I must admit that going into this course I was a bit of a
skeptic. What in the world was this “university of artists” going to teach me
about finance that I didn’t already know? I am a degreed accountant with
fourteen years of experience in corporate financial reporting and business
intelligence. What did they possibly know that I had not already learned? The
answer is: “plenty.”
As an example, my most recent former boss taught me that my
home was my greatest asset and my cheapest liability. From an accounting
standpoint, that is true. He has a Master of Accountancy and is a CPA. He told
me to pay down all of my other debts first, because they are at a higher
interest rate than my mortgage. “Your mortgage is the cheapest debt you will
ever own,” he said.
That made perfect sense to me at the time, because I don’t
like to pay for the use of someone else’s money. But this course taught me to rethink
my strategy, and ask a couple of simple questions:
1.
Would you rather have your credit card company
or your mortgage bank upset with you? Let’s hope that neither is the case, but
assume you had to choose. Your credit card company cannot make you homeless;
your mortgagor can. And your credit card company does not generate gains for
you. Your home usually does. So whom do you want to keep happy?
2.
Why is any asset other than my noggin considered
to be my greatest asset? Getting back to the example of my incredibly smart
former boss, why does he not consider his knowledge to be his greatest asset?
It is, after all, his smarts that made him what he is – not his home, his
stocks, or bonds, or mutual funds. It is his financial intelligence that will
carry him through, even if all of those other assets are gone (Kiyosaki, 2012).
This was a fantastic course in so many ways. But my greatest
take-away is this: teach your children about financial intelligence, because
they are not likely to get that education in public schools or universities
(ironic, huh?).
Kiyosaki, Robert (2012). Rich
Dad, Poor Dad. Scottsdale, AZ. Plata Publishing.
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