Increase your financial IQ make more money

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.