Page 69 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

“And if you have a sheep,” the socialist said, “then everyone shares in
the wool.”

“Very nice,” said the farmer. “This socialism sounds good.”
“That’s great,” said the socialist, believing that he had a convert to
socialism. “And if you have a chicken, then everyone shares in the eggs.”
“What?” the farmer screamed angrily. “That’s terrible. Get out of here

and take your socialist ideas with you.”
“But, but, but,” stammered the socialist, “I don’t understand. You were
happy with the idea of sharing milk and wool. Why do you object to sharing
eggs?”

“Because I don’t have a cow or a sheep,” snarled the farmer. “But I do
have a chicken.”
And this is why financial IQ #2 is so important. Everyone agrees that we
need to share the wealth, as long as it is your wealth, not their wealth.

CHOOSE YOUR INCOME CAREFULLY

From previous chapters, you already know that there are three different
types of income: earned, portfolio, and passive. Knowing the differences is

important, especially when it comes to protecting your money from
bureaucrats. Working for earned income does not allow for much protection
from predatory taxes.
In America, even low-income wage earners pay a high percentage in

taxes. Workers approximately pay a 15 percent tax for Social Security, and
they also pay federal, state, and local taxes. Now, I can hear some people
saying that Social Security is not a 15 percent tax. They think it is more like
7.4 percent, and that your employer pays the other 7.4 percent. That may be

true, but my way of looking at the combined 15 percent is that it is my
money. If my employer did not pay it to the government my employer
should pay it to me.
The same is true with employees who think their employer matches their

401(k) retirement money. That money, paid by the employer to an
investment banker for safekeeping, is still your money.
Personally, I do not want the government managing my future financial
security. The government does a horrible job. I’d rather take care of my

own money. The government does not have much financial intelligence. It