, financial issues consistently troubled him, and he never managed to resolve his money problems.
Why did this occur?
Are you curious about the financial challenges faced by both the wealthy and the less affluent?
From the age of 9, his rich dad educated him about money. Unlike his poor dad, his rich dad tackled financial issues differently and continually worked on improving his financial intelligence. Experiencing both perspectives, he learned that while both rich and poor people have money problems, the nature of these problems varies.
Want to know more?
The money problems of the poor include:
- Not having enough money
- Using credit to cover shortages
- The rising cost of living
- Paying higher taxes as income increases
- Fear of emergencies
- Poor financial advice
- Insufficient retirement savings
The money problems of the rich include:
- Having too much money
- Needing to keep it safe and invested
- Uncertainty about whether people like them or their money
- Requiring smarter financial advisors
- Raising spoiled children
- Estate and inheritance planning
- Excessive government taxes
The poor dad’s problem was not having enough money, while the rich dad’s problem was having too much money.
So, which problem would you prefer?
We often think that having a lot of money would solve our financial problems. However, the reality is that having too much money can actually create even more financial issues.
He mentions a commercial featuring MC Hammer, who once lived a lavish lifestyle that quickly vanished. The ad depicted his fortunes crumbling, ending with the word "FORECLOSED" and a message saying, "Life comes at you fast. We’re here to help."
Why does this happen?
We've seen stories of lottery winners who quickly fall into debt despite their initial millions, and young rock stars who, despite being wealthy in their twenties, find themselves job-hunting in their thirties.
What causes this?
Keep the following in mind:
- Money alone does not solve money problems.
- Hard work does not solve money problems.
- Education alone does not solve money problems.
For many people, J.O.B. stands for "Just Over Broke." Millions earn just enough to survive but struggle to afford a home or adequate healthcare. If you find yourself in this situation, what is the solution to money problems?
The solution is financial intelligence.
His rich dad offered valuable advice: “Money problems can make you smarter—if you tackle them.” By solving financial issues, you enhance your financial intelligence, which can lead to greater wealth. Neglecting money problems often results in more severe challenges. To improve your financial intelligence, you must be proactive in solving problems. Failing to address these issues could prevent you from achieving financial success. In fact, the longer you let the problem go unresolved, the more likely you are to face worsening financial difficulties.
It's like having a toothache: if we don’t treat it, it can lead to more serious health issues because germs can spread. Similarly, if we don’t address our financial problems, they will only get worse.
The problem is that when we're low on funds, we often use credit cards to bridge the gap. This leads to mounting credit card bills and persistent pressure from creditors for repayment.
The core issue is a lack of financial intelligence. Financial problems are not just obstacles—they can also be opportunities. By addressing these challenges, we enhance our financial skills and IQ. As we improve, we’re better equipped to handle more complex financial issues, and those who can solve these larger problems tend to achieve greater wealth.
However, we need to start with the basics first.
