From Rich Dad’s Increase Your Financial IQ: What’s your Financial IQ?

Over the weekend, I received a copy of Robert T. Kiyosaki’s new book, Rich Dad’s Increase Your Financial IQ: Get Smarter with Your Money from Jeffery Anderson, a publicist from FSB Associate. Kiyosaki is no stranger to many people. He is the author of the popular book, Rich Dad, Poor Dad. I myself never read that book, though I did finish the first couple of chapters from an audio file two years ago and what I still remember is how Kiyosaki argued that house is really a liability, not an asset. Somehow, I kind of agree with his argument because until I pay off the mortgage, I don’t really own the house. By the time I really own the house, what I have paid for it may exceed its value. And if I decide to take profit and sell the house, the money I make from it may not be more profitable than, say, investing the money in the stock market while renting over the years.

Anyway, while I am still trying to finish up the book (too many things to do and too little time), I got the following financial IQ quiz from Jeff yesterday that I would like to share with everybody.

What’s Your Financial IQ?

1) Which of the following is not an asset?

1. Gold
2. The Corvette you bought for your 40th birthday
3. A business
4. Wheat

2) On average, Americans save how much of their income?

1. Enough to buy a new flat screen TV
2. Why save when you own a house?
3. They don’t save. They owe.

3) A retirement plan that is paid for by your employer is known as a:

1. Defined benefit plan
2. A miracle
3. Both

4) What kind of income is the hardest to protect from financial predators such as taxes?

1. The dividends that just got cut from the financial stocks you bought
2. The $50 and rocking CD collection you inherited from your uncle Craig
3. 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?

1. Cut down on expenses by buying a fuel efficient car
2. Get a higher paying job to make more money
3. Saving and investing before paying your bills

6) An example of leveraging your money is:

1. Putting money in an interest bearing savings account
2. Buying investment real estate with a bank loan
3. 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:

1. Only having two scotches per night
2. Buying high and selling low
3. Selling the CD collection you inherited from Uncle Craig
4. Increasing your financial intelligence

What are your answers?

Related Articles You Don't Want To Miss

1. A Financial Planner or a Financial Adviser?
2. Are We Better off Now? A Look at How Tax Cut Made Rich Richer and Poor Poorer
3. Financial Tips for College Students
4. Why Doesn’t My Credit Score Increase When I Pay My Bills on Time?
5. Surprise: No Increase in Car Insurance Premium
6. Assessing the Progress toward Financial Simplification
7. Postage Increase 2008, Actively Managed ETFs, and Dow Reshuffle
8. Eight Keys to Financial Security