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FINANCIAL INTELLIGENCE - PPSX

The document discusses financial intelligence and literacy. It explains that financially intelligent people understand that money can work for them through passive income from assets like interest, dividends, and real estate income. In contrast, the poor and middle class live paycheck to paycheck without accumulating assets. The wealthy acquire assets that generate income, using other people's money and time. The key is to buy assets, not liabilities, and to live below your means so your passive income can cover expenses.

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Bryson Mwaseba
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61 views14 pages

FINANCIAL INTELLIGENCE - PPSX

The document discusses financial intelligence and literacy. It explains that financially intelligent people understand that money can work for them through passive income from assets like interest, dividends, and real estate income. In contrast, the poor and middle class live paycheck to paycheck without accumulating assets. The wealthy acquire assets that generate income, using other people's money and time. The key is to buy assets, not liabilities, and to live below your means so your passive income can cover expenses.

Uploaded by

Bryson Mwaseba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPSX, PDF, TXT or read online on Scribd
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Financial Intelligence

Defined
S. Magombedze
Adopted from R. Kiyosaki’s Rich Dad, Poor Dad
Financial Intelligence
 When money works for you, every dollar is
an employee. Each dollar works to bring you
even more dollars while you’re asleep.
 Passive Income: Interest, dividends, real estate
income, royalties, residuals, annuities
 Your money can work for you or it most
certainly will work for someone else.
 “What do you do?” versus “What do you
own?”
 The key is “What investments do you own that
will bring you passive income?”
Financial Intelligence
Rich Dad. Poor Dad’s Basic Philosophy

 Know the difference between an ASSET


and a LIABILITY, and only buy assets.
 A True Asset gives a positive cash flow each
and every month.
 Live below your means, while constantly
increasing your means.
 Make your PASSIVE INCOME cover your
Lifestyle Expenses forever.
Financial Literacy

 Sadly, most of us have been taught to read


words and books, but not numbers and
financial statements.
 Two key personal and business financial
statements we all must be able to read.
 The Income Statement shows the amount of
money coming in and going out.
 The Balance Sheet shows the balance of what you
own and what you owe.
Financial Literacy
Income
Paycheck, dividends, interest,
Income rents, royalties, profits, advances
Statement Expenses (Payments)
Taxes, mortgage/rent, cards,
car, food, fun, rent, clothes,
child care, insurance,
medical
Assets (Own) Liabilities (Debt)
Balance Stocks, bonds, notes, Mortgage, car
Sheet real estate, business, loan, credit cards,
intellectual property school loans
How The Poor Live
They only have small incomes and small
expenses

Income
Income
Statement Expenses $
The
Wealthy

Balance
Assets = Zero Liabilities = Zero
Sheet
How The Middle Class Live
They buy expenses and liabilities they think are
assets

Income
Income
Statement Expenses

Balance Liabilities
Sheet
Assets
Assets
How The Middle Class Live
They buy expenses and liabilities they think are
assets

Income
Income
Statement Expenses The
$ Wealthy

Balance Liabilities
Sheet
Assets
Assets
How The Wealthy Live
They take the income of the poor and
middle class, and buy assets that produce
more income

Income
Income
Statement
Expenses

Balance Assets
Sheet Liabilities
How The Wealthy Live
They take the income of the poor and middle
class, and buy assets that produce more
income

Income
$ Poor and
Income middle class
income
Statement
Expenses

Balance Assets
Sheet Liabilities
Rich Dad’s
Cash Flow Quadrant (modified)

You have a job. You own a system that others operate.


Someone else is the boss. Coordinator. Delegator. Franchiser.
Security before money. Use other people's time and money.

You own a job. Loner/”boss.” Your money works for you.


Perfectionists. Small bus. Make money with money.
Owners: Drs., restaurateurs. Other’s liabilities are your assets.
Independence before money.
In Which Quadrant Are You
Headed?
 What are your financial goals?
 Which would you choose?
 Job security
 Financial security
 Financial freedom
Some Final Thoughts
 Risk

It’s risky not to build a business or not to invest.

Try until you succeed.
 Money

Ideas can create money out of nothing.

It’s not about how much money you make; it’s
about how you manage what you have.
 Emotional Intelligence
 Practice “delayed gratification.”
 Buy assets first, luxuries last.
 Ask “how can I afford it?” This stimulates your
creativity.
Think and Grow Rich!

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