This is an excerpt from my new book: FINANCIAL INTELLIGENCE FOR YOUNG PEOPLE AND STARTUPS.
Financial Intelligence means mastering the art of handling money. You can determine your financial outcome instead of being controlled by it, regardless of people’s unending wants and needs. Money has a language and until you can speak the language of money, you may earn much but lack productive cash flow. Financial Intelligence suggests that you can productively engage money to work for you and produce expected yields.
With the present economic recession, it is paramount to give attention to the following financial intelligent strategies;
- GET A REGULAR PAYING JOB
A regular paying job is not necessarily a monthly earning job; it is a job that ensures periodic and constant income; it may be monthly, weekly, daily or even quarterly payment. Get involved with an organization that you work with on full time or part time basis and secure a regular channel of income. No matter how young you are, get something legitimate that puts money in your pocket regularly. NOTE: Having this as your only channel of income is not enough!
- WORK AT CREATING MULTIPLE STREAMS OF INCOME
A financial expert, Albert Aina said, “you need at least four channels of income to be financially comfortable”. Whatever services you can offer or talent/skill that you possess can be another money-engine. No matter how much you are paid, do not get comfortable with one or two channels of income. Learn to invest in new ventures, partnerships and entrepreneurship. Get my Empowerment DVD, “Creating Multiple Streams of Income” for diverse investment strategies and how to run them simultaneously.
- LIVE WITHIN YOUR INCOME
The human nature has a way of lifting lifestyle to meet with income level, except the individual deliberately enforces the killing his appetite. The key factor here is discipline. Learn to differentiate needs from wants. Never make any purchase until it’s a genuine need, especially if you are low income earner. Do not live in deficit. Be realistic with your present financial level, as you take steps to increase financial income. Kill your appetite. Do not live to impress anyone.
- ALWAYS USE A BUDGET
A budget is a financial plan clearly stating your financial commitments and how your expected income will be shared to meet each stated need on the plan. A budget is effective only when it is drawn prior to financial spending or better-still, before the said cash arrives at hand. Below is an example of a personal budget of an employee who earns N75000 monthly;
Tithe: 10% (N7500)
Savings: 10% (N7500)
Feeding: 25% (N18750)
Housing: 10% (N7500)
Wardrobe: 10% (N7500)
Education: 25% (N18750)
Parents: 10% (N7500)
This plan is stipulated before the income arrives and for effectiveness, strict adherence is necessary. Your budget should cover your needs. Business start-ups should draw up budget to cover business needs and expenditures. These details vary with businesses.
To continue reading, order for my new book. Click here: FINANCIAL INTELLIGENCE FOR YOUNG PEOPLE AND START-UPS.