What You Need to Know Immediately To Boost Your Financial IQ

By Holli Rovenger | Financial

Oct 09

 What is Your Financial IQ?

If you’re anything like I was, you have no idea what your financial IQ is.

Some of the first questions you can pose to yourself are:

Have you had any financial education? Do you feel like you have financial literacy?
Even though I did have some formal school education, in the form of an M.B.A., I can honestly say I had no real hands on knowledge about finances. Therefore, it’s probable that I had an extremely low financial IQ.   I turned everything over to my significant other and my financial advisor. I didn’t fully enter into the financial conversation – because I wasn’t comfortable in the financial arena. This is one of the areas where I kick myself and say “I wish I knew then, what I know now.”

Things to Think About to Boost Your Financial IQ

What is your life vision?  Once you take the time to really think about and analyze where you want to be in your life, then you can move into your financial vision.  Its important to think about this because your finances support your life vision. What is your financial vision?

The first step in increasing your financial IQ – you need to know where you are starting.  As a point of reference, it’s kind of like when you are driving a car: you need a starting point and then a roadmap, a step by step plan, to get to where you are going.

You’ll need to see what assets and liabilities you have.  An asset simply puts money in your pocket; a liability takes money out of your pocket.   See how easy that was, you’ve now learned two new words to add to your financial vocabulary and increase your financial IQ.

Video Update ~ EmpoweringWomenMonthly is the origin of The Women’s Inner Circle. Any questions, please email me at Holli@thewomensinnercircle.com.

Financial Terminology Will Increase Your Financial IQ

If you learn financial terminology in a slow step by step process it will be much easier for you.

Some other beginning questions:
Do you have a personalized spending plan, a budget, set up?   Most of us don’t because we have never gotten truly involved in our finances, and we shied away from anything that may have helped boost our financial IQ.  We didn’t get involved because we had limiting beliefs about money, which possibly stemmed from our family and societal values at the time.

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Start by researching these things:

  1. What is your credit score?
  2. Do you have debt?
  3. Do you need to repair your credit score?  If so, a plan to fix it needs to be developed and worked on.
  4. Do you have an emergency fund at hand? Life throws  a lot of curve balls our way, whether it be a medical issue, problems with our car or computer, pet care, etc. and we need to have funds available.
  5. Do you know the difference between saving and investing?

 

Ask yourself these questions – it is never too late to become financially literate and increase your financial IQ.

As always, if you are truly interested in working through your past money beliefs and habits, and want to Increase your Financial Literacy and Financial IQ,  I’m here for you.

Be sure to check out our other Financial Wellness articles ~ this way you will increase your Financial IQ step by step. Do You Know Where Your Money Is? is one of them.

 

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About the Author

My mission is to Educate, Empower and Elevate Savvy Women to step into their full potential and passion for health, wealth and happiness.

I am a dietitian by trade but an entrepreneur in my heart, as well as a best-selling author and speaker who values authenticity, honesty and ethics while taking my message to the world and helping others shift from dependence to independence in all areas of their lives. I see my connections and relationships with others as a way to encourage, energize, and empower them to live up to their full potential.