Many concepts of economics and their applications come from very distant times, from the industrial revolution, from late 18th century when economics as a science began to be taken seriously. But current definitions, such as financial intelligence, must be sought in other sources of information.
Everyday questions and doubts about finances have their answers in today’s economic movements, in the courses, diplomas and updating programs that go with the day to day, and are held by the gurus who have made their investments true success stories.
Schools and colleges should “spend” a little time teaching simple concepts with considerable involvement, such as financial intelligence.
What is financial intelligence?
It is nothing but the proper management of income and the search for new sources of income that allow us to achieve objectives, some economic stability and a quiet life from the point of view of finances.
It could be thought that this is very confusing, however, there are many people who are financially drowned because they do not have, or even visualize, a change in attitude or life that will lead them to a better situation.
Financial intelligence implies not only having an attitude towards the money we get as payment for the work we do, but also the willingness to make that money more productive, either by investing or saving to earn interest.
This will allow us to have a comfortable life, enjoy a certain economic well-being and enjoy a dignified, solvent and peaceful retirement.
With the increase in income or the optimization of the resources that we have, we will be showing a certain financial intelligence; or when we have viable solutions to the economic problems that arise.
What to do when in doubt?
It is normal that doubts appear when it comes to finances, be they personal, family or company, and that we feel fears before the threat of bankruptcy, to say the worst; however, we can use a series of tools that could well help us to get out of the quagmire.
One of the keys to financial intelligence is trust: having confidence in ourselves, that we will be able to overcome the obstacle, to overcome, to overcome and improve the financial situation that we have at the moment is important to give us emotional support.
Robert Kiyosaki, author of the book Rich Dad, Poor Dad, and one of today’s personal finance advisers, warns that “95% of people are not financially capable, and when faced with a problem of this type, they feel that their world It is coming down”.
Knowing about certain aspects of life, either because we are professionally trained or because we have the tools and experience, gives us security in what we do; We must apply the same premise for finances: be sure that what we are going to do will turn out well, give good results and bring benefits, that is part of financial intelligence.
The idea is to explore more options, removing fears and feeling confident and sure that the decisions are the right ones for each case.
There are many types of intelligence, and they are all important today, but financial intelligence is vital in these times, not out of greed, but to move better with money, with business and have the best answers to the demanding world that every time it pushes us more to consumption, to spending, to economic dependence, because money is happiness.
Being in full control of your money is another display of financial intelligence, as well as some of these characteristics:
- Maintain more income than expenses; that is, spend less than what you earn and never, but never commit the money that has not yet entered you, unless it is a long-term loan to acquire an asset that appreciates over time.
- Identify and have other sources of income. Today, information and communication technology open a window of opportunity for us to monetize everything that is part of our strengths. It is a matter of identifying them and taking advantage of them.
- Make profitable and optimize money. This objective is achieved through investment, either by buying company shares to receive a return in return, by investing in fixed income bonds or through mutual funds.
- Visualize and plan for the future. This recommendation contains several tips that we have mentioned, how to start saving, not just for a specific reason; make investments in companies, and always think about personal goals.
What do I need to know to have financial intelligence?
Many have innate financial intelligence; They are those people who since childhood have the ability to finance, are financially solvent and are a reference to be considered when starting a business.
On the other hand, others have difficulties managing their finances, they are a disaster with their economy, they are always waiting for the end of the month to pay off debts, and they never see the light; Of course, part of this situation may be due to adverse economic conditions (inflation, devaluation, disinvestment, etc.), which would be elements of other, deeper issues.
But, to have this type of intelligence and to be financially solvent, experience is required, stumbling, getting up and trying, analyzing the environment, training, training and having the five senses in what happens around.
Citing again the expert Kiyosaki, who recounts in his best-known work (Rich Dad, Poor Dad), that his father was poor, not because of his low income, but because of his attitude towards money, while his friend’s father told him taught to understand the keys to the millionaire mindset.
This author recommends that you go from “I can’t afford it” to “how can I pay it?”; from “working for money” to “money works for me” and from “I do not risk my finances” to “I must better manage risk”.