Money touches all aspects of our lives, and yet we never teach ourselves how to get money to work. In this article, I'm going to outline why we need to develop our financial intelligence now and how it can totally change your money mindset.
Just think back to a time you made a major financial decision about your money. Maybe you bought a car, invest crypto or stocks, or you started a business. Did you made that decision with conviction? Majority of us will answer no, and that's fair.
Financial intelligence in the present time is a super power. We have all learned the fundamentals of money. We have learned to balance a checkbook, we know the importance of saving; but financial intelligence is knowing how money functions in the world today and how that knowledge can help you make smarter money choices.
In simple terms, financial intelligence is the capability to understand where money is going and understand what that really means, and then make some financial decisions accordingly. Financial intelligence is when you are able to read the money matrix instead of simply being able to identify confusing numbers. You are able to see the patterns, you are able to see the possibilities, while other people can't.
The good news about financial intelligence is that it is something anyone can acquire. It does not need you to be a numbers genius or possess an accounting or finance degree. You simply need to be open to learning and understand the basics of how money works in the modern world.
Financial smarts are more important than ever in today's economy. We're working with things our parents never even had to consider, cryptocurrency, online investing apps, side hustles, and digital payment systems. The rules about money that once applied no longer always apply.
Financial intelligence is solid because it is required in your everyday life and in your business life. If you are well educated about money, you are in a better position to make intelligent decisions about saving, investing, and spending. You will begin to understand that money is an instrument, and not the master.
To entrepreneurs and businesspeople, financial literacy means having a compass when lost in the forest. It allows you to make sense of your business landscape, make profitable choices, and be capable of identifying and solving issues before it becomes a calamity. You will understand how to talk with investors, manage cash flow, and grow your business sustainably.
But it is more than simply understanding how money works. Financial intelligence also involves an awareness of how emotions influence our spending. You recall that time when you bought something pricey when you felt awful? That is where emotional intelligence meets financial intelligence. Keeping these patterns in mind helps you make better decisions.
We are living in the era of rapid change with money! Cryptocurrency, online banking facilities, investment apps you name it, it is all sophisticated and will keep getting more sophisticated! But the good news is if you have financial sense, you possess the tools to weather this storm and thrive despite all these changes. You'll be able to identify which opportunities to go after and which ones to shy away from.
Financial intelligence is your money GPS. It's the perfect roadmap to lead you through financial decisions, temptations, and setbacks to your goals. From retirement decisions, starting a business, or just wanting to make better-informed every day money decisions, financial intelligence will be your beacon.
In these uncertain times, financial intelligence is like a seatbelt while driving over rough roads: it will not stop all issues from arising, but it will keep you ready to solve the issues that will arise. It is also true that financial intelligence is linked to individuals who ride out bad times better than most, for example, global pandemics, recession and inflation.
In short, financial intelligence is no longer optional, it is essential. The great thing is it can be developed over a period of time. Start with small, realistic goals, keep learning consistently and slowly develop a better financial relationship.
Developing financial awareness in no way means you are going to be a financial expert. What it means is that you establish a firm foundation of information that you can continue to build upon so that you can make better choices on a daily basis on how to spend and other financial matters.
Posted Using INLEO