Page 10 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

Two Men, One Message

In 2006, my friend Donald Trump and I wrote a book entitled Why We Want
You To Be Rich. We wrote about why the middle class was falling behind
and what we thought the causes of the decline were. We said that many of

the causes were in the global, government, and financial markets. This book
was also attacked by the financial media. But by 2007, most of what we
said had come true.

Obsolete Advice

Today, many financial experts continue to recommend, “Work hard, save
money, get out of debt, live below your means, and invest in a well-
diversified portfolio of mutual funds.” The problem with this advice is that
it is bad advice—simply because it is obsolete advice. The rules of money

have changed. They changed in 1971. Today there is a new capitalism.
Saving money, getting out of debt, and diversifying worked in the era of old
capitalism. Those who follow the “work hard and save money” mantra of
old capitalism will struggle financially in the era of new capitalism.

Information vs. Education

It is this author’s opinion that the lack of financial education in our school
systems is a cruel and evil shame. In today’s world, financial education is
absolutely essential for survival, regardless of whether we are rich or poor,

smart or not smart.
As most of us know, we now live in the Information Age. The problem
with the Information Age is information overload. Today, there is too much
information. The equation below explains why financial education is so

important.

Information + Education = Knowledge