Financial Safety Advice

80% of millionaires are people who have made themselves, only 20% of millionaires are people who are millionaires by inheritance, lottery or a lucky break in the stock market or other conditions which shows that the more people are rich that is done by their own efforts and not to get it all by chance, however there is a problem, since even just a popular saying is both a truth that “the first generation creates wealth, the second and the third administration spends “this because of different views about money can briefly explain what happens in most cases.

The first generation: Work hard, save, invest and diversify.

The second generation: usually saw their parents worked, saved, invested and diversified, it also helped their parents to get wealth.

The third generation: was not sacrificed as if they were grandparents and did not see it very closely so that they cause a big impact, and lived in wealth and may not have worked hard in the pursuit of goods and money ( or may not have worked at all) only saw the process of investing and diversifying not to earn money, save it and undertake the projects.

In other words without the wealth of financial education a family can begin to wane or permanently in the third generation.

Financial education is gaining importance in different parts of the world, the United States is even starting to provide financial education in schools, but these changes are just beginning and it will take much more widespread throughout the world for most people have to acquire financial education on his own.

Now where or how to get a solid financial education? good way of information and general financial education a person can learn the basics:

Commercial and banking law -Notes, checks, drafts, transactions, interests, commercial contracts such as leasing or lease as well as the establishment of partnerships and laws related to them.

Civil law -It is important for the characterization of the contracts and assumptions made in the law to a contract with certain gaps in it (in some countries when you do not specify the date or the duration of a usufruct contract law presumed to have been concluded for a period of 30 years).

Accounting and Administration -For insight into the mathematical implications of any investment or business (often in some people believe that business is making money but to bring good accounts realize they did not take into account taxes, transportation the goods and the rents and deposits it in the end losing out to winning) in fact the administration and accounting is perhaps the most important part of financial education and you can ignore the knowledge of other fields and leave forward but ignore the accounting and administration may lead to failure although dominate other branches of life. Read the rest of this entry →

Financial intelligence can be defined as the “ability to solve or avoid financial problems financial intelligence has much to do with the psychology of the individual, self-control and self-taught and that financial education is now a new issue that has appeared and has not been integrated into schools in many parts of the world.

Complementing the concept a little financial intelligence should be considered that intelligence itself is defined as a “set of skills used to solve problems and find distinctions, differences and similarities” to which eventually end up with a more comprehensive concept financial intelligence would be “a set of skills used to solve financial problems and may enter in this capacity to increase income or reduce personal expenditures.

In financial intelligence includes skills such as marketing staff, sales, the power to make friends and influence the strategy although some of these skills can be classified within the “social intelligence” as they become relevant as auxiliary financial intelligence.

In his book Child Rico, Smart Kid, Robert Kiyosaky the author notes that her wealthy father Financial ratio defined as where both your money work for you if your money works hard for you then you have a high financial ratio, if your money is not work hard for you then you have no financial intensive.

Fow quadrant of money shows that money flows where it is most closely the self-employed or business owners and investors.