Increasing Your Financial IQ

 

Like Robert Kiyosaki says, I am also of the opinion that a quality financial education is indeed priceless. Also, like Robert says, the Rules of Money, have indeed changed.

In fact, the rules are changing constantly because the government can change the rules anytime it wants! This means you gotta continue to educate yourself. Stay hungry. Become an information junky/addict and stay on top of things if you have a good portion of your net worth in stocks. That’s what I do.

The reason that you need a great financial education/high financial IQ is so that you can help put the odds of success investing, starting a business (they are basically the same if you read Austrian Economics as Mises considered an entrepreneur and investor synonyms) in your favor! You will be able to tell the difference between what is really an asset you are buying and what is not! 

You can also spot potential opportunities before others or help protect yourself and your money from “investments” and “opportunities” that look a lot better than they really are.

You don’t want to be the person that had a life changing opportunity offered to them and you were too “stupid” or “financially illiterate” to take it, do you?

Checkout some of these types of people in these videos where Mark Dice tries to sell and then give away a pure, 1oz gold coin on a San Diego beach. Not one person even willing to risk $50, $20 or even $5 for the coin!

Besides keeping on top of information and increasing your knowledge that way, there really is no better way to learn from the real life experience of trial and error. “Learn by doing” as one of my business professors used to say! 

You will learn what to look for and what not to look for, what to do and what not to do and you will soon realize the satisfaction you had with yourself of overcoming some adversity or challenge to do well!

If you don’t have any kind of a financial education, all of the money you have made, earned or inherited you are in jeopardy of losing in my humble opinion because you do not completely understand what is going around you and the rest of the world and how it affects you! 

You could easily lose it and not be able to ever get it back! With a quality financial education, even if you lose a lot of money, you should still be to (eventually) get it back because you will learn from your mistakes, make adjustments, and start making money the right way again!