How To Best Know Your Money IQ, Assets, And Savings
Money is everyone business! Because it’s generally accepted in exchange of service or goods.
Most lack the financial foundational knowledge of what their money could do for them, and how they can manage their money in our present economic where many individuals in nations are down financially. And one thing you hear from people who are in need of financial breakthrough are rather seeking for loan, but no matter how much money being loan to such people without financial IQ , or what they may obtain from government or private financial institution won’t guarantee the usefulness of what the money can do and achieve for them.
In such purpose, I’ll explain few details why you need financial IQ in knowing your assets and liabilities, rather not loan to incure another debts.
Everyone has money IQ. For some ignorance is blissful. They would rather not know how much money they really have, where it’s going, or where it’s been. As long as credit card will swipe and the creditors aren’t calling, they prefer to keep the financial picture blurred and enjoy spending life investment money; at the other extreme are those who watch every Penny and scrutinize each expenditure. They closely follow the stock market and invest in real estate and other business and worry about bull and bear market with an obsession that keeps them awake at night.
Somewhere between those two extremes is the person who has decided to play it smart with the current value of his money and enjoy life at the same time. It is unfortunate that most people don’t know about spending, saving and budgeting, investing, planning for the future, and other elements of financial planning that create a solid financial foundation, so they may only enjoy life till their money runs out. And some would rather schedule a root canal than create a budget or think about retirement.
If you’re not sure where you fall on the money IQ, take a few moments to answer these simple question to which can help your money IQ.
1. Do you budget your money?
2. Do you pay off your credit card each month?
3. Do you have a savings account? Retirement fund? Investment accounts?
4. Do you protect your money with insurance?
5. Do you plan for big-ticket purchases or do you buy on impulse?
6. Do you have a long term plan for your money?
With the help of such questions it will give you the ability to understand your money, make it work for you, and avoid the pitfalls that could wreck your financial stability. For you do not need a head spinning to education on stock market in order to invest your money. However, you need to follow a few laws and stick to them if you want to brighten your financial future simply put your net worth in order.
Your net worth is a clear and realistic picture of your financial situation. It tells how much true wealth you have, and it helps you manage your money.
What is your net worth?
Your net worth is the difference between what you own (assets) and what you owe ( liabilities). Assets are cash and other property with monetary value. Liabilities are debts that you own. For if this was helpful to understand your financial status and money IQ, please give a thumb-up by sharing this to other social network.[codepeople-post-map]