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Book Giveaway: Rich Dad’s Increase your Financial IQ

As promised, we will be giving away a free copy of Rich Dad's Increase your Financial IQ.

Here is a snippet of the review:

What I liked about the book?

  • In Financial IQ #1, the author explains why the rich are rich and why the middle class and poor stay that way.  Kiyosaki explains that the rich use their money to build assets which creates an ever building passive income stream (unlimited potential).  The middle class, on the other hand, use their limited TIME to bring home income.  
  • In Financial IQ #3, Kiyosaki explains to budget for a surplus.  Basically, this means to put your savings as a FIRST priority before everything else.  What he believes that if you are short on money to pay the bills after savings, you'll need to go out and make more money…

 You can read the full review here.

How Do You Enter?

  • Simply read through the quiz below (and answers) and let me know in the comments which question you found the trickiest.

The Rules:

  • Please only 1 comment entry / person (please enter a valid email address).
  • Only those with a North American mailing address may enter (publisher rules, sorry).

Deadline: 

  • Contest will end Thursday 5pm EST March 20, 2008 and the winner announced Friday March 21, 2008.  Good luck!

Rich Dad’s Increase Your Financial IQ Quiz

What’s Your Financial IQ? 

1. Which of the following is not an asset?
 
a. Gold
b. The Corvette you bought for your 40th birthday
c. A business
d. Wheat
 
2. On average, Americans save how much of their income?
 
a. Enough to buy a new flat screen TV
b. Why save when you own a house?
c. They don’t save. They owe.
 
3. A retirement plan that is paid for by your employer is known as a:
 
a. Defined benefit plan
b. A miracle
c. Both 
 
4. What kind of income is the hardest to protect from financial predators such as taxes?
 
a. The dividends that just got cut from the financial stocks you bought
b. The $50 and rocking CD collection you inherited from your uncle Craig
c. The forty hours worth of cash your company pays you for sixty hours of work
 
5. What is the best way to create a budget surplus?
 
a. Cut down on expenses by buying a fuel efficient car
b. Get a higher paying job to make more money
c. Saving and investing before paying your bills
 
6. An example of leveraging your money is:
 
a. Putting money in an interest bearing savings account
b. Buying investment real estate with a bank loan
c. Going to a local casino. 
 
7. The best way to invest is in a diverse portfolio of stocks, bonds, and mutual funds.
 
True or False? 
 
8. The key to becoming wealthy is:  
 
a. Only having two scotches per night
b. Buying high and selling low
c. Selling the CD collection you inherited from Uncle Craig
d. Increasing your financial intelligence
 

Answers: 1. (B) 2. (C) 3. (C) 4. (C) 5. (C) 6. (B) 7. (False) 8. (D)

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FrugalTrader About the author: FrugalTrader is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.

Comments on this entry are closed.

  • Edwin March 19, 2008, 2:51 am

    This was pretty easy having read Kiyosaki’s other books but #1 I think gives most people trouble. I love cars but all they really do is depreciate for the most part. A collector’s car could be considered an asset as it could be worth more than you paid for it but likely it is taking money out of your pocket instead of bringing money in while you own it. Maintenance, storage, etc. unless you do something creative and charge admission to see the car or something. :)

  • TL March 19, 2008, 5:58 am

    #5 was trickiest for me! :D

  • Earl Flormata March 19, 2008, 6:11 am

    #7 was the trickiest.

    Warren Buffet is the most quoted, widely followed, yet most misunderstood person in the financial spotlight. You’ll note that he doesn’t “diworseify” his portfolio for the sake of simply balancing things out, but instead builds a bank that increases shareholder equity and thus shareholder value.

    It’s the structure of the company that gets it to the senior exchange and properly funded to make an attempt to reach their goals. It’s not that the idea is bad, or the plan was flawed necessarily, although I’m not writing these out altogether. Without the proper setup in the beginning, and the proper mindset – diversification is doomed to fail if the foundations are built incorrectly regardless of the plan, the product, operations, or people.

    I work with a boutique investment bank, and you’d be surprised how many people who try to play in the higher levels still get this question wrong – and these people are millionaire CEO’s nearing the higher end of the food chain.

  • The Financial Blogger March 19, 2008, 7:58 am

    I think that we can argue with #7 ;-)
    I don’t think that everybody would be good at real estate or creating companies. Many people would be better off investing in mutual funds until they retire (is it me talking or the financial planner behind me? hum…)

  • chad March 19, 2008, 8:12 am

    Not sure if I agree with #7, I would like to read more on why this is false

  • Jordan March 19, 2008, 8:54 am

    #1, a business is only an asset if it is producing revenue as far as I’m concerned.

  • Dividendgrowth March 19, 2008, 10:39 am

    The first question was tricky for me, because only answer C was defined as an “asset” in Rich Dad Poor Dad Book.
    I disagree with the “false” answer on number 7. Just ask Bear Stearns employees who own a large chunk of the company what they think of diversification now :-)

  • Mikel March 19, 2008, 10:41 am

    I have to agree with others that #1 was tricky. Not because I got it wrong but because it goes contrary to R K’s teachings. Gold is probably ok but wheat is less so an asset. It does not put in cash flow until it is sold. But i still look forward to reading his book.

  • Robert March 19, 2008, 5:16 pm

    I just finished reading rich dad, poor dad so i didn’t find any of the questions all that difficult. I was going to buy the new book but if I can win it for free, well that will save me some money and isn’t that what this is all about?

    Oh and a business IS an asset even if it is not generating income… As long as it has people (or even just you), that is an asset. Unless you classify yourself as a liability. :)

    Robert.

  • Ron March 19, 2008, 5:57 pm

    For me it was #7.

  • Amina Mohamed March 19, 2008, 7:59 pm

    RE: Rich Dad’s Increase Your Financial IQ Quiz

    I liked your review -and think this book might be a good idea for the novice that I am to learn more about all types of investing.

    I want to move away from mutual funds through a dealer and want to self-invest.

    I found #6 to be the trickiest.

    Thanks,

    Amina
    amina@tigerlilly.ca

  • vr6man22 March 19, 2008, 10:55 pm

    was a litte confused by question 4
    had to read it a few times.
    LOL

  • Konstantin March 20, 2008, 12:32 am

    #7 for me, too

  • newinvestor March 20, 2008, 12:56 am

    I would say # 5…

  • JustMissedOne March 20, 2008, 1:30 pm

    I got #4 wrong but not realized the employee should be paying the taxes at the end of the year since the company paid him/her cash.

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