How High is Your Financial IQ?

(True or False ) Your house is your greatest asset

For over 10 years I’ve been telling people that true assets put money in your pocket. For most everyone I know, their house takes money out of their pockets every month. The recent spike in foreclosures in the US only further proves that your house is not an asset.

( True or False ) Mutual funds are one of the easiest ways to save money

The reason people love mutual funds is because they are so easy. In my opinion theyare also one of the worst ways to get rich because they require little or no financial intelligence. The results they provide enrich the fund more than they do you.

( True or False ) The US dollar is worthless

Since the US abandoned the gold standard in 1971, the US dollar has consistently been able to buy less and less. It is definitely worth less. This is why savers are losers—their dollars lose value every year. To get ahead, you need to be an investor, not a saver.

( True or False ) Real Estate and Gold are risky investments

Always remember that you can make or lose money in anything. Ultimately, it is not gold, stocks, real estate, or any investment that makes you rich—it is what you know about gold, stocks, real estate, and money that makes you rich. Ultimately, it is your financial intelligence, your financial IQ that makes you rich.