Money is not evil. Money is good. If you bought two bottles of mineral water for each of the 1 billion people who have no access to clean drinking water in the world today, you will have to be a billionaire (in US$). That is good and that is a lot of money.
Money is probably the most important commodity next only to time. However financial illiteracy is probably the waste form of disaster known to mankind.
Increase your Financial IQ daily. No matter the level of education you attain, and no matter how much money you make, without adequate financial intelligence you are a disaster, an embarrassment, and a failure just waiting to happen.
Financially intelligent people know that time is the primary source of money. They know that they cannot achieve anything in life without a proper use of their time.
Financially smart folk earn more than they spend. Average folk spend according to how they earn. Financial ignorant people spend more than they earn. Their financial cone is wide-side down.
Three skills that increase you Financial IQ
1. EARN: Learn to earn. Make it a hobby, a habit, a way of life. Whatever you do, earn. You must earn enough that your expenses would never exceed your earnings. DO NOT become a money monger and irate people with your salesmanship. But do things of value that people will be glad to pay you for it.
2. BUDGET: Budgeting is NOT writing a wish list. Most people write a wish list and call it a budget and in the end it only becomes a source of frustration. You write the budget after allocating a certain amount for the budget. In short a budget is the list of higher priority necessities that will fit in the allocated amount. Always budget based on available resources.
The process is not complete until after you have bought items, you write down what has been bought, and you compare to see your performance based on the budget that you made. This skill alone can raise your financial IQ high enough to improve your life.
3. SAVE: Those who do not save have no seeds of greatness in them. Stop being the channel of expenses in your home and become the channel of savings. Keep your expenses low to manage to save easily.
Practice insurance, investing, and giving. These will ensure that you manage your present and future smartly and live a better life tomorrow than today.
PRACTICAL APPLICATION
BUY A WATCH: If you cannot manage your time you will most likely never be able to earn, let alone manage your money.
OPEN A BANK ACCOUNT: Open an account separate from your transaction account. This will keep you out of debt. Instead of getting anything on credit, save for it and buy it when the money is enough. Ensure that such an account is not easily accessible via mobile banking or ATM cards.
BUY A DIARY AND A PEN: the secret to managing your time and finances is in writing things down. The moment you get flowing with this skill that’s the very moment your days will be fulfilling and your finances will start making sense.
SEE YOU AT THE TOP.
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