Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

No Longer a Victim

The book addresses the current (2009) financial crisis in the US and world economy. Kiyosaki analyzes the historical actions and factors that led to this situation, and provides specific suggestions for getting out of this. Steve Forbes and Donald Trump have both written forewords for the book.

Kiyosaki points out that this is not a how-to book, with step-by-step instructions. But the principles he presents indicate approaches, a new perspective. Kiyosaki's goal is to enable ordinary people to take charge of their financial lives.

Most people still operated under old money rules, but the world changed in 1971. After Richard Nixon's decision in 1971 to remove the US dollar from the gold standard, US Currency has no fixed value.

In the current climate, the government has allowed the Federal Reserve Bank to print extensive amounts of currency. This automatically makes all money less valuable. Thus money in bank accounts is losing value daily. But money being used gains value as it is invested in real assets.

As the government prints more currency, that diminishes the value of all money through inflation. The ones who suffer are those on fixed income, like wage earners. A job makes them a victim of the rich who hire them. Kiyosaki presents alternatives.

Kiyosaki defines five types of intelligence needed to understand the new financial system and take charge of wealth management. Underlying all these is to stop thinking poor.

Here are his five points of financial intelligence:
1. Making More Money. The problem of debt, living above one's means. But Kiyosaki further says wage earning is victimization. Rather, look for ways to increase your income by making your money work for you, rather than the other way around.

2. Protecting Your Money. The highest percentage of tax is paid by wage earners. Thus look for other types of income than earned income. He presents very practical alternatives.

3. Budgeting Your Money. A budget is a plan for "the coordination of resources and expenditures." His focus is on managing debt and understanding liabilities.
Kiyosaki urges us to be intentional, planning what we will spend, and to create ways to get income for what we plan, not being a slave to to either a paycheck or to our uncontrolled desire for things.

4. Leveraging Your Money. Here Kiyosaki outlines specific strategies for increasing the value of your money, saving taxes, using other peoples' money on "good debt" in assets that will produce money (like rental property). Buying a house is not investing. An "investment" is something that brings you return. Kiyosaki focuses on creating cashflow.

5. Improving Your Financial Information. In this helpful, practical section he describes 4 approaches to wealth, related to developmental stages in human society and economies: Hunter-Gatherer, Agrarian, Industrial and Information. Knowing these contrasts can help you take understand where you are and take charge of your situation.

2 out of 2 people found this review helpful.

Mr. Kiyosaki is a liberal!

As an owner of eight of Mr. Kiyosaki¿s books and two of his games, I can say that this is not one of his better works. It is heavy on the ¿I am great¿ kind of examples, which is okay, but gets old. He seems to be running out of things to say, which may mean he has nothing new to offer. One inconsistency I found troubling is in a previous video, Mr. Kiyosaki claims to be ¿not very religious¿. Now he leaves the impression that God has always been his business partner. I¿m glad Mr. Kiyosaki found religion, but to imply that God has been his business partner seems to be different from he has claimed in the past.

The most troubling part of the book is when Mr. Kiyosaki delves into politics. He claims that President Reagan¿s tax cuts were the cause of the big deficits during the 1980¿s because the government had to borrow to pay for the tax cuts. Mr. Kiyosaki is too financially smart to believe that, because it isn¿t true. Government revenues increased because of the tax cuts ¿ spending is what caused the deficits. That is a fact, so why would Mr. Kiyosaki claim otherwise? He then goes on to call the war in Iraq under President Bush a ¿disaster¿. One has to wonder why Mr. Kiyosaki fails to note the Vietnam War ¿disaster¿ (President Johnson), or the economy under President Carter ¿ now there is a ¿disaster¿. One can only hope Mr. Kiyosaki sticks to finances in his writing because his liberal bias shamefully comes through loud and clear.

1 out of 3 people found this review helpful.

Unless you're into becoming a Real Estate Magnate, don't waste your time on this book.

Kiyosaki prefaces everything with the disclaimer that this book isn't a how to book, but rather a way to help you start the process towards your own financial intellect. Unfortunately, his focus is soley upon the real estate industry. If you would really like to learn how to wheel & deal in buying apartment buildings, buying & selling large commercial complexes for rental, etc., spare your dime on this read.

This was the first book by the author that I have read, & although I can appreciate some of the messages he conveyed in this book, I won't waste my money on his earlier works after reading this one.

Must read if serious about your future.

Very informative about increasing your financial future. Great insights into how the rules and game of money has changed.

Same Old Stuff

Bob Kiyosaki continues to re-hash his old books over and over again. This man only repeats the mantra that many more prominent and successful analysts on CNBC and Fox already cover. His credentials are very questionable since he made his wealth as an author and not as a real estate investor.

Rich Dad gives again!

Another great book of financial advice from Robert Kiyosaki. Financial IQ is even more important now than ever. As usual he gives no exact answers just lots of things to think about as you go threw your financial life. Thanks keep up the good work!!!

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