Financial quotient
- Thread starter knightm
- Start date
Im hoping it helps! Still here to learn.
I would argue there is a negative correlation between university education time and 'financial quotient'.
It's based on the green dot's, apparently you get red dot's in the RH side of your posts if you're naughty
Sash said:
Never heard of Finance Quotinet before, though I did find this from RDPD
http://www.getrichslowly.org/blog/2008/05/07/robert-kiyosaki-increase-your-financial-iq/
Apparently
I belive its important to develop your emotional intelligence (EI) as an investor and overcoming some fears also, maybe my EI blends with Sash's FQ though?
i.e. overcome some of these fears with knowledge
Last edited:
Making more money. This is measured by how much money you earn. If you make $100,000 a year, you have a higher Financial IQ than someone earning $30,000 a year.
Gotta disagree on that one. I can show you hundreds of people I have met who earn six figure amounts who have a high mortgage debt for a McMansion, two financed 4WDs in the driveway and a boat and a caravan both purchased new, on finance, and and and. These same folks have zilch in investments and live pay-day to payday, not even making additional Super payments. They spend twice as much as I do on groceries, ten times as much on clothes and entertainment etc etc. On the rare occassions they speak to me at work, they tell me how much they admire my guts for investing, as they couldnt posssibly do what i do. (Rolls eyes)
Gotta disagree on that one. I can show you hundreds of people I have met who earn six figure amounts who have a high mortgage debt for a McMansion, two financed 4WDs in the driveway and a boat and a caravan both purchased new, on finance, and and and. These same folks have zilch in investments and live pay-day to payday, not even making additional Super payments. They spend twice as much as I do on groceries, ten times as much on clothes and entertainment etc etc. On the rare occassions they speak to me at work, they tell me how much they admire my guts for investing, as they couldnt posssibly do what i do. (Rolls eyes)
Aaron this is precisely why I am so interested in building my FQ now as I have the classic school/degree/job background (and my job is in the welfare industry) and I know it has done NOTHING for my FQ, if anything hurt it.
REDWING - this is great! Build and Balance these 5 traits and I think that would make a huge difference. I think we should add NETWORK with people who make/protect/manage/leverage their money well.
So 1 out of 5 traits does not a high FQ make? Making more money is great but on its own does NOT equate to a higher FQ. you need to balance it with the other 4.
Does No.1 refer to salary/wages or passive?
Passive, I can understand, but as others have said, people on higher wages/salary will spend more and often more than they earn.
Someone earning $300K post tax passive income would have a higher FQ compared to someone making a loss of $30K from passive income.
It's based on the green dot's, apparently you get red dot's in the RH side of your posts if you're naughty
Had never really taken any notice of those before. I will have to continue down the "GOOD" path. Is this not also proportional to the number of posts?
That is correct. You seem to have grasped FiQ already!
Great post and info redwing.
From my perspective....some of the key traits of wealhy people are defined via the following:
1. They tend to have above average IQs and EQs.....but very high FQ! So they might not have been the smartest or most popular in school ....but they had a burning desire to be wealthy. Really bright people or popular people tend be academics or ego driven...this is an inhibitor to success...if they have too much of this.
2. They develop a simple and repeatable investment strategy and improve this. They don't chop and change....they are decisive and patient. One of the biggest wealth destroyers is not having a clear and well defined strategy. In otherwards they are entrepeneurs.
3. They are persistent and will keep motivated and going even when all seems to be lost.
4. They are well researched and educated. They don't listened to unsuccessful people. You would not believe how many people do things because their solicitor, accountant, financial planner, or broker told them so. The first question I ask is what have you achieved?
5. Above all they are accountable ...they take action...and don't blame others or the environment (economic, status, etc.) for their failures.
My 2 cents worth.....
From my perspective....some of the key traits of wealhy people are defined via the following:
1. They tend to have above average IQs and EQs.....but very high FQ! So they might not have been the smartest or most popular in school ....but they had a burning desire to be wealthy. Really bright people or popular people tend be academics or ego driven...this is an inhibitor to success...if they have too much of this.
2. They develop a simple and repeatable investment strategy and improve this. They don't chop and change....they are decisive and patient. One of the biggest wealth destroyers is not having a clear and well defined strategy. In otherwards they are entrepeneurs.
3. They are persistent and will keep motivated and going even when all seems to be lost.
4. They are well researched and educated. They don't listened to unsuccessful people. You would not believe how many people do things because their solicitor, accountant, financial planner, or broker told them so. The first question I ask is what have you achieved?
5. Above all they are accountable ...they take action...and don't blame others or the environment (economic, status, etc.) for their failures.
My 2 cents worth.....
It's based on the green dot's, apparently you get red dot's in the RH side of your posts if you're naughty
Never heard of Finance Quotinet before, though I did find this from RDPD
http://www.getrichslowly.org/blog/2008/05/07/robert-kiyosaki-increase-your-financial-iq/
Apparently
I belive its important to develop your emotional intelligence (EI) as an investor and overcoming some fears also, maybe my EI blends with Sash's FQ though?
i.e. overcome some of these fears with knowledge
I doubt academics are really 'bright' people. For the most part they are just full-time students who so happen to like doing research or just hate going out to work in the private sector. Nothing smart about that per se.
The second question may well be, what have they achieved
They had to make it into university first didn't they?
And that is difficult these days? Hell no.
In theory; yes.
But I'm testament to the fact that it isn't!
Seriously; anyone on here has a much high financial quotient than most of the planet.
Just being aware of the existence of FQ, and what it means makes yours higher than Joe Thong.
If you went out into the street and asked 100 people what a DS was, most would give you the 1000 yard stare.
But, that depends where you ask too; do it at the top end of Collins st, and a high proportion would answer correctly.
Do it at the Dandenong market and many would ask if it was another type of Gubbmint incentive they hadn't been given.
True. There are loads of very intelligent people with no financial "intelligence".
We were friends with a couple in our apartment block in LA.
Both were PhD's.
She was 50, he was 44.
I'm talking enormously intelligent. She went to Stanford; him - I can't remember.
Still renting, and owned no other assets.
Were thinking about investing though.
Took me a few seconds....I believe BayView is referring to a Depreciation Schedule
We need a thread for the abbreviations used on the forum....what's a DH?
