Find Money Where Others Do Not

Financial Education is the Foundation of Financial Intelligence

Master Investor
April 06, 2024

Summary:

True financial freedom can only be achieved when we have financial intelligence.
Improving our financial intelligence makes opportunities for wealth more evident.
Financial intelligence is the key to understanding the difference between job security and financial freedom.

When it comes to investing, the average person uses 95% of their eyes and 5% of their mind. If we want to be a professional in the B and I side of the cash flow circle, we must teach our eyes to be only 5% and our intellect to be the remaining 95%.

There's no disputing that COVID-19 brought us into an unprecedented era, but it wasn't the world's first crisis and it won't be the last. How do I find opportunities that others are not seeing during these crises? is the question that everyone should be asking.

Financial intelligence allows us to identify opportunities where others don't

Prior to the pandemic, the world's most recent crisis was the 2008 Great Recession, during which many people suffered financial losses. The same thing happened during COVID. It was not a surprise.

The question we must ask ourselves is, "Where is the money flowing, and how can we get there first?"

Numerous entrepreneurs in the early stages of COVID monetize trends due to the “crisis” or opportunity for the entrepreneur. While some people hunkered down in fear and avoided taking risks, others found new ways to innovate and make money. For example, in the first few months of the pandemic, individual Etsy entrepreneurs sold $133 million in face masks, creating money out of thin air by immediately supplying a product that everyone need.

This does not happen by mistake. People were prepared and spotted chances that others didn't.

In summary, people that succeed in difficult circumstances see money where others don't. This comes down to one major difference: greater financial intelligence.

Financial freedom versus job security

The more a person chases security the more it pushes freedom away. We must first focus on attracting freedom by investing time and energy in our asset column, then we can achieve security with financial freedom.

There was a time when parking lots were packed with individuals looking for work; everywhere you looked, someone was looking for another job.

If we questioned them, "Why don't you transform yourself financially?" and "why don't you complete a financial metamorphosis and become an entrepreneur?" People frequently respond with the idea that being an entrepreneur is risky. "They would rather have a safe, secure job," these individuals remark. However, COVID has made it clearer than ever that there is no such thing as a safe, secure work, and being an employee is one of the riskiest jobs available.

Why people want job security

When we examine the CASH FLOW Circle, we will observe that the left side is motivated by security. The right side is driven by freedom.

The fundamental reason many people reside on the left side of the cash flow circle and desire employment security is that this is what they are taught to pursue at school and family.

As adults, millions of individuals continue to heed that counsel. Many of us have been conditioned since childhood to prioritize job security over financial security or financial freedom. And because most of us learn so little about money at home or in school, it's only natural that we cling to the idea of job stability rather than pursuing financial freedom.

Many people seek independence and pleasure. The issue is that most people have not been trained to work from the right side of the Cash Flow Circle—the B (Business Owner) and I (Inside Investor) sides.

They have been trained instead to look for job stability. Because of this conditioning and their mounting debt, most people confine their pursuit of financial freedom to the left side of the CASH FLOW Circle. Unfortunately, financial stability and independence are rarely found in the E or S quadrants; true security and freedom can only be found on the right.

However, in order to transition from the left to the right side of the CASH FLOW Circle, a new mindset and educational process must be used. In short, we should improve our financial intelligence.

Financial intelligence begins with understanding how money works

Trillions of dollars are electronically transported around the world every day, including during a global pandemic like the one we recently experienced. Whether through government bailout programs or normal trade, more money is created and available today than ever before. The issue is that money is invisible. Today, most of it is electronic. So, when individuals look for money with their eyes, they don't find anything.

If there were mounds of money on the street, they'd rush out and grab as much as they could. This is due to their high level of intelligence, which helps them to easily see and grasp what is in front of them.

Unfortunately, most people have a low financial IQ. Taking advantage of the virtual mounds of money in the financial system requires a high level of financial expertise, which most individuals lack. They have no notion how to go get the cash that is right in front of them.

In truth, the majority of people struggle to get by on one paycheck. Nonetheless, trillions fly around the world every day in search of someone who wants it—someone who understands how to care for, nurture, and grow it.

This is because money behaves similarly to an electric current. An electric current must always go somewhere. If it is unable to find a new home, it will die. This is why it is called currency. It must transfer or it will perish. This is why savers are unsuccessful. Savings eventually lose their value due to inflation.

To survive, money must flow to where it can grow. Those with great financial intelligence understand where money flows and how to get there.

If we know how to manage our money, especially during a crisis, money will come to us and be thrown at us. People will implore us to accept it. If we don't know how to handle money, it will stay away from us.

The ability to see money in front of you requires financial understanding.

We have insisted that in order to see money and where it was going, we need to have financial knowledge. Our notion of financial intelligence is as follows: it is not how much money we make, but how much money we maintain, how hard it works for us though sound investing, and for how many generations.

Looking in from the outside, a person with financial intelligence appears to be a money wizard. They seem to create it out of thin air, and it often looks to be done with little effort. And they appear to be becoming increasingly wealthy.

It can be perplexing and frustrating for those with less financial knowledge.

The reality is that if we have a high level of financial intelligence, we can see where money is flowing, get there before others do, reap the benefits of that money by acquiring assets that increase in value and provide cash flow, and then use that money to go buy more assets where more money is flowing. The job is in seeing, and money will work for you. It is not a magic trick, but you must study like a magician to be successful. It takes years of effort, but it is the finest way to spend your time improving.

For affluent dad, financial intelligence began with basic financial knowledge and progressed from there. He believed that education was crucial because you had to teach your brain to see money; it does not come automatically.

Financial intelligence begins with financial literacy

Financial literacy, or understanding capitalism's terminology and number systems, is essential for training your brain to see money. If you can't grasp the words or the numbers, you might as well be speaking another language.

For Master Investor, each slide and side in the CASHFLOW Circle represented a new country with its own language. Employees (E), Self-employed (S), Business Owner (B), and Inside Investor (I) all have distinct perspectives on the world and use different words to describe them. In each side, if we don't comprehend the words, we won't grasp the numbers.

For example, if a doctor states, "Your systolic is 120 and your diastolic is 80," is that good or bad? Is that everything you need to know about your health? The answer is obvious: no, but it's a start. It's equivalent to asking, "My stock's P/E is 12, and my apartment's cap rate is 12."

Is this all I need to know about my wealth? Again, the answer is no, but this is a start.

Knowing words and numbers is the first step toward financial literacy, which serves as the foundation for financial intelligence. The phrase, "It takes money to make money," is false. To make money with money, we must first comprehend the language of money. If money is not first in our mind, it will not stick to our hands.

Begin developing your financial intelligence through financial literacy today.

The Master Investor Company's mission is to elevate the financial well-being of humanity through high quality fiancé; education made simple with lucrative opportunities to build passive income an true wealth.

We have dedicated our lives to assisting others in understanding money and how it works so that they can live full and prosperous lives, using both free and paid resources.

It's time to take advantage of Master Investor’s abundance of information and start our financial literacy journey. We can begin with the free glossary of terminology available on this website. From there, continue to open our eyes using the many tools we offer, such as our free content, and courses to help in increasing our financial literacy and intelligence. Consider checking into Master Investor classes or coaching. We can also learn by listening to our free masterinvestor podcast.

Take the time we have today to improve our financial literacy, and we will be well on our way to increasing our financial intelligence and perceiving money in ways others don't.