FINAL THOUGHTS
I would like to share some final thoughts with you.
The main reason I wrote this book, and the reason it has remained
a bestseller since 2000, was to share insights into how increased financial
intelligence can be used to solve many of life’s common problems. Without
financial training, we all too often use the standard formulas to get through
life: Work hard, save, borrow, and pay excessive taxes. Today, more than
ever, we need better information.
I use the following story as an example of a financial problem that
confronts many young families today. How do you afford a good
education for your children and provide for your own retirement?
It requires using financial intelligence instead of hard work.
A friend of mine was griping one day about how hard it was to
save money for his four children’s college educations. He was putting
$300 away in a college fund each month and had so far accumulated
only about $12,000. He had about 12 more years to save for college
since his oldest child was then six years old.
At the time, the real estate market in Phoenix was terrible. People
were giving houses away. I suggested to my friend that he buy a house
with some of the money in his college fund. The idea intrigued him,
and we began to discuss the possibility. His primary concern was that
he did not have credit with the bank to buy another house since he
was so over-extended. I assured him that there were other ways to
finance a property rather than through the bank.
We looked for a house for two weeks, a house that would fit all our
criteria. There were plenty to choose from so shopping was fun. Finally,
we found a three-bedroom, two-bath home in a prime neighborhood.
The owner had been downsized and needed to sell that day because he