But how about Keeping Money? Managing Money?
Now, you'll agree with me that keeping or managing money is as important as making money.
And in fact, I'll assert that you must learn the art of managing money well before making it. You'll agree that it becomes harder managing or keeping money right after making it. You'd not want to experiment with your only chance.
So, stay tuned as we unravel the concept of money management vis a vis financial intelligence.
One ultimate strategy is to know how to make money work for you. This is important because even money does lose value when it's idle. Time value.
An important role is played by proper personal finance management. You must know how and what to spend and what not to. You must learn proper budgeting and be able to differentiate between seed money and profit.
Attributes of People With Higher Financial IQ
This list of characteristics are common amongst those who have a long proven history of earning high amounts of money.
Has Plan of Action
Financially intelligent people create a comprehensive financial plan of action that they manage and implement on a daily basis.
Saves 10% of Income
Financially intelligent people consistently save at the very least 10% of their earned income and utilize it for investment purposes or compound their money for long-term gains.
Minimizes Purchasing Liabilities
Financially intelligent people understand the burden of liabilities and how this can affect their long-term wealth. Hence, they minimize purchasing liabilities. However, if they must purchase liabilities, then they will search for the best and lowest price before making a purchase decision. Often liabilities are purchased from the profit earned from smart investments.
Sets Long and Short-term Money Goals
Money goals work hand-in-hand with an effective plan of action. Goals provide these people with both short and long-term objectives that keep them focused and motivated throughout their day.
Strategically Spends Money
Each and every purchase that financially intelligent people make is thought through carefully.
Great money managers understand the long-term consequences of making even the smallest purchase decisions. They know that an accumulation of seemingly insignificant small purchase decisions will usually result in long-term consequences that will either add to their debt or provide them with opportunities to earn profits.
The financially intelligent have an uncanny ability to see into the future. Utilizing the act of foresight to help identify the possible consequences that can potentially result from each spending decision they make, they determine if the consequences are justifiable. If long-term profits don’t result, then they will carefully weigh-up their decision before taking any further action.
Seeks Professional Financial Advice
Financially intelligent people understand that they don’t know it all. Hence they seek professional advice from experts who have a long history of financial success.
Interacts with Successful Money Managers
To become a great money manager, one must learn to absorb the characteristics, habits and daily rituals of those who have succeeded before them. For this reason, competent money managers interact and socialize with successful money managers. They understand that through each interaction they will gain deeper insights and knowledge that could be critical to their next major financial decision.
Keeps Learning New Money Strategies
Financially intelligent people simply never stop learning about money, finances, investments, property, shares, etc. For them, money is as natural as breathing air. Every moment throughout their day they are either listening to an audio program about wealth, reading a book, speaking to others about money, attending a financial seminar, reading the finance section of the daily paper and more. Money is a way of life, which is why they are financially successful.
Imbibing the above will help in your path to financial mastery.
However, doing the exact opposite is a surefire path to financial mystery.
