What’s Your Financial IQ, Really?
It might not be the first question at the top of your list, but it’s an important one to ask: what is your financial IQ these days? Are you staying clued in to the world around you, or are you getting lost with episodes of Doctor Who? Don’t get me wrong — Doctor Who is an ace show, but it’s not making me wealthy. I’ll leave that to the show’s production team. They can make money off the show for the network, but the truth is that I would rather focus on my own financial journey. That’s really the goal of this blog anyway. I want to help people focus on their own finances again. We seem to know more about a celebrity’s net worth than our own, and I really think that it’s a growing problem that needs to be addressed.
You need to know how much you owe everyone in life. You also need to know a monetary figure for what you actually own. For example, if you had a 100,000 GBP house and there’s a 25,000 GBP mortgage on it left, you would have a net worth of 75,000 GBP, not counting the other expenses that you might have in terms of liabilities. The truth is that there are plenty of chances to expand your net worth. You can do this through investments, buying more real estate, or just paying down your bills. If you can get rid of some or all of the debt you owe, then you’re already ahead of other people that have so much more debt ahead of you. They will be slower to clear it than you will, because you’re making it a goal.
Some people have a great financial IQ. They realize the power or credit cards, but they don’t have 10 of them. They have ones that they use for specific purposes. They make sure that the balance is maintained. Some might shave it all the way down to very low numbers, while others might be alright with carrying the numbers to higher heights. It’s completely based on your own financial blueprint, along with the type of goals that you see yourself completing down the road. It’s going to be up to you to figure out which direction you should ultimately take. I can only give you advice. It’s going to be up to you to take matters into your own hands.
