Page 20 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

Money alone does not solve your money problems. That is why giving
poor people money does not solve their money problems. In many cases, it

only prolongs the problem and creates more poor people. Take for instance
the idea of welfare. From the time of the Great Depression until 1996, the
government guaranteed money to the nation’s poor regardless of personal
circumstance. All you had to do was qualify for the poverty requirements to

receive a government check—perpetually. If you showed initiative, got a
job, and earned more than the poverty requirement, the government cut off
your benefits. Of course, the poor then had other costs associated with
working that they didn’t have before, such as uniforms, child care,

transportation, etc. In many cases they ended up with less money than
before they had a job, and less time. The system benefited those who were
lazy and punished those who showed initiative. The system created more
poor people.

Hard work doesn’t solve money problems. The world is filled with
hardworking people who have no money to show for it, hardworking people
who earn money, yet grow deeper in debt, needing to work even harder for
even more money.

Education does not solve money problems. The world is filled with
highly educated poor people. They’re called socialists.
A job does not solve money problems. For many people, the letters
J.O.B. stand for just over broke. There are millions who earn just enough to

survive but cannot afford to live. Many people with jobs cannot afford their
own home, adequate health care, education, or even set aside enough
money for retirement.

What Solves Money Problems?

Financial intelligence solves money problems. In simple terms, financial
intelligence is that part of our total intelligence we use to solve financial
problems. Some examples of very common money problems are:

1. “I don’t earn enough money.”
2. “I’m deeply in debt.”
3. “I can’t afford to buy a home.”