Motivation | How Can I Improve My Financial IQ? | Top five financial Intelligence Quotient (IQ)? | What Is Financial Intelligence?

Motivation |

Different ways to create assets | Top 5 success tips | How can I improve my financial IQ?

So, readers, we come with the new, fresh topic and it is very famous all over the world either in students or in adults that how can I improve my financial intelligence? Moreover, our last topic was, How to study with full concentration? Or various different rules to get focus? if you want to know, then Click here

• Before starting this topic, let us come to know this topic by a small story. So, what is the story?

• This is the story of two friends (Vishal and Rahul), who studied together from childhood till college. Vishal's goal was clear from the beginning, he needed placement in the biggest company coming up in his college so that he would get a good salary package.

• Because both the friends were very sharp-minded. So Vishal gets a job and that too 10 lakhs for an annum. Now Vishal feels that there is only one way to earn money in a corporate job and that is to work for a while, keep changing companies and show the old salary to the new company and ask for more. By doing this every time the salary increases and his life will be completely set.

• After a long delay, Vishal now earns more than thirty lakhs in an annum. But he was not completely happy with it, was in tension every moment and physically he is not completely healthy. Suddenly Vishal started remembering his old friend Rahul and he started thinking that what would Rahul be doing, will Rahul be even more upset than him?

• After this, Vishal calls Rahul and inquires about his health. To this Rahul says that he is very fine, and both the friends remember old things. Rahul asks Vishal what are you doing? On this Vishal hides his actual condition from Rahul and says with great pride that I am working in corporate and earn more than 30 lakhs.

• Now Vishal asks the same question to Rahul, then Rahul says on this, I told you that I want financial freedom, so I have opened my own small business. So Vishal asks how much do you earn? So Vishal was stunned to hear what Rahul said, Rahul said that I do business of about 1 to 2 crores in a month. Now this story seems very common but this thing is mostly seen nowadays.

• What is the main approach to get success? 

• The difference is not in the capabilities of two people but in their attitude and Financial Intelligence Quotient. And through this topic, we will know about Financial IQ in detail.

What is Financial Intelligence in detail?

 What is the top five financial Intelligence Quotient (IQ)?

(a). Making More Money

• Robert Kiyosaki says that he completed his course from the United States Merchant Marine Academy in 1969 and started his first job with Standard Oil of California, where he used to get five lakhs an annum and this was considered a very good salary at that time.

• But after that Robert joined the Marine Corps, where he was to go to fight in the Vietnam War. Then his friends did not want to go to war, but Robert felt that he should do something for his country. Whereas to join the Marine Corps, Robert had to take a pay cut and a Marine Corp would get twenty-five thousand one annum. After five years in the Marine Corps, he again became a Civilian.

• Now the biggest challenge before Robert became successful, was the Making More Money Challenge. (Financial intelligence challenge number one) To this Robert says that he took another pay cut instead of working at Standard Oil of California again. And joined the Xerox company, in which he used to get only seven hundred twenty rupees for an annum. 

• His family members wondered how he could work for such a low salary? But Robert says he knew that if he wanted to reach the heights of success, he would have to do business instead of a job, and to be a successful businessman it was very important to have good sales skills.

• Robert says he knew he was very shy and that he had to be good at sales to be successful, which is why he started a sales job at Xerox Company. When he became the best salesman in his region, he left that job and started building his own business. 

• Initially, he started the business of making wallets and with his sales skills, he sold a lot of wallets and earned a lot of money. But his competitors copied him and started selling the same type of wallet at a cheap rate. 

• On this, he came to know that he had to do something different, so he started selling Rockstars on his wallet at an expensive price (such a premium product), for this, he had also taken a license. 

• Despite that, this idea also got copied. And his business again went into loss. He also filed a case on this thing but later he realized that due to this he is going to lose and his lawyer is getting rich.

• There is a saying that if you cannot defeat your enemy, join hands with him. So he did the same and he joined his competitors and asked them to make their wallets. 

• Due to which the price of his wallet came down further and he was good in sales. So from this, he sold a lot of wallets and earned a lot of money. With this, Robert became successful in his financial intelligence i.e. making more money.

(b). Protecting the money

• It is very important but not many people follow it. Let us imagine some situations, A person named Vishal earns 10 lakhs annually, after deducting taxes, he has about 7 lakh rupees left annually. Next is, Ramesh who earns ten lakhs of an annum, he also pays tax, and is left with around 8.5 lakhs. 

• Another is, Rahul also earns the same amount per annum, but after legally pays 0% tax, he is left without any loss.

• Now, all of them worked hard and earned money equally, but who is more successful in terms of financial Intelligence? Write in the comment section below. 

• And the answer is the one who knows how to protect all his money. To understand this, Robert Kiyosaki tells a story, once a socialist comes to a farmer and asks him to join his party. Farmer says on this that tell with example who are socialists?

• The socialist says that if you have a cow, then milk will be distributed in equal quantity to those who take milk, this is called sharing your wealth. 

• Similarly, if you have a sheep, then everyone will get an equal quantity of wool. Farmer says that this equality idea is very good.

• After this, the socialist says that if you have a chicken, everyone will share its eggs too. Farmer gets angry at this and says that go out, I do not want to become a socialist.

• On this, the socialist says that you were happy to share milk and wool, to which the farmer says that because I do not have cow and sheep, but I have a lot of chickens.

• What is the moral of the story?

• The moral of the story, almost everyone would say it is right to share, but the condition is that they do not have to give anything of their own. That is why we should also think of securing our wealth by increasing our financial education.

(c). Budgeting the money

• The budget of the middle-class people, which either give some happiness to the middle-class people or keeps them, middle class, only. 

• We can decide budget mainly in two ways, either by taking out all the expenses first and then focusing on the savings and or focus on the savings first and then on spending.

• On this, Robert says that his family hired an accountant, Betty. His family salary was around one thousand dollars, while the expenses were fifteen hundred dollars.

•  Keeping this in mind, Robert told his secretary that we will use 30% of our salary in savings or investments and we have to manage all the expenses from the rest of the salary. 

• Betty said in the answer that no sir, we will first do all the borrowings and expenses, while later we should focus on the savings. But Robert said that by doing this he would never become rich.

• So from this, we learn that if we pay attention to the savings before spending, then we will be able to do much better.

(d). Leveraging the money

• It is a way to grow money. That is, when a middle-class person invests himself, his leverage will remain the same because the more he invests, the more he will get back, but when someone invests in the bank, his leverage becomes increases.

• For example, Robert took a three-hundred-unit apartment for twenty million dollars, with four million of his own money and sixteen million dollars on a bank loan. 

• Now with whatever rental income he got, he would only repay his loan. 

• If its benefits are taken into account, then if he himself had spent all the money, then we can not predict that how much time would have taken to collect the money? It is possible that by the time the money was collected, the rate of that apartment would have increased by how much?

• Suppose he had all the money, still he does not need to take any tension because Robert could invest that money elsewhere and improve his financial condition even better?

• Now there is no doubt that it is very important to have good financial knowledge for this strategy.

(e). Improve financial information

• On this, Robert says that some time ago our family decided that we will buy a Bentley car. He could have bought the car at that very moment by paying, but he did not do so. 

• Any person having good financial knowledge would do the same because as soon as he takes such an expensive car out of the showroom, the price of that car will decrease.

• He took out the amount of money for the car from one of his investments and gave that money to one of his brokers and also told him that "your job is to double this money." When that broker came back after a few months, he had more than doubled that money.

• Robert paid that broker his fee, paid government tax, got a new Bentley car. And again converted the rest of the money into the same investment. It's called making money with money. Now it is not necessary that every broker will only increase money, finding a good broker is also a lot of hard work.

• Well, from this we learn that a person who got money and after some time the money went away. But on the other hand, money came to a person and with some patience, he made more money from the money. 

• For example, Robert was able to get his favorite car for free because he had a good knowledge of financial education i.e. understanding of money. 

• And he has achieved that by reading books and experiences from people who have come before him, and from his own experiences. If anyone wants more methods then he can read the Robert Kiyosaki books. We hope you enjoy reading this, please share it as much as you can and read our blogs regularly

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