The 4 areas of financial IQ you should focus on

The 4 things you need to learn to become an investing expert

The cost of being wrong is less than the cost of doing nothing. — Seth Godin

Change isn’t made by asking for permission. Change is made by asking for permission, later. — Seth Godin

Perfect is an illusion that was created to maintain the status quo. — Seth Godin

I didn’t finish reading the book in January. I started writing this series on a weekly basis, then got sucked into rereading the money management notes I had made over the years and rereading personal finance books because…I wanted to provide some legit value.

The Difference Between Things That Happen To You And The Things You Do

In the old model, things happened to you at work. Factories opened, people were hired. Bosses gave instructions. You got transferred. There were layoffs. You got promoted. Factories closed.

Step 1: I printed my life goal which is a quote from Naval Ravikannt.

A calm mind, a fit body, and a house full of love.

Step 2: I made a list of productive habits guided by the quote that I wanted to maintain during this period.

A friend said that since most of us will be financially vulnerable when life goes back to normal, we will see many more Ponzi schemes promising us quick riches. Without the right financial principles, we will fall for it.

Step 3: Created a daily habit tracker.

Every day I cross out (with a screaming pink highlighter to celebrate myself) all activities I have done.

Understand that real wealth is portable; it’s knowledge. — The Jewish Phenomenon.

1. Accounting — Being able to read financial statements

Can you explain where all your money goes after you get paid? Learning basic accounting will make you less intimidated about your finances. With this skill, you will learn how to read your bank statements, read statements from companies you invest with, learn how to create a budget, and how to effectively track your expenses.

2. Investing — The Science of making money

I’m thriving during this working from home period. No morning alarms-sleeping in the morning is my ultimate sign of making it in life! Working when I’m most productive-I’m a night owl! Been waking up past midday and sleeping at 4 am (please don’t be a snitch if you know my boss or workmates!) Is this how the wealthy live? I. WANT. IN!.

You can get a loan for just about anything. But you can’t get a loan for retirement. — Robert Farrington.

3. Marketing/ Markets — Buyer behaviours

Marketing tactics are so well researched that shoppers end up valuing items as opposed to cash as soon as they enter certain stores. Still wondering why so many restaurants in town invest in a perfect ambience? Because smells and sounds make you careless with your cash.

Life Lesson: If something costs $1000 and it’s on sale for $750 and you decide to buy it, you did not save $250.You spent $750.

4. The Law — For Tax advantages

There’s a reason they say ignorance is bliss. I used to think the VAT on ETR (Electronic Tax Register) receipts is revenue for companies. Till I did a class on taxes and shock on me! My bestie still laughs at me about that to date.

Just so it is with the sons of men. Give them a choice of gold and wisdom-what will they do? Ignore the wisdom and waste the gold. On the morrow they will wail because they have no more gold. — George S.Clason, The Richest Man in Babylon

Invest in financial knowledge before investing in financial assets. Skipping this step will cost you more in the long run, the market will derive its own fees from your investment.

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Your voice of reason before you blow all your money this weekend! www.thewealthtribe.com

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