Being financially intelligent is simply learning how to manage your money smarter and better. We have all made bad financial decisions in the past, and we can only learn from them and move on. The Ultimate Encyclopedia of Financial Intelligence may help you to do this, by understanding what to do and not to do with your money.
The first thing you must understand is where the money is going every month. It is very easy to know where the money comes from, since it will normally be from a paycheck that is deposited in your account very week or month. But the real challenge is knowing where every dollar goes once you receive it. If you do not know every dollar is going, you cannot account for it, and will likely be spending too much money.
You should start by reading as many personal finance books as you can. Even if you do not understand all the terms and financial lingo at the outset, that is okay, as you will learn over time. It takes patience to become financial literate. But by reading good books, newspapers and financial journals, you are starting yourself on the right path. Also, follow the stock markets.
Once you know where your money is going, you can look for ways to cut expenses. One of the largest expenses for many households is housing. This includes your mortgage or house that you are renting. If you rent, check realtor sites for your area to see what comparable homes or apartments are being rented for. If you are overpaying, you may be able to negotiate a lower amount.
Of course, you will not have much money to invest if you are spending more than you earn. So the second key to financial intelligence is learning to live below your means. This means that you do not spend more than your income allows. This requires a lot of self-discipline, but it is not easy for many people to deny themselves things they want to buy. However, self-discipline will keep you from buying things you cannot afford.
When buying food, the smart thing to do is to shop when there are sales on. You can take advantage of these sales to stock-pile common items that you regularly use. So if toilet paper or shampoo is on sale for half-price, it is wise to buy a few and save them. However, do not buy items on sale if you do not intend to use them. Also, do not stock-up on perishable foods, since they will likely spoil before you can eat them.
When buying a car, it is often a good idea to buy a quality second hand car instead of a new one. A new car will often cause you to have large monthly payments. Since some people trade in their cars when they are only a couple of years old, you may be able to get a good one at a reasonable price.
Remember, that being financially smart is just a matter of thinking purchases through before you buy something. Do not rush into purchasing an item before you have considered whether it is really the best deal you can get.
The first thing you must understand is where the money is going every month. It is very easy to know where the money comes from, since it will normally be from a paycheck that is deposited in your account very week or month. But the real challenge is knowing where every dollar goes once you receive it. If you do not know every dollar is going, you cannot account for it, and will likely be spending too much money.
You should start by reading as many personal finance books as you can. Even if you do not understand all the terms and financial lingo at the outset, that is okay, as you will learn over time. It takes patience to become financial literate. But by reading good books, newspapers and financial journals, you are starting yourself on the right path. Also, follow the stock markets.
Once you know where your money is going, you can look for ways to cut expenses. One of the largest expenses for many households is housing. This includes your mortgage or house that you are renting. If you rent, check realtor sites for your area to see what comparable homes or apartments are being rented for. If you are overpaying, you may be able to negotiate a lower amount.
Of course, you will not have much money to invest if you are spending more than you earn. So the second key to financial intelligence is learning to live below your means. This means that you do not spend more than your income allows. This requires a lot of self-discipline, but it is not easy for many people to deny themselves things they want to buy. However, self-discipline will keep you from buying things you cannot afford.
When buying food, the smart thing to do is to shop when there are sales on. You can take advantage of these sales to stock-pile common items that you regularly use. So if toilet paper or shampoo is on sale for half-price, it is wise to buy a few and save them. However, do not buy items on sale if you do not intend to use them. Also, do not stock-up on perishable foods, since they will likely spoil before you can eat them.
When buying a car, it is often a good idea to buy a quality second hand car instead of a new one. A new car will often cause you to have large monthly payments. Since some people trade in their cars when they are only a couple of years old, you may be able to get a good one at a reasonable price.
Remember, that being financially smart is just a matter of thinking purchases through before you buy something. Do not rush into purchasing an item before you have considered whether it is really the best deal you can get.
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