Skip to main content

Increase Your Financial IQ





Real estate, stocks, mutual funds, businesses, or money is not what makes a person rich. It is information, knowledge, wisdom, and know-how that makes one wealthy; that is what is referred to as financial intelligence. There are five things you need to work on to increase your financial IQ. They are as follows:

1. Make more money

You need to increase what you earn on a regular basis. To do this work is required. You can never make more money without working. Interestingly it is the process that helps you become rich and not the money. The more you make money the more money you can make. Each person goes through a different process so you can not compare yourself to another person. Your goals, dreams and ambitions are different. Just find your niche and determine how you want to get to your goals. Making more money has a lot to do with you being able to control your emotions. You need to learn to delay gratification. Never give up. It may seem tough but if you are positive you can solve problems. The more problems you solve the more money you make. Identify the problems preventing you from wealth, tackle them head-on, and the money will follow.

2. Protect your money

Once you’ve begun to make money, you need to keep it away it from “financial predators”. You can do this by ensuring the following:

– pay as little tax as possible legally

– protect your bank accounts against unnecessary bank fees

– buy only what you need and not what you want

– your spouse is as intelligent as you financially so you are on the same page when it comes to finances

– plan for your death so that your family is not stranded when you go

– protect yourself from legal difficulties

3. Budget your money

The ability to live well and still invest no matter your earnings can only happen with a high financial IQ. Financial IQ is a function of how much you have left and not how much you make. Decide on the budget you want to follow. Pay yourself first then spend what is left wisely. Spend more on information and education. Never live within your means rather increase your means. Remember that the way you treat time and money determines what your future will be like.

4. Leverage your money

How well is your surplus generating more money? Learn how to leverage to make more money. That is what the rich do. When you use leverage you only need to ensure that you have some form of control on what you are investing on. Do not gamble or speculate with money.

5. Improve the financial information you have

Whenever you want to make any investment decision always ensure you conduct extensive research. In doing that ensure you do the following:

– Separate fact from opinion. People are always giving their opinion of what is good or what makes sense. It is foolish to follow this. Ensure you work only with facts.

– Verify all information. Never trust just one source of information. Seek to corroborate from other parties as well.

– Know the rules. If you don’t understand how an investment works, don’t partake in it.

– Understand trends. Trends are historical facts. Always ensure you use trends to make informed decisions as trends are valuable sources of financial information.However, it’s important to note that trends do not project to future facts. It only gives you an opinion about possible futures.

When you do these things you have all the confidence required for you to invest.

Culled from: http://charlesezeh.me/2014/06/08/increase-your-financial-iq/

Comments

Post a Comment

Popular posts from this blog

Shekau, Finally Dead? By PRNigeria

N igerian troops might have scored a strategic victory in the current battle against terrorists operating in the North East on September 17. During a desperate attempt to capture Konduga in their delusion to eventually marching on and capturing Maiduguri, the man who had been mimicking Late Abubakar Shekau in recent videos might have been finally killed. Abubakar Shekau   According to senior military and intelligence sources, "it is getting more certain that the terrorists' commander who has been mimicking Shekau in those videos is the one killed in Konduga on September 17, 2014."   The PRNigeria sources said the suspected demise of the Boko Haram leader is responsible for the scattering of the sect members in different independent locations in the neighbouring countries, especially in Cameroon noticed in recent days.   The security sources did not deny the suspicion but cautioned that "the process of confirming that the dead body we have is the same as that char...
Post a Comment
Read more

Woman Marries Herself As She Is Tired Of Being Single

Meet a desperate woman Grace Gedler who made a self proposal after beign tired of waiting for marriage for years, London, UK. The woman who got fed up with being single for six years proposed to herself and finally walked down the aisle alone. Despite not having much choice about staying with herself the rest of her life, Grace had pre-wedding jitters. Woman who married herself after waiting for marriage for years But she went through with it anyway and now feels empowered and like   she is no longer single.The wedding ceremony was watched by 50 friends and it was completed with Grace's self-kiss on a mirror. The woman said:    "A few did comment, in a light-hearted way, that it was a bit narcissistic. Obviously, if you have just announced you're marrying yourself, it is plainly a statement of self-love, and I was under no illusion how self-indulgent that might appear. "If you have just announced you're marrying yourself, it is plainly a statement of self-love....
Post a Comment
Read more

Australian hostage taker named as Iranian refugee with criminal past

SYDNEY (Reuters) - An Iranian refugee known for sending hate mail to the families of Australian soldiers killed overseas and facing several charges of sexual assault is the armed man holding an unknown number of hostages in a Sydney cafe, a police source said on Tuesday. Man Haron Monis, a self-styled sheikh, remained holed up in the cafe some 15 hours after the siege began. "There's no operational reason for that name to be held back by us now," said the police source, who declined to be identified. Monis, also known as Sheikh Haron, was charged last year with being an accessory to the murder of his ex-wife who was stabbed and set alight in a Sydney apartment block. He was found guilty in 2012 of sending offensive and threatening letters to families of eight Australian soldiers killed in Afghanistan, as a protest against Australia's involvement in the conflict, according to local media reports. Earlier this year, Monis, who describes himself ...
Post a Comment
Read more