Financial IQ
Financial IQ is made up of knowledge from 4 broad areas of expertise:
1. Accounting: Financial literacy - a vital skill if you want to build an empire. The more money you are responsible for, the more accuracy is required, or the house comes tumbling down. This is the left brain side, or the details. Financial literacy is the ability to read & understand financial statements. This ability allows you to identify the strengths & weaknesses of any business.
2. Investing: The art & science of money making money. This involves strategies & formulas. This is the right brain side, or the creative side.
3. Understanding markets: The art & science of supply & demand. There is a need to know the "technical" aspect of the market, which is emotion driven. The other market factor is the "fundamental" or the economic sense of an investment. Does an investment make sense or does it not make sense based on the current market conditions. The same thing goes on to the stock, bond, real estate & baseball-card markets.
4. The law: For instance, utilizing a corporation wrapped around the technical skills of accounting, investing & markets can aid explosive growth. An individual with the knowledge of the tax advantages & protection provided by a corporation can get rich so much faster than someone who is an employee or a small-business sole proprietor. It's like the difference between someone walking & someone flying. The difference is profound when it comes to long-term wealth.
1. Accounting: Financial literacy - a vital skill if you want to build an empire. The more money you are responsible for, the more accuracy is required, or the house comes tumbling down. This is the left brain side, or the details. Financial literacy is the ability to read & understand financial statements. This ability allows you to identify the strengths & weaknesses of any business.
2. Investing: The art & science of money making money. This involves strategies & formulas. This is the right brain side, or the creative side.
3. Understanding markets: The art & science of supply & demand. There is a need to know the "technical" aspect of the market, which is emotion driven. The other market factor is the "fundamental" or the economic sense of an investment. Does an investment make sense or does it not make sense based on the current market conditions. The same thing goes on to the stock, bond, real estate & baseball-card markets.
4. The law: For instance, utilizing a corporation wrapped around the technical skills of accounting, investing & markets can aid explosive growth. An individual with the knowledge of the tax advantages & protection provided by a corporation can get rich so much faster than someone who is an employee or a small-business sole proprietor. It's like the difference between someone walking & someone flying. The difference is profound when it comes to long-term wealth.
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