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What is financial intelligence true meaning?

What is financial intelligence true meaning?

High Quality Financial Education Made Simple

Master Investor
May 14, 2023

The Key to Finding Money Where Others Don’t

Financial intelligence starts with financial literacy

The average person invests with 95 percent of their eyes and only 5 percent of their thoughts. We must teach our eyes to be only 5% of what we need to see, and our mind to be the other 95%, if we want to succeed professionally in the Business Owner and Inside Investor quadrants. What is financial intelligence true meaning?

There's no disputing that COVID-19 marked the beginning of a period unlike anything the world has ever known, but it wasn't the first catastrophe, and it won't be the last. Everyone should ask themselves, How do we find opportunities that others are not seeing during these crises?

Summary:

Only those with great financial knowledge may achieve actual financial freedom
By improving our financial acumen, we will be able to see more prospects for money
Understanding the difference between financial freedom and job security requires financial intelligence

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Financial intelligence leads to seeing opportunity where others don’t

The last major crisis the globe experienced before the epidemic was the Great Recession of 2008, during which a great deal of wealth was lost. During COVID, the same thing occurred. It wasn't unexpected.

We should inquire, Where is the money flowing and how can I get there first?

In fact because of that precise question. Shortly after, we acquired apartment complexes at exorbitant prices by using some of the only liquidity still available in the market—Fanny and Freddie loans. We made a lot of money when he sold those homes a few years following the crisis because these deals generated cash flow from day one.

Many investors turned down the chance to put their money into these businesses at the time. They were terrified and unwilling to part with their money. They regret those choices now.

During the early years of COVID, a lot of entrepreneurs experienced the same issue. Others were figuring out methods to innovate and gain money while some individuals hunkered down in dread and refrained from taking risks. For instance, independent Etsy sellers sold $133 million worth of face masks in the first few months of the pandemic, creating money out of thin air by promptly fulfilling a demand. That does not occur by chance. People recognized the opportunity before others because they were prepared.

In essence, individuals who succeed in difficult times recognize money when others do not. The key difference here is greater financial intelligence.

Financial freedom vs. job security

There was a time when parking lots were crowded with people looking for work; wherever we went, there was a job seeker.

But if we asked them, "Why don't they transform themselves financially?" alternatively "why don't we undergo a financial transformation and start our own business?" People frequently respond by saying that it's risky to be an entrepreneur. These people declare, "They would rather have a safe, secure job." However, COVID made it more obvious than ever that the issue is that there is no such thing as a safe, secure employment, and working at a job is among the riskiest activities we can engage in.

Why individuals demand job security

The left side of the CASH-FLOW Circle is driven by security, as can be seen by looking at it. The right is driven by a desire for freedom.

The main reason why so many people in the left side of the quadrant desire stable employment is because that is what they are instructed to do at home and in school.

Millions of people still adhere to the advice as adults. Many of us are trained to prioritize work security over financial security or financial freedom from a young age.

Many people look for happiness and freedom. The issue is that most people haven't received the proper training to operate from the B (business owner) and I (investor) sides of the quadrant.

Instead, they have been taught to look for stable employment. Most people confine their pursuit for financial freedom to the left side of the Cash-Flow Circle as a result of this conditioning and their mounting debt. Regrettably, true financial security and freedom can only be found on the right side; they are rarely to be found in the E or the S side (left side of the cash-flow circle).

However, a new mindset and a new educational process must start in order to go from the left side of the CASH-FLOW Circle to the right side of the quadrant. We must, in essence, increase our financial intelligence.

Understanding how money works is the first step in developing financial intelligence

Trillions of dollars are electronically transported around the earth every day, even during a global pandemic like the one we recently experienced. More money is being created and made available than ever before, whether through government bailout schemes or regular commerce. Money is invisible, which is a problem. Most of it is now electronic. Therefore, when people use their eyes to search for money, they are unable to find anything.

They would rush outside and grab as much money as they could if there were money stacks in the street. This is so that they can easily notice and grasp whatever is physically in front of them thanks to their level of intelligence.

Unfortunately, most people have poor IQs when it comes to financial intelligence. Profiting from the fictitious mountains of cash in the banking system requires a high level of financial expertise that the majority of people just do not have. They have no notion how to get the money that is conveniently placed in front of them.

In actuality, the majority of people struggle to make ends meet. Nevertheless, trillions of them fly around the globe every day in search of someone who wants it—someone who can look after, nurture, and raise it.

This is so that people may understand how money functions. There must always be a transfer of an electric current. It will perish if it is unable to find a new home. Money is called currency for this reason. Otherwise, it will likewise perish, thus it must transfer somewhere. Savers are losers for this reason. Savings eventually lose value due to inflation. Money must move to places where it may grow in order to stay alive. People with strong financial intelligence are able to discern where money is moving and how to follow it.

Money will come to us and be thrown at us if we know how to handle it, especially in bad times. Many will beg us to accept it. Money won't come our way if we don't know how to handle it.

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Financial acumen is required to recognize money in front of us

Master Investor is insistent that having financial intelligence was necessary if we want to see cash flow and understand where it was going. Our concept of financial intelligence was as follows: It's about how much money we keep, how hard it works for us, and how many generations we maintain it for, not about how much money we produce.

A person with financial intelligence appears to be a wizard with money to others on the outside. They appear to create it out of nothing, frequently appearing to do it with little to no effort. And it seems like they're always growing wealthy. For individuals with little financial intelligence, it can be confusing and frustrating.

The truth is that if we possess a high level of financial intelligence, we can identify areas where money is moving, arrive there ahead of others, benefit from that money by acquiring assets that appreciate in value and generate income, and then use that money to go buy more assets where additional money is moving. Money works for you when we put in the effort to see. It's not a magic trick, but to be good at it, we need to study like one. The finest thing we could do with our time to improve is devote years of attention to it.

Master Investor's journey toward financial intelligence began with a basic understanding of money and progressed from there. Financial education is crucial because it takes effort to develop the ability to sense money; it does not come naturally.

Financial literacy is the foundation of financial intelligence

The ability to comprehend the language and number systems of capitalism—a skill known as financial literacy—is the key to teaching our brain to see money. We might as well be speaking a foreign language if we don't comprehend the words or the statistics.

For Master Investor, each quadrant of the Cash-Flow Circle represented a distinct nation with its own language. Employees (E), the Self-employed (S), Businesses or business owner (B), and Inside Investor (I) all have unique worldviews, as well as terminology to characterize those worldviews. If we don't comprehend the words in each quadrant, we won't understand the numbers.

Is it good or bad if a doctor states, "Our systolic is 120 and our diastolic is 80," for instance? Do we really need to know any more for our health? Obviously, the answer is no, but it's a start. It's the same as saying, "My apartment's cap rate is 12 and my stock's P/E is 12." Is this everything we need to know about wealth? Once more, the answer is no, but it's a beginning.

Knowing words and numbers is the first step toward becoming financially literate, and financial literacy is the cornerstone of financial intelligence. It is false to say that "it takes money to make money." towards actuality, learning the language of money is the first step towards being able to create money with money. If money isn't first in our thoughts, it won't adhere to our hands.

Financial literacy will help us to increase our financial acumen right away

Our goal at Master Investor Company is to improve people's financial situation. We have devoted our mission to educating people about money and how it functions through both free and paid tools so we can lead fulfilling lives.

It's time for you to start developing our financial literacy by utilizing Master investor's abundance of knowledge. On this website, the free dictionary of terminology is a good place to start. From there, keep expanding your horizons by using the many resources we offer, such as this free newsletter online, the financial education for boosting our financial literacy and acumen. Or think about looking into Master Investor coaching or classes. With our free podcast for Master Investor, we can also listen and learn.

We will be well on our way to increasing our financial intelligence and seeing money where others don't if we use the time we have right now to improve our financial literacy.

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