Schools and colleges will help you to become a genius in Mathematics or science! A student’s brilliance is reflected in the grades he/she gets.
You might be great at Calculus or algebra. But it has nothing to do with when it comes to managing your finances.
Having the highest education or degrees does not equate with a person being Financially literate(one who knows how to manage money)
In the United States, the literacy rate stands at 80 percent, but the average American personal loan debt stands at $17,064.
Why? It’s a lack of control over our own finances. Having a Ph.D. in mathematics doesn’t guarantee you to be good with Money matters.
How do we solve this?
By becoming extremely good at handling your money. In other words, become a financial genius!
To become a financial genius is in one hands. It’s like any other subject that we learn in schools, if you put your mind & effort into it you can get better at it and finally come out with flying colors.
One catch is there! Your teachers are not going to teach it, Money is something everyone avoids talking about it. It is perceived as evil in the society, yet nobody is willing to work for free:) All complain about low salary raise , blame the boss, economy and the government.
Neither the government or your boss is going to solve your problems.
If you have the blame mindset for your problems you got it wrong, because Money is a wonderful tool to solve most of the problems we have in our life.
So becoming a financial genius is more important than ever!
For that sake, One need to become a financial genius by learning from own’s mistake and importantly from other men’s mistake too.
A genius is the one who find solution quickly for the problem. In the same manner, financial genius is the one who find solutions for the problems quickly and avoid get in to it.
It’s a series of making the right decisions and avoiding the wrong ones.
Financial Genius Qualities:
Financial Genius don’t work for money, they make money to work for them. E.g: Investing
Financial Genius don’t rely on single source of income. ( Job). E.g: Dividend income, interest income
Financial Genius don’t depend on parents and government for income. E.g: Ownership & responsible
Genius develop ” passive income” sources.
They practice patience, because they knew building wealth takes time.
Genius knew high skills get them paid more, So they focus on becoming more skilled.
How to become a financial genius
1.Avoid high interest cards:
Nothing is as stressful than seeing your credit card interest payments growing.
Credit companies charges interest as high as 3.2 % to 4 % per month on your principal.
Financial genius knew high interest loan makes them delay from achieving their financial dreams & goals.
They avoid such cards and knows how to be debt free.
2.Contributing to Emergency fund:
They know the value of Emergency fund.
Nothing comes as helpful in an rainy day like an emergency fund. Failing to create an emergency fund leads to break one’s investment or get in debt to tackle the rainy day.
Rainy day could be home repair, losing one’s job, sudden medical illness or hospitalization.
Emergency fund should have a value of minimum four to six months household spending.
If you have confidence nothing such will happen to me! That’s overconfidence.
Life rewards confident people, but breaks the overconfident guy!
Medical inflation is growing at 8.1 percent on a global rate. In some countries it grows more than 15% per year.
Financial genius knew the cost medical treatments are getting rapidly higher year by year.
So they secure their loved one’s health & their health by taking a good insurance cover.
Also they pay insurance premiums diligently, without a miss!
4. Avoiding late payments:
Late payments cost you more, not only financially but mentally too.
It attracts penalty from banks, dismissal of utility services , interest charges etc.
Financial genius knew paying on due improves their credibility & reputation insight of banking, friends and family.
Maintaining a family can be expensive.
Groceries, rent, school fees, Gas bills happens all the time. Budgeting regularly helps us to keep a track of our spending and cut down the expenses.
Budgeting gives you the flexibility to decide where to spend and how much to spend in advance.
6. Expense track on Kids
Stuffs we buy for kids can be expensive.
As Parents , we tend to spend on kids for expensive dress , premium shoes and toys with excitement. At the same time, kids grow quickly.
Why we do it? I didn’t these things as Kids, but my kid should get it.
If you want to give a better start for your kids give them good experience, food & education. You can also start investing on your kids name in a low cost index fund. It help them to go to good college, start a business etc.
But the expensive dress we bought few months ago for our kids can’t fit in anymore on them. Kid won’t remember you for it, but they will remember you for the support you provided them in educations or financially.
Allocating a budget on monthly basis helps you not to overspend. Saving for kids future is better than spending.
7. Being an owner:
Financial genius know owning assets is a sure-shot way to build wealth.
They own real estate, shares, bond, gold which appreciate their net worth over time.
Also they would be careful not to own too many assets which depreciates over time. (car, latest iphone)
8. Practice minimalism:
Imagine, If you own too many clothes what happens?
You need more space to store it, more work to maintain it like dry cleaning, washing etc. On the flip side, you don’t wear those clothes often. Why to spend time, money and energy on stuffs you don’t use much?
It applies to car, big house etc.
Financial genius knows the advantage of minimalism. They practice it in their day to day lives and make their decisions based on it.
Not owning much stuffs gives you freedom and makes you feel more relaxed.
9. Taking care of health:
In a span of your lifetime, you can experience or buy anything you want more than once.
It could be car, house , new relationship.
But one thing you can’t buy no matter how much money you possess. That’s You!
You got one body and one mind for lifetime. Taking care of it gives you good health to enjoy your wealth.
10. Life long student:
If a person thinks learning stops right after school or college. He is wrong!
A financial genius adapts a mindset of a student. They continue to improve their skills and knowledge by reading, attending seminars and workshops.
They have undying curiosity about learning, they are very well aware of learning takes them places.
If you are looking to start improve your financial knowledge , start here.
11. Staying away from debt:
Being in Debt is a cancer in the journey of one’s financial independence.
Nothing helps a person to achieve his financial goals like staying away from debt.
Debt attract interest, stress, anxiety etc. Staying away from it makes one financial genius.
12. Experience over materialism:
Financial genius puts experience over materialistic things.
A experience is an asset, brings joy, learning, create memories. But materialistic things remain just as a thing.
Even the initial joy fades as time passes! Experience can be vacation, trying new things, travel , adventures, etc.
13. Building good habits
Habits is the foundation of success!
This rule is not an exception in finance, Good money habits brings success and happiness.
Good habits in money are saving, investing, generating passive income, avoiding debts etc.
Financial genius knew this and they practice it from early days of life.
Financial genius know the value of priority.
Prioritizing in money is a behavioral skill. They achieve their goals by priortizing.
Order of priority :
a) Creating emergency fund
b) Investing – making money to work
We may be tempted to invest than creating emergency fund, avoiding such temptations will bring fruits.
15. Delayed Gratification
The urge to dine out, going for night outs, junk foods , purchasing expensive gadgets, YOLO gratifications can be avoided.
Just tell yourself ” I will do it next week”.
Before making a purchase, putting off a decision for a weeks time saves unnecessary splurge. The week’s time gives you time to reflect about your decision.
This way the immediate urge gets killed!
Being financial wise or financial genius takes a few simple principles to hold it. But for life time.
You doesn’t need an Ivy league college degree to manage your finances. Its simple, but not easy.
Stay away from debt, paying on time, saving part of your income & invest will take you long in your life.
So enjoy life & process of growth, don’t rush to become rich! That’s a snare.
If you have any suggestions, please do let me know. Thank You!