Finance 101: Basic Financial Intelligence for Starters
Cultivating a financially intelligent state of mind means being deliberate about having a healthy view of money and it comes from being a certain way and doing certain things that attract wealth and abundance into your life. At Oak Pensions, we recommend this mindset for excellent retirement life.
Financial success starts with financial intelligence, which is governed by the underlying beliefs you have about money. And if you must reach the pinnacle of economic freedom, you must start from the basics of financial intelligence and relieve yourself of limiting beliefs about money. Avoid self-sabotaging forces that will prevent you from ever reaching your financial goals. Here are a few tips and characteristics of essential financial intelligence for starters.
Have a Plan of Action
No matter what you do, you must always have a plan. The same applies to your finances. Financially intelligent people create a comprehensive financial plan of action that they stick to and implement daily. And in the case where they default on the program, they don’t give up. Instead, they pick themselves up and continue from where they stopped. This plan forms a system that runs their entire life.
Financially intelligent people create a comprehensive financial plan of action that they stick to and implement daily.
Save at Least 10% From Your Income
Cultivate a culture of consistently saving at least 10% of your earned income, which can be deployed for investment purposes that would yield more significant financial gain in the long run.
Spend More on Acquiring Assets
Financially intelligent people understand the importance of acquiring assets against liabilities and how this can affect their long-term wealth. Before you make any purchase, consider how it will make you more money rather than the fun of acquiring them.
Set Long-term and Short-term Financial Goals
Money is effective when and where there is a plan of action. Having long-term and short-term goals helps keep you focused and motivated as you grow your wealth. Having an objective also helps to know when to celebrate specific financial milestones.
Spend Money Strategically
Regardless of how much you make, if you are not strategic about how you spend it, you will fall short of the overall goal for the money. Cultivate a habit of thinking through before making any purchase. The ability to see into the future consequence of any purchase is advantageous, and always think long term over short term gains.
Learn to keep company with Successful Money Managers
“Good company on a journey makes the way seem shorter.” - Izaak Walton. The company you keep in your journey of financial freedom can not be overemphasized. It determines to a great extent what you think is possible when it comes to money. Also, a greater aspect of the opportunities that come your way is directly linked to your network.
Learn to interact and socialize with successful money managers. There is a lot to learn from their experiences and insights.
Continue to build capacity for your finances
Financially intelligent people keep building their knowledge of money, finances, investments, property, shares, pensions etc. There are several online and offline materials like books, podcasts, videos, seminars, workshops etc., to increase your financial intelligence. Take advantage of as many as possible.
Seeks Professional Financial Advice
For financially intelligent people, learning is continuous. Hence, they seek professional advice from experts who have a history of financial success.
ABOUT THE AUTHOR:
Ernest Ademola Ehigie is a Copywriter, Content Developer, Author, Brand Consultant, and Communications Manager with over 5 years in marketing communications. He has written several articles, policy documents, press releases, radio and TV adverts for businesses and organizations. He's the author of the book, "Why You Must Lead" and currently works as a content manager for Detail and Avedia, a leading retail and media consulting firm.