Financial intelligence and antidote to financial bankruptcy- By AYINLA Ahmed Olorunje

Most of successful business men do not just became successful without applying some scientific rule in to their day to day dealings, their spending culture are always tailored towards a targeted goal.

Have you ever ask yourself why you keep complaining of lack of funds despite your huge investments?

Many salary earner are the most set of citizens that keep complaining and many has not see reason why the situation persist. Thinking out of the box has Always been the chorus. Yes! It's true we must think out of the box to increase our source of income and as we are getting more source of income we must also understand the spending culture in other to increase our purchasing power and give adequate value to our money. 

Increasing your purchasing power isn't just a mere process but a systematic approach that must be followed sequentially. Many call it financial discipline why I call it financial intelligence.

Financial intelligence is a type of business intelligence constituted of the knowledge and skills gained from understanding finance and accounting principles in the business world and understanding how money is being used. *Wikipedia* 

The most important key word here is the usage of funds which constitute the larger part of our problem. As an entrepreneur you must ensure your money gives you desire goal and aspirations, anything less will lead to mismanagement leading to financial bankruptcy.

Understanding the systematic approach to spending of fund will give room for further analysis of the need for holding money. 

Financial intelligence includes the ability to analyze the numbers in greater depth that is the goal of achieving sustainability in financial capability and it will make you understand the big picture i.e how investment can be made either for speculative that will assist to take precautionary measures for financial crisis.

Before we move further, let me analysis the basic reasons for holding money which are:

Transactionary,

Precautionary and speculative; these basic reasons are mostly the reasons why we work or keep our funds we keep for our day to day buying and sellings, we keep money when we envisage a rise and mostly we keep money when we see there might be need for it.

 

Being able to understand how we spend will help to know the process of investment. Its a fact that when their is increase in investment it will increase our income but the multiplier effect of income is the ability to posses a deep knowledge of financial intelligence.

 *Robert Kiyosaki divides financial intelligence into five “Financial IQs”:* 

1. Making more money. This is measured by how 

much money you earn. 

2. Protecting your money. Once you earn your money, you need to hold onto it.

 3.Budgeting your money.

4. Leveraging your money. 

5. improving your financial information

This reasons are very germane. When you make more money and you have the capability to hold on to it, you provide a proper budget spending that commiserate with the value of your earnings, you also provide means to increase how the money is reinvest and you seek for information about economic and financial inflows and out flows, you will be completely out of of financial bankruptcy.

In other to be financially stable you must posses a sound knowledge of financial literacy and this will make you to become financially literate.

Here are some simple ways to help you become financially literate. By *Todd Kusman* 

I. Read Magazines and Online Publishers

II. Use Financial Management Tools.

III. Listen to Money Podcasts. 

III. Take a Financial Literacy Course.

IV. Read the Government Resources. 

V. Break Your Consumer Mentality.

Once you follow these steps highlighted and you break your consumption rate by minimizing it you will become financially sustainable.

Financial literacy is the ability to understand and properly apply financial management skills. Effective financial 

planning, properly managing debt, accurately calculating interest, and understanding the time value of money are characteristics of being financially literate.

If you look at this analogy you will agree with me that being sustainable in spending is just the same as the techniques on how the money is been gotten. Hence; you must posses the ability to hold money and spend inline with the motive of holding the money and you should be very timely.

AYINLA Ahmed Olorunje writes from Ilorin

ahmelas05@gmail.com