Most of us learn about money from our parents. So what can poor parents tell their child about money? They simply say, “Stay in school and study hard.” The child may graduate with excellent grades, but with a poor person’s financial programming and mindset.

Sadly, money is not taught in schools. Schools focus on scholastic and professional skills, but not on financial skill.

Therefore, if you genuinely want to become RICH, then you should increase your financial intelligence. 

You can read my blog further if you are interested in increasing your financial intelligence. check out Table of content given below for more.

TABLE OF CONTENT

  1.  Why is Financial Intelligence important?
  2.  5 Laws of Money 
  3. Conclusion

I. Why is Financial Intelligence important?

An individual earns and spends all his earned money, and end up with complaining and expecting a hike for salary every quarter. If they think more money will solve problems, they will have a rough ride. Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.

"If you want to be rich, you need to be financially literate."
Students leave school without financial skills, millions of educated people pursue their profession successfully, but later find themselves struggling financially. They work harder but don’t get ahead. What is missing from their education is not how to make money, but how to manage money. It’s called financial aptitude—what you do with the money once you make it, how to keep people from taking it from you, how to keep it longer, and how to make that money work hard for you. 

Most people don’t understand why they struggle financially because they don’t understand cash flow. A person can be highly educated, professionally successful, and financially illiterate. These people often work harder than they need to because they learned how to work hard, but not how to have their money work hard for them.

II. 5 Laws of Money

Law 1 : Save 10% of your income 

Let us assume you earn 30000Rs per month, then spend 27000Rs in your essentials and desires but, save 3000Rs at the very first time you got your salary. This first law mentions that save 10% of your income every months.

Law 2 :  Manage your expenses

Try to avoid extravagant materials and live below your means. Spend in accordance to your income and don't buy luxuries in EMI or in credit. This will make pressure on you to earn more and more day by day and you will be exaggerated and will be worn out soon.

Law 3 : Increase your wealth and Invest

This is one of the most important law to keep an eye on. The 10% which you saved from your income, Invest it. Make every rupees in your pocket to work for you, make it your slave, make it work for you even when you sleep. 

"If you don't find a way to make money while you sleep, you will work until you die."
                                                                                                 - Warren Buffet 


To increase your wealth, the greatest asset to invest is your Brain, develop financial intelligence, read books on investing. Attend webinars and seminars. Take courses and then invest your money.
There are many ways and individual can invest their money such as renting a house, investing in a good business through stock market, renting their cars etc. 

NOTE: Invest in your mindset and increase your knowledge before investing your money.

Law 4 : Protect your treasure from loss 

As I have mentioned earlier that do not invest your money anywhere, by doing this you might not only loose the principle amount which you had earned but also the compounding wealth which might had came from it. 

"Rule no.1 is Never Loose money."
- Warren Buffet

Law 5 : Plan your future Income

 Have Life insurance, health insurance, and have an emergency fund for emergency. Plan your retirement and Future income. Machines are taking over man's jobs as fast as tech sector is growing, unfortunately it might possible that a machine would replace you in near future. So keep learning new skillset and never stop learning. Keep yourself up to date, observe opportunities around you and take action. 

III. Conclusion

Managing personal finances plays a very crucial role in our life. Schools do not teach to manage you finances but at least we can gain knowledge at our individual level by reading books. I would recommend you to read these three books for more proficiency in this subject.
  1. Rich Dad Poor Dad by Robert T. Kiyosaki
  2. Cashflow Quadrant  by Robert T. Kiyosaki 
  3. The Richest Man in Babylon by George S. Clason 
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