Page 88 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

and nonproductive debt, such as a corporate jet, it may be best to address
those financially irresponsible problems before trying to sell more.

BUDGET DEFICIT OF AN INDIVIDUAL

Barron’s states, “Individuals who consistently spend more than they earn
will accumulate huge debts, which may ultimately force them to declare

bankruptcy if the debt cannot be serviced.”
As we know, many people are in debt because they spend more than they
earn. Yet, as stated in the previous chapter, one of the reasons people have
less to spend is because financial predators are taking money from workers

before they get paid. The justification for taking workers’ money before
they get paid is that most lack the financial intelligence to manage their own
money. If our schools had financial education, maybe the workers could be
trusted to manage their own money, rather than let bureaucrats and bankers

manage their money for them. The problem with letting bureaucrats and
bankers manage your money is they think your money is their money.
Looking at an individual’s financial statement, the diagram looks like the
one here.