Steps To Enhance Your Financial Intelligence

Financial intelligence is one of the skills that we need on earth to not only be able to build streams of income but also to establish a comprehensive financial blueprint that guarantees generational wealth and fulfillment.
Families that are able to transfer wealth across generations did not merely leave their children their money as inheritance. They left with them a legacy of financial intelligence. Rockefeller’s children were taught from the tender age of 4 some key principles about money, no wonder he was able to transfer his wealth and his children grew up to be responsible and wealthy men. He gave them 5 rules, which forms the crux of this post.
The Rockefeller rules for his 4yrs olds are still as relevant today as they were then. They are also very applicable to every age, these are the key tenets of financial intelligence that created and sustained wealth.
Rule 1: Plan and work for all you get!
Rockefeller taught his children to learn to work, to learn to solve other problems, to learn to create value, to learn to be rewarded for work done, rather than be given gifts or to beg. Work is the horizontal flow of value from a supplier to a consumer. Money flows in the direction of service. Money that is worked for is replicable. He ensured that his children understood that money is a reward, not a gift or a right.
Rule 2: Give away at least 10% of your income from time to time
Different religions encourage their people to part with 10% as an offering or as a commitment to God. All the great and rich men of all times, have shared this same principle. Giving away at least 10% of your money is a way of sowing, planting or INVESTING. Giving opens up your hand to receive more and more.
Rule 3: Pay yourself at least 10% all your income
Don’t spend all the income that you generate from time to time Set aside at least 10% to be saved in account on a regular basis. One of the most popular financial books – The Richest Man in Babylon, alludes clearly to the fact that 10% of what you earn should be saved as yours. What you pay yourself is not for any other.  It’s yours to utilize for more income and happiness.




Rule 4: Live on the rest.
Many of us find it increasingly and extremely difficult to live within our means. Before we collect the salary for the month, 80% of it is already carried forward to service debts. We must learn to live within our means. Parkinson’s Law states that when money increases, those that will help consume it also increases. We must however learn how to contain ourselves within our means. A times we need to dim our present, to brighten our future.
Rule 5:Account for every dime
Now this is difficult. It involves being shrewd and taking the time and diligence to track daily spending. There are two parts to accounting for every penny (kobo), one is done ahead of spending, called budgeting, and the other after spending, called accounting. Budgeting is planning; this is crucial to financial success. The pain of accounting is not absolutely useful on the short term, but on the long run it gives you a clear picture of your priorities.
A rich man once said, “Money is a game” If you know the rules you win, if you don’t know the rules you don’t win.
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Yours sincerely,
Aminu Sule
08092253255

3 Basic Money Habits That Puts You On The Path To Financial Success

Your thoughts and actions over time form your habits, and your habit gives direction to your life. Most people make poor financial decisions in their life at one time or another, but the ones who realize it early and decide to start making smart financial decisions have a better chance at being financially successful.

You need to take the time to create some great money habits that could have a major positive impact on your life in the years to come.

1. Always ensure your income exceeds your expenses.

This calls for planning, accountability and discipline. Habitually try not to bite off more than you can chew each and every month. The key is to know how to budget and have consistent and realistic self assessment and self-control in managing your money.

There are a couple basic principles that allow you to easily live below your means. Such as making sure your rent is 1/3 or less than your take home monthly income. This leaves excess cash flow for bills and investments that will bring you funds in the future.

Secondly, spend more of your money on acquiring assets than liabilities. For every major purchase, ask make sure you satisfactorily answer the the following question:  “what is my ROI (return on investment) on this.”

2. Have more than one stream of income.

The most successful people have several channels of income coming in, usually it is monthly, and for some it’s weekly, while for some others it is daily. We live in a very progressive society today and there are a lot of ways to make money. By having multiple streams of income you minimize your chances of going broke, and increase your chances of building wealth.

Do not just depend only on the full-time job and think ok this is the way I am going to make money. Carefully search out what you’re passionate about, and figure out how you can monetize it. Opportunities are endless these days, especially with all the technology out there. And of course, as Robert Kiyosaki always emphasize there is always Real Estate, a great way to generate passive income.

3. Develop adequate and up-to-date knowledge of your banking.

Successful people have a full understanding of their banking! They realize that all the little bank fees a person can accumulate will add up! Be aware of overdraft fees and monthly fees. Know all the automatic charges coming out of your account every month, from the smallest to largest, it all adds up.

Essentially, know your bank statement like the back of your hand, and be able to recognize every transaction therein.

Lastly, do not get caught up with paying interest on your credit card debt. Pay you bill in full and on time every month! Successful people make their money work for them and focus on gaining a return.

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Yours sincerely,

Aminu Sule

08092253255

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What Do You Know About Money?

Knowledge is power. Ignorance about the subject of money is the most fundamental reason for massive poverty globally. The subject of money is central to man’s comfort and survival in life, yet very very few people take time to really learn about money.

According to Michael LeBoeuf, author of “The Millionaire In You”, there are four critical things you must know about money:

·                         you must learn how to make money

·                         you must learn how to save money

·                         you must learn how to invest money

·                         You must learn how to protect and enjoy your money.

One of the basic rules of financial intelligence according to Robert Kiyosaki, author of “Rich Dad Poor Dad”, is to focus on buying more assets rather than liabilities. Assets are things we legally own which has the capability of generating income. While liabilities are things we own that depletes our financial base.

In order to be knowledgeable in issues bothering on financial freedom, you must broaden your horizon  on business and investment by reading and listening to related resource materials like books, financial newspapers/magazines, audio and video cassettes/discs. You also need to attend money related courses and seminars. This is one of the primary ways you can gather and update all the information you need to succeed in personal financial development.

You also need a mentor. We are all product of references. Whatever you know now, you learnt from someone else. Teachers, coaches, counselors, consultants, or mentors are very essential in helping us not only to learn, but also avoid many unnecessary mistakes. Your education, talents and capital alone are enough to guarantee you success.

Your need to prayerfully and carefully search out someone who is highly successful in your area of passion, and then beg him/her to be your coach. This way you’ll move faster and with fewer mistakes.

Your progress in life is governed by what you know, and those you associate with. Pursue knowledge and push yourself further up in life. Taking time to acquire financial intelligence makes you to easily attract valuable business and investment opportunities you never knew existed before.

Watch out for more inspiring posts on this blog. Feel free to like and share this site with others.

Yours sincerely,

Aminu Sule

08092253255

Personal Finance Fitness Test (PFFT)

PFFT is a simple questionnaire i have designed to help you determine your financial intelligence status and how well you are doing on your journey to financial freedom. Please answer “YES”, “NO” or “NO IDEA” to the following questions.

Questions

1.         Do you save money on a regularly basis?

2.         Do you know your present net worth?

3.         Are you okay with your current financial condition?

4.         Do you know how to increase your cash flow?

5.         Is your savings up to your 6 months living expenses?

6.         Do you have a bank account?

7.         Do you record your income and expenses?

8.         Do you spend than you earn?

9.         Do you reconcile your bank account regularly?

10.       Do you know how much you spend monthly/yearly?

11.       Do you own a house or other landed property?

12.       Do you have other forms of investments?

13.       Do you budget your expenses or you spend on impulse?

14.       Have you taken any form of insurance policy?

15.       Do you have a plan to retire rich and at will?

16.       Do you set aside some money for investment regularly

17.       Do you have a plan for your children’s education?

18.       Do you have an investment account?

19.       Do you a financial mentor or coach?

20.       Do you have more than source of income?

21.       Do you devote enough time to financial issues weekly?

22.       Do you read books on money regularly?

23.       Do you make constant efforts to boost your I.Q?

24.       Do you honour God regularly with part of your wealth?

25.       Are you in control of your financial future?

26.       Are you creating and adding enough value to humanity?

27.       Have you prepared your last will?

KEY TO SCORES: If “YES” is

            20 & above                -           Good shape. Keep it up

            11 – 19                       -           On course. Keep focus

            6 – 10                         -           Week shape

            1 – 5                           -           Poor shape. Need help

No Cause For Alarm

 No matter how bad your case, there is no need to panic. There are ready prescriptions in this blog and other financial resource materials that will offer you very quick recovery if religiously applied. Age has nothing to do with money making. You can start at any age and achieve financial independence.

I hope you find this exercise interesting and useful. If so please help others to get to know about this post. Share with your relations, friends and acquaintances.

Watch out for more uplifting posts on this blog.

Yours sincerely,

Aminu Sule