Increasing your financial IQ

Many people have grown up around the world knowing and believing that money is evil. In fact, they are strongly told, mostly by their religious denominations that money is the root source of all evil. But what is the source of evil, is it the state of having enough money or the state of having no money at all?

Most evil emanates from the fact that most people have no money at all. The economy of the world is negatively drifting to the point of no return at a very high speed. The gap between the poor and the rich is widening day by day and the middle class is at the danger of being completely wiped out. What should people do then? This is where financial IQ comes in. people are failing to realize their financial goals as a result of low financial IQ.

What is financial IQ? Financial IQ is imply having more solutions than problems. Poverty is a state of having more problems than solutions. The moment one has more financial problems as compared to financial solutions, then poverty sets in. A person with a high financial IQ sees problems and tackles them at an early stage but a fool, or a person with low financial IQ, sees a problem, walks directly into it and help it multiply to the extent of consuming him. The best way to cross over to the high financial IQ level is to learn how to solve your problems before they multiply.

Many people at the moment believe that saving will make them rich. This is one of the widely misunderstood concepts around the world. Save for the future but do not save as a way of accumulating riches. You will die poor. Money gives birth only if it is in circulation. The moment you store it somewhere in the name of saving, it becomes barren and stops giving birth. The best way is to invest in a right cause. Do not just invest because you have money to invest, you will be left frustrated. First observe the market patterns, identify the area that suits you and one that has good returns, put your money there but not all of it.

Article by Juma Fred.