Page 107 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

These are actual examples of how Kim and I use our desire for luxuries

to make us richer, not poorer. As stated earlier, I do not believe in living
below my means. I believe in first expanding my means and then enjoying
life. A person with a low financial IQ only knows how to live below his or
her means. In other words, cut expenses. If you do not give yourself the
luxuries of life, why live life?

Budget Tip #4: Spend to get rich. When the going gets tough, most people
cut back rather than spend. This is one reason why so many people fail to

acquire and maintain wealth.
For example, in the world of business, when a company’s sales begin to
drop, one of the first things the accountants do is cut back on spending. And
one of the first things they cut back on is spending on advertising and

promotion. With less advertising and promotion, sales drop, and the
problem gets worse.
One sign of high financial intelligence is knowing when to spend and
when to cut back. When Kim and I realized we were in trouble, instead of

allowing our bookkeeper Betty to cut back and pay bills first, we went into
full-scale sales, marketing, and promotion. We spent time, money, and
energy increasing our income. We did not cut back on expenses.
In the workplace, there are many owners or managers who prey upon the

weak—people who need their job and money. There are people who use the
workers’ weakness to make them weaker. For example, there are many big
companies that cut your pay and/or increase your tasks to make you work