4 Steps to Achieving Financial Intelligence

Successful people usually have good financial acumen. They are able to manage money so that assets continue to grow, and even up on stage financially independent. What does he mean?

Such circles are no longer expend energy and mind to make money, but the money has been working for the “master”, ie the people who are independent. The question is, whether you are financially independent?

Generate a productive
Financial intelligence is “best practice” at least covering various aspects. First, how to make money in a productive way. What does he mean? We all are working for sure make money. But the problem is, whether the way we earn money is earning? In a sense it is equivalent to the time, thought, and effort devoted to the money generated? Not necessarily.

Listen to complaints around us. Most employees are always thinking of getting a pay rise constantly. Thought due to salary increases constantly, working to be distracted. Or even further, the output given to the company’s decline. In turn can decrease the performance of companies that may have an impact on the company’s inability to pay wages properly.

People who are financially savvy, should understand that the source of income is derived from salaries and bonuses, if the concerned employee / wati. So to be able to get more salary or income, would not want to give a greater output to the company so that the company’s performance is also increased.

In other words, in order to earn money that is equivalent to the time, effort, and thought given, effectively doing the work activities, which gave effect to increase the performance of the company. That means working with high quality, not just the number of hours worked or a higher quantity.

Protecting money
Second, how to protect the money that has been earned. There is a term “easy come, easy go”. Money obtained easily, it would be easy anyway endless. But, even worse, there are people who have great difficulty to get money, but on the other hand is very easy to spend or spend it. Even then be “bigger pegs, rather than pole”.

So how to protect the money that has been earned, regardless of whether it is easy or difficult to obtain. Not much formula to protect the money, because the key is in the behavior of the owner of the money. If someone is able to control the management of their money, then the money is automatically protected. That’s the basic principle.

However, the intelligence of course there are also surefire ways to protect money, in this sense is to protect the value of money. If you currently have money of Rp 100 million, where much money can you buy a piece of land for example. So if you hold the money remains in the form of cash, it is not necessarily in the next year you can buy a piece of land which currently costs the equivalent of USD 100 million. In other words, the value of money has decreased. Thus, to protect it from decline in value, so the money should be exchanged with other objects that could even increase its value.

Like the example above, if you buy a piece of land measuring 100 meters with a value of USD 100 million, then in the next year, when you need cash, then you can sell the land back and the price is certainly higher than Rp 100 million. Call it, for example, USD 110 million. That means the value of Rp 100 million, is equivalent to USD 110 million in the next year. CONCLUSIONS carefully saving money in cash, because its value will be different each year. Or in other words, you must hedge against the money that you have.

Managing the budget
Was once able to provide protection against money or money you earn, then the problem is complete? Obviously not. Check again if your financial activities are able to meet all three rules, namely, managing a financial budget effectively. What does he mean? How much of your income is spent on financing consumer behavior, for example. So how much of your income to be saved. Or are you planning based on consumer financing or simply exhausted, follow instinct.

To be classified as people who have a financial intelligence, then every cent of money spent should be based on a need, and has been previously budgeted. Everything is well planned and executed, and then be evaluated where the deviation. How large is the deviation and then want to fix the financial behavior undertaken. If you are able to manage your finances that way, then chances are you towards financial independence is not making it up.

Fourth, how to better use that money to make money. If you are able to invest and then the results of that investment has been able to finance the needs of your routine, where your investment can be obtained on an ongoing basis, then you are in the category of financial savvy and a step toward financial independence.

So how concrete form? Simple. Calculate how much it costs your routine needs, and then count how many of your assets. After that, allocate your assets into productive assets that could provide income. In this case, you do not need to seek maximum profit, but the results are lasting. In that way, it means that your money is working for you. And you will fall into the so-called financial independence. That is the meaning of financial intelligence.