Page 101 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

WHO SCREAMS THE LOUDEST?

When we paid ourselves first, the people who screamed the loudest were
the banks and people we owed money to. Instead of letting them intimidate
us into paying them, we let them intimidate us into increasing financial IQ

#1: making more money.
Many people do not pay themselves first because no one yells at them.
No one hires a bill collector to collect from themselves. You do not threaten
yourself with foreclosure. In other words, we do not put pressure on

ourselves if we do not pay ourselves. Yet we bow to pressure from our
creditors and pay them. Kim and I used the pressure tactics of our creditors
from our expense column to motivate us to make more money and increase
our income.

Budget Tip #2: The expense column is the crystal ball. If you ever want to
predict a person’s future, just look at the person’s discretionary monthly

expenses. For example:

Person A Person B
Donation to church Six-pack of beer

Savings New shoes
Book on investing New TV
Seminar on investing Football tickets

Gym dues Six-pack of beer
Donation to charity Bag of potato chips
Personal coach Six-pack of beer

Rich dad said, “You can tell a person’s future by looking at what they
spend their time and money on.” He also said, “Time and money are very
important assets. Spend them wisely.”
You can tell how important a budget surplus is to someone by looking at
his or her expense column. For example: