If you want to have the ability to manage finances so that you have healthy
finances, you need intelligence and financial literacy. So, in addition to
having general intelligence, such as logical-mathematical, lingual,
interpersonal-intrapersonal, and so on, you also need to have financial
intelligence.
What is Financial Intelligence?
Financial intelligence or financial intelligence is a person's ability to
understand, digest, distinguish, and draw conclusions from all components
related to finances. Mastering financial intelligence is an absolute must
for the modern generation because it is related to financial management
skills. This is useful for managing finances so that they can have a quality
life, and have the opportunity to invest in the future.
What to Do to Build Financial Intelligence?
Have Savings and Invest
The first financial intelligence you have to do is to be diligent in saving
and having investments. You have to prepare savings as a handle in old age
and for future needs. Meanwhile, investment is useful to increase the value
of the money you have so that it grows.
Good at Managing Lifestyle
Lifestyle is often the enemy of the modern generation. Unwise use of income
money risks making you poor. Because actually, the necessities of life are
not too expensive, what spends more of your money is your lifestyle which is
sometimes not in accordance with your abilities.
Therefore, you need to create a healthy lifestyle so that your finances are
safe. Arrange the use of income so that it doesn't run out just to follow
the booming trend.
Need vs Want
Needs are everything that must be met for the sake of your survival (and
your family), while desires are more directed to the lust for possession.
You must prioritize needs that are more important than wants. Moreover, if
the desire is only to fulfill a lifestyle, then it should be postponed while
you can.
Financial Literacy
You should diligently read about useful information in financial management.
The digital era makes it easy for you to get financial literacy anywhere,
anytime, and from any source. The more you read and understand, the more
honed your financial management skills will be.
Setting Up an Emergency Fund
An emergency fund is a fund that you need to prepare for sudden and
unexpected needs. Usually sudden events like this require a fairly large
cost, and can even drain the savings that you have accumulated over the
years. Some examples of unexpected events, such as accidents, illness, or
other disasters. With an emergency fund, you don't have to take out savings
and your daily needs won't be disturbed either.
Recording Expenses
As an advanced modern generation, you need to keep a record of expenses and
income you receive. Usually, the recording process is carried out every day,
and at the end of a new period adjustments and evaluations are made. The
goal is to find out the flow of money in and out and see if your expenses
are greater or less than your income. From this note, you can do better
financial planning in the following month.
Assets vs Liabilities
An asset is something that earns you a lot of money, while a liability is
something that causes you to spend money or pay for it. You must be wise in
managing your income by knowing well what assets and liabilities you have.
So that your financial condition is safe, try to get a nominal asset that is
greater than the liability.
Credit Card Management
Using a credit card makes it easier for you to make payments for an item.
However, if you are not wise to use it, then expenses will certainly swell.
Not to mention if you are often late in making payments, the interest may
continue to flower. This is because the use of a credit card does not show a
nominal that you can monitor directly.
Time Management
The character to build the next financial intelligence is time management.
You have to be able to take advantage of the time you have to take every
opportunity that comes your way. Take advantage of this opportunity to
produce things that are beneficial for you and the environment.
Financial intelligence is a necessity in modern life. You need to master
financial literacy to build financial intelligence so that financial
management runs well. Congratulations on applying the tips above and
hopefully your finances will be healthy soon, yes.
