Page 11 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

Without financial education, people cannot process information into useful
knowledge. Without financial knowledge, people struggle financially.

Without financial knowledge, people do things such as buy a house and
think their home is an asset. Or save money, not realizing that since 1971,
their money is no longer money but a currency. Or do not know the
difference between good debt and bad debt. Or why the rich earn more yet

pay less in taxes. Or why the richest investor in the world, Warren Buffett,
does not diversify.

Leaping Lemmings

Without financial knowledge, people look for someone to tell them what to

do. And what most financial experts recommend is to work hard, save
money, get out of debt, live below your means, and invest in a well-
diversified portfolio of mutual funds. Like lemmings simply following their
leader, they race for the cliff and leap into the ocean of financial uncertainty

hoping they can swim to the other side.