Page 189 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

memorize answers. I realized that to be effective true education had to align
the power of all three brains. Instead of the three brains’ working against

each other, they had to work together. If a person could align and develop
all three brains, he or she had a greater chance of success in the real world.
The problem with traditional education is that it focuses on only one part
of the brain, the left brain. In other words, you could be a left-brain genius

and a subconscious moron. You can know what to do in your left brain and
in your subconscious brain be terrified of actually doing it. Worst of all,
many people leave school, fully able to read, write, and do math, but are
terrified of failing and seek security instead of opportunity in the real world.

They’re taught to value knowledge over imagination—and over the ability
to integrate all three parts of the brain. After years of striving to be the best,
these people are told by financial experts to diversify and live below their
means. To a fearful subconscious brain, this advice sounds intelligent and

logical. For years these people then turned over a portion of their paycheck
every month to their financial experts with the hopes that they know what
they’re doing. At the same time, the richest investor in the world, Warren
Buffett, says, “Diversification is a protection against ignorance.” And it is.

A World Ruled by Left-Brainers

The world is run by left-brained people. The problem with left-brained
people is they think there is only one brain and only one intelligence. Many
are not aware of the other parts of the brain and the possibility of other

types of intelligences. When you ask a highly educated left-brained person
for the definition of intelligence, he or she replies, “If you agree with me
you are intelligent. If you don’t, you’re an idiot.”
In the world of money, these left-brained people believe making money

is a by-the-numbers formula, a mathematical equation. This is why when
the market crashed many funds crashed in unison. The funds are run by
academic geniuses all following the same formula. Here’s another quote
from the August 24, 2007, Wall Street Journal article on quant funds (Justin

Lahart, “How the ‘Quant’ Playbook Failed”):