Page 173 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

financial intelligences. When a business has intrinsic value, the business has
integrity. When a business has integrity, it has a better chance to grow and

remain profitable, regardless of changing economic conditions.
Before investing in a company, a professional investor looks at the
business’s financial statement. The professional investor is looking for
business integrity. The same is true when a real estate investor buys an

apartment house. Knowing about the internal rate of return (IRR) is
intrinsic value applied to real estate.
The problem for most people, due to a lack of financial education in
school and not being able to read a financial statement, is that they don’t

know if the company or real estate they are investing in has financial
integrity and intrinsic value.

The Language of Business

Warren Buffett says, “Accounting is the language of business.” If you do

not know the language, it’s hard to tell if the business has integrity. The
reason the Rich Dad Company produces our CASHFLOW games for adults
and children is because we strongly believe that financial intelligence and
being able to speak the language of business are crucial in a world of greed

and questionable integrity.

Government Financial Integrity

Governments also require the five financial intelligences. Governments
need to make money, protect their money, budget their money, leverage

their money, and seek the best financial information. If a government
operates in integrity, the government and its people flourish. If a
government is out of integrity, the government and its people struggle and
grow poorer. Higher taxes and excessive debt are signs that the U.S.

government is struggling with financial integrity.
In 1971, when Nixon took the U.S. off the gold standard and got the
world to accept our currency as the reserve currency of the world, the U.S.
went out of financial integrity. Today, rather than being the richest country