How to Wisely Increase Your Financial Intelligence, Part 2

Poor people do not make enough money, largely for the following reasons:

1. They trade time for dollars and never get to determine how much their time is worth.
2. Their earned income is the highest taxed money in the nation.
3. They almost never learn how to turn knowledge into money.
4. They lack the financial IQ necessary to make their money work for them.

In a nutshell that's a poor person's number one problem--not having enough money. So what is enough money? Answer this question. How long could you pay your monthly expenses if you were unable to work on your part time or full time job? If your answer is less than six months you do not have enough money.

I use the following rule of thumb to define "enough money." When you can meet your monthly expenses for six months if you could not work on your job, you have a little more than "not enough" money. If you can meet your expenses for 12 months without money from your job, you have almost enough money. Therefore, my minimum definition of "enough money" is when you could meet your living expenses for 24 months if you could not work a part time or full time job.

Obviously, then, part of the equation includes holding a tight rein on monthly expenses, which means, of course, you need an effective budget. I will write about budgeting in another article in this series.

Oh, you say: "I can use my savings. Not really! You see while your money was "setting still" in the bank, at least as far as you're concerned, it lost significant value. That's the problem with currency. To make currency maintain or increase its value, you must keep it moving in the economy. That's why banks convince you to save money, so they can make more money by keeping your money moving in the economy. Now that's using knowledge to make money. Additionally, guess who banks do not loan much money to--that's right, individuals who trade time for dollars. On the other hand, banking officials love to loan money to those who make money by marketing what they know. Right now, though, you probably do not know enough to convince any bank to "bank" on you. Pardon the pun. Therefore, what can you do right now?

Acquire new knowledge. Let me be more specific with both the question and the answer.

Why are you P.O.O.R. You have become a Person [who] Overlooks Opportunities Repeatedly. Therefore, you never R.E.A.P. Recognize value, Embrace power, Acquire skills and Purchase technology.

Stay with me!

Technology is not complicated, and in this case, I'm not referring to computers. I define technology as a strategy or a tool that turns something, almost anything, into a resource. Consider this example. Fish, in their natural environment, are not human food. Only a technology, in this case a pole, line, hook and bait, or a net, transform fish into a useful resource. Remember this, money-making technology should be effective, efficient and easy to use.

Okay,it's time for you to work as you complete this article.

You need a pencil or pen and paper, and one of your check stubs from your job. Ready? Write down your largest monthly expenses in your household budget. Your biggest expenses are probably your housing, food, transportation and health care costs. Right? Now total how much taxes cost you. Begin with the taxes listed on your check stub. Now include your property and sales taxes you pay when you purchase something. If you're like most employees taxes cost you more than your housing, food, transportation and healthcare costs combined. Right?

Did you know you could get 30 percent, 40 percent or even 50 percent of that money back into your paycheck every payday by making one move that does not cost you any money. In other words, how would you like to put maybe $5,000 of more of your money back in your pocket annually, from the federal government, payable through your payroll check each payday, pay period after pay period continuously?

In other words, not taking this one simple step, is like throwing away $20 each day--Monday through Friday--for a year.

I do not have the time or space here to provide specific details, but the first link takes you to a website where you can see and hear the entire explanation. The second link shows you how to avail yourself of the "technology."

With this new knowledge and the technology, you become positioned to make more money almost immediately, thus solving the first and most crippling problem of P.O.O.R. people.

See you at the top!