How Can I Improve My Financial IQ?

If you are looking for ways to improve your financial IQ, you have come to the right place. Financial intelligence is the ability to make sound decisions that can affect your life and your future. It is a critical component in saving for retirement and making ends meet. Having a high IQ also helps you find new ways to invest your money.

One of the simplest ways to improve your financial IQ is to create a budget. By tracking your spending habits, you will be able to reduce your spending and save more. You can use a mobile budgeting app to help you keep track of your spending and see where your money is going. However, tracking your expenses is a good way to get started, but it can become tedious after a while.

There are a number of books you can read to help you understand how to spend your money wisely. This may include reading a book like Rich Dad, Poor Dad or a guide by Beth Kobliner. Other helpful resources include YouTube channels and government agencies that provide educational materials.

Choosing the right type of credit card is a key to improving your financial IQ. A credit score above 750 is a necessity if you plan to apply for a mortgage or take out a loan. Also, having more than one credit card can cause you to lose track of your purchases and your spending habits.

Another excellent way to improve your financial IQ is to set up auto-saving plans. You can have the best of intentions but it is hard to stick to your budget if you are not on top of your finances. Make it a point to set up automatic payments for recurring bills and set up a fund that you can use to cover unexpected costs.

The FINRA Foundation conducted a study which found that only 34% of respondents were able to correctly answer a series of simple money management questions. Most people have a basic idea about how to manage their money but they do not always know how to do it.

Another fun way to improve your IQ is to read a great financial book. These books can teach you all about how to invest your money wisely and how to spend your hard-earned cash. Some companies offer free webinars and workshops to help you with the basics.

In addition to these books, you can also visit local organizations to find cheap finance courses or certified professionals. Investing in your financial IQ can be a fun way to learn more about your money and your future.

If you are ready to start your personal finance journey, it is a good idea to take it slow. Start by analyzing your current balances and bank statements. Check your credit cards and investments. When you are done, make sure you take the time to really absorb all of the information that you have learned.