Page 157 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

the enemy fought according to another. One rule I found ridiculous in war
was the rule that we could not pursue the enemy across borders. The enemy

would fight close to the border and then escape across it for safety. There
were many times we had to break off a fight because the VC crossed back
into Laos.
Another rule I did not like was that I had to wear a uniform, but the

enemy did not. One of the hardest things about fighting was not having the
information on who was an enemy and who was not. A uniform would
provide that information.

Rules Increase Asset Value

It was my rich dad who changed my attitude towards rules. He said, “If
there are no rules, there is no asset.” Explaining further he said, “In a
neighborhood where the rules are broken, crime is high and property values
go down.” He also said, “If you play sports and there is no referee to

enforce the rules, the game turns into chaos. If you drive on the highway
and police do not enforce the rules, people die. This is why rules are
important.”
Rules can make a person very rich or very poor. This is why information

on rules is so important. Not too long ago, the executives of Enron broke
the rules; the company disappeared, workers lost their jobs, and investors
lost their money. In the world of investing, different assets have different
rules. One reason I do not like mutual funds is because I do not like the

rules. I have no control. I prefer the rules of real estate, which allow me to
make more money and legally pay less in taxes. If I applied the rules of real
estate to mutual funds, I would go to jail.
For people who want to be rich, having good accountants and lawyers is

important. Today, there are so many laws, rules, and regulations that it is
impossible for any one person to know or understand them all. While hiring
an attorney or accountant may seem expensive, the pain they can save and
money they can make for you can be much greater than the fees you pay

them.
Remember two things: Rules provide a valuable source of information
about how the game of money is played. And without rules, assets decline