Financial IQ determines the success of your business since you need intelligence and skill to manage the finance of your company. The concept is used by Robert T. Kiyosaki. He is one of the most inspiring writers and businessmen. He uses unique approach to tell about the secret of the money differently. Financial IQ is one of amazing concepts to describe the important skill for financial management. The success in your life is determined by this intelligence. You need money to fulfill your need and achieve your goal. Money itself can be used to make businessmen richer as long as they know how to manage the finance. You should use your financial IQ to get business success.
Spend less, save more. If you have good financial IQ, you should understand how to manage your expense. The concept of being rich is quite simple. You only need to use your money as efficient as possible. You can use the money to make you richer. When you get profit from business, it must not be used to buy something useless. You only need to take money to fulfill your need. If you only buy something that you want, you may be deceived. Many people spend money on something useless, and they are disappointed with their own decision. Financial IQ does not allow you to do this useless decision. You should save more money and manage the expense. If you want to reduce ineffective expense in your business, you may use the money to build asset. However, saving money is not a good decision in business. The concept in financial IQ may be different. Saving your money in bank can be the worst financial decision. Bank only gives low return to you. If you trust bank to manage your finance, you should learn more about financial IQ. Use the saved money to run business. Use it to buy more asset.
Good debt and bad debt. Use your financial IQ to understand the difference. What is the differences of good and bad? Something good will bring positive result in your life. Something bad can make a terrible problem. If you use debt for good purpose, you may get more opportunity in business. Use the debt from bank to build your asset. Regardless to the interest rate, you can pay it back as long as your business is still promising. How about bad debt? People with poor financial IQ use it to buy something useless. If you spend too much money for expense, you may get a financial problem. Moreover, you must return money with the interest.
Asset and liability. People with awesome financial IQ can understand the difference of asset and liability. Asset is everything that puts money in your pocket. Meanwhile, liability is something that take your money away. Asset brings you more money. Liability spends more money. You should focus on the asset to run business. As we know, business can be the most important asset for businessmen. If you can categorize certain things into these categories, you have awesome financial IQ.