Financial Quotient is very important. Gone are the days where we thought that we can manage and invest in a bank with your FD’s. There are various ways in which you can multiply your money these days and each way gives you’re a different type of interest. In our technology-driven world, financial intelligence is the organisational concept that fuels how best-in-class finance teams operate, not just them but you, the common men and women.

While financial intelligence is driven by having the right sets of processes and tools in place to empower the people to access the information it needs, financial intelligence is itself a higher-order thinking. It’s data analysis instead of just collection and reporting. It’s insight that creates and enables value, not just reporting on how a business performs and investing in it. It’s a culture of empowerment, proactivity, and expertise.

Financial Intelligence sounds like not many people possess it, but in reality, everyone does have it in them or possess it with them. The good thing is that financial Intelligence is something that is learned. One should know the things that go on in financial matters. One should know the ins and outs of financial matters of your personal life, your professional and also your company’s. It’s basically gaining knowledge and using your skills to maintain your finances. So, here are ways where you can become financially intelligent and independent.

1. Understanding your position: As a family member or an independent human, one needs to understand the situation they are in. By situation, what we mean is your financial position. You need to know in which spheres you belong to economically and plan your finances.
2. Planning your finances: You need to start maintaining records of your expenses and revenues. We would suggest you save 25-50% of your salary according to the salary you get. Saving can help you in the future when you need something. You need to find ways to cut as many unwanted costs as you can so that you can save more money.
3. Knowing the basics: Many people fail to understand the difference between an Asset & Liability. An Asset is anything that puts money in your pocket. For example, your trade: which earns you money every month in the form of a job. Now, Liability is something that takes away money from your pocket. For example, your phone or home appliances, which takes money every month from you in terms of Recharges or Bill payments or even EMI for the device.
4. Being smart: The fastest way to pay off any money and be independent is by decreasing the debt you have. Paying off all the loans, your credit card EMI’s, and any other debt that you owe as soon as possible is better. The sooner you pay off your debt the lesser interest they charge you and you will have more money with you to save and invest. The longer you wait to pay off bills, the more interest keeps piling up adding to unnecessary costs.
5. Tracking your spending: It’s very important to track where your money is going and what it is spent on. Even the smallest of smallest expenses that you incur should be maintained and tracked. The simplest way to do is by writing down your everyday expenses in a diary or a ledger or you can even use one of the various expense manager applications that are available on the app store. By tracking your expenses you will know how you spent your money throughout the month or week and cut out all the unnecessary expenses that you must have made in the form of unnecessary shopping, expensive dinners, etc.
6. Saving and investing: Cutting down on unnecessary expenditure helps you save more than you think. Saving a minimum of 20% of your monthly salary or any other way you get money is considered to be secure. You need to save money wherever you can because each and every paisa adds to be a rupee. When you invest your money you put your money at work, and when money works it grows. There are several options where you can save depending on how much risk you are willing to take, like FD’s, Stocks, Mutual Funds, Bonds, etc. You can invest in startups too. These are the many ways where you can invest. The only important rule everyone needs to follow is Investing money only in things that you understand. You shouldn’t just start investing by hearing it from someone you know. Read about where you planning to invest, try understanding the risk, returns, the nature of business, and all the other aspects related to it.

In conclusion, we’d like to say that you start saving your money and start tracking down your expenses. Learn more about investing and its benefits and starts investing money and multiply money. It’s very important to do so and also helps you get better at maintaining your finances. This way you can become rich.

newadmin