On Financial Intelligence

One man's views on financial intelligence, Robert Kiyosaki's reflects on his "Rich Dad's" thoughts about financial intelligence:


"Financial wisdom is not about how much money you make, it's about how much money you keep and how hard that money works for you."

Yet as time went on, he refined his definition of financial intelligence. He once said, "You know your financial intelligence is increasing if as you get older your money is buying you more freedom, happiness, health, and choices in life." He went on to explain that many people made more money as they got older, but their money only brought them less freedom - less freedom in the form of having bigger bills to pay. Having bigger bills meant the person had to work harder to pay for them. To rich dad this was not financially intelligent. He also explained that he saw many people making a lot of money, but their money did not make them happier. To him, that was not financially intelligent. "Why work for money and be unhappy?" He said, "If you must work for money, find a way to work and be happy. That is financial intelligence."

When it came to health he would say, "Too many people work too hard for money and slowly kill themselves in the process. Why work hard sacrificing the mental and physical well-being of your family as well as yourself? That is not financially intelligent." When it came to health he also said, "Three is no such thing as a sudden heart attack. Heart attacks and other diseases such as cancer take time to develop. They are caused by lack of exercise, a poor diet, and not enough joy in one's life over extended periods of time. Of the three, I think lack of joy is the greatest cause of heart attacks and disease." He said, "Too many people think about working harder rather then about how to have more fun and enjoy this great gift of life."

My rich dad went on went on to explain that financial intelligence gave a person more choices in life by saying, "Money is power because more money gives you more choices. But it was his lesson about happiness that he stressed more and more the older he got. As he neared the end of his life and had more money than he had dreamed possible, he restated again and again, "Money does not make you happy. Never think that you will be happy when you get rich. If you are not happy while getting rich, chances are you will not be happy when you do get rich. So whether you are rich or poor, make sure you are happy."

-Robert Kiyosaki, "Rich Kid, Smart Kid"