4 Steps Achieve Financial Intelligence

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

Among these is no need to spend time and energy to make money, but money is working for the "master", ie people who are already independent. choose your career. The question is whether you are financially free?

Generate a productive
Financial intelligence is "best practice" at least cover various aspects. First, how to make money in a productive manner. What does he mean? We all work for sure make money. But the problem is the way we make money is productive? In what sense is the equivalent of the time, thought, and effort devoted to the money generated? Not necessarily.

Listen to complaints around us. Some employees have always been thinking of getting a pay rise constantly. As a result of thinking about salary increases constantly, work became distracted. Or even further, given the company's output decline. In turn the company's performance may decline that may affect the company's inability to pay salaries well.

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

In other words, in order to get the money equivalent to the time, effort, and thought given, perform work activities effectively, which gives effect to enterprise performance improvement. 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 you've 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 are struggling to make money, but on the other hand is very easy to spend or spend it. Rather then being "bigger pegs, rather than pole".

So how to protect the money you've earned, whether it is easy or difficult to obtain. Not much formula to protect the money, because the key word there is the behavior of the owner of the money. If someone is able to control the management of their money, then that money is automatically protected. That's the basic principle.

However, the intelligence of course there are surefire ways to protect your money, in this sense is to protect the value of money. If you currently have money of Rp 100 million, where that much money you could buy a piece of land, for example. So if you hold money remained in cash, it is not necessarily in the next year you can buy a piece of land that is now worth 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 square feet with a value of USD 100 million, the next year, when you need cash, you can sell the land back and the price is certainly higher than Rp 100 million. Call it, for example, U.S. $ 110 million. That means the value of Rp 100 million is currently equivalent to USD 110 million in the next year. Conclusion, carefully saving money in cash, because the value will vary each year. Or in other words, you must hedge against the money you have.

Managing the budget
Is once able to provide protection against the value of money or money you earn, the question is completed? Obviously not. Check back if you are able to finance the activities meet the rules of the third, namely, managing financial budgets effectively. What does he mean? How much of your income are depleted to finance consumer behavior, for example. So how much of your income can be saved. Or are you planning based on consumer finance or run away, followed my instinct.

To be classified as people who have a financial intelligence, every cent of money spent should be based on a need, and has been budgeted in advance. Everything was planned and executed, and then be evaluated where the deviation. How much further irregularities and willing to improve financial behavior undertaken. If you are able to manage your finances like that, then your chances towards financially independent is not making it up.

Fourth, how to better use that money to make money. If you are able to invest and then the investment that 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.

Then what concrete form? It's simple. Calculate how much it costs your routine needs, and then calculate how much of your assets. After that, allocate your assets in the form of productive assets that could provide income. In this case, you do not need to make a profit as high, but the results are lasting. In that way, it means that your money is working for you. And you will be classified in the so-called financial independence. That's what financial intelligence.

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