Increase Financial IQ | Earn More Money & Achieve Financial Freedom #Finance

Have you ever heard that you go to the bank to take a Loan and the bank manager tells you to bring your degree and we will give you a Loan. If you have done B.Tech, then you will get a Loan of 1 crore. You will say what are you talking

about? Do you get a Loan on the basis of degree? But then why is our society so crazy about degrees? If you see around you, people are only after the degree papers. If we get a degree, then we will be successful in life. But actually, when you need money for your house, car,

business, to expand it. And why do you need money? We will talk about it. Then you will not get any Loan on your degree. You will see that those people who are less educated than you, they get more Loans and earn more money. Why does this happen? Because we are

always shown the value of the degree. But we are never shown the value of building a financial statement. Because the teachers who are teaching in the school, their salaries are very low. And nowadays, I am surprised to see that the topics in schools and colleges are entrepreneurship. Who is

teaching entrepreneurship? The one who has been working in the same school for 15 years. Sorry to say, but the thing is that entrepreneurship is understood by the entrepreneur. Finance is

taught by the one whose own Finances are good. For example, if a doctor does an operation, it is understood. But if a mechanic does an operation, it is not understood. It

happens exactly the same. Academics is understood by the one who teaches mathematics. But entrepreneurship is not understood. Similarly, the one whose own Finances are not

good. The one who is working in a school for 50,000 rupees, definitely he is not doing very well in life. So if he wants to do very well, then he will have to do something else. Or he will have to do something else with it. And if he does very well, then maybe he will not do a job for 50,000

rupees. The point here is that I am talking about you people. It is not that the work is small or big. The teacher is a very noble profession. But the thing is that he also has a lot of Liabilities. He is also living at home. He also has expenses. If there is a Stanford or Oxford

teacher, then he is not getting 50,000 rupees. He already has a lot of money. But the point here is that if you expect from underpaid employees that they should give extraordinary teachings to our future generation. Then this is not possible. The point here is that why we are never taught that we

have to make our Financial Statements. On the basis of which your bank manager will be ready to give you a Loan immediately. If it is good then. But what are the things in Financial Statements? Look, I am simply telling you. Here we are not

learning any accounts. We are talking directly. You will grow in life. Look, I will give you an example. Before the financial statement, we were talking that you may need a Loan of Debt in life. You will see that every big man, whether he is Ratan Tata or Mukesh

Ambani. He has taken a Loan from his company. They are growing by taking a Loan. So if a Loan is taken, then on what basis does the Loan get? And point number two. You people may need it in life. Home Loan is a

different thing. I am understanding car Loan. You may have to take a Loan for business. You are understanding that there is a business in which we can get a 30% Profit per year. But if you have 1 crore rupees, then you will have a

Profit of 30 lakhs. But if you have 10 crore rupees, the Profit percentage will be the same. But you will have a Profit of 3 crores. And even if this money comes on Loan, there is some interest in it. They will also give. Even then

we will save many crores. So now let’s understand that if you ever need leverage in life, then how will you get it? Today we are talking about increasing your financial IQ. Now there are a lot of intelligent people. Warren Buffett says that if your IQ score is very good, then donate a little.

Because if you are thinking of making money from the Stock Market, then you do not need an extraordinary IQ. And similarly, when we talk about financial IQ, then there is nothing extraordinary. There are basic things that you need to understand. Now let’s talk about the

financial statement. And then we will talk about how you are going to increase your financial IQ. So now when we are talking about the financial statement, then you understand here. There are four things. One is your Income that you are earning. Second is your

Assets. Third is your expenses. And the fourth is your Liabilities. Now let me explain a simple thing to you. When we minus the expense from the Income, then our Profit comes here. On which you get tax. And if you subtract the

liability from the asset, then the Net Worth of a person comes from here. How much is your worth? We say that it has a Net Worth of 100 crores. Because he will have Assets of 100 crores and equal Liabilities. So this is how his

Net Worth came out. And if a person is making very good Profits, that is also a very good thing. But these four things can take you very high in life if you start understanding them. People do not pay attention to these things. We are living a life of negligence.

Do you understand negligence? Whatever is going on is fine, whatever is happening is fine. Now if you need to understand these four things, Let’s understand. So Assets are those things that bring money in your pocket. Liability is that thing that takes money from your pocket.

We have understood this in the series that we have to build Assets. Such things that bring money in our pocket. And we have to reduce such things that take money from our pocket. We have to increase our Income and reduce our expense. This is a very simple thing. It

is so simple, but still if I talk about this financial IQ, In developed countries, people who know these four things in detail, Four out of ten people know, six people do not know. And developing countries like India, Eight out of ten people in India do not know these four things. Today if you are

listening on my channel, it is very common. But if you ask a person around you, what is Net Worth? What are Assets? What are Liabilities? So they are living in negligence. They do not know in detail. If you do not know the name, the concept, then

ask the concept. Now the thing is that how are you going to increase your Income? How are you going to increase your Assets? It will not happen in a day. But the focus should be here. That my Assets should be built. Multiple source of

Income should be built. Now to increase your financial IQ, you have to work on three things first. One thing you have to do Budgeting. It is not that you went shopping and bought a shoe for 10,000 rupees. It is possible that the person is earning 25,000 rupees or

30,000 rupees. Today you have money. You added four months of salary. You have one lakh rupees in the account. One lakh rupees is added, but can you buy a shoe for 10,000 rupees? If you have one lakh rupees on it, then he can buy it. Spending ten thousand rupees is a big deal. But it is a big deal.

Here you have to understand a rule. Budgeting has a simple rule. We are talking about increasing financial IQ. You also have to increase your IQ. You have to understand the rule. 50-30-20 rule. Now it is 100%. If a person is earning 25,000 or 50,000 rupees. How to spend it? You can

do it according to this rule. But this rule is valid only until a person’s salary or Income is less than 4 lakh rupees. Things change above 4 lakh rupees. Time changes. Emotions change. Life level also changes. If you are earning more than 4 lakh rupees. Then you will be able

to save more. 50% of what you are earning should go to your needs. Food, water, school fees, etc. These are your needs. Food, water, school fees, etc. These are your needs. So whatever you are earning. You should spend 50% on your basic primary needs. 30% you can spend on your desires. Like buying

shoes. But if a person is earning 25,000 rupees. Then 10% is 2500. And 30% is 7500. So 7500 is your maximum allocation for a month. On those things which are your desires. So desires. If we see. This shoe is of 10,000. And our Budgeting rule says. If it goes above 30% then it will

be a problem. So you can’t afford your shoes. And even if you buy it. Like if you buy it for 7500. Then you won’t be able to spend on your desires for a month. If you earn more than 25,000. Then according to this formula. Things will change. Allocations will change. And minimum 20% You

should save. If you are not saving. Then you are putting your family in trouble. You are putting your financial future in danger. Because you are earning. But you are wasting it. I was watching a CashNews.co on the internet. There was a CashNews.co. That the way we earn. We waste it. I won’t

be able to say it exactly. Because I remember its meaning. So pardon me for that. There was a poem. That the way we earn. We waste it. We never waste money. The way we earn. We waste it. The way we earn. We never waste money. We never waste money. It sounds good. But we have to waste money. Have

you seen baniyas. They have to waste money. And they have cars. And people who don’t waste money. They don’t know where their money goes. So make it a habit. Learn from Gujarati and Marwadi Baniyas. That it is important to waste money. Lakshmi Mata is very mischievous. at

someone’s house or at someone else’s house. So it is very important to keep them safe. So save 20% here. This is a formula for Budgeting. If this is also not happening, then your financial IQ is weak. Point number two, now what you saved, you will not become rich just

by saving. We have heard that Inflation is eating money. Then the second thing comes, investing. Now investing, whether you diversify it or you concentrate it completely, it is your choice. We have also given you a lot of CashNews.cos on investing. If you want to start with a small

amount of money, start with ETF investing. You can watch my no loss CashNews.co. It is a very good CashNews.co. I will suggest it to you myself. More money is added to you. You can invest in Real Estate. But invest. Those who invest, they become rich and that is the full stop.

There is nothing beyond that. You have to become an investor. And when you get more money, then start investing in Real Estate. Finally, the third thing, which is very important, which people ignore and that is Debt management. See, a Loan is not

wrong. If you are borrowing an iPhone, then it is wrong in my opinion. But if you take a home Loan, you have made your home with it. It is not necessary, you will have to understand, but according to me it will not be wrong. If you take a Loan to increase your

business, then it is not wrong. Your direction is right. You are thinking right. And it is very important to manage Debt, but most of the people in India are taking personal Loans. Why do people take personal Loans? To renovate the house. Marriage

comes in the house for that. Emergency comes for that. They don’t get Insurance. There is an emergency. There is no health Insurance. Emergency comes. That’s why people take personal Loans. This Debt management is very

important. And if you manage the Debt properly, you take a Loan. If you repay the Loan properly, then your Sibyl score also improves. So your banker knows that his Sibyl is fine. So next time you have more chances of getting a

Loan. But the person who does not have a Sibyl form, his Sibyl is bad. Means he took a Loan and could not pay the money. Then your Sibyl will go bad. You will not get a Loan. Now the point here is that the financial statement that I talked about,

the four major things in it are a track record of your regular Income. What is important? It is not a matter of earning once a year. Whatever you are earning, your banker will see if you are earning consistently or not. Whatever you are earning, if your salary comes, it will not

come to us. You earn money, you earn Profit. It depends on your business to business. But he will see that every year, your Profits are increasing and increasing. How are the Profits going on? Are the sales going on properly or not? These are some

things that you need to understand. You have to build them. You have to pay attention to them that I do not care about degrees. My financial statement should be solid. Someone will see and say that this man is solid. The second thing is my expenses, which are in the books. Expenses are not wrong.

Your business expenses can be. So the expenses that are increasing, in which direction are they looking? If your expenses are looking to expand your business, then it is very good. Similarly, Assets, are your Assets building from time to time or are the

Assets decreasing? So it will be seen in your financial statement. If you have a house, if you have a Real Estate, then you will put it in the Assets. Your machinery will go into the Assets. So what are the things you have that are

your Assets? And then the Assets should be such that you are producing Income. So you can put cars in the Assets, but Robert Kiyosaki says that it is a liability. You take money from your pocket, but the point is this that make

solid Assets in life and finally Liabilities. This is important that who is to give me? Someone has a Loan on me, he will go into liability. So Liabilities should be less. We understand this, but are there any such

Liabilities? Like we made a CashNews.co before that you can also convert your liability into an asset. If you have not seen that CashNews.co, you can see it by clicking on the link on the top right. But it is important to keep Liabilities low and increase

Assets. And then pay attention to Budgeting, investing and Debt management. I hope you have understood from this CashNews.co, those important lessons with which you can increase your financial IQ. And like most people do not pay attention to these

aspects, you will definitely pay attention. I personally think so. If you have any questions, you can definitely ask in the comments. In fact, if you have your own thoughts, your financial IQ, how can people increase their financial IQ, tell us in the comments. We will meet you in the next

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