Master Another Intelligence

Dear reader,

At Rich Dad we always talk about financial intelligence, but there’s another aspect of intelligence that is just as important. Emotional intelligence…  

We are all different and have different strengths and weaknesses. We all have different processes, different challenges, and different problems. Some people are natural salespeople. I wasn’t. 

My first problem was my inability to overcome my fear of selling and the terror of being rejected. 

Some people are natural-born entrepreneurs. 

I wasn’t. 

I had to learn to be an entrepreneur. 

I’ve written about my failures, including about how my business went to extreme success in about a year, making me a millionaire, and then failed suddenly. I described the feelings of depression and loss, and a strong desire to run away and hide after the business collapsed. 

I was deeply in debt and facing the biggest financial problem of my life up to that point. Although painful, the process of facing my problem and rebuilding the business was the best education I could have asked for. But it was my emotional intelligence that allowed me to come out of the terrible situation and turn it into some of my biggest successes.

Many times I wanted to quit and many times I wanted to cheat, lie, or steal, but I stayed on the path and faced each day and every problem as one more chance to become smarter, gain more experience, and develop my legal, ethical, and moral character.

Warren Buffett, the world’s richest investor, says, “If you cannot control your emotions, you cannot control your money.” The same is true for your process. One of the toughest parts of my process was not quitting when I was depressed, not losing my temper when I was frustrated, and to continue to study when I wanted to run.

Another reason many people fail in their process is they cannot live without instant gratification. 

Many will sacrifice a richer tomorrow for a few bucks today. I did not make much money in my 20s and 30s. I make millions today.

Controlling the highs and lows of my emotions, and delaying short-term gratification, was essential in developing my financial intelligence. In other words, emotional intelligence is essential to financial intelligence. In fact, I would say that when it comes to money, emotional intelligence is the most important intelligence of all. It is more important than academic or professional intelligence. 

For example, many people fail to chase after their dreams because of fear. If they start, they quit when they fail, and then they blame others when they should be taking responsibility for their failures.

My concern is that our educational system uses fear to teach. That is why people cannot think. They worry more about making mistakes, failing, and looking foolish. Without high emotional intelligence and financial education, most people leave school and become prisoners in the E quadrant. They cannot escape.

Understand Total Intelligence

There are four types of intelligence that make up the total intelligence: mental, physical, emotional, and spiritual:

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Emotional intelligence: your ability to learn from your mistakes. In certain situations, emotional intelligence is at least three times more powerful than mental intelligence, especially when you are angry. Resist blaming others, even if it was their fault. Blame is a sign of low emotional intelligence.

Spiritual intelligence: your quiet intelligence knows there is a greater person in you, a person who can achieve their dreams.

Mental intelligence: the knowledge that you can learn anything you want to learn.

Physical intelligence: your ability to take what you learn, turn your ideas into action, and stand back up when you fall.

If you can engage all four of your intelligences, you will win—no matter what happens. 

The Intelligence of Success

Emotional intelligence does not mean being void of emotions. Emotional intelligence means you know it is okay to be angry, just not out-of-control angry. You know it’s okay to feel hurt, but it is not okay to do something stupid in the name of revenge.

Many of us know a person who is very intelligent, let’s say in math, but allows their emotions to damage other parts of their lives. 

Take addiction for example. 

Addictions are often caused by a lack of emotional intelligence. When frustrated, angry, or fearful, a person may eat, drink, have sex, or do drugs to numb the emotional pain. Some people go shopping when bored, spending money they do not have.

Addictions are often caused by a lack of emotional intelligence. When frustrated, angry, or fearful, a person may eat, drink, have sex, or do drugs to numb the emotional pain. Some people go shopping when bored, spending money they do not have.

On the positive side, we all know people who have been subjected to extreme abuse and have risen above it. One example is Nelson Mandela. He was wrongfully imprisoned in South Africa, yet emerged a great man rather than an angry man. Eventually, he rose to become the leader of the country that had imprisoned him. Greatness is often a reflection of a person with high emotional intelligence.

Again, emotional intelligence is often equated with “success intelligence” because successful people are successful at managing their emotions, especially in stressful situations.

Money can be a very emotional subject. Many people argue and fight over money. The emotion of fear is the primary reason many people cling to job security and low-paying jobs. They may be terrified of investing because they fear to fail or losing money. Even the emotion of joy can cause financial problems. When people come into a large sum of money such as a bonus, or an inheritance, or lottery jackpot, they may go out and get deeper into debt or squander their windfall. They buy a big house and nice cars and their friends and relatives may come begging, hat in hand. 

A lot of money, as well as a lack of money, can cause emotional problems. That’s why emotional IQ is an essential part of financial IQ

Today, take stock in how you manage your emotions. Are you smart in the way you express what you’re feeling, especially when the pressure is on? 

Or do you let your emotions continually handicap your ability to succeed?

If you want to be successful in life, you must have strong emotional intelligence, which means strong intrapersonal intelligence, because successful people are successful at managing their emotions, especially in stressful situations.

Regards,

Robert Kiyosaki

Robert Kiyosaki
Editor, Rich Dad Poor Dad Daily

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Robert Kiyosaki

Robert Kiyosaki, author of bestseller Rich Dad Poor Dad as well as 25 others financial guide books, has spent his career working as a financial educator, entrepreneur, successful investor, real estate mogul, and motivational speaker, all while running the Rich Dad Company.

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