Financial intelligence makes you richer than money & thrift

The rich keep getting richer and the poor save themselves poor. But more real wealth requires high financial Education. How can this succeed?

Why money doesn't make you rich

The answer is No. Money alone will not make you rich. We all know Peoplewho go to work every day, work for money, more money to earn, but not get richer. Ironically, for every dollar they make, many sink deeper into debt. We've all heard stories of lottery winners, people who became millionaires overnight and then fell back into poverty. We've also heard stories of properties being foreclosed on. Instead of making homeowners wealthier and financially secure, real estate drives them out of their homes and into the poorhouse.

Many of us know people who have lost money investing in the stock market. Maybe this has happened to you too. Even the Investment in gold, the world's only real money, can cost investors good money. My first real investment as a young adult was in gold. I started to get into gold investbefore I started investing in real estate. 1972, in Age At the age of 25, I started buying gold coins when gold was about $70* an ounce. By 1980 the price of gold was approaching $800 an ounce. The frenzy was in full swing.

Financial intelligence is more important than greed

Greed outpaced caution. Rumors said the price of gold would hit $ 2.500 an ounce. More and more greedy investors started buying gold even though they had never done it before. But instead of some of my gold coins too merchandise and to make a small profit, I held on to it and also hoped that the price of gold would continue to rise. About a year later, when gold fell below $ 500 an ounce, I finally sold my last coin. From 1980 on, I watched the price of gold go lower and lower until it bottomed out at $ 1999 in 250. Although I didn't make a lot of money from it, gold taught me many priceless lessons about money.

When I realized I had money verlieren was able to do by investing in real money, namely gold clearthat it wasn't gold, that is, the asset, that was valuable. It was the information associated with the asset that ultimately made people rich or poor. In other words, it's not real estate, stocks, mutual funds, Companys or money that make people rich. It is information, knowledge advantage, wisdom and know-how that together are called financial Intelligence can describe, which make one prosperous.

Golf lessons or golf clubs

A friend of mine is a golf fanatic. He spends thousands of dollars a year on the latest golf clubs and golf equipment to hit the market. The Problem here is that he refuses to spend a penny on golf lessons. As a result, despite having the latest and greatest golf equipment, his golf game remains the same. If he invested his money in golf lessons and used last year's clubs, he might be a much better golfer. The same crazy phenomenon occurs in gambling for money. Billions of people invest their hard-earned money in assets like stocks and real estate, but almost nothing in information. Therefore, their account balance remains roughly the same.

This is not text that describes how you fast get rich, or give you a magic formula Hand gives. This text is about increase Your financial intelligence, your financial IQ. It's about getting richer by getting smarter. It's about the five fundamental aspects of financial intelligence needed to get richer, no matter how the economy, stocks or real estate markets are moving.

Not a magic formula

Most people don't get rich because the subconscious is the most powerful of the three parts of the brain. For example, people may be studying real estate and using their left and right brains to know exactly what to do, but the powerful subconscious part of their brain can take over and say, 'Oh, that's too risky. what if you lose your money What if you make a mistake?” In this example, the feeling causes the Anxietythat the brain's subconscious is working against the desires of the left and right brain hemispheres. Simply put, in order to develop your financial talent, it is important that you first know how to get all three parts of your brain involved Harmony and not to work against each other.

Many people believe that they need money to make money. That is not true. Always remember that if it is possible to lose money by investing in gold, you can lose money anytime, anywhere. Ultimately, it's not gold, stocks, real estate, hard work, or money that makes you rich, but what you know about gold, stocks, real estate, hard work, and money. At the end of the day, it is your financial intelligence, your financial IQ, that makes you rich. Please read on and get richer by getting smarter financially.

Savers are losers because the rich don't work for money

Today, more and more people are aware of the widening gap between the rich and the rest of the world Welt consciously. Since 1993, more than 50 percent of the increase in national income has gone to the top XNUMX percent of the population. Since then things have only gotten worse. economist the University California found that 95 percent of the increase in national income also went to the wealthiest XNUMX percent. The lesson: the income increases go to the entrepreneurs and investors, not to the workers - not to the people who work for money.

It is always said that for the poor and the middle class, “saving money” is a religion, financial rescue from the poverty and protection from the cruel world. For many, calling savers "losers" is tantamount to blasphemy. The lesson: a picture is worth a thousand words. Look at a table of the Dow Jones industrial index from 120 years ago and you will understand why and how savers became losers. The chart shows that there were three massive stock market crashes in the first ten years of the new millennium. The graphs on the next page represent these crashes. The first crash was the dot-com crash of around 2000. The second was the housing crash of 2007, and then the 2008 bank crash immediately followed.

The real estate crash that wasn't

Bailout of the rich Between 2000 and 2016, banks served the Economy continuously lowered interest rates and printed money. While the ruling elite wanted us to believe that they were saving the world, the rich only saved themselves, while abandoning the poor and the middle class. Today, interest rates are below zero in many countries. That is why savers are losers. The biggest losers today are the poor and the middle class. Those who work and save for money.

In 2007, when subprime borrowers were unable to service their subprime mortgages, the housing bubble burst worldwide and the lesson hit millions of homeowners with full force. Her house was not an "asset."

The real problem: Most don't know that the property crash actually wasn't. It wasn't the poor who caused the property crash. It was the rich. They invented financial constructs called financial derivatives. Warren Buffett calls them "financial weapons of mass destruction." Now, when these financial weapons of mass destruction exploded, the real estate market collapsed ... and it was blamed on the poor subprime borrowers. In 2007, financial derivatives were valued at $ 700 trillion. Today the total is estimated at $ 1,2 quadrillion. In other words, the real problem has not gotten better, it got worse.

That is why the rich are getting richer

In 2007, President Barack Obama was running for re-election against former Governor Mitt Romney. When it became known that President Obama was about 30 percent of his income Taxes paid, while Governor Romney did not even pay 13%, this robbed him of so much voter support that the Choice cost. And taxes also played a central role in the 2016 US presidential election. But instead of finding out how to legally pay less taxes like the rich, the middle class is getting angry. While the President promises to cut taxes on the poor and middle class, the reality is that the rich generally pay less in taxes. The reason for this lower taxation is due to the already mentioned fact that the rich don't work for money. As long as someone works for money, he pays taxes.

Even when presidential candidate Hillary Clinton promised higher taxes for the rich, it was all about taxing the wealthy Income to increase. It was about doctors, actors and lawyers - not the really rich. While I've tried to explain why the rich are getting richer and kept it as simple as possible, what the rich are actually doing isn't simple. Let alone is it easy to explain. What they actually do requires real financial literacy that is not taught in our schools.