Page 58 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

harder or longer. In fact, the higher a person’s financial IQ, the less he or
she works while acquiring more and better-quality assets. You see, assets

work for the rich by producing passive income.
Every year, Kim and I set goals as to how many new assets we want. We
do not set goals to make more money. When Kim first started investing in
real estate, in 1989, she had a goal of twenty residential properties in ten

years. At the time, it seemed like a major task. She started with a two-
bedroom, one-bath house in Portland, Oregon. Eighteen months, not ten
years, later she blew past her goal of twenty properties. After she reached
her goal, she sold the units, taking capital gains of over a million dollars,

and upgraded for bigger and better units in Phoenix, Arizona, tax-free.
In 2007, her personal goal is to add an additional 500 rental units to her
portfolio. She already has over 1,000 units paying her passive income, the
least taxed income, every month. She makes more money than most men,

and she has accomplished all of this as an entrepreneur in the I quadrant.
My focus is to increase my cash flow from business assets and
commodities. I invest heavily in oil, gold, and silver companies. As an
educational entrepreneur, each time I write a book I receive income for

years in the form of royalties from approximately fifty publishers in
different parts of the world. I’m also adding a franchise system of
distribution to the business. I learned from my rock and roll business that it
is better to be the licensor than to be the licensee. Although I love real

estate, I enjoy entrepreneurship in the B quadrant a lot more.
I do not write about this to brag. In fact, I hesitate to disclose our wealth
and how we made it. There are people who resent those who make a lot of
money. As you will find out in the next chapter on financial predators, it’s

dangerous to let people know you are rich.
One big reason why I risk disclosing what we do and make is because
Kim and I are committed to your financial education and increasing your
financial IQ. A massive problem with financial education is that most of the

people selling or sharing financial education come from the E and S
quadrants. They are employees or self-employed people. Most are not really
rich. Many are journalists who write about money but have little money
themselves. Or they are salespeople such as stock and real estate brokers.

Many of these financial experts have what other E’s and S’s have. They
have retirement plans filled with stocks, bonds, and mutual funds. Many are