Financial Intelligence

Financial Intelligence is the key starting and/or growing a commercially-viable business that others don't. Financial intelligence leads to seeing opportunity where others don’t. Financial intelligence starts with financial literacy - Financial intelligence starts with understanding how money works.

There’s no denying we’re in an unprecedented time with COVID-19, but it’s not the only crisis the world has ever seen...nor will it be the last. The question many should be asking themselves is, “How do I find opportunity that others are not seeing during this crisis?” In the last crisis the world faced, the 2008 Great Recession, many people lost their fortunes. In this covid crisis, the same thing is happening.

While some people hunkered down in fear and didn’t take risks during the early days of the coronavirus, others were finding ways to innovate and make money. For instance, in the first couple months of the pandemic, independent sellers on Etsy sold $133 million in face masks. Money out of thin air by quickly providing a product everyone needed. That doesn’t happen by accident. People were ready and saw opportunity others didn’t. To put it bluntly, those who are successful in hard times see money when others don’t. This comes down to one big difference --higher financial intelligence.

Money Movements

Every day, even during a global pandemic like the one we’re in now, trillions of dollars are moved around the planet electronically. Whether through government bail out programs or general commerce, there is more money being created and available today than ever before. The problem is that money is invisible. Today, the bulk of it is electronic. So, when people look for money with their eyes, they fail to see anything.

If there were piles of physical bank notes sitting in the street people would run out and grab as much as they can. This is because their level of intelligence allows them to easily know how to see and grab what is physically in front of them, but not what exist in digital form. Unfortunately, when it comes to financial intelligence, most people have a low IQ. Taking advantage of the virtual piles of money in the financial system takes a high level of financial intelligence that most people simply do not possess. They have no idea how to go grab the cash sitting right in front of them.

In fact, most people struggle to live paycheck to paycheck. And yet trillions fly around the world every day looking for someone who wants it—looking for someone who knows how to take care of it, nurture it, and grow it. Money works like an electric current. An electric current must always transfer somewhere. If it cannot find a new home, it will die. This is why money is called currency. It must transfer somewhere or else it will also die. This is why savers are losers. Eventually savings become worthless because of inflation. To keep money alive it must flow to where it can grow. Those with high financial intelligence are attuned to see where money is flowing and how to go where the money is flowing.

If you know how to take care of money, especially in times of crisis, money will flock to you and be thrown at you. People will beg you to take it. If you don't know how to take care of money, money will stay away from you.

Money infront of you

It takes financial intelligence to see money in front of you. A person with financial intelligence seems almost like a wizard with money. They seem to make it out of thin air, and often it seems like this is done almost without any effort. And they seem to always be getting richer. It can be mystifying and maddening for those with low financial intelligence.

If you have a high financial intelligence, you can see where money is flowing, be there before others are, reap the benefits of that money by acquiring assets (including business growth) that grow in value and provide cash flow, and then use that money to then go acquire more assets where more money is flowing. The work is in seeing, then money works for you. It isn’t a magic trick, but you have to study like a magician to be good. It takes dedication for years but it’s the best thing you could spend your time getting good at.

Financial intelligence starts with simple financial education and grow from there. Financial education is important because you needed to train your brain to see money; it doesn't come naturally.

Financial Literacy

Financial intelligence starts with financial literacy. The key to training your brain to see money is financial literacy, the ability to understand the words and number systems of capitalism. If you don't understand the words or the numbers, you might as well be speaking a foreign language. The beginning of financial literacy is knowing words and numbers, and financial literacy is the basis of financial intelligence. The ability to make money with money begins with understanding the language of money.

Start growing your financial intelligence with financial literacy today. At, our mission is to elevate the financial well-being of humanity. Through both free and paid resources, we have dedicated our lives to helping others understand money and how it works so they can live a full and successful life, start/grow businesses. We encourage you to take advantage of the wealth of knowledge on this platform to begin your financial literacy. You can start with the free glossary of terms on this site. From there, we encourage you to continue opening your eyes through the many tools we provide on this platform.

Take the time you have now to develop your financial literacy and you’ll be well on your way to growing your financial intelligence and see money where others don’t.

The Foundations of Financial Literacy

Financial literacy can make your rich or poor. The middle class are getting poorer and poorer whilst the rich are getting richer and richer. A big catalyst for this is the difference between the financial literacy of the middle class and that of the upper class.

Financial literacy foundation #1 - The difference between an asset and a liability

Many people think they know what is an asset. For instance, you probably think your house is an asset—but it’s not (unless you have rental properties that bring you rental income). Your house is not an asset because it takes money out of your pocket each month. Even if you own your house outright, you still have to pay for the taxes, maintenance, and more out of your own pocket. This is why it’s not hard to see that the middle class struggling to buy a house, even as the price of housing has outpaced their earnings, has made them poorer, not richer.

Conversely, if you own a rental property, that can be an asset—if it puts money in your pocket each month in the form of cash flow. When your tenant pays rent, they cover your mortgage, maintenance, taxes, and more. This would explain why the rich, the top 10%, can increase their debt but exponentially increase their assets. They use debt to buy assets that create more wealth.

Financial literacy foundation #2 - Cash flow versus capital gains

Most people invest for capital gains. The rich invest for cash flow. Simply put, investing for capital gains is like gambling. You invest your money and hope the price goes up. For instance, many people buy a house hoping they’ll be able to sell it for more money later. In the meantime, they have to pay their mortgage and home expenses. Money goes out of their pocket. It becomes a liability. When you invest for capital gains you have no control over whether the price goes up or down, and the bigger issue is, if you do make a profit, you pay the highest rate in taxes.

Conversely, the rich invest for cash flow. So, for instance, they buy investment real estate with other people’s money (mortgage), find tenants to pay the expenses, and collect rent each month. It becomes an asset. And if there’s capital gains, that’s a bonus.

By investing for cash flow instead of capital gains, the rich have control over their income and pay the lowest rate in taxes—and sometimes nothing in taxes. But investing for cash flow, while a simple concept, requires a strong financial education in order to make your own financial decisions.

Financial literacy foundation #3 - Using debt and taxes to get richer

Your financial adviser will tell you that debt is bad and taxes are inevitable. But the rich understand that both debt and taxes can be used to create immense wealth. When it comes to debt, there are two kinds—bad and good. When your financial adviser tells you to stay out of debt, he/she means stay out of bad debt.

Bad debt comes in the form of borrowing money for liabilities. Staying out of bad debt is good advice, but the problem is that your financial adviser won’t tell you about good debt. Good debt is debt used to purchase assets like rental property, start and/or grow a viable business.

When you use a lender's money to purchase cash-flowing real estate or prep your business, you use less of your own money to secure an asset by paying only a down payment instead of full price, and your tenant’s rent pays off your debt while you own the asset and pocket the profit.

The rich understand that governments write tax codes to encourage specific types of behavior. If governments want you to build affordable housing, they give you a tax cut. If they want you to buy a home via a mortgage, they give you a mortgage interest relief. If they want to encourage oil exploration, they give you a tax cut. If they want to see higher employment, they give you a tax cut.

The secret is that most tax benefits are made to help entrepreneurs and investors. With the right financial education, you too can utilize the tax code to not only get richer, but also pay nothing in taxes. Utilizing good debt and getting richer through taxes takes a high level of financial literacy. But everyone can learn and put these principles into practices.

Foundation literacy foundation #4 - Making your own financial decisions

When you’re not confident about your knowledge of money, you let others make your financial decisions for you. You let your broker or fund manager decide how your money should be invested. You let your bank tell you what interest rate is worthy of your money. You follow whatever investing trend is popular in the news.

The rich don’t follow the crowds. They set the trends and are gone by the time the trends become mainstream. They think for themselves about money and make their own financial decisions because they have a high financial intelligence. The key to building great wealth is having great knowledge to act on and great wisdom to know which course of action is the best.

This kind of knowledge and wisdom only comes through a high financial intelligence gained from applying yourself to financial education.

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